The effect of disease outbreaks on shrimp aquaculture and the role of cooperatives in the Mekong Delta

Disease outbreaks are considered the root of drug overuse and the main reason for crop failure in the Mekong Delta. Shrimp cooperatives appear to be a promising solution to struggle with the problem because the cooperative model has been proven to be successful in many sectors such as agriculture, industry, and services. This study examines the effectiveness of a shrimp cooperative in terms of information sharing and price reduction. We employ the propensity score matching method (PSM) to do the analysis, based on the data collected from 256 households in nine communes in the Phu Tan district, Ca Mau province for 2016 and 2017. The study finds limited benefits for farmers who participate in shrimp cooperatives. It further explains why many farmers withdrew after a time. Although shrimp cooperatives have a significant effect on exchanging information related to prohibited substances, shrimp cooperative participants withhold shrimp prices. In addition, we find that the probability of participating in a shrimp cooperative is higher in households with older age or more educated household heads. Moreover, if the farmer has undergone training, the probability of participating in a shrimp cooperative increases.