Coping up with the Risks and Increasing Sustainability: Strategies for Small-scale Shrimp Farming in Indonesia

Small-scale shrimp farmers have contributed significantly in increasing shrimp production in Indonesia. However, they face various risks that resulted to high ﬂuctuation in their income. Risk management strategies in shrimp farming are needed to cope with inherent risks in order to enhance sustainability of shrimp farming. This study analyzed the sources of risks, ex-ante risk management and ex-post risk coping strategies in small-scale shrimp farms in Indonesia. A field survey of 166 shrimp farmers was conducted in the North and South coastal zones of East Java. Results revealed that the top three sources of risks that influenced in shrimp farming were shrimp price volatility, high mortality due to diseases, and increasing formulated feed price. Requesting for government technical assistance was the common formal on farm risk management strategy used by the shrimp farmers. Sharecropping was the main ex-ante strategy to mitigate risk. Small-scale shrimp farmers tended to avail of informal loans that resulted to loss of savings. They also used family labor as informal ex-post strategy to reduce expenses. They used social assistance from the government as formal ex-post risk coping strategies.

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Determinants of Farmers’ Decisions on Risk Coping Strategies in Rural West Java

Climate ◽

10.3390/cli7010007 ◽

2019 ◽

Vol 7 (1) ◽

pp. 7

Author(s):

Dadang Jainal Mutaqin

Keyword(s):

Coping Strategies ◽

Logit Model ◽

West Java ◽

Capita Expenditure ◽

Disaster Experience ◽

Ex Post ◽

Ex Ante ◽

Per Capita ◽

The Impact ◽

Risk Coping

The impact of natural hazards on agriculture in Indonesia is becoming increasingly severe. Therefore, improving farmers’ capacity to undertake risk coping strategies is essential to maintaining their prosperity. The objective of this study was to investigate the determinants of farmers’ decisions on ex ante and ex post coping strategies in rural West Java, Indonesia. The study was based on a field survey of 180 farmers conducted in the Garut district from July to October 2017. The study used the protection motivation theory framework and applied three econometric models: binomial logit model, zero truncated Poisson regression model, and multinomial logit model. Most farmers (74.4%) adopted ex ante coping strategies. They were characterized as having higher risk aversion per capita expenditure and disaster experience, but lower discount rates and percentage of damage and locations in downstream and midstream areas. Coping appraisal perceptions were found to be important factors in the risk coping analysis. Four determinants of the decision on the number of ex ante coping strategies adopted were: per capita expenditure, land size, disaster experience, and access to financial institutions. The most common ex post coping strategy adopted by farmers was the middle-stress type.

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Ex-ante and ex-post coping strategies for climatic shocks and adaptation determinants in rural Malawi

Climate Risk Management ◽

10.1016/j.crm.2019.100200 ◽

2020 ◽

Vol 27 ◽

pp. 100200 ◽

Cited By ~ 1

Author(s):

Muhammad Abid ◽

Akhter Ali ◽

Dil Bahadur Rahut ◽

Mohsin Raza ◽

Mubashir Mehdi

Keyword(s):

Coping Strategies ◽

Ex Post ◽

Ex Ante

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Rice Farmer Risk Management by Cropping Pattern Diversification in Rural West Java: Motivation, Behavior, and Perception

The Journal of Indonesia Sustainable Development Planning ◽

10.46456/jisdep.v1i1.20 ◽

2020 ◽

Vol 1 (1) ◽

pp. 1-19

Author(s):

Dadang Jainal Mutaqin ◽

Koichi Usami

Keyword(s):

Risk Management ◽

Coping Strategies ◽

Risk Perceptions ◽

Smallholder Farmers ◽

Cropping Pattern ◽

West Java ◽

Agricultural Insurance ◽

Cropping Patterns ◽

Rice Farmer ◽

Risk Coping

The Indonesian government have implemented agricultural production cost insurance since 2015 called Asuransi Usaha Tani Padi (AUTP). It is an issue that the rate of farmer participation in the insurance is still low. As a challenge to increase participation, it becomes important to be aware of motivation, behavior, and perception that influence the practical risk management of farmers. This study investigated the relationship between cropping pattern diversification (as risk management) and factors such as motivation, behavior, and perception. Based on a field survey of 240 smallholder farmers in Garut District, West Java Province, these were the characteristics of farmers who practiced cropping pattern diversification: (1) high-risk perception (impact and probability); (2) risk-averse; and (3) economic motivation. The study revealed that approximately one-third of farmers had risk-neutral and low-risk perceptions of whom approximately 70.7 percent practiced single cropping patterns. They may not adopt any risk- coping strategies unless they are aware of the risks that they face. Improving awareness about the negative impacts of risks on income from farming might encourage them to adopt risk-coping strategies for both on-farm risk coping (such as cropping pattern diversification) and off-farm risk-coping (such as agricultural insurance).

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Horizontal Capacity Coordination for Risk Management and Flexibility: Pay Ex Ante or Commit a Fraction of Ex Post Demand?

Manufacturing & Service Operations Management ◽

10.1287/msom.2013.0435 ◽

2013 ◽

Vol 15 (3) ◽

pp. 458-472 ◽

Cited By ~ 24

Author(s):

Xiaole Wu ◽

Panos Kouvelis ◽

Hirofumi Matsuo

Keyword(s):

Risk Management ◽

Ex Post ◽

Ex Ante

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WHERE DO RISKS IN SHRIMP FARMING COME FROM? EMPIRICAL RESULTS FROM SMALL FARMERS IN EAST JAVA, INDONESIA

Journal of Agribusiness and Rural Development ◽

10.17306/j.jard.2018.00366 ◽

2018 ◽

Vol 47 (1) ◽

pp. 39-47 ◽

Cited By ~ 1

Author(s):

Riski A. Lestariadi ◽

Masahiro Yamao ◽

Masahiro Yamao

Keyword(s):

Risk Management ◽

Management Strategies ◽

Government Support ◽

Shrimp Farming ◽

Small Scale ◽

Credit Access ◽

Income Sources ◽

Technology Improvement ◽

Risk Management Strategies ◽

Risk Sources

This study was conducted to explore small-scaleshrimp farmers’ perception of risk and risk management. Thedata used originated from a field survey in the southern andnorthern coasts of East Java, Indonesia. According to the results,there are 32 risk sources, including shrimp price volatilityand high mortality due to shrimp diseases as the mostimportant ones. The exploratory factor analysis showed thatthe risks in small-scale shrimp farming derived from 8 factors:input and pond preparation; finance and credit access; production;personal aspects; harvesting and marketing; weather andenvironment; policy and institutional aspects; and businessenvironment. The results also revealed that the shrimp farmers’perception of risk could significantly influence their riskmanagement behavior. Furthermore, nine factors were identifiedfor risk management strategies, including disease prevention;education and technology improvement; productioninputs; farm management; government support; risk sharingand insurance; financial aspects; household adjustment; andalternative income sources.

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