Promoting sustainable farming systems through technical efficiency enhancement: insights from the vegetable producers in Vietnam

Summary

Promoting sustainable farming systems, such as “Good Agricultural Practice” (GAP) and organic farming is crucial if problems such as damage to human health, biodiversity loss and environmental degradation are to be halted. However, a barrier that prevents many farmers, especially in developing countries such as Vietnam, from adopting GAP or organic practices is uncertainty about productivity. Efficiency gains can improve the performance of certified farms, but little is known about how to achieve that concretely; particularly in the vegetable sector. This study aims to estimate technical efficiency (TE) and identify factors affecting TE in sustainable (GAP and organic) versus conventional farming using stochastic frontier analysis, based on a sample of 412 vegetable farmers in Vietnam. Our findings show that vegetable yields in GAP and organic farming could increase by 19% to 29% without additional inputs, compared to a 26% potential increase in conventional farming. Production inputs such as labor, pesticides, and fertilizers positively affect crop yields, while socio-demographic and farm characteristics have minimal impacts on technical inefficiency. We found that cooperative membership positively affects TE in organic farming but negatively impacts TE in conventional farming. Importantly, farming joy is a key factor in improving TE in sustainable systems, while environmental care boosts TE in conventional farming. The findings suggest that farmers in sustainable farming systems (GAP and organic) can increase their crop yields by better utilization of production inputs such as labor, fertilizers and pesticides. Policymakers and development agencies should prioritize supporting organic cooperatives and restructuring GAP cooperatives to enhance their operational effectiveness. International programs promoting sustainable agriculture should also incorporate farmer well-being and intrinsic motivation, such as farming joy, as key components of extension and training efforts. Additionally, policies aimed at raising environmental awareness among conventional farmers can improve efficiency, providing a pathway toward more productive and ecologically responsible farming systems worldwide.