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Impacts of Price Hikes
on the Lives and Livelihoods
of the Rural Poor
Quang Tri - Cassava Production. As the price of cassava increases, certain households (30 percent of those
interviewed, Figure 3.12) are trying to clear more land for cassava cropping while some others (about 20 percent)
cannot because of soil degradation. Neither the poor nor non-poor households use fertilizers for their cassava
crops. Sixty percent of poor households have seen their cassava output fall resulting in declining sales value.
Figure 3.12: Changes in Cassava production patterns in Quang Tri in the last 12 months (% hhs)
Cassava in Quang Tri - Poor household
Cassava in Quang Tri - Non-poor household
Same
Decrease
Increase
Same
Decrease
Increase
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cultivation
area
Yield
Use of
Fertilizer
Use of
improved
techniques
Volume of
Sale
Source: Questionnaire survey of 180 households (July-August 2008)
Reduction in pork production by the poor. At all three study sites there has been a “shock” of the local
livestock production. In Dien Bien and Dak Lak, most farmers have reduced their pork production as the
price of hogs has fluctuated unpredictably while the costs of breeds, feed and veterinary drugs have gone
up very high over the last year due to frequent outbreaks of diseases. In Quang Tri, farmers still keep pigs
in the extensive way. At the time of the study (August 2008) an outbreak of “blue-eared” disease meant
they could not sell any pork because of the ban of transport of hogs/pork out of their village.
In Dak Lak, the price of hogs in mid-2007 was 20,000 VND/kg, up at Tet to 2008 to 30,000-31,000
VND/kg; and sharply increased to 40,000-42,000 VND/kg in April-May 2008 (as there was no supply
of hogs/pork from Northern provinces also due to the disease outbreak). By June-Aug 2008 the price
of hogs fell to only 28,000-29,000 VND/kg.
Extensive farming. As the costs of agricultural inputs and the cost of living increases farmers tend to return
to extensive farming practices. In Quang Tri poor farmers are returning to their former upland villages to
grow more food crops. At the study sites when food prices increase the poor EM people become more
dependent on traditional livelihoods such as the collection of wild vegetables, bamboo sprouts and fire wood
from the forests (Dien Bien, Quang Tri) and catching fish and crabs from the rivers (Quang Tri).
Unfortunately, these resources are becoming more scarce and people have to travel further and spend more
time searching for less.
The poor are doing more hired jobs. Getting hired for manual jobs is the last resort for the rural poor
during the price storm (Figure 3.13). Wages have increased considerably over the last year. In many places
it is difficult to hire local workers as most have left to find jobs elsewhere or to work for manufacturing
enterprises. In 2007 in the Thai village of Pa Dong, Thanh Xuong commune, Dien Bien, members of 60
percent of households (including the village head himself) left to find jobs. Men went into town for
construction work and the women moved to neighbouring villages/commune for rice and maize
harvesting). In Dak Lak, the poor can find jobs locally (for example, coffee/maize tending/harvesting).
Workers also come from the Central provinces in search of seasonal jobs such as coffee harvesting prior to
Tet holiday. The increased cost of labour has helped improve workers’ daily food intake. The disadvantage
of doing seasonal jobs, however, is that upland farming work is often delayed, hence the risk of droughts
(at time of flowering) or excessive rain (at harvest time).
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