income strategies, land use strategies and investment capacity with respect to both
short- and long-term natural resource maintenance activities. More specifically we
hypothesize that:
• Risk aversion and limited access to markets induce poor farmers to diversify
their income sources as a risk coping strategy and to rely more on natural
resources for their income generation activities (Sect. 5.4.1).
• The poor, due to their low investment capacities and limited information access,
have less input-intensive production systems and invest less in the maintenance
of short-term soil fertility (Sect. 5.4.2).
• Lower investment capacity and higher levels of risk aversion induce poor
farmers to participate less in the long term maintenance of natural resources
through the adoption of conservation technologies or participation in environmental programs (Sect. 5.4.3).
5.4.1 Poverty and Income Diversification
5.4.1.1 Income Diversification Strategies in Northern Vietnam
14
Income growth and urbanization in developing countries have increased the size of
the market for high-value agricultural commodities, offering the opportunity to
alleviate poverty in rural areas if farmers become linked to such markets (Pingali
and Rosegrant 1995; The World Bank 2007: 118). In Vietnam, rapid economic
growth since the 1990s has led to a diversification of diets and to an increased
demand for meat, eggs and dairy products (Rapsomanikis and Maltsoglou 2005;
Minot et al. 2006). Rising from 16 to 40.7 kg, annual per-capita meat supply
increased by more than 150 % between 1990 and 2007 (FAOSTAT 2011). Maize
(Zea mays L.) is the primary source of feed for Vietnam’s rapidly growing livestock
and poultry industry; therefore, the demand for maize has grown dramatically and is
expected to further increase in the future (Thanh Ha et al. 2004; Dao et al. 2002;
Thanh and Neefjes 2005). Consequently, maize production in Vietnam has
increased sharply and the sector is now highly commercialized, especially since
the government began to support and promote maize hybrid technology in 1990.
Since then, higher-yielding hybrid varieties have been widely adopted, and maize
has become the second most important crop in the country after rice (Thanh Ha
et al. 2004; Thanh and Neefjes 2005).
Such commercialization, however, has exposed farm households to market
related risks and increased their dependence on purchased food, consequences
aggravated by the fact that commercialization often entails farm-level specialization (Pingali and Rosegrant 1995). Depending on the variability of output and
input prices, on the price of food and on access to food markets, a high degree
14 This section is based on Keil et al. (2011).
5 Linkages Between Agriculture, Poverty and Natural Resource Use. . .
195
short- and long-term natural resource maintenance activities. More specifically we
hypothesize that:
• Risk aversion and limited access to markets induce poor farmers to diversify
their income sources as a risk coping strategy and to rely more on natural
resources for their income generation activities (Sect. 5.4.1).
• The poor, due to their low investment capacities and limited information access,
have less input-intensive production systems and invest less in the maintenance
of short-term soil fertility (Sect. 5.4.2).
• Lower investment capacity and higher levels of risk aversion induce poor
farmers to participate less in the long term maintenance of natural resources
through the adoption of conservation technologies or participation in environmental programs (Sect. 5.4.3).
5.4.1 Poverty and Income Diversification
5.4.1.1 Income Diversification Strategies in Northern Vietnam
14
Income growth and urbanization in developing countries have increased the size of
the market for high-value agricultural commodities, offering the opportunity to
alleviate poverty in rural areas if farmers become linked to such markets (Pingali
and Rosegrant 1995; The World Bank 2007: 118). In Vietnam, rapid economic
growth since the 1990s has led to a diversification of diets and to an increased
demand for meat, eggs and dairy products (Rapsomanikis and Maltsoglou 2005;
Minot et al. 2006). Rising from 16 to 40.7 kg, annual per-capita meat supply
increased by more than 150 % between 1990 and 2007 (FAOSTAT 2011). Maize
(Zea mays L.) is the primary source of feed for Vietnam’s rapidly growing livestock
and poultry industry; therefore, the demand for maize has grown dramatically and is
expected to further increase in the future (Thanh Ha et al. 2004; Dao et al. 2002;
Thanh and Neefjes 2005). Consequently, maize production in Vietnam has
increased sharply and the sector is now highly commercialized, especially since
the government began to support and promote maize hybrid technology in 1990.
Since then, higher-yielding hybrid varieties have been widely adopted, and maize
has become the second most important crop in the country after rice (Thanh Ha
et al. 2004; Thanh and Neefjes 2005).
Such commercialization, however, has exposed farm households to market
related risks and increased their dependence on purchased food, consequences
aggravated by the fact that commercialization often entails farm-level specialization (Pingali and Rosegrant 1995). Depending on the variability of output and
input prices, on the price of food and on access to food markets, a high degree
14 This section is based on Keil et al. (2011).
5 Linkages Between Agriculture, Poverty and Natural Resource Use. . .
195