479KHON KAEN AGR. J. 44 (3) : 479-490 (2016). KHON KAEN AGR. J. 44 (3) : 479-490 (2016).แก่นเกษตร 44 (3) : 479-490 (2559).
Socio-Economic Factors Influencing Farmer’s Adoption of Stone Jatropha (Vernicia montana) Cultivation in Northern Lao PDR
Khambai Phunthavongsa1, Thanaporn Athipanyakul2 and Naruemol Kaewjampa1*
ABSTRACT: This paper reports the findings of socio-economic factors affecting farmer’s adoption of Stone Jatropha (Vernicia montana) in Xiengnguen district, Luangprabang province, north of Lao PDR. Data collection was gathered from 156 Stone Jatropha farmers, using stratified random sampling techniques. Descriptive statistics and percentage, means, standard deviation using chi-square test and t-test were employed for the analysis of data. The influencing factors and the impact of Stone Jatropha adoption using logit models were also examined. The findings revealed that adopters of socio-economic variables included level of education, ethnic group, main occupation, second occupation, religion, key decision makers, household income, trust in buyer and land holding. Socio-economic interaction influence certain factors which are key decision makers, trust in buyer and education level show to influence the decision of farmers adoption was significant at p<0.05. Trust in buyer and male decision maker were positive determinant of adoption while, education was negative determinant of adoption. The conclusion can be drawn that adoption of Stone Jatropha cultivation in this area needs an effective approach, which can improve farmers’ knowledge and technologies, price and marketing. Keywords: adoption, Stone Jatropha (Vernicia montana) promoted, influencing, socioeconomic.
1 Land resources and environment section, Department of plant sciences and agriculture resources, Faculty of Agriculture, Khon Kaen University, Khon Kaen, Thailand, 40002
2 Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University, Thailand10900
* Corresponding author: [email protected]
Introduction
Demand for fossil fuel is very high at
international level with China, India and Brazil
representing three of the top ten energy
consuming nations in the word and their share in
total consumption will increase (Mapemba, 2013).
The crisis in the 1970’s provided an initial
drive for the search of new energy sources. It is
increasing dependence of the economies to
function with the help of oil on the energy
renewable production. The European commission
proposed that by 2020, all member states must
meet at least 10% of their transport energy needs
through renewable sources (Renewable Energy
Sources Directive) (Bhattarai et al., 2011;
Beccles, 2013).
Since 2000, Lao People Democrat ic
Republic (Loa PDR) has increasingly imported oil
annually by approximately 5% and been likely to
rise up to 10% with the increase of high demand
for energy needed in industry, transport,
households and agriculture (Chantho, 2009). The
country lacks conventional energy resources such
as oil and natural gas and 100% of fossil fuels are
imported from Vietnam, Thailand and other
countries (Vongvisith and Theuambounmy, 2015).
Therefore, there is an urgent need for alternatives;
among others are biofuels such as bio-ethanol
and biodiesel. Currently, Lao PDR has been
promoting a cultivation of Vernicia montana Lous,
commonly known as Stone Jatropha or makyaohin
480 แก่นเกษตร 44 (3) : 479-490 (2559).
or tung oil tree in Lao, Thailand and China
respectively for a production of biodiesel. This
plant is a member of Euphorbiaceae family. It is
a shrub that has milky, latex texture and very
small. Typically, it has greenish flowers, which
change to a brown bark with age (Chen et al.,
2010). A significance of this crop in tropical and
subtropical agriculture has been recognized for
vegetative soil erosion protection, industrial use,
sufficiency economy production using Vernicia
montana oil for subsidy on household use,
improving income of rural livelihoods and
alleviating poverty problem. Stone Jatropha can
be used as feedstock for biodiesel and is very
popular around the world, especially in Africa and
Southeast Asia. With no exception, cultivated
areas in Lao PDR are more than 13,000 ha in
2015. In Luangprabang province alone, the total
area of 7,421 ha has already been cultivated (Lao
Government, 2015).
While parallel to development of renewable
energy resources, energy efficiency and energy
conservation issues have played a more and more
important role in the energy sector in Lao PDR
(Gaillard et al., 2010). The biodiesel project was
completed by 2009. It is always a case linking to
food security, and poverty issues, when growing
plant for different purposes. Farmers, however,
have their own choice to convert their food crops
to fuel crops and naturally expect a high return
from their farmland, despite, generating a
scenario where food production falls (Escobar
et al., 2009; Kumar et al., 2009). Economics of
production of biodiesel is a determining factor in
making biofuel programs successful. However,
the benefits obtained from the farmer practices of
upland agricultural farming, including this
program, are relatively low and sometimes the
total income was barely sufficient to cover the
financial input (Lua et al., 2013). To date, there is
no research on adoption of Stone Jatropha in Lao
PDR. The challenge therefore is to study the
adoption of this crop, and to investigate factors
influencing its adoption in Lao PDR. Results of this
study can be used as guidance for policy makers
to better understanding the process of farmer’s
adoption, for instance, how to quantify the change
in the number of adopters over time to evaluate
the impact of biodiesel program in Lao PDR.
Methodology
Population, sample size and data collection
The survey was conducted in 2014 in
Xiengnguen district, northern region of Luangpra-
bang province (Zone 48Q, 204816.56mE,
2187387.03mN), Lao PDR (Figure 1). The
stratified random sampling technique was applied
for select two farming villages (Samakeesay and
Donmo) in this area. There were 156 farmers
involved, which can be distinguished into two
groups; 1) 67 farmers, who grew Stone Jatropha
(adopter) and 2) 89 farmers, who did not grow
this crop (non-adopter). These sample size was
selected base on sample size equation (1)
(Yamane, 1973). Selected farmers were
randomly interviewed to achieve a reasonably
significant level at p<0.5. All samplings were
employed to capture mainly the characteristic of
small-scale farmers in Stone Jatropha (Vernicia
montana) cultivation.
481KHON KAEN AGR. J. 44 (3) : 479-490 (2016).
Figure 1 The study area in Xiengnguen district, Luangprabang province, Lao PDR
Questionnaire survey and interview
A household questionnaire was designed and
administered for this study. It explored information
on socio-economic characteristics of households,
their farming systems, land holding, farm resource
endowments, farmer perception on the Stone
Jatropha systems and farm management data,
etc. The interview of 156 famers’ focus group
consist of 67 adopters and 89 non-adopters was
used to conduct early after the household
questionnaire administration was completed to
ensure that individual farmer was significant
proportion of the total number of households in
each village an influencing an outcome of the
farmer’s group argument on implementation. In
addition, in-depth key interviews and focus group
interviewees were held to determine the factors
influencing adoption
Conceptual framework
The conceptual framework of this study is
based on the theory of diffusion of innovations.
According to the theory, the innovation decision
process can lead to either adoption, a decision
to make full use of an innovation as well as the
best course of action variable, or rejection, a
decision not to adopt innovation. Such a decision
can be reversed at a later point (Roger, 2003).
Wüstenhagen et a l . (2007) opined that
technology adoption is a dynamic process in
which information is gathered. Learning and
experience play a pivotal role, particularly in the
early stage of adoption. The adoption pathway of
Stone Jatropha (Vernicia montana) cultivation is
hypothesised to be influenced by a host of
variables, we categorize variables broadly under
personal factors (gender, age, marital status,
number of household, relative, education level,
main occupation, ethnic group, religion and key
decision maker), physical factors (land holding
and land rent) and economic factors (income and
trust in the buyer) on the literature review of
farmers adoption behaviour (Gebrezgabher et al.,
2015). Personal characteristics, age, gender,
482 แก่นเกษตร 44 (3) : 479-490 (2559).
education, main occupation, ethnic group, relative
and religion are considered the important
influential factors affecting adoption of Stone
Jatropha cultivation in agricultural and social
aspects that are also important to a determination
of the adoption behaviour of the farmers. Under
social characteristics, there are the influences of
individuals perception about Stone Jatropha
cultivation and his/her attitude about social
acceptance are considered, while perception of
an individual is related to locally perceived
benefits (Mwangi, 2015). As an economic factor,
household income is used to examine the
influence of standard of living on the decision of
practicing Jatropha cultivation. Moreover, the
nature of primary occupation, present cultivated
area and accessibility to land resources are
also included under economic factors. The
conceptual framework of the determinants of
Stone Jatropha cultivation is present in Figure 2
Figure 2 Conceptual framework of farmers’ adopting innovation
Theoretical framework
Independent variable
Socio-economic status of farmers in the study
included age, number of household members,
education level, household income, land holding,
land rent. Data editing and coding took place
before statistical analysis using SPSS program
was commenced. Summary and illustration of
findings were carried out through descriptive
statistics including frequencies, mean and
standard deviation. Finally, establishment of
significantly influencing selected socio-economic
factors adoption and sustainability of the Stone
Jatropha (Vernicia montana) cultivation was done
through hypothesis testing by using Pearson’s
Chi-square (χ2). This test was suitable as the
scale, nominal and ordinal with the categories of
farmers who either adopted and farmers who were
non-adopters of Stone Jatropha (Vernicia
montana). The test were performed at a 5% level
of significance (p<0.05).
Empirical model
A logistic regression model was applied to
identify factors affecting the adoption of Stone
Jatropha by farmers in area studied. The
multiple-logistic regression model was used
because it sufficiently provided relevant
information on adoption probability and the
intensity of use on stone jatropha projects or
subsistence utilization.
483KHON KAEN AGR. J. 44 (3) : 479-490 (2016).
The unknown model parameters β0, β1
……….βn are ordinarily estimated by maximum
likelihood. The odds ratio in of favour of practising
Stone Jatropha cultivation can be written in
equation (3)
Li=In …..…… (3)
The dependent variable is the natural log of
the probability of a household engaging in
adoption of Stone Jatropha (Pi) divided by the
probability of not engaging in non-adoption Stone
Jatropha of (1-Pi). Dependent variable: adoption
or non-adoption cultivation of Stone Jatropha
(if adoption then 1, otherwise 0)
The variables of this study were selected for
model development as shown in Table 1
Table 1 Description of factors that influenced household respondents.
Variable Scale measurement
Description
Dependent VariableY Farmer who has cultivated Stone Jatropha (adopter) is
equal to 1; those who has never cultivated Stone Jatropha (non-adopter), otherwise.
Independent variable1 Continuous Number of household member2 Dummy Gender; Male =1; 0 otherwise3 Continuous Age 5 Continuous Educational level 6 Dummy Main occupation; Agriculture = 1; 0 otherwise7 Dummy Religion; Buddhism = 1; 0 otherwise8 Dummy Key decision; Making decision by husband =1; 0 otherwise9 Continuous Income
10 Dummy Trust buyer; somehow trust and trust = 1; 0 otherwise11 Continuous Land holding
Logit(P(Y=1|X1,……,Xn) = β0 + β
1 + X1+….+ β
0Xn ……. …(1)
This implies that,
Results and Discussion
Socio-economic characteristics of adopter and
non-adopter of Stone Jatropha (Vernicia montana).
The study was conducted on 156-household
samplings. Of the total number selected, 42.95%
were adopter and 57.05% were non-adopters of
Stone Jatropha (Vernicia montana) cultivation. As
shown in Table 2, gender of non-adoption group
comprised 60.70 and 39.30% of respective male
and female whereas 73.10 and 26.90% of
adopters were male and female, respectively. The
484 แก่นเกษตร 44 (3) : 479-490 (2559).
gender relative of labor within families showed
that the percentage of male adopter was greater
than that of non-adopters with almost all groups
being married (88.80% for non-adopter and 94%
for adopters). Relative in families was shown that
68.50% of non-adopter had male as head of
family while there were 71.60% in the case of
adopter. In this case, the relative group adopters
were not significant ly di f ferent form the
non-adopters.
In addition, household’s main occupation
showed slightly over 30% of both adopters and
non-adopters being dependent solely on
agriculture whereas second occupation (workers
and government officer) showed 18.60% and
12.80% of the adopters and non-adopters
respectively. The ethnic background of adopters
was Lao Moung and Lao Kreamu (25% and
29.50%, respectively) and most of non-adopters
were Lao kreamu (33.30%). Religion analysis also
showed that 46.10% of non-adopters and 20.90%
of adopter were Buddhism with 4.50% Christianity
for non-adopters group with 13.40% of adopters.
It was surprising that 49.40% of non-adopter and
65.70% of adopter believed in ghost (spirits).
Religion was significant difference between
non-adopters and adopters and the finding
agrees with the study conducted by Ogunleye et
al. (2008). Key decision makers was shown both
husband and wife together played a significant
role in terms of decision making in the household,
having 50.70% and 58.40% of the total surveyed
families for respective adopter and non-adopter
groups. Husband tended to have more role in this
context for adopter group (41.80%) compared to
lesser number (24.70%) for non-adopter group.
The result was consistent with Sysaneth and
Duangsavanh (2009), who reported that
percentage of both decis ion makers in
households and more than half of the respondent
farmers 53.7% said that both husband and wife
were decision makers together. Similarly,
Mensah-Kutin (2006) reported that since 1981
convention of 179 countries including many in
Africa have committed to this trend and are
expected to take concrete measures to promote
women’s part ic ipat ion in al l spheres of
development as leaders, decision makers and
beneficiaries. Generally, key decision makers in
families were significantly different between
non-adopters. Also, the role of women is
established in sustainable development and
importance of promoting greater opportunity for
women accessing resources to enhance their
status and socio-economic well-being (Verloo,
2001). While no trust was 83.10% for non-
adopters with 46.30% for adopters group, partial
trust was 15.70% for non-adopters with 32.80%
for adopters group, and trust (completely trust)
was 1.10% for non-adopters with 20.90% for
adopters group respectively. Moreover, trust of
buyers in this study found that farmers tended not
to have trustworthy in buyers led affected to the
decision to farmer adoption in this plant which
trustworthy in buyer depended on difficultly
production and selling, lack of marketing
information, limited factory, low price and market
price depended on buyer referral (German et al.,
2011).
485KHON KAEN AGR. J. 44 (3) : 479-490 (2016).
Table 2 Key descriptive statistics for variables of Stone Jatropha (Vernicia montana) adoption (N=156).
Item Test Non-adopt (%) Adopter (%) χ2 p-valueGender Male 60.70 73.10 2.646a 0.104
Female 39.30 26.90Status Single 4.50 0.00 3.163a 0.206
Married 88.80 94.00Divorced 6.70 6.00
Main occupation No occupation 3.40 0.00 14.253a 0.027Agriculture 56.20 77.60Student 1.10 0.00Own business 10.10 10.40Worker 4.50 6.00Government 21.30 6.00Company 3.40 0.00
Ethnic group Lao Mung 4.50 3.00 11.153a 0.004Lao Luam 43.80 19.40Lao Kreamu 51.70 77.60
Religion Buddhism 46.10 20.90 12.320a 0.002Christian 4.50 13.40Ghost (Spirits) 49.40 65.70
Key decision makers Husband 24.70 41.80 9.039a 0.029Wife 5.60 6.00Both 58.40 50.70Other 11.20 1.50
Trust buyer No trust 83.10 46.30 28.110a 0.000Partial trust 15.70 32.80Trust 1.10 20.90
As shown in Table 3, the average age of
non-adopters and adopters was 47 and 49 years
old, respectively. Previous study (Egge et al.,
2012) showed that the age had negatively
significant influence on the adoption of improved
sorghum varieties in Ethiopia. It is particularly
accepted that younger farmers are more
innovative than older ones. The age of farmers in
this sample proportion of adopter respondent
revealed that 73% were in the group aged
between 20-35 years whereas 75% were over
35 years old in non-adopter group. Besides, the
analysis of the mean number of household
members showed that the adopter of Stone
Jatropha had 5 members living in the household
while the other group had only 4. The size of
household members of non-adopters was smaller
than that of adopters due likely to family incomes
that were significant for their substance and also
28% of the farmers had a member generating
off-farm income for the household (Castillo et al.,
2014).
486 แก่นเกษตร 44 (3) : 479-490 (2559).
The farmer income activity as presented in
Table 3 revealed that the average income of
non-adopter group was 3,477.70$ while the lower
amount of 3,229.00$ being from adopter group
with no significant difference in this respect
between these two groups. Land holding, on
average non-adopter group occupied 0.65 ha and
adopters owned 0.91 ha, while adopters and
non-adopters paid 0.80$ and 0.68$ for land
rental.
For education levels, non-adopter of Stone
Jatropha significantly spent longer period in
school (7 years) that did the other group (6 years).
It can be pointed out that better educated farmers
as of non-adopter group had more negative
response to Stone Jatropha cultivation. This is
similar to the previous study (Nwakor et al., 2011b)
of which the results showed more negative
response to technology-cultivated adoption in
higher education groups. However, a contradiction
was found when compared to the study
undertaken by Mapemba and Grevulo (2013).
They reported that higher-educated people act
as pioneers in most innovation biofuel (Jatropha
curcas) adoption. Education is important for an
informed society and provides basic skills that
facilitate transmission to technical knowledge and
rational decision-making and also to see and
understand the technologies in a proper
perspective in relation to current circumstances.
Table 3 Quantitative analysis T-test.
ParametersAdoption
(Vernicia motana)N Mean S.D T-value Sig.
Age Non-adopter 89 46.77 14.08 -0.812 0.21Adopter 67 48.50 11.89
Number of household members
Non-adopter 89 4.82 1.93 -2.194 0.269Adopter 67 5.45 1.52
Income (USD) Non-adopter 89 3,477.70 2,192.53 0.652 0.227Adopter 67 3,229.00 2561.93
Land holding
Non-adopter 89 0.65 0.62 -2.292 0.653Adopter 67 0.91 0.83
Land Rent (USD) Non-adopter 89 0.68 5.31 -0.142 0.784Adopter 67 0.80 4.619
Education level Non-adopter 89 7.86 4.382 2.557 0.022Adopter 67 6.19 3.534
*p<0.05
Factors influencing Stone Jatropha (Vernicia
montana) cultivation adoption
Results indicated that there were some main
variables determined in these studies such as
number of household members, gender, age,
ethnic background, education level, main
occupation, religion, key decision maker,
household income, landholding and land rent.
However, the test of col l ineari ty among
independent variables showed a multicollinearity
487KHON KAEN AGR. J. 44 (3) : 479-490 (2016).
problem, for example, area of land holding and
land rental of farmers, ethic group and religion.
Therefore, those variables that were correlated
with these variables were taken out. The selection
based on the major role of each variable.
Unrestricted and restricted models were
estimated and likelihood ratio tests were also
done. This confirmed that there were indifferent
among model A, B, and C. The goodness of fit of
each model was carried out as well. The results
are presented in Table 4, which revealed that
education level, key decision maker and trust in
the buyer were significant factors affecting
adoption of Stone Jatropha cultivation. Key
decision makers in the household where the
family had to agree with the husband were higher
within decision maker families of adoption.
Therefore, household that decision was made by
the husband had a tendency of increasing the
probability of adoption of Stone Jatropha (Vernicia
montana) in Lao PDR. Also trust in the buyer had
relative alliances affecting the roles of trust in the
buyer commitment in the relationship. The results
indicated that trust in the buyers is an important
element in the logistic model used. The results
also show that trust in the buyer effectiveness was
influenced more by a negative outcome of
community adoption with conflict by positive sell
producing of famers with trust (Hussein and
Janekarnkij, 2013). Meanwhile, education level of
farmer resulted in contradiction with the
l i teratures, involving the effect of some
socio-economic results. They revealed that
education status affected adoption. Adoption was
likely higher among farmers experienced high
social class, who were literate and farmers who
can read, tend to decrease the probability of
Stone Jatropha cultivation, since they may not
have confidence that growing Stone Jatropha will
gain more benefit than other crops. Also, they may
not have in-depth understanding about how to
cultivate Stone Jatropha. These were the
significant factors affecting adoption as shown by
Waibel and Zilbermann (2007) and Krasuaythong
(2008). Meanwhile, Trust in the buyers had a
significance to the relationship with adoption of
recommended cultivation practices (p<0.05), the
significance implies that trust in the buyers is very
much influencing in the decision to adopt
recommended cultivation practices. This is shown
in the study because the trust in the buyers by the
respondent was significantly different. Hence, this
significant estimation showing an odd ratio is
positive as was expected. Also male decision
makers, the odd ratio estimate decision was
positive. The sign implies that as people became
decision makers the farmers tended to decide the
size of parameter and this too, was positive as
expected. This fact that in the study area of
influence the farmers decided to adopt new
cultivation practices, innovations or ideas all the
while the male improved the condition of farmers.
The odd ratio estimate of education was seen
as a negative impact. The sign implies that as the
people became educated they tended to adopt
the use of recommended technologies. The study
found that communities between education and
adoption of recommended cultivation practices
were negative. The variable shown to influence
the decision of farmers was significant at p<0.05.
Therefore, these are important factors influencing
the adoption of Stone Jatropha (Vernicia montana)
cultivation.
488 แก่นเกษตร 44 (3) : 479-490 (2559).
Tabl
e 4
Logi
stic
Reg
ress
ion
anal
ysis
(Max
imiz
e Li
kelih
ood
Ratio
) fac
tors
influ
enci
ng fa
rmer
ado
ptio
n.
Mod
el/in
depe
nden
t var
iabl
esU
nres
trict
ed m
odel
(A)
Res
trict
ed m
odel
(B)
Res
trict
ed m
odel
(C)
Odd
ratio
SEZ
Odd
ratio
SEZ
Odd
ratio
SEZ
Land
hol
ding
1.25
9 0.
369
0.79
1.
259
0.36
9 0.
79
Num
ber o
f hou
seho
ld m
embe
rs1.
059
0.14
6 0.
42
1.05
9 0.
146
0.42
Trus
t in
buye
rs4.
389*
1.
401
4.63
4.
381*
1.
393
4.64
5.06
9*1.
668
4.93
Budd
hism
-0.7
21
0.49
3 -0
.48
-0.6
56
0.29
4 -0
.94
Mak
ing
deci
sion
by
Hus
band
2.61
0*
1.07
7 2.
32
2.62
33 *
1.07
9 2.
34
2.87
5*1.
146
2.65
Educ
atio
nal l
evel
-0.9
60*
0.05
5 - 0
.70
-0.9
59*
0.05
5 -0
.71
-0.9
05*
0.04
2 -2
.11
Mai
n oc
cupa
tion
1.47
8 0.
699
0.83
1.
509
0.68
0 0.
91
Lao
krea
mu
1.11
9 0.
741
0.17
Like
lihoo
d
Log
likel
ihoo
d-8
3.35
2-8
3.47
7-8
5.10
4981
Lr-te
stLr
test
A-B
: Pro
b >
chi2
= 0
.827
Lrte
st B
-C :
Prob
> c
hi2
= 0.
503
Lrte
st A
-C :
Pr P
rob
> ch
i2 =
0.6
264
Pseu
do R
20.
218
0.21
70.
2015
Goo
dnes
s of
fit
num
ber
of o
bser
vatio
ns =
156
num
ber
of
cova
riate
pat
tern
s =
143
Pear
son
chi2
(134
) = 1
35.7
4 P
rob
> ch
i2 =
0.4
41
num
ber o
f obs
erva
tions
= 1
56nu
mbe
r of c
ovar
iate
pat
tern
s =
155
Pear
son
chi2
(146
) = 1
57.6
6Pr
ob >
chi
2 =
0.24
0
num
ber o
f obs
erva
tions
= 1
56nu
mbe
r of c
ovar
iate
pat
tern
s =
25Pe
arso
n ch
i2(2
1) =
21.
74Pr
ob >
chi
2 =
0.41
4
** S
igni
fican
t at 0
.05
* Sig
nific
ant a
t 0.1
0
489KHON KAEN AGR. J. 44 (3) : 479-490 (2016).
Conclusion
The adoption process of Stone Jatropha
(Vernicia montana) in two groups; adopters and
non-adopters in Xiengnguen district, Luangprabang
province, Lao PDR was investigated. The
evaluated case study area was the rural
community based upon a small-scale. Significant
differences in adoption as well as in socio-
economic factors influencing were found.
Characteristics based on socio-economic
analysis of factors driving the adoption gave some
level of reliable statistical accuracy. The factors
considered were important to the influence on the
adoption decisions of the farmer’s respondents.
The strength, to some extent, of the impacts of the
individual variable was also found. The trust of
buyers’ production, key decision maker and
education level were the most significant drivers
affecting the adoption of Stone Jatropha (Vernicia
montana) cultivation in the area studied. Even
though, education levels were found to be
significant, again they negatively affected the
adoption. Farmers who participated in the project,
however, lacked confidence in taking the
cultivation into serious consideration. Marketing
should be considered an important step to
boosting development preparedness, cultivation
and factory support production from farmers.
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