Factors Driving the Adoption of Coping Strategies to Market Risks of Shrimp Farmers: A Case Study in a Coastal Province of Vietnam

Nguyen Thai Phan (), Isabelita M Pabuayon (), Nguyen Duc Kien (), Truong Quang Dung (), Le Thanh An () and Nguyen Cong Dinh ()

Asian Journal of Agriculture and Rural Development, 2022, vol. 12, issue 2, 65-74

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 sampling was used to collect information from a sample 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.

Keywords: Market risks; Risk management strategies; Technology adoption; Shrimp production; Logit model; Vietnam. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://archive.aessweb.com/index.php/5005/article/view/4444/6852 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:ajosrd:v:12:y:2022:i:2:p:65-74:id:4444

Access Statistics for this article

More articles in Asian Journal of Agriculture and Rural Development from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().