PERCEPTIONS OF RISK AND RISK MANAGEMENT IN VIETNAMESE CATFISH FARMING: AN EMPIRICAL STUDY

Abstract

Although Vietnamese catfish farming has grown at a rapid rate in recent years, the industry has also faced many problems that affect its sustainability. This paper explores the perceptions of catfish farmers regarding risk and risk management strategies in their production activities. The relationships between farm and farmer socioeconomic characteristics and perceptions of risk and risk management are also examined. Data for the study were collected in 2008 from a sample of 261 catfish farmers in the Mekong Delta, Vietnam using a questionnaire survey. The results show that, in general, price and production risks were perceived as the most significant risks. Farm management and technical measures were perceived to be more effective than other kinds of risk management strategies in risk reduction. Although price risks were rated as important, price risk management strategies were not perceived as important measures for risk mitigation. The results of the study are discussed to identify the implications for various industry stakeholders, including policymakers, processors, advisors, and developers of new risk management strategies.