Description

Abstract: This paper studies the recent boom and bust in Vietnam’s coffee economy. Data from smallholder coffee farms in the Central Highlands are used to examine responses to a drop in producer coffee prices. A multinomial logistic regression model is used to identify several factors associated with four specific patterns observed among coffee farmers: no response to price change, reductions in use of purchased inputs, changes in crop mix, and responses aimed at enhancing liquidity through off-farm work or borrowing. Patterns of response are shown to have differed systematically across sub-groups of smallholders. Policy implications raised by the findings are discussed.