NEEDS OF TEA GROWERS FOR PARTICIPATING IN TEA PRODUCTION INSURANCE: A CASE STUDY IN PHU THO PROVINCE, VIETNAM

Abstract

The research has evaluated the situation of tea production of tea growers in Phu
Tho Province, Vietnam. Average tea plantation area among the largest group of
households is 0.61 ha. In production, the types of risks that tea growers encounter
include: unfavorable weather (33.4%), diseases (13.2%), insects and worms
(2.3%), capital (0.3%) and price which is the most major risk (50.8%). The survey
of 1,000 tea growers identified that 46.7% of the households are in need to
participate in tea production insurance. The average willingness to pay was
estimated to be 2,407.07 (thousand VND/ha/year).If the agricultural program is
successfully implemented in the province, it is estimated to have a total agricultural
insurance fund of 34-35 billion VND/year. The survey results show that gender,
education level, tea growing area and location are factors that affect the level of
willingness to pay for agricultural insurance for tea trees. There are four solutions
which are proposed to enhance the participation of tea growers in agricultural
insurance for tea: (1) Development of an insurance product for the production of
fresh tea leaves for easier access from farmers; (2) Active communication on
agricultural insurance policy to local authorities, farmers' union, agricultural
expansion stations and especially the farmers; (3) Close collaboration between
local authorities and enterprises in the review on current mechanisms and policies
to timely propose adjustments and supplements to meet the needs of farmers on
agricultural insurance; (4) Strengthening coordination between the State, insurance
companies, credit and financial institutions and farmers.