Value Chain Analysis and the Potential of Cassava-Based Bioethanol in Dak Lak Province, Vietnam

Abstract

Cassava (Manihot esculenta Crantz) is a versatile crop which plays a vital role not only in sustaining smallholders' livelihoods but also in increasing farmers' income in Dak Lak province, Vietnam. This study demonstrated the need for enhanced efficiency in the production of cassava. Thus, this report may lead to enhance the cassava value chain. Nevertheless, the stakeholders who participate in the cassava value chain are facing various disadvantages. Thus, finding out relevant solutions for gradually economic development farmers and stakeholders in order to increase the economic value of cassava are necessary. Furthermore, it can help farmers received more benefit from their main products as well as other actors in the cassava value chain. The study's aim is to explore how to improve and develop the value chain, to increase stakeholders' incomes and particularly, to ensure sustainable household livelihoods. The findings relating to the sharing of value added among the stakeholders showed that farmers created the highest value added but the intermediaries derived the most profit. In addition, relationships existed amongst different stakeholders ranging from input providers to the final users, which were overwhelmingly starch and ethanol factories. There was a local linkage between input suppliers and farmers, both spot-market and persistent relationships which exist between farmers and intermediaries. Furthermore, the distribution of both gross and net profits overwhelmingly favoured the traders and processors. However, intermediaries play an important role and the farmers would not secure full benefits without their support. Moreover, many rural women, who face with the challenges of low rural incomes and gender inequality, improve their role in the farming system based on participation in the agricultural value chain thus enhancing agricultural productivity, household's income, and sustainable development. This study investigates some factors which affect the participation in the production of cassava in Dak Lak province and decisions in relation to the cassava value chain from a gender perspective. The results show that men were prominent in all stages of cassava production. However, there was an equal gender dynamic in both cassava production and participation decisions as well as decisions relating to the quantity of cassava to be supplied for commercial purposes. This study draws attention not only to continue challenges to the role of female smallholder farmers but also to show how women's empowerment which is contingent on equity dynamics in the household as well as social norms in the community and wider society. Finally, regarding cassava-based ethanol production, currently, encouraging the production of bioethanol from cassava has various benefits such as optimal land usage and generating sustainable livelihood for the farmer. Furthermore, these benefits especially need when the issues of greenhouse gas mitigation, deforestation, and fuel fossil shortage seriously at the global level. Cassava is becoming a major crop in Dak Lak province. It constitutes the most important candidate for poverty alleviation strategies and bioenergy production. Hence, cassava is noted to be an appropriate feedstock for bioethanol production. Principally this study was conducted to assess the potential of the available feedstock for the cassava-based bioethanol production. This study's result on the potential of cassava-based bioethanol production up to 11.84 million litres ethanol in the Dak Lak province, Vietnam. In addition, the bioethanol production potential was estimated based on the capacity of the household was fluctuated from over 3,500 to nearly 4,500 litres depending on particular districts. Stemming from the reasons of the farmers and other stakeholders are to seek lucrative distribution channels which bring to higher economic value for the sustainable income of the household and assess the potential of cassava-based ethanol production in this area.