The aim of this paper is to examine the importance and application of risk management strategies among Dalmatian grape and wine producers who are faced with climate change. For research purposes, a ...questionnaire was used on a convenient sample of Dalmatian grape growers and wine producers (N=89). Descriptive statistics, t-test for independent sample, and one-way analysis of variance were used for the data analysis. The importance of risk management strategies was assessed on a five-point Likert scale, and results show that the most important strategies are change-the-harvest-date and irrigation strategies, while cessation of agricultural production is not an option for most producers. The level of education and agricultural area under vineyards had no influence on the importance of the strategies, while gender, age groups of respondents, and type of production had an influence on the importance of several risk management strategies.
Due to the lack of reliable longitudinal data, farm income and income trends haven’t been much analysed in Croatia, specifically among horticultural producers. Based on Croatian Farm Accountancy Data ...Network (FADN), the goal of this paper is to research the income of all farms in comparison to horticultural farms. In addition, paper tests farm’s eligibility for Income Stabilization Tool (IST) compensation. Objectives of the paper are: (1) analysis of farm income in the period 2014-2017 for all farms and specifically for horticultural farms, and (2) analyse how many horticultural farms have potential for IST compensation. For the second objective, we prepared scenarios of annual income drop of 10%, 20%, and 30% of the three-year average income. Scenarios are shown for groups - wine, orchard, and olive farms (calculated group index) and for individual farms (calculated farm index). Results show that horticultural farms’ income is on the similar level to the data for all the farms in FADN. The group index calculation compared to farm index income calculation shows a higher number of farms eligible for IST. The paper might serve as a basis for the introduction of IST in Croatian agriculture.
The booming popularity of avocado production has given a poor environmental reputation in various parts of the world. The increase in avocado production has also been observed in Turkiye, where the ...area under cultivation and the production volume of avocados have increased recently. The main objective of the paper is to identify the perceptions of production, environmental and business risks, to study the risk management strategies that farmers consider the most important, and display the gross margin calculation of avocado production in Turkiye. Interviews were conducted with a selected sample of fifteen farms (cases) from the Mediterranean region of Turkiye to determine risk perceptions, risk management strategies and collect data for the rapid calculation of business results of avocado producers. Interview data were analysed using descriptive statistics, and avocado calculation using gross margin. The major production risks were strong winds, fungal attack, and sunburn, while robbery, changes in agricultural policies, and lack of information and uncertain supply for export were the major business risks. The major environmental risks are depletion of water sources. Farmers' most preferable risk management strategies for sustainable avocado production in Turkiye were windbreaks, shade nets and latex coatings, farm insurance, safety and security systems, and strengthening farmer cooperatives. The main environmental risk management strategies were water management, sub-tree irrigation, and the use of technical applications for irrigation. Avocado production in Turkiye is a promising market, but only under the condition of holistic value chain management and an enabling environment that includes national producer associations, sustainable certification systems, and government control of water use and deforestation.
To cope with different types of risks, farmers can implement on-farm strategies and risk-sharing strategies. Risk management tools within EU Common Agricultural Policy are subsidized crop insurance, ...mutual funds (MF), and income stabilization tool (IST). While subsidized crop insurance is widely applied, IST and MF are not so common. Price volatility and climate change risk significantly influence farm income. Mediterranean area is especially exposed to climate change, so Istria County as part of Mediterranean is chosen for research. IST could protect against income variability, but more research and discussions are needed prior to its commercial scale implementation. Qualitative research on the small sample was applied with the goal to explore attributes that could impact the selection of IST. Paper provides an overview of IST and previous experience of IST on the EU level, on the basis of semi structured interviews, explains the perception of climate risks and IST on wine cases in Istria. The results show that all selected cases were familiar with subsidized crop insurance; however, they were not familiar with IST. After being introduced to the IST, wine producers were ready to consider its application. Lack of experiences in business linkages could be a constraint in the development of IST and challenge for policymakers.
This paper aims to present the risks that emerge during the COVID-19 pandemic, their probability of occurrence, and their significance using heat maps. After defining the risks, the objective is to ...outline strategies to reduce the negative impact of COVID-19 on the farmer's business. The research was conducted in the area of the City of Zagreb on a vegetable producer. Based on the interview with the vegetable producer, we examined the subjective risk assessment, its significance, and probability of occurrence during the COVID-19 pandemic. The results show that the risks of increment input prices during COVID-19 and weather and natural disasters should be reduced, while the risks that need to be managed have not been determined. The risk of unavailability of inputs and decrement product prices should be minimally controlled. The proposed strategies for risk management on the farm are agricultural insurance, contractual procurement of inputs and sale of products, and education.
Organic agriculture (OA) is a continuously growing global concept that emphasizes the use of sustainable and environmentally-friendly practices. By adopting OA, it is possible to improve ecosystems ...services, increase biodiversity, decrease environmental pollution, reduce carbon footprints and mitigate greenhouse gas emissions, generating food that is free from harmful residues of agrochemicals, thereby enhancing food safety and security. This study provides a comprehensive review of the latest insights on the global utilization of land resources in OA, focusing particularly on some EU countries that experienced a notable and rapid progress in organic farming during the past two decades. With negligible 1.6% (75 Mha) of global cropland is currently dedicated to OA, there is ample opportunity to expand the adoption of OA and realize its multi-beneficial potential for farmers (by premium prices), and consumers (by healthier and nutritious food). The importance of OA has been recognized by the most recent EU agro-environmental policies and green strategies, with an ambitious goal to have at least 25% of agroecosystems under organic management by 2030. Despite numerous financial supports and a multifold increase in OA land area, many member states are unlikely to achieve this goal, including Croatia, which currently has a share of only 8% (~109,000 ha) of lands in OA. Furthermore, converting conventional land to organic farming has not always led to an increase in value-added final OA products. EU policies related to OA have been focused on the area of land cultivated organically, rather than overall production performance, and financial subsidies have been essential to achieve this policy. Therefore, some of critical obstacles and challenges for OA under rising pressures due to global climate change, public health and geopolitical crises need to be managed by specifically designed policies and regulations, which would contribute to more sustainable OA, i.e., food safety and security.
The main goal of this paper was to determine perceptions of risk and risk management strategies by winemakers. Primary research was based on the sample of 38 randomly selected winegrowers in the ...Croatian northwestern sub region of Zagorje – Međimurje. Winegrowers are relatively unwilling to take risks. In the process of making business decisions most of them rely on their own experience, advices and recommendations learned by attending winegrower association courses together with critics of their customers. Highly evaluated risk sources are health issues (human risks) and production risks (weather factors, as well as diseases and pests. As the most important risk management strategies in vineyard production, the winegrowers emphasized: ownership of land and objects, intuition and personal assessment and additionally the various methods of price risk management (marketing and sales policy). Crop insurance is perceived as a relatively important strategy. The main reasons why winegrowers use crop insurance are: regional exposure to extreme climate risks, as well as the unavailability of other management instruments for risk management. In order to improve the quality of insurance services it would be necessary to focus efforts and activities on promoting and developing a better system for agricultural insurance. That would consequently allow enrichment of insurance risk sources palette, but also could have effect on decrease of insurance premiums. Furthermore, in order to become competitive in both, domestic and EU market, there should be developed training programs in the area of risk management. That could have impact on reducing risk aversion in the business activities!
International competitiveness, being a key objective of each economic entity, is at the same time significantly determined by the level of risk the entity is coping. Based on the assumption that risk ...management is directly linked to competitiveness in agribusiness, the scope of this paper is predominantly focused on the wine agribusiness in Croatia. The aim of this paper is to encompass available literature and transfer findings to interested parties, about risks and competitiveness in agriculture, with particular reference to the wine sector. Qualitative analysis of secondary data, descriptive i.e. monographic method, deductive method and comparison of available papers from the world and Croatia were applied in the paper. There are very few companies in general, however, that tend to use their abilities to manage risks as a source of competitive advantage. These companies go beyond compliance or cost-controlling defensive approaches and take a more aggressive stance toward risk. They have realized that their risk management capabilities can be leveraged as a source of competitive advantage (Elahi, 2013). Current literature showed that such companies indirectly exist within global agribusiness. Examples of such companies in the wine sector could be found in Old World and New World wine countries. In regards with the mentioned, further research in the wine sector that would more directly link competitiveness and risk management and benefits that could be drawn from such “linkage” is needed.
Cilj rada je ispitati važnost i primjenu strategija za upravljanje rizikom u okruženju klimatskih promjena među vinogradarima i vinarima (VV) s područja Dalmacije. Za potrebe istraživanja korišten je ...anketni upitnik na prigodnom uzorku vinogradara i vinara Dalmacije (N=89). U analizi podataka korištena je deskriptivna statistika, t-test nezavisnih uzoraka i jednosmjerna analiza varijance. Važnost strategija za upravljanje rizikom ocjenjeno je pomoću Likertove skale od pet stupnjeva, a rezultati pokazuju kako su najvažnije strategije promjena vremena berbe i strategija navodnjavanje, dok napuštanje poljoprivredne proizvodnje za većinu poljoprivrednih proizvođača nije opcija. Razina edukacije i poljoprivredne površine pod vinogradima nisu imale utjecaj na ocjenu važnosti strategija, dok su spol, starosne grupe ispitanika i tip proizvodnje imale utjecaj na važnost nekoliko strategija o upravljanju rizikom.
Due to the lack of reliable longitudinal data, farm income and income trends haven't been much analysed in Croatia, specifically among horticultural producers. Based on Croatian Farm Accountancy Data ...Network (FADN), the goal of this paper is to research the income of all farms in comparison to horticultural farms. In addition, paper tests farm's eligibility for Income Stabilization Tool (IST) compensation. Objectives of the paper are: (1) analysis of farm income in the period 2014-2017 for all farms and specifically for horticultural farms, and (2) analyse how many horticultural farms have potential for IST compensation. For the second objective, we prepared scenarios of annual income drop of 10%, 20%, and 30% of the three-year average income. Scenarios are shown for groups - wine, orchard, and olive farms (calculated group index) and for individual farms (calculated farm index). Results show that horticultural farms' income is on the similar level to the data for all the farms in FADN. The group index calculation compared to farm index income calculation shows a higher number of farms eligible for IST. The paper might serve as a basis for the introduction of 1ST in Croatian agriculture.
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