Dairy Farmers' Risk Perception and Risk Management in China - Evidence from Hebei Province and Inner Mongolia
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概要
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This paper outlines the main source of risks and the main risk management strategies to dairy farmers in China. Dairy is an industry with big potential in China, both consumption and production increase dramatically in recent years and now China is the third biggest milk producer in the world, right after USA and India (Food Agriculture Organization of United Nations (FAO) (2008) FAOSTAT Agriculture Database, accessed November 2008, available at <http://faostat.fao.org/site/339/default.aspx>). As a way to increase farmers' income and improve people's diet structure, the Chinese government encourages farmers to raise cows and produce milk. However, risks in both food and agriculture including food contamination by chemical, animal diseases and price variability in China may cause big damage for both dairy farmers and consumers. To understand farmers' perception and response to risk is important to policy makers as well as economists. And helping farmers to manage different kind of risk is a way to reduce farmers' losses. In this study, dairy farmers' risk perception and risk management strategies are mainly examined. Farmers' risk perception and risk management strategies were studied by using Principal Component Analysis (PCA). The survey was carried out in Hebei Province and Inner Mongolia in April and June, 2010. 168 samples are available for this study. According to the results, we found that price and animal diseases such as foot and mouth disease post large threats to dairy farmers. In addition, producing at the lowest cost and preventing livestock disease are the most useful risk management strategies for dairy farmers. Farmer corporation association and agricultural insurance becomes a way to help farmers to manage risk in many crops and some other animal products, but such acts are not so popular to dairy farmers in China yet. To improve these strategies is useful for dairy farmers as well and might help them to avoid many risks and reduce losses.
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農業情報学会 | 論文
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