Impact of Conversion to Organic Tea Cultivation on Household Income in the Mountainous Areas of Northern Vietnam

This study aims at determining if organic tea farming results in higher net income than conventional tea farming in the mountainous areas of Northern Vietnam. Our sample includes 226 traditional and 319 organic tea-producing households in the provinces of Thai Nguyen, Phu Tho, Ha Giang, and Lai Chau. Using a propensity score matching approach, the study finds that the adoption of organic tea production had a positive impact on households’ farm income in the study area. Using different matching algorithms, organic tea adopters earned higher income than did non-adopters, from 1038.8 to 1059.0 thousand Vietnamese Dong (VND) per hectare of cultivation plot. To increase conversion to organic tea farming amongst smallholder farmers, the government and other stakeholders should aim to provide better extension services, which incorporate relevant training to farmers and better access to information on organic tea production, as well as encouraging the commercialization of organic fertilizers. Simultaneously, the Vietnamese government should introduce mechanisms to coordinate production activities and deliver tea products to processing and/or marketing facilities