African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6578

Full Length Research Paper

Perceptions of risk and risk management strategies in family agroindustries

Cristian Rogério Foguesatto
  • Cristian Rogério Foguesatto
  • Universidade Federal do Rio Grande do Sul, Porto Alegre, Brazil.
  • Google Scholar
João Armando Dessimon Machado
  • João Armando Dessimon Machado
  • Universidade Federal do Rio Grande do Sul, Porto Alegre, Brazil.
  • Google Scholar


  •  Received: 21 February 2017
  •  Accepted: 22 March 2017
  •  Published: 01 June 2017

Abstract

The importance of risk perception and risk management has been addressed by studies of agriculture and livestock activities; however, there have been few studies in other contexts, such as family agroindustries. This study provides information on risk perception and risk management in family agroindustries in the state of Rio Grande do Sul, Brazil. The analysis involves 72 family agroindustries in 43 counties, and the respondents were the individual decision makers of those organizational units. Twenty eight sources of risks and 28 risk management strategies were analyzed. The results suggested that the country’s current economic situation, inflation/deflation, changes in product prices and the elimination/reduction of government support are the most important sources of risk. The main types of risk management included updating to new technologies, the use of technical support, maintaining/increasing market liquidity for products, and the commercialization of products without mediators. Two sources of risk (low-qualified staff and lack of motivation) and four risk management strategies (commercialization of products without mediators, acquiring certification, improving production practices and maintaining relationships with customers) were identified in the present study, but not found in the literature reviewed.

 

Key words: Agroindustries, food production, risk, risk perception, risk management.