Perceived Risk and Risk Management Strategies in Pond Aquaculture

Abstract

The growing aquaculture industry is facing several challenges including risks and uncertainties. Studies exploring farmers’ risk perceptions and risk management strategies are, however, limited within pond aquaculture, although they are well described within the field of agriculture. This study explores farmers’ risk perceptions and risk management strategies in pond aquaculture and the relationship of risk perceptions and risk management strategies with farm and farmers’ characteristics. The data are analyzed using principal component analysis and multivariate regression. The results show that price variability and financial risks are perceived as the most influential risk factors. Farm management and financing are perceived as the most effective risk management strategies. In most cases, farmers need to focus on more than one risk management strategy to address a particular type of risk. This study provides knowledge of farmers’ risk perceptions and strategies, which can be used to develop better and more focused management strategies. The authors would like to thank three anonymous reviewers for their suggestions and comments that helped substantially to improve the paper. The authors would also like to thank the Danish International Development Agency (DANIDA) for its financial support for the project “Upgrading Pangas and Tilapia Value Chains in Bangladesh,” project number F38A26778, under which this research was conducted.