Cattle farmers’ perceptions of risk and risk management strategies: evidence from Northern Ethiopia

Abstract

This study analyzes cattle farmers' perceptions of risk and risk management strategies in Tigray, Northern Ethiopia. We use survey data from a sample of 356 farmers based on multistage random sampling. Factor analysis is employed to classify scores of risk and management strategies, and multiple regression is then used to investigate the relationship of scores and farmers' characteristics. The results demonstrate that shortage of family labor, high price of fodder and limited farm income were perceived as the most important risks. Use of veterinary services, parasite control and loan utilization were perceived as the most important strategies to manage risks. Livestock disease and labor shortage were perceived as less of a risk by farmers who adopted the practice of zero grazing compared to other farmers, pointing to the potential of this practice for risk reduction. We find strong evidence that farmers engage in multiple risk management practices in order to reduce losses due to cattle morbidity and mortality. The results suggest that government strategies that aim at reducing farmers' risk need to be tailored to specific farm and farmer characteristics. Findings from this study have potentially important policy implications for risk management strategies in developing countries.

Determinants of Risk Behaviour in Livestock Development Programs: Evidence from South Africa's Kaonafatso Yadikgomo (Kyd) Scheme

“…Bardhan et al (2006) found that as herd size increases, the more risk averse the farmers, mainly attributed to farmers paying more attention to their farming. This was contrary to Bishu et al (2016) who found that in Ethiopia, as herd size increased, farmers became less risk-averse. This was also supported by Van Winsen et al (2016) and Xiao et al (2001) who indicated that the larger the farm size, the less risk averse the farmer.…”

“…Hence, they are less likely to experiment and expose to risk unless their livelihoods be compromised. This was contrary to Bishu et al (2016) and Meuwissen, Huirne, and Hardaker, (2001) who found that the higher the farm income, the less risk averse the farmers. However, Mischra and Goodwin, (2006) indicated that it is actually the amount of off/non-farm income that would make farmers less risk-averse.…”

“…A total score was then attained through the summation of each Likert question. This individualistic total score was then used in a multiple linear regression as used by Hayran and Aykut, (2015) and Bishu et al (2016) to ascertain factors having a bearing on the risk behaviour of KYD scheme participants in KZN Province, South Africa. A multiple linear regression model is a multivariate method appropriate when there are various explanatory variables and one dependent variable.…”

Risk perceptions, preferences and management strategies: evidence from a case study using German livestock farmers

“…These contextualized questions follow other studies (e.g. Bishu, O'Reilly, Lahiff, & Steiner, 2016;Flaten et al, 2005;Meuwissen et al, 2001;van Winsen et al, 2014) ensuring comparability of results. This method is simple, fast to complete and allows for domain specific contextualization, i.e.…”

Economic Implication of Grazing and Water Resource Scarcity on Households’ Welfare and Food Security in Tigrai, Ethiopia

“…Felleke and Geda (2001) also stated that 73 percent of the feed is provided from natural grazing, 14 percent from crop residues, and the remaining 13 percent from other feed sources. A recent study by Bishu (2014) in Tigrai indicated that there is a livestock drinking water shortage (34 percent) and feed shortages (7 percent). There is also a livestock management labor shortage (Tegegne 2012).…”