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Comparing risk perceptions and risk management in organic and conventional dairy farming: empirical results from Norway

Lien, Gudbrand; Flaten, Ola; Koesling, Matthias; Valle, Paul Steinar and Ebbesvik, Martha (2005) Comparing risk perceptions and risk management in organic and conventional dairy farming: empirical results from Norway. Livestock Production Science, 95 (1-2), pp. 11-25.

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Document available online at: http://doi:10.1016/j.livprodsci.2004.10.014


This study was conducted to explore organic and conventional dairy farmers’ perceptions of risk and risk management, and to examine relationships between farm and farmer characteristics, risk perceptions, and strategies. The data originate from a survey of conventional (n=363) and organic (n=162) dairy farmers in Norway. Organic farmers had the least risk averse perceptions. Institutional and production risks were perceived as primary sources of risk, with farm support payments at the top. Compared to their conventional colleagues, organic farmers gave more weight to institutional factors related to their production systems. Conventional farmers were more concerned about costs of purchased inputs and animal welfare policy. Organic and conventional farmers’ management responses were more similar than their risk perceptions. Financial measures such as liquidity and costs of production, disease prevention, and insurance were perceived as important ways to handle risk. Even though perceptions were highly farmer-specific, a number of socio-economic variables were found to be related to risk and risk management. The primary role of institutional risks implies that policy makers should be cautious about changing policy capriciously and they should consider the scope for strategic policy initiatives that give farmers some greater confidence about the longer term. Further, researchers should pay more attention to institutional risks.

EPrint Type:Journal paper
Keywords:Risk; Risk management; Dairy farming; Organic farming; Questionnaire; Multivariate analysis; ØKORISK
Subjects: Animal husbandry > Production systems > Dairy cattle
Knowledge management > Research methodology and philosophy > Specific methods > Surveys and statistics
Farming Systems > Farm economics
Research affiliation: Norway > NILF - Norwegian Agricultural Economics Research Institute
Norway > NORSØK - Norwegian Centre for Organic Agriculture
Norway > NVI - National Veterinary Institute
Related Links:https://orgprints.org/perl/search/advanced?addtitle%2Ftitle=&addtitle%2Ftitle_merge=ALL&authors=&authors_merge=ALL&editors=&editors_merge=ALL&abstract%2Fengabstract=&abstract%2Fengabstract_merge=ALL&keywords=%C3%98KORISK&keywords_merge=ALL&subjects_merge=A
Deposited By: Flaten, Dr. Ola
ID Code:6348
Deposited On:13 Feb 2006
Last Modified:12 Apr 2010 07:31
Document Language:English
Refereed:Peer-reviewed and accepted

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