Cost-Benefit Analysis of Num-Mango Distribution Channels in Vinh Long, Vietnam

Abstract

The research analyzes Vinh Long's Num-mango value chain's cost-benefit distribution and marketing efficiency. Stakeholder cost-benefits and marketing efficiency were analyzed using a global value chain methodology. 228 farmer households, 20 collectors, 15 wholesalers, 30 retailers, 6 companies, 8 supermarkets/fruit shops, and 10 supporters (5 transporters, 3 agro-input dealers, 1 central market, and 1 phytosanitary inspection 2 for import and export) were sampling observations. The research found 5 market channels, in which 2 export channels, and 3 domestic channels in the Num-mango value chain. Approximately 95.4% of Num-mango volume is consumed domestically, 20 times more than export volume. In particular, the Bac Lieu center market consumes 66.2% which is the most important market for Nu-mango consumption. The Num-mango value chain generates USD 11,238.3 million in profit and USD 74,351.8 million in revenue. Num-mango farmers are the most vulnerable actors in the chain whole. Num-mango farmers should join in scenario 2 (market channels 1, 3, and 5) to increase their profit. Farmers must carefully examine channel 1 and 3 marketing expenditures. In summary, farmers are the most vulnerable actor of all the market channels in the Num-mango value chain. Farmers are encouraged to participate in case 2 for better profit (market channels 1, 3, and 5). However, when farmers participate in case 2, it is necessary to pay attention to the marketing costs of channels 1 and 3. Managing marketing costs is essential not only to help channels 1 and 3 operate more efficiently but also to help farmers improve their profits significantly. This contributes to the channel's more efficient operation and the more sustainable Num-mango value chain.