How Does Traceability Adoption Affect Farm Performance in Lotus Production in Central Vietnam?

This study investigates the impact of traceability adoption on farm performance in Vietnam’s lotus value chain, focusing on revenue, productivity, and output price. The research endeavor employed stratified sampling, systematically dividing regions into districts and communities to obtain data on lotus cultivation in Central Vietnam. To assess the effect of traceability adoption on the performance of lotus farms, survey data from 363 respondents across central Vietnam were analyzed. The study employed propensity score matching (PSM) to evaluate the average treatment effect and mitigate the risk of selection bias. The results indicate that farmers who adopt traceability achieve higher revenue, productivity, and output prices than those who do not. In addition, the study's findings reveal several elements that may affect the decision to use traceability in lotus cultivation in Central Vietnam. The factors encompass the age of the household head, the quantity of plots designated for Lotus production, and the number of collectors involved. These findings underscore the importance of improving traceability in lotus production to facilitate sustained enhancements in the standard of living in central Vietnam. Enhancing the sector's sustainability and growth could be accomplished by promoting young involvement in lotus farming and increasing land accessibility for growers, supported by government initiatives.