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Factors influencing adoption of livestock insurance by commercial dairy farmers in three Zobatat of Eritrea

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  • Mohammed, M.A.
  • Ortmann, Gerald F.

Abstract

A sample survey of 74 commercial dairy farmers was conducted between November 2002 and February 2003 in three Zobatat (zones) of Eritrea to identify factors that affect the adoption of livestock insurance. The results of a logit model indicate that formal education of the farmer and the farmer's awareness of livestock insurance increase the probability of insurance adoption, whereas farming experience, poor location and use of alternative risk management strategies, such as off-farm investments and farm enterprise diversification, reduce the probability of livestock insurance adoption. Further insight into the factors influencing farmers' adoption of livestock insurance may assist policy makers and the National Insurance Corporation of Eritrea in their future plans. Results of this study have some policy implications, such as the need for a variable rather than fixed insurance premium, improving the know-how of farmers concerning risk assessment, improving Zobatat' infrastructure and a need of a thorough study to be conducted on the demand for agricultural insurance in Eritrea.

Suggested Citation

  • Mohammed, M.A. & Ortmann, Gerald F., 2005. "Factors influencing adoption of livestock insurance by commercial dairy farmers in three Zobatat of Eritrea," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(2), pages 1-15, June.
    • Handle: RePEc:ags:agreko:31693
    DOI: 10.22004/ag.econ.31693
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    3. Fahad, Shah & Wang, Jing & Hu, Guangyin & Wang, Hui & Yang, Xiaoying & Shah, Ashfaq Ahmad & Huong, Nguyen Thi Lan & Bilal, Arshad, 2018. "Empirical analysis of factors influencing farmers crop insurance decisions in Pakistan: Evidence from Khyber Pakhtunkhwa province," Land Use Policy, Elsevier, vol. 75(C), pages 459-467.
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    Keywords

    Livestock Production/Industries;

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