TAILIEUCHUNG - A risk analysis of smallholder rubber production in Quang Binh province
Smalholder rubber farm has been adopted and rapidly developed in Quang Binh Province, playing a very important role in the economic development of the locality such as creating jobs, increasing income for rural laborers, contributing to hungereradication and poverty reduction. However, this model has been facing risks due to the impact of factors such as the volatile prices in the domestic and foreign markets, the vagaries of weather and climate; the increase in natural disasters, epidemics increases costs, reduces production efficiency and the competitiveness of products in the domestic and foreign markets. | Hue University Journal of Science ISSN 1859-1388 Vol. 113, No. 14, 2015, pp. 113-125 A RISK ANALYSIS OF SMALLHOLDERS RUBBER HOUSEHOLDS IN QUANG BINH PROVINCE Tran Tu Luc* College of Economics, Hue University Abstract: Smallholder rubber farms have been adopted and rapidly developed in Quang Binh province, playing a very important role in the economic development of the locality, such as creating jobs, increasing income for rural labourers, contributing to hunger eradication and poverty reduction. However, this model has been facing risks due to the impact of factors such as the volatile prices in the domestic and foreign markets, the vagaries of weather and climate, the increase in natural disasters, increasing costs due to epidemics, reduced production efficiency and the competitiveness of products in the domestic and foreign markets. Under this context, this study assessed the development of the smallholder rubber model in Quang Binh in terms of scale, economic efficiency, and productivity, and based on these findings the study analyzed the risks caused by natural disasters, pest damage, varieties, farming techniques, market and financial risks; it also analyzes the relationship between risks and economic performance to evaluate status of the smallholder rubber model in Quang Binh and how it would be in risky condition, through which specific analysis of economic efficiency in terms of price risk, interest rate risk. On the other hand, the study also analyzed the current use of measures to minimize the risks to consider, evaluate the risk management of the smallholder rubber farms in Quang Binh. Keywords: Smallholder rubber, Rubber in Quang Binh, risk in rubber business, risk analysis 1 Introduction Smallholder rubber farms have started in Quang Binh province since 1993, after the efficiency from rubber trees was realized, and with the funding support (free interest loan) of the Program 327 – "Reforestation of barren land and hills”. However, due to limited .
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