Value-chain analysis of custard apple (Annona squamosa), with suggestions to improve farmers’ incomes in Tay Ninh province

Abstract

Value-chain analyses from the production to consumption stages of custard apple (Annona squamosa) are discussed in this paper. Limitations to small landholders’ income through processes of the value chain and ways of improving the chain are described.

Value-chain methodology was applied on custard apple chain which include of actors in the Tay Ninh province in South-East (SE) Vietnam to assess limitations that occurred from the production to the consumption stage, then to develop strategies and make recommendations to enhance profitability for farmers in the chain.

The key findings of the custard apple value-chain analysis are: (a) Farmers and collectors/ wholesalers play a very important role in the chain; however, the processing factory is the primary factor that influences the whole custard apple chain; (b) Information about the market and prices governs farmers’ benefits and income; (c) Cooperation and coordination among farmers are the best means to reduce risk and loss if the price were to depreciate; (d) Interaction between custard apple producers and processing enterprises is necessary for a sustainable consumption system; and (e) Small-scale farmers are dependent upon the price of custard apple to mitigate risks.