THE IMPACT OF MANUFACTURING PROCESSES AND ECONOMIC EFFICIENCY ON THE MAINTENANCE OF ORGANIC RICE PRODUCTION CONTRACTS IN THUA THIEN HUE

Abstract

This study focuses on clarifying the factors influencing the household’s maintenance of organic rice contracts in Thua Thien Hue province through a comparison of two representative models: An Lo and Phu My 1 Cooperative. A mixed method was used, based on the results of two focus group interviews and the quantitative results of a previous study in the same area. The results show the significant differences in terms of farmer mobilization mechanisms, production space, and quality monitoring. The operation of An Lo is coordinated by the cooperative, centralized, contiguous area, while Phu My 1 relies on the voluntary participation of PGS households and peer monitoring. Therefore, the model based on voluntary participation tends to achieve more stable profits due to cost optimization and using family labor. The study confirms that economic efficiency is a necessary but not sufficient condition for maintaining production contracts. The sustainability of the model depends simultaneously on institutional resources and production organization mechanisms, which help build trust and encourage participation in it.