Determinants of Successful Cooperation in Agricultural Markets: Evidence from Tea Producer Groups in Thai Nguyen City, Viet Nam

Tran Anh Vu^1, , Tran Trung Vy² and Doan Thi Mai³

¹International School, Thai Nguyen University

²Ha Long Univeristy

³Thai Nguyen University of Agiculturel an Foresty

Cite this paper:
Tran Anh Vu, Tran Trung Vy and Doan Thi Mai. Determinants of Successful Cooperation in Agricultural Markets: Evidence from Tea Producer Groups in Thai Nguyen City, Viet Nam. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2022; 10(1):1-9. doi: 10.12691/jbe-10-1-1

Abstract

Farmers’ cooperative play an important role to help members increase their access to supports of information, technology, capital and marketing, enhance productivity, and increase income. This paper ultilized the theoretical foundation and empirical evidence on percieved of farmers and identifies factors that affect their decisions to join associations (cooperative or enterprise). The reseach examines the impact of joining farmers’ associations farmers in Thai Nguyen city, Vietnam by using the data from the survey of 381 farms. The study was be applied the following statistical treatment: Exploratory Factor Analysis (EFA); Confirmatory Factor Analysis (CFA); Structural equation model (SEM) to identify the factors that influence the decision of tea farms to join farmers’ organizations. The findings show that the farmers are more cosideration joint cooperative than enterprise, because of helpful in the ability to access better market services and more tea prices, and are more likely to earn a higher average income. The research results also show that other factors, including: Psychological factor, Social factor, Organizational factor, Formal structures and rules, Member characteristic affect the farmer’s decision.

Keywords:
tea value chain tea production successful cooperation economic factors

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