Cost of Monitoring to Promote Value Addition for

Cost monitoring to promote the benefit for clam
raising farmers in the Northern area of Vietnam
Bui Thi Nga1,*, Tran Thu Hoai1, Tran Huu Cuong2 and Philippe
Lebailly3
Department of Business Management, Faculty of Accounting and Business Management, Hanoi University of
Agriculture, Trau Quy, Gia Lam, Hanoi, Vietnam +84
1
Department of Marketing, Faculty of Accounting and Business Management, Hanoi University of Agriculture, Trau
Quy, Gia Lam, Hanoi, Vietnam +84
1
2
Department of Economics and Rural Development, Gembloux AgroBio Tech, University of Liege, Passage des
Deportes 2, B-5030 Gembloux, Belgium + 32
3
CONTENT OF THE PRESENTATION
1
Introduction
2
Objectives and research questions
3
Methodology
4
Cost monitoring in clam farming
5
Conclusions
1. INTRODUCTION



The economy of Vietnam has
grown gradually.
Since 2005, Vietnam become
2nd country in Asia has
highest economic growth rate
2000-2011: Income increase
5 times
High income growth rate
stimulated high nutrition food
consumption, including
seafood
16
Milk consumption growth rate

China
Vietnam
14
12
10
8
6
4
NZ Asia
2
0
Phillippine
US
0
2
4
6
India
8
Income growth rate
10
Source: Nancy, 2008, FAO, 2009, GSO, 2011
1. INTRODUCTION




Since 2000s, significant changes in traditional production
systems of coastal municipalities in Vietnam: rice and
salt marshes farms converted to aquaculture production.
Clam farming in the coastal provinces developed,
generated high income, improved socio-economic
development
However: many clam raising farms facing difficulties of
farm management, disease control, markets and systems
of quality control.
In addition, climate change is likely to significantly affect
these areas particularly exposed to sea level rise.
4
2. OBJECTIVES
 Analyze
the performance and efficiency of clam
farming
 Research situation of cost management in clam
farming in coastal provinces in the Northern VN.
 Analyze the basic factors affecting clam farming
 Suggest some solutions to improve income/profit
for clam raising farms.
RESEARCH QUESTIONS
1. How is the situation of clam farming in the recent
years?
2. How is the cost management on clam raising farms?
3. What are the factors affecting cost management in
clam raising farms?
4. How can we improve cost management in clam raising
farms?
3. METHODOLOGY: CHOOSE THE STUDY
SITE

Vietnam has long
coastal area, with 2
major areas of clam
farming: Northern and
Southern

At farm level: not good
performance.
3. METHODOLOGY: STUDY SITE
 Thaibinh




and Namdinh provinces:
Located in the Northern area, have the highest
productivity and quantity of clam raising farms in
Vietnam;
Farmers in these two provinces have a longer
experience in clam raising
Clam is the key economic sectors, bring the major
source of income for clam raising farmers
Clam raising in these two provinces has to cope with
challenges in sustainable development.
3. METHODOLOGY: SAMPLES
+ Structure questionnaire:
89 clam raising farms
+ Informal conversational interviews:
In-depth interviews, Key informant interviews, PRA, Group
discussions, Ranking, Observation
4. PERFORMANCE AND EFFICIENCY OF CLAM
FARMING
Indicators
Unit
Revenue
Million VND
Total output
Tons
Price
Thousand VND/kg
Intermediate costs
Million VND
Cost for seed
Million VND
Cost for material
Million VND
Cost for renovation pond Million VND
and intertidal
Other expenses
Added value
Million VND
Million VND
Wage
Million VND
Interest rate
Million VND
Land rent
Million VND
Gross profit
Million VND
Quantity %
492.48
revenue
of
100.0
43.2
11.4
190
38.6
140.2
28.5
34
6.9
7.9
1.6
7.9
1.6
302.48
61.4
176
35.7
100.8
20.5
13.2
2.7
10
COST MONITORING IN CLAM RAISING
FARMS
Cost for seed
After 21
months,
farmers
received only
12.48 million
VND (583
USD)
Gross profit
accounted for
only 2.5%
total revenue
Cost for
material
3%
3%
Cost for
renovation pond
and intertidal
29%
21%
Other expenses
7%
36%
2%
2%
Wage
Interest rate
Land rent
11
- 75% NUMBER OF FARMS
FACED WITH THE SITUATION
OF MASSIVE DEATH
- MORE THAN ONE THIRD FARMS GOT LOST, ONE THIRD
GOT BREAK-EVEN, ONLY ONE THIRD GOT PROFIT
[CATEGORY
NAME],
[VALUE]%
[CATEGORY
NAME],
[VALUE]%
[CATEGORY
NAME],
[VALUE]%
12
Monitoring cost based on recording in clam raising farms
Indicator
Frequency Level
(%)
Usually
28
Often
18
Sometime
5
(%)
Detail
10.7
Record main information
42.8
Time
of Information
record (%)
record
Every day
0
Weekend
0
When remember
39
Cost
53.5
Revenue
28
13
FACTORS AFFECTING THE FARMS’ ECONOMIC
PERFORMANCE AND EFFICIENCY
Farmers’
characteristics



Age of farmers was high:
had experience,
accumulate capital  big
investment decisions.
Old age for renovation,
application new things:
knowledge, scientific
method, technology, etc.
Almost farmers did not
want to join
course/training/applying
new things in their farms
(even without any fee).
56-60
years old
51-55
years old
46-50
years old
41-45
years old
36-40
years old
%
14
0
10
20
30
FACTORS AFFECTING THE FARMS’ ECONOMIC
PERFORMANCE AND EFFICIENCY
Farmers’
characteristics



Most farmers had
primarily and secondary
school (78.57%).
None of them had higher
degree or technical
certificate.
None of them was trained
technical skill of clam
raising or farm managing
 difficult to acquire sciencetechnology knowledge.
High
school,
21.43%
Primary
school,
35.71%
Secondary
school,
42.86%
15
MARKET
Farmers: understanding of market mechanisms
limited difficult to support for investment decision and
marketing.
 Value chains did not equal distribute in the sector.
 Producers were exposed to high- price volatility: relative
variability of supply, demand remained unstable,
especially
afterAND
the problems
product quality
LOCATION
AREA OFrelated
CLAMto
RAISING

FARMS
located in the coastal line, easily affected by pollutants
from the use of agro-chemicals in the upstream area and
from areas of habitat, the water quality,
16
 climate change, cause natural disasters massive death

5. CONCLUSION
Clam farming in the coastal provinces of Vietnam has
notably developed and provides farmers a chance of
getting high income parallel with high risk.
 Capacity of farm cost control; farmers’ experience, skill,
technique and ability of risk control; unstable market
and unsuitable market channel; and the area and
location of clam raising were the four major factors
affecting the performance of clam raising farms.
 Despite these difficulties, many surveyed farms still
want to expand or will continue their production.

17
RECOMMENDATION
Cost control of the farmers should be improved: Clam
raising farmers should be trained to monitor and apply
a cost monitoring in their farms to improve their
performance situation and enhance their profit and
benefit.
 Improve the ability of the farmers  cope with the risk
in their production and their lives.
 Government and local authorities support, create,
maintain a stable market for clam raising farmers

18
THANK YOU FOR YOUR
LISTENING!

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