Coffee vs. Cacao

2786 WordsSep 17, 201112 Pages
Coffee vs. Cacao: A case study from the Vietnamese Central Highlands. World Food and Fiber – PSSC392 Case Study #1 Final Report Introduction Dak Lak is the largest province in the Central Highland region of Vietnam. Due to its perfect climate, soil and topography for coffee production, Dak Lak’s economy is once based in agriculture and forestry with coffee cultivation the dominating industry. Despite signs of a long-term collapse in coffee prices, temporary profitable returns to coffee production and government schemes have encouraged many new coffee planters in the early 1990s (Ha & Shively, 2005). Large areas of forest land have been destroyed and converted for new coffee plantations. In addition, temporary price rises…show more content…
Although insecticide is a necessity, its effectiveness in tropical area remains unsteady and relatively low; thus, farmers must take the risk of having their plants die or harvesting less qualitative crops despite their best efforts and usage of those crops’ protectants. Its vulnerability to certain insects and fungi has caused the loss of “an estimated one-third of the world’s cacao crop” each year (Ha & Shively, 2005). The costs for preventing those losses could become unaffordable to many farmers. The price of cacao has fluctuated and remained unsteady; farmers may be incapable of making through another round of low reselling-price of their harvested crops, particularly if they have already planned on borrowing additional money to restart their agricultural businesses. As growing cacao will require farmers to have additional sets of skills and knowledge, another drawback will be their lack of intellectual support which will negatively interfere with their cacao growing enterprises. Identification of Decision Makers To decide whether switching from coffee to cacao or not, there are several people who can impact the outcome of such decision. As one of the members of the village council, Mr. Nam definitely has the greatest impact because he strongly believes what he has been researching is right for the village as well as its economy. His
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