FACTORS AFFECTING THE MAINTENANCE OF ORGANIC RICE PRODUCTION CONTRACTS: A CASE STUDY OF TWO COOPERATIVES IN THUA THIEN HUE

Abstract

This study focuses on identifying the factors affecting the maintenance of organic rice production contracts through examining a case study of two cooperatives, An Lo and Phu My 1, in Thua Thien Hue province. The production model in An Lo is based on a centralized cooperative coordination approach, while it is based on peer monitoring and the voluntary participation of Participatory Guarantee System (PGS) members in Phu My 1. A mixed method was used, based on earlier research findings in An Lo, 14 in-depth interviews with farmers taking part in Phu My 1, and two group interviews in each cooperative. The findings indicate that the two models differ significantly in terms of quality monitoring, production space, and farmer mobilization strategies. The voluntary participation model typically yields more reliable earnings because of using family labor and optimizing costs. One of the most important elements in maintaining contracts is economic efficiency, but sustainability is only enhanced when there is a strong enough institutional foundation and production organization mechanism to promote trust and boost farmer participation and engagement.