Original Research

Risk management strategies on small-scale commercial farms in three zobatat of Eritrea

MA Mohammed, GF Ortmann, SR Ferrer
South African Journal of Economic and Management Sciences | Vol 9, No 4 | a1050 | DOI: https://doi.org/10.4102/sajems.v9i4.1050 | © 2014 MA Mohammed, GF Ortmann, SR Ferrer | This work is licensed under CC Attribution 4.0
Submitted: 21 May 2014 | Published: 22 May 2014

About the author(s)

MA Mohammed, University of KwaZulu-Natal
GF Ortmann, University of KwaZulu-Natal
SR Ferrer, University of KwaZulu-Natal

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In this study the perceptions of small-scale commercial farmers in Eritrea of the importance of various risk responses are ascertained and analysed to gain insight into their risk-management strategies.  Data were elicited through a survey of 186 small-scale commercial farmers conducted in three zobatat (regions) of Eritrea. Factor Analysis is used to investigate heterogeneity in sample farmers’ responses.  Results indicate that relatively more important risk responses include the use of internal and external sources of information, on-farm and off-farm diversification, choice of production system and product marketing arrangements. Farmers’ perceptions of risk responses vary according to farm type, geographical location, farm and farmer characteristics, as well as the existence of enterprise specific risk responses (e.g. livestock insurance) and differences in the marketing regulations of various agricultural products.


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Crossref Citations

1. Management decisions on commercial sugarcane farms in KwaZulu-Natal: a focus on choice bracketing behaviour for risk management
R Mac Nicol, G F Ortmann, S RD Ferrer
Agrekon  vol: 47  issue: 1  first page: 116  year: 2008  
doi: 10.1080/03031853.2008.9523793