Challenges in Small-Scale Agriculture Escaping the Good Harvest Bad Price Cycle and Impact on Vietnam's Rubber Industry

Small-scale agriculture forms the backbone of Vietnam's rural economy but is trapped in a persistent good harvest bad price cycle. Fragmented farmland makes modern technology adoption challenging, reducing production efficiency and causing sharp price fluctuations.

According to industry businesses, this issue not only affects traditional crops but also directly impacts the natural rubber sector, a key export commodity for Vietnam. For Dang Quang Rubber, difficulties faced by smallholder farmers in the supply chain can increase production costs.

Experts emphasize that breaking this cycle requires land consolidation policies and technology support for farming households. In the rubber industry context, this means improving rubber tree yields and stabilizing raw latex supply.

Natural rubber prices on the international market are under pressure from oversupply, similar to the good harvest bad price issues in other agricultural products. As the world's third-largest rubber producer, Vietnam needs sustainable solutions to protect companies like Dang Quang Rubber.

Land fragmentation not only limits investments but also raises logistics costs in the rubber supply chain. Companies like Dang Quang Rubber face risks from raw material price volatility, affecting profits and global competitiveness.

To overcome this, government and businesses must collaborate to promote larger-scale farming models, integrating digital technology into rubber cultivation. This will help stabilize prices and enhance export value.

Reference: VnExpress