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Governing Agrarian Risks

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  • Bachev, Hrabrin

Abstract

Risks management studies in the agri-food sector predominately focus on the technical methods and the capability to perceive, prevent, mitigate, and recover from diverse risks. In most economic publications the risks are usually studied as other commodity regulated by the market supply and demand, and the farmers “willingness to pay” for an insurance contract modeled. At the same time, the risk management analysis largely ignore a significant “human nature” based (bounded rationality, opportunism) risk, critical factors for the managerial choice such as the institutional environment and the transaction costs, and diversity of alternative (market, private, collective, public, hybrid) modes of risk management. This paper incorporates the interdisciplinary New Institutional Economics and presents a comprehensive framework for analyzing the risk management in the agri-food sector. First, it specifies the diverse (natural, technical, behavioral, economic, policy etc.) type of agri-food risks, and the (market, private, public and hybrid) modes of their management. Second, it defines the efficiency of risk management and identifies (personal, institutional, dimensional, technological, natural) factors of governance choice. Third, it presents stages in the analysis of risk management and for the improvement of public intervention in the risk governance. Forth, it identifies the contemporary opportunities and challenges for the risk governance in the agri-food chain. Finally, it identifies, and assesses the efficiency and prospects of major modes for risk governance in the Bulgarian dairy sector.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41651.

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Date of creation: 01 May 2012
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Handle: RePEc:pra:mprapa:41651

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Keywords: agri-food chain and risk management; market; private; and public governance; dairy risk management; Bulgaria;

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  1. Bachev, Hrabrin, 2008. "Governing of agrarian sustainability," MPRA Paper 7772, University Library of Munich, Germany.
  2. Bachev, Hrabrin, 2010. "Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture," MPRA Paper 25979, University Library of Munich, Germany.
  3. Bachev, Hrabrin, 2011. "Dairy value chain management in Bulgaria," MPRA Paper 29813, University Library of Munich, Germany.
  4. Bachev, Hrabrin Ianouchev & Nanseki, T., 2008. "Risk Governance in Bulgarian Dairy Farming," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44136, European Association of Agricultural Economists.
  5. Richard Shepherd & Gary Barker & Simon French & Andy Hart & John Maule & Angela Cassidy, 2006. "Managing Food Chain Risks: Integrating Technical and Stakeholder Perspectives on Uncertainty," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(2), pages 313-327, 07.
  6. Bachev, Hrabrin, 2010. "Framework for Analysis of Agrarian Contracts," MPRA Paper 20264, University Library of Munich, Germany.
  7. Bachev, Hrabrin, 2012. "Risk Management in Agri-food Chain," MPRA Paper 39594, University Library of Munich, Germany.
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