Publication
Factors Driving the Adoption of Coping Strategies to Market Risks of Shrimp Farmers: A Case Study in a Coastal Province of Vietnam
Publisher:
Asian Economic and Social Society
Date:
15-03-2022
DOI:
10.55493/5005.V12I2.4444
Abstract: Shrimp farmers in Vietnam respond passively to market risks, such as input and output price shocks. This study provides a better understanding of market risks, risk management strategies adopted by shrimp farmers, the factors driving their choice of strategies, and how such strategies affect farm performance. Random s ling was used to collect information from a s le of 246 shrimp farmers. Several analytical methods were combined, including descriptive analysis, coefficient of variance estimation for market risks, and a logistic regression model to uncover factors behind farmers’ decisions to adopt risk management strategies. To cope with market risks, shrimp farmers frequently adopt two risk management strategies: changes in farming technology and practices, and agricultural input contracts. Overall, 54.9% of shrimp farmers only used a single strategy, whereas the others used combined risk management strategies. Age, farm size, membership in a farmers association, participation in training, gender, price of output, price of seed, price of fertilizer, distance from farm to the market center, and shrimp type were identified as factors driving the probability of using combined risk management strategies.