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Asia-Pacific Network for Global Change Research

Asia-Pacific Network for Global Change Research

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Peer-reviewed publication

Agricultural commercialization: Status and determinants among ethnic minority smallholders in A Luoi district, Thua Thien Hue province, Vietnam

Agricultural commercialisation is considered one of the critical solutions to increase income and reduce poverty for ethnic minority farmers in mountainous areas. A survey of 221 ethnic minority households in A Luoi district, Thua Thien Hue province, shows that households’ agricultural production is relatively diversified, but the household commercialisation index (HCI) is at a low-medium level (0.429). The HCI value for crop commercialisation is higher than that for livestock commercialisation. The value for fruits, maize, cassava, cows, and buffaloes is higher than that of the rest. The variables positively affecting HCI are the fruit trees land scale, the number of sub-labourers, the income from migrant labourers, the buffalo number, the value of own inputs, the cow number, the chicken number, gender of
the household head, the number of motorcycles, and the maize-land scale. The variables negatively associated with HCI are the number of agricultural labourers, income from hired labourers, income, the level of expenditure, the upland rice-land scale, and food security. Several critical policies for enhancing the HCI include expanding livestock production and focusing on cows, buffaloes, and chickens; converting a part of upland rice to fruits, maize, and cassava; and providing financial and vocational training courses for labourers working for non-farm and off-farm activities.