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Farmers' motivations, risk perceptions and risk management strategies in a developing economy: Bangladesh experience

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  • Dewan Ali Ahsan

Abstract

Aquaculture farmers' risk perceptions and risk management strategies have still received little attention in agricultural research. Therefore, an exploratory study has been undertaken to provide empirical insight into Bangladeshi coastal shrimp farmers' risk perceptions and risk management responses. Data from our study show that 95% of farmers have no formal training in shrimp aquaculture. Shrimp farmers' cooperative societies operate in only 13.3% of the studied areas and only 15% of shrimp farmers are involved with these cooperative societies. The results reveal that shrimp diseases, price and availability of quality shrimp seeds, exploitation by intermediaries and uncertainty about the future demand for shrimp in foreign markets are perceived as the most important sources of risk. On the other hand, prevention of disease, timely supply of shrimp seeds, elimination of middlemen from the supply chain and farm management training are considered among the best methods to manage the risks in the shrimp-farming business. We also observe some disparities in farmers' perceptions. For instance, farmers mentioned that removal of influence of middlemen from supply chain is essential for the betterment of their business. However, they did not consider market monitoring, direct contract with processors and improved marketing facilities as important risk management strategies, although these factors play a significant role in reducing the influence of intermediaries and private money lenders.

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  • Dewan Ali Ahsan, 2011. "Farmers' motivations, risk perceptions and risk management strategies in a developing economy: Bangladesh experience," Journal of Risk Research, Taylor & Francis Journals, vol. 14(3), pages 325-349, March.
  • Handle: RePEc:taf:jriskr:v:14:y:2011:i:3:p:325-349
    DOI: 10.1080/13669877.2010.541558
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    1. Kirchler, Erich & Maciejovsky, Boris & Weber, Martin, 0000. "Framing Effects on Asset Markets - An Experimental Analysis -," Sonderforschungsbereich 504 Publications 01-09, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    2. Bardhan, Dwaipayan & Dabas, Y.P.S. & Tewari, S.K. & Kumar, Avadhesh, 2006. "An Assessment of Risk Attitude of Dairy Farmers in Uttaranchal (India)," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25259, International Association of Agricultural Economists.
    3. Morales, C. & Garrido, Alberto & Palinkas, Peter & Szekely, Csaba, 2008. "Risks Perceptions and Risk Management Instruments in the European Union: do farmers have a clear idea of what they need?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43956, European Association of Agricultural Economists.
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    2. Kabir, Jahangir & Cramb, Rob & Alauddin, Mohammad & Gaydon, Donald S. & Roth, Christian H., 2020. "Farmers’ perceptions and management of risk in rice/shrimp farming systems in South-West Coastal Bangladesh," Land Use Policy, Elsevier, vol. 95(C).
    3. Ahsan, Dewan & Pedersen, Soren & Bang Nielsen, Mathias Rohwer & Ovesen, Jacob, 2019. "Why does the offshore wind industry need standardized HSE management systems? An evidence from Denmark," Renewable Energy, Elsevier, vol. 136(C), pages 691-700.
    4. Joffre, Olivier M. & Poortvliet, P. Marijn & Klerkx, Laurens, 2019. "To cluster or not to cluster farmers? Influences on network interactions, risk perceptions, and adoption of aquaculture practices," Agricultural Systems, Elsevier, vol. 173(C), pages 151-160.
    5. Thanh Viet Nguyen & Tuyen Quang Tran & Dewan Ahsan, 2022. "Aquaculture Farmers' Economic Risks Due to Climate Change: Evidence from Vietnam," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 8(1), pages 42-53.
    6. Richard Kofi Asravor & Daniel Bruce Sarpong, 2023. "Risk preferences and management strategies of farmers in Ghana: Does the type of crop grown matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1080-1098, August.
    7. Muhamad Zahid Muhamad & Mad Nasir Shamsudin & Nitty Hirawaty Kamarulzaman & Nolila Mohd Nawi & Jamaliah Laham, 2022. "Investigating Yield Variability and Technical Efficiency of Smallholders Pineapple Production in Johor," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    8. Bishu, Kinfe & O'Reilly, Seamus & Lahiff, Edward & Steiner, Bodo, 2016. "Cattle farmers’ perceptions of risk and risk management strategies," MPRA Paper 74954, University Library of Munich, Germany.
    9. Muhammad Amjed Iqbal & Azhar Abbas & Syed Asif Ali Naqvi & Muhammad Rizwan & Abdus Samie & Umar Ijaz Ahmed, 2020. "Drivers of Farm Households’ Perceived Risk Sources and Factors Affecting Uptake of Mitigation Strategies in Punjab Pakistan: Implications for Sustainable Agriculture," Sustainability, MDPI, vol. 12(23), pages 1-17, November.
    10. Kabir, Md. Jahangir & Cramb, Rob & Alauddin, Mohammad & Gaydon, Donald S., 2019. "Farmers’ perceptions and management of risk in rice-based farming systems of south-west coastal Bangladesh," Land Use Policy, Elsevier, vol. 86(C), pages 177-188.
    11. Thi Tam Duong & Tom Brewer & Jo Luck & Kerstin Zander, 2019. "A Global Review of Farmers’ Perceptions of Agricultural Risks and Risk Management Strategies," Agriculture, MDPI, vol. 9(1), pages 1-16, January.

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