Fluctuating coffee prices put mental pressure on Vietnamese farmers
While your invigorating morning coffee may become cheaper when there are large fluctuations in the world market price, they are a major additional psychological burden for the farmers who grow the coffee.
This is documented in a new international study on the effect of income uncertainty on the mental health of Vietnamese coffee farmers.
"Our results suggest that not only poverty, but also the risk of poverty caused by fluctuating prices has a significant additional negative effect on the mental well-being of farmers in low-income countries," says Finn Tarp, Professor at the University of Copenhagen and Coordinator of the Development Economics Research Group (DERG).
Poverty and mental illness are linked
According to the WHO, poor mental health is one of the heaviest components of the global burden of disease. This burden is largely borne by people in low-income countries, as mental illness and poverty are closely linked. It is estimated that as much as 80% of the world's depressive disorders occur in low- and middle-income countries, but they are often overlooked, even though they should be at the centre of the struggle against the many dimensions of poverty.
"The soaring socio-economic costs of mental illness are rightly a growing international concern. It is therefore imperative to investigate the underlying sources of mental illness and formulate effective economic policy responses and social interventions," says Finn Tarp.
In Vietnam, volatile coffee prices contribute to the mental health burden by reducing farmers' expectations of future economic prospects, increasing their cognitive load and alcohol consumption - and by reducing farmers' social capital. They also sleep worse, feel more lonely, are depressed, can't concentrate as well as they used to, and feel significantly more diffuse anxiety in an already extremely tense daily life.
Need for a safety net
The new study not only tells us something about public health in Vietnam. The results are likely to be transferable to other low- and middle-income countries whose populations are heavily dependent on agricultural exports, according to the researchers.
The study points to the need for effective social safety nets to protect smallholder farmers from price fluctuations on the world market.
"Governments should consider introducing policies that stabilise farmers' incomes, for example by offering price insurance or increasing access to market-based risk management," suggests Finn Tarp and elaborates:
"At the same time, it is important to raise awareness of the particular problem of mental illness among farmers and offer support to those affected. Better material wealth is necessary to fight poverty, but more is needed to improve the quality of life of individuals."
The study "Commodity price volatility and the psychological well-being of farmers" was conducted by Finn Tarp together with Saurabh Singhal from Lancaster University. It is published in the American Journal of Agricultural Economics and can be read here: https://onlinelibrary.wiley.com/doi/full/10.1111/ajae.12468
Coffee – a risky crop
- Vietnam is one of the largest coffee producers in the world. Coffee is a perennial crop and production takes place primarily in the central highlands on small family-run farms.
- Coffee trees have a lifespan of more than 50 years, and cutting down the trees to make the land suitable for other forms of agricultural production is an expensive and labour-demanding task. Conversion is costly. This means that when coffee prices are low, farmers are unable to abandon coffee production in favour of other crops.
- When you can't quickly adjust the area of coffee trees, farmers are vulnerable when there are large fluctuations in international commodity prices. This creates economic uncertainty, which leads to increased mental distress among coffee farmers.
JOURNAL
American Journal of Agricultural Economics
METHOD OF RESEARCH
Data/statistical analysis
SUBJECT OF RESEARCH
People
ARTICLE TITLE
Commodity price volatility and the psychological well-being of farmers
More sustainability in global agricultural trade
After analysing the value chains of agricultural products, researchers show that trade relations with the EU should be renegotiated
HELMHOLTZ CENTRE FOR ENVIRONMENTAL RESEARCH - UFZ
Soya, palm oil, coffee, cocoa, sugar, or hazelnuts – in only a few cases is the cultivation in the countries of origin outside Europe truly sustainable. For example, rainforests are cleared and valuable grasslands are used for palm oil and cocoa plantations and soya monocultures, and harmful pesticides are used in the cultivation of cocoa and hazelnuts. In order to prevent negative consequences for biodiversity, ecosystems, and the climate, the EU has expressed its political will to share responsibility for this. It is committed to the principle of Policy Coherence for Development (PCD) in its development policy. Accordingly, it wants to not only achieve the Sustainable Development Goals (SDGs) of the UN within EU boarders, but also support developing countries for implementing them. In the Green Deal and the Farm to Fork Strategy, the EU Commission has committed to promoting the transformation towards sustainable agricultural and food systems.
In order to provide more clarity in the tangled web of complex trade relations between the EU and exporting countries in the market for agricultural products, a research team is now proposing a new approach that analyses both the relevance and leverage effect of individual imported goods for the EU and for the country of origin. The “relevance” criterion describes the proportion of an agricultural product from a country of origin in total imports into the EU. The “leverage” criterion describes how important the proportion of an agricultural product imported into the EU is for the country of origin in the overall value chain or agricultural production. “We can thus describe the importance of trade with the EU for each agricultural product and exporting country and consider measures that could make these trade relations more sustainable”, says UFZ environmental policy expert Dr Yves Zinngrebe, lead author of the publication. The team of authors analysed the relevance and leverage effect of the most important agricultural imports for three dimensions: the economic value that these imports have for the country of origin, the footprint as a measure of land consumption for the cultivation of the imported goods, and the deforestation (i.e. how many hectares had to be cleared for the production of the imported goods).
The researchers discovered that soya, palm oil, cocoa, and coffee account for more than 80% of the land deforested for the cultivation of EU products. In addition, based on the high relevance and leverage values, they found that much of the influence of the EU is focussed on a few groups of countries with specific export profiles. These include the MERCOSUR countries of Argentina, Brazil, Paraguay, and Uruguay in particular because trade with these countries (especially in soya) accounts for 22% of the trade value, 33% of the required land area, and 40% of the imported deforestation. These are joined by Malaysia, Indonesia, and Papua New Guinea, which specialise in the cultivation of palm oil as well as a number of countries in Africa, Latin America, and Vietnam, which specialise in cocoa and coffee. “The EU could achieve a great deal if it focused on soya, palm oil, coffee, and cocoa when establishing sustainable trade relations”, says Zinngrebe.
The EU also has strong leverage in certain small sugar producer countries. For countries such as Mauritius, Fiji, Barbados, and the Bahamas, the overall relevance for the EU is low. However, the leverage (i.e. the proportion of the cultivation area reserved for EU exports) is quite high (20–40%), providing a strong potential or responsibility of the EU in establishing sustainability standards. The potential leverage effect is also high for countries in Eastern Europe (e.g. Ukraine and Russia) and Central Asia (e.g. Kazakhstan), which sell large quantities of grain to the EU. Cereals such as wheat, maize, and barley as well as oilseed crops such as sunflowers, rapeseed, and linseed account for almost 70% of the imported footprint from these countries. “If the EU hopes to ensure greater sustainability in global food systems, it should use its relationships primarily with trading partners for which the leverage is particularly high”, says Prof Sebastian Lakner, agricultural economist at the University of Rostock and final author of the study. “The aim here is to develop new agricultural standards or regulations together with our trading partners, which provide benefits to both the countries of origin and the countries of consumption”. The EU supply chain law can play an important role in this. This is intended increase the transparency of the conditions under which traded goods are produced. For example, how much primeval forest has been cleared for an agricultural product or how the land was previously used.
In the case of highly relevant agricultural goods such as soya and palm oil, which together account for almost two thirds of the EU proportion of deforestation in partner countries and one third of the footprint, it is up to the EU to reduce this relevance. For example, it could regulate demand by promoting more sustainable livestock farming or a low-meat diet in the EU. However, examples from the recent past (e.g. palm oil) show how sensitively global trade should be handled. The EU had pushed ahead with regulations for more sustainable cultivation but lost large market shares as a result because other countries such as India and China took over EU proportions of the global market. “The EU thus gambled away parts of its influence because the demand for palm oil continues. It no longer has as much influence on making this trade more sustainable because the proportion of palm oil imported into the EU is no longer as high”, says Zinngrebe. This means that the EU no longer has any effective leverage. If the EU truly hopes to implement policy coherence in the interests of development, it must support these countries in developing their economies beyond agriculture to value-adding sustainable production.
The port of Valparaiso in Chile is one of the most important trade centres between South America and the EU.
CREDIT
Sebastian Lakner
JOURNAL
One Earth
METHOD OF RESEARCH
Data/statistical analysis
SUBJECT OF RESEARCH
Not applicable
ARTICLE TITLE
Prioritizing partners and products for the sustainability of the EU’s agri-food trade
Heifer International and Alliance of Bioversity and CIAT agree to strengthen collaboration, empower smallholder farmers
Little Rock, AR / Rome, Italy – April 18, 2024 – Heifer International and the Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) have agreed to further their shared goals of empowering rural communities, alleviating hunger and poverty, and promoting sustainable agriculture.
The two organizations have worked together since 2014, with a focus on developing sustainable agricultural practices that benefit rural women, youth and farming communities worldwide. In a newly signed Memorandum of Understanding (MoU) the partners have established a framework for enhanced collaboration in research, development, capacity building and resource mobilization, to deliver impact to rural smallholder farmers.
“This collaboration marks a significant milestone in our journey toward a more sustainable and equitable future for rural communities,” said Surita Sandosham, CEO and President of Heifer International. “By combining our expertise and resources, we are poised to drive impactful change, fostering resilient agrifood systems, embracing digital innovation, and promoting sustainable practices.”
Through both research and operations, the MoU covers areas of joint technical program work focused on:
- Building resilient agrifood systems and boosting climate-smart production, including efforts in crop diversification, agro-ecology and a regenerative approach to soil health and biodiversity, and carbon sequestration, among others.
- System transformation for smallholders, including sustainable land and water resource management, accessible digital tools for farmers, and sustainable finance.
- Knowledge management, including impact measuring and modeling.
“Together, we are embarking on a journey to work with rural communities and improve their lives by harnessing the power of science and innovation,” said Juan Lucas Restrepo, Director General of the Alliance of Bioversity and CIAT. “By co-creating solutions with smallholder farmers and for smallholder farmers, we can achieve livelihood and food security and contribute to building food systems that are inclusive, resilient, and respectful of our planet’s natural resources.”
Heifer and the Alliance of Bioversity International and CIAT will also jointly leverage their respective expertise and networks to access the necessary financial resources to fund joint programming.
About Heifer International
Since 1944, Heifer International has worked with more than 46 million people around the world to end hunger and poverty in a sustainable way while caring for the Earth. Heifer currently operates in 19 countries across Africa, Asia, and the Americas, including the United States, supporting farmers and food producers to strengthen local economies and build secure livelihoods that provide a living income. For more information, visit: https://www.heifer.org
About the Alliance of Bioversity International and CIAT
The Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) delivers research-based solutions that harness agricultural biodiversity and sustainably transform food systems to improve people’s lives. Alliance solutions address the global crises of malnutrition, climate change, biodiversity loss, and environmental degradation. With novel partnerships, the Alliance generates evidence and mainstreams innovations to transform food systems and landscapes so that they sustain the planet, drive prosperity, and nourish people in a climate crisis. The Alliance is part of CGIAR, a global research partnership for a food-secure future. www.alliancebioversityciat.org
Aston University researchers to use AI to help Ghanaian farmers monitor crops in real time
- Aston University is to help increase crop production in Ghana
- The University has entered a knowledge transfer partnership (KTP) with Tropical Growers, a Ghanaian fruit and vegetable producer
- Currently the country imports around £1147m of fruit and vegetables annually.
Aston University researchers are to use AI to help increase the number and range of different crops grown in Ghana by developing real time monitoring systems.
Due to its climate, the country has to import around £1147 million of fruit and vegetables annually. The University has entered a knowledge transfer partnership (KTP) with Tropical Growers, a company which cultivates plants in a nutrient solution, without soil, also known as ‘hydroponics’.
As well as reducing the amount of water needed, the technique allows production of a greater range of crops than Ghana’s traditional ‘open field’ farming, such as salad and fruit.
A KTP is a three-way collaboration between a business, an academic partner and a highly qualified researcher, known as a KTP associate. The UK-wide programme helps businesses to improve their competitiveness and productivity through the better use of knowledge, technology and skills. Aston University is a sector leading KTP provider, with 80% of its completed projects being graded as very good or outstanding by Innovate UK, the national body.
Tropical Growers currently needs to develop a digital platform for plant health monitoring so it can make sure its plants are cultivated in the best possible environment. It needs a system integrated with an evaporative cooling system, so that plants can withstand Ghana’s extreme summer temperatures. It also needs it to function via an AI framework to allow automatic, continuous micro-adjustments to the plants’ nutrition, temperature and humidity.
The Aston University team will create a system of devices, including cameras, humidity monitors and tiny weather-stations, which will monitor and control the environment inside a Tropical Grower’s greenhouse.
The network will collect and analyse data, including real-time images of the crops, and will ultimately communicate with the evaporative cooling system, which itself will be powered by solar energy. A phone app will be developed to estimate crops’ water and nutrient requirements, as well as for predicting the yield.
Aston University’s team comprises Dr Muhammad Imran and Dr Umar Manzoor. Dr Imran is a senior lecturer in mechanical, biomedical and design who specialises in research into innovative thermal energy systems and recently devised a novel solar-powered pre-cooling food storage system for smallholder farmer clusters in Nigeria.
Meanwhile Dr Umar Manzoor’s research interests lie in agent-based simulation and modelling, machine learning, artificial intelligence and autonomous systems. His expertise will be particularly useful in guiding the data collection and subsequent analysis, as well as the development of an interface and mobile phone application for the system.
They will be collaborating with Dr Tabbi Wilberforce Awotwe, a lecturer in engineering at Kings College London, who has previously conducted research at Aston University.
Dr Imran said: “We aim to develop a 'plug and play' monitoring system. Our goal is to design software and algorithms and integrate various components so that the system is incredibly user-friendly for farmers. It should also be adaptable, allowing farmers to easily adjust its scale according to their needs.
“Our aim is not only to assist this company but also to provide them with technology that they can market to other farmers.”
Being able to reduce temperatures by just a few degrees will make a considerable difference to crop health and to the varieties that can be grown. For example, celery and strawberries are in demand from customers but have always been impossible to grow in the heat until now. Tropical Growers will also be better able to predict its crop yields, which will lead to greater efficiency and certainty of supply for customers.
Prince Akwanda, chief technical officer for Tropical Growers, said: “The complexity of this project is in making the different systems communicate with each other, and we need that expertise in creating a single environment.
“It’s not possible for people to watch plants 24 hours a day, so we believe this KTP project is a dream come true for us, as it will not only lead to better, healthier crops, but help us predict our supply.”
The monitoring system itself will be developed as a product package that can be sold to other farmers interested in hydroponic farms, creating a new income stream for Tropical Growers. The company is keen for Ghanaian farmers to realise the benefits of hydroponic cultivation to help reduce the huge amount of fruit and vegetables that have to be imported each year.
The project will also involve Dr Richard Opuku and Dr Henry Nunoo Mensah from Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi, Ghana.
Dr Opoku, who specialises in energy efficiency, renewable energy and climate change research, will be the academic supervisor responsible for the design of the new greenhouse and the design of its cooling system. He said:
“As well as enabling Ghana’s hydroponics companies to manage the growth of a plant from start to finish, we ultimately want to produce an academic paper from this project focusing on the research carried out. We presently train electronic engineers at KNUST, and the lessons we will take from this KTP will also help us refine our course materials.”
Dr Opoku will also oversee KTP Associate Akwasi Owusu Afriyie, who will be working at the Tropical Growers’ site in southern Ghana, delivering technical training and workshops to ensure company staff understand how to operate the system.
The KTP is expected to end in December 2025.
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