Untitled - Oxfam Blogs

Impacts of Price Hikes
on the Lives and Livelihoods
of the Rural Poor
several hundreds of square meters of paddy land (within the proximity of their houses and irrigation canals)
and garden land for morning glory to sell within their home province and in neighboring provinces in the
North-West region. Growing morning glory requires intensive labour for collection and bunching at night and
transport at dawn to the market to sell to the traders. In return, the income gained from morning glory crops
is twice as much as from paddy crops for the same acreage of land.
Dak Lak – maize and coffee production. Only a few households have increased their maize acreage as they
shift from peanut and bean crops. The last year has seen a 20-30 percent fall in maize output due to
unfavorable weather conditions (droughts at flowering time and excessive rain at harvest time). Almost all the
households interviewed mentioned a decline in sales of maize in the last year (Figure 3.9). Both poor and nonpoor
farmers have not observed any clear changes brought about by the application of advanced techniques
(except for the change of seeds, for example from CP888 or G49 in the first crop of 2008 to NK66/67 in the
second crop of 2008).
Figure 3.9: Changes in Maize production patterns in Dak Lak in the last 12 months (%hhs)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Maize in Dak Lak - Poor hhs
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
Same
Decrease
Increase
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Maize in Dak Lak - Non-poor hhs
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
Same
Decrease
Increase
Source: Questionnaire survey of 180 households (July-August 2008)
Investment by poor EM households in fertilizers has declined as the cost of fertilizers increases and agents
provide fewer loans. Forty-five percent of poor households interviewed said they had reduced their use of
fertilizers. Many of them are only using drilling fertilizers and shifting from NPK to single ingredient fertilizers
excluding Kali (as the price of kali fertilizer is very high) and achieving less output. Nevertheless most betteroff
Kinh households (particularly those with regular salaries) have managed to maintain their investments
in fertilizers and pesticides according to recommended technical procedures.
Figure 3.10: Impact of Rising Prices on the Poor in Cu Hue commune, Dak Lak
More adversely
affected by rains and
droughts
More hired
jobs
Delays with their
own upland
cropping
Shift from maize
to cassava
The poor EM farmers
grow cassava without use
of fertilizers, deteriorating
soil condi tions, and
reduced output in
f
Rising prices
Reduced use
of fertilizers
No pre -crop fertilizers
Only single ingredient fertilizers,
no Kali
Reduced
Productivity
Reduced
Incom e
Reduced pork
production
Rice and
fertiliser loans
Sales upon
harvest
Increased prices of
gas & petroleum
Higher feeds costs;
redu ced selling
prices of products,
more di sease
outbreaks
High interest
rate, no access
to loans by poor
EM farmers
Low selling
prices
Increased costs
of services and
transport
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