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Where do risks in shrimp farming come from? Empirical results from small farmers in East Java, Indonesia

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  • Lestariadi, Riski A.
  • Yamao, Masahiro

Abstract

This study was conducted to explore small-scale shrimp farmers’ perception of risk and risk management. The data used originated from a field survey in the southern and northern coasts of East Java, Indonesia. According to the results, there are 32 risk sources, including shrimp price volatility and high mortality due to shrimp diseases as the most important ones. The exploratory factor analysis showed that the risks in small-scale shrimp farming derived from 8 factors: input and pond preparation; finance and credit access; production; personal aspects; harvesting and marketing; weather and environment; policy and institutional aspects; and business environment. The results also revealed that the shrimp farmers’ perception of risk could significantly influence their risk management behavior. Furthermore, nine factors were identified for risk management strategies, including disease prevention; education and technology improvement; production inputs; farm management; government support; risk sharing and insurance; financial aspects; household adjustment; and alternative income sources.

Suggested Citation

  • Lestariadi, Riski A. & Yamao, Masahiro, 2018. "Where do risks in shrimp farming come from? Empirical results from small farmers in East Java, Indonesia," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 47(1), January.
    • Handle: RePEc:ags:pojard:355931
    DOI: 10.22004/ag.econ.355931
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    References listed on IDEAS

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    Keywords

    Farm Management; Risk and Uncertainty;

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