Risks and Risk Management in Agri-food Chains

Hrabrin I. BACHEV

Abstract


Abstract. Risks management studies in the agri-food sector predominately focus on the technical methods and the capability to perceive, prevent, mitigate, and recover from diverse risks. In most economic publications the risks are usually studied as another commodity regulated by the market supply and demand, and the farmers “willingness to pay” for an insurance contract modeled. At the same time, the risk management analysis largely ignore a significant “human nature” based (bounded rationality, opportunism) risk, critical factors for the managerial choice such as the institutional environment and the transaction costs, and diversity of alternative (market, private, collective, public, hybrid) modes of risk management. This paper incorporates the interdisciplinary New Institutional Economics and presents a comprehensive framework for analyzing the risk management in the agri-food sector. First, it specifies the diverse (natural, technical, behavioral, economic, policy etc.) type of agri-food risks, and the market, private, public and hybrid modes of their management. Second, it defines the efficiency of risk management and identifies (personal, institutional, dimensional, technological, natural) factors of governance choice. Third, it presents stages in the analysis of risk management and for the improvement of public intervention in the risk governance. Forth, it identifies the contemporary opportunities and challenges for the risk governance in the agri-food chain. Finally, it identifies challenges, assesses efficiency, and present responses of the agri-food risk management after the Fukushima nuclear accident in Japan in March 2011.

Keywords. Agri-food chain and risk management, Market, Private and public governance, Fukushima nuclear disaster.

JEL. Q10, Q56, R33.


Keywords


Agri-food chain and risk management; Market, private, and public governance; Fukushima nuclear disaster.

Full Text:


References


Babcock, B. (2004). Economics of Risk Management in Agriculture, Center for Agricultural and Rural Development. Iowa State University, (Retrieved from).

Bachev, H. (2010a). Governance of Agrarian Sustainability, New York: Nova Science Publishers.

Bachev, H. (2010b). Framework for analysis of agrarian contracts, Management Research and Practice, 2(1), 39-66.

Bachev, H. (2011a), Dairy Supply Chain Management in Bulgaria, IUP Journal of Supply Chain Management, 2, 7-20.

Bachev H. (2011b). Needs, Modes and Efficiency of Economic Organizations and Public Interventions in Agriculture, Review of Economics & Finance, 3, 89-103.

Bachev, H. (2011c). Governing of Chemical and Biological Risks in Agri-food Sector: Modes, Efficiency, Challenges, in Exploring Multidisciplinary Approaches to Chemical and Biological Defense, Proceedings DTRA & IIBR Workshop, June 19-23, 2011, Eilat, Israel.

Bachev, H. (2012a). Risk Management in Agri-food Sector, Contemporary Economics, 6(3), 45-62. doi. 10.5709/ce.1897-9254.73

Bachev, H. (2012b). Management of Agro-Ecosystem Services: Framework of Analysis, Case of Bulgaria, in Advances in Environmental Research. Vol.17, Ed. Justin A. Daniels, New York: Nova Science, pp.119-164.

Bachev, H. & Labonne, M. (2000). About Organization of Agrarian Innovations. Montpellier: INRA.

Bachev, H. & Tanic, S. (2011). Issues and challenges for farm and enterprise diversification and integration of small scale farmers into value chains in EECA, in “Enabling Environment for producer-agribusiness linkages in EECA”, ed. S.Tanic, FAO: Ankara.

Bachev, H. & Nanseki, T. (2008), Risk Governance in Bulgarian Dairy Farming, Proceedings 12th Congress of the European Association of Agricultural Economists “People, Food and Environments – Global Trends and European Strategies”, 26-29 August 2008, Ghent, (Retrieved from).

Barker, G. (2005). Tools for assessing and managing food chain risks, Presentation to RELU conference Rural Economy and Land Use: The Challenge for Research 19-21 Jan 2005, Birmingham. (Retrieved from).

Behdani, B. (2012). Japanese Catastrophe and the Dark Side of Global supply Chains. (Retrieved from).

CDC (2011). Centre for Disease Control and Prevention, USA. (Retrieved from).

CIPS (2012). Risk management in food supply chains, CIPS, (Retrieved from).

Coase, R. (1937). The Nature of the Firm, Economica 4(16), 386-405. doi. 10.1111/j.1468-0335.1937.tb00002.x

Coase, R. (1960). The Problem of Social Costs, Journal of Law and Economics, 3, 1-44. doi. 10.1002/sres.3850090105

COST, (2009). COST Foresight 2030, Benefiting from the Digital Revolution, COST Workshop on Food Security, Final Report, June 30- July 2, 2009, Gent, Belgium.

Dani, S. & Deep, A. (2010). Investigating risk management capability within UK food supply chains. (Retrieved from).

Deep, A. & Dani, S. (2009). Managing Global Food Supply Chain Risks: A Scenario Planning Perspective, POMS 20th Annual Conference, Orlando, Florida U.S.A., May 1 to May 4, 2009. (Retrieved from).

Derrig, R. (2002). Insurance Fraud. The Journal of Risk and Insurance. 69(3), 271-287. doi. 10.1111/1539-6975.00026

DTRA & IIBR (2011). Exploring Multidiciplinary Approaches to Chemical and Biological Defence (2011), Proceedings, DTRA & IIBR Workshop, June 19-23, 2011, Eilat, Israel.

Furuboth, E. & Richter, R. (1998). Institutions and Economic Theory: The Contribution of the New Institutional Economics. Ann Arbor: The University of Michigan Press

Gerasymenko, N. & Zhemoyda, O. (2009). New Challenhes for Risk Management in Agri-food Industry, EAAE 113th Seminar, September 3-6, 2009, Chania, Crete, Greece. (Retrieved from).

ECDC, (2010). Annual epidemiological report on communicable diseases in Europe 2010, European Centre for Disease Prevention and Control.

EEA, (2010). State of Environment Report, Executive Environment Agency, Sofia.

Eurobarometer, (2010). Food-related risks, Special Eurobarometer 73.5.

EU, (2009). The Rapid Alert System for Food and Feed, Annual Report 2009, European Commission.

Eurostat, (2011a). From farm to fork – a statistical journey along the EU's food chain, Eurostat.

Eurostat, (2011b). Waste statistics, Eurostat.

Hefnawy, M. (2011). Advances in Food Protection Focus on Food Safety and Defense, Springer.

Humphrey J. & Memedovic, O. (2006), Global Value Chains in Agri-food Sector, Vienna: UNIDO.

Jaffee S., Siegel, P., & Andrews, C. (2008). Rapid Agricultural Supply Chain Risk Assessment, World Bank.

Koteva, N., & Bachev, H. (2011). A Study on Competitiveness of Bulgarian Farms, Economic Thought, 7, 95-123.

Luning P., Devlieghere, F., & Verhé, R. (2006). Safety in the agri-food chain, Wageningen Academic Publishers.

MAF, (2011). Agrarian Report, Ministry of Agriculture and Forestry, Sofia.

North, D. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press, Cambridge.

OECD, (2008). Managing Risk in Agriculture: a Holistic Approach, OECD.

OECD, (2011). Managing Risk in Agriculture Policy Assessment and Design, OECD.

Olson, M. (1969). The Logic of Collective Actions: Public Goods and the Theory of Groups. Harvard Univ. Press.

Olsson, A., & Skjöldebrand, C. (2008). Risk Management and Quality Assurance Through the Food Supply Chain – Case Studies in the Swedish Food Industry, The Open Food Science Journal, 2, 49-56. doi. 10.2174/1874256400802010049

Ramaswami, R., Ravi, S., & Chopra, S. (2008). Risk management in agriculture, Working Papers, (Retrieved from).

RPDRM, (2012). Disaster Risk Management in food and agriculture, Rome Partnership for Disaster Risk Management. (Retrieved from).

Schaffnit-Chatterjee, C. (2010). Risk management in agriculture. Towards market solutions in the EU, Deutsche bank Research. (Retrieved from).

Shepherd, R., Barker, G., French, S., Hart, A., Maule, J., & Cassidy, A. (2006). Managing Food Chain Risks: Integrating Technical and Stakeholder Perspectives on Uncertainty, Journal of Agricultural Economics, 57(2), 313–327. doi. 10.1111/j.1477-9552.2006.00054.x

Sporleder, T. (1992). Managerial Economics of Vertically Coordinated Agricultural Firms, American Journal of Agricultural Economics, l 74(5), 1226-1231. doi. 10.2307/1242792

Trench P., C.Narrod, D.Roy, & M.Tiongco (2011), Responding to Health Risks along Value Chain, New Delhi: 2020 Conference Paper-5.

Weaver, R. & T. Kim (2000). Contracting to Manage Risk in Food Supply Chains, Paper presented at IAMA 2000 Meetings, April 2000, Chicago, Illinois. (Retrieved from).

Williamson О. (1981). The Economics of Organization. The American Journal of Sociology, 87(3), 548-577. doi. 10.1086/227496

Williamson, O. (1996). The Mechanisms of Governance. New York: Oxford University Press




DOI: http://dx.doi.org/10.1453/jeb.v3i2.742

Refbacks

  • There are currently no refbacks.


.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics Bibliography - J. Econ. Bib.  - JEB - www.kspjournals.org

ISSN: 2149-2387. Editor : editor-jeb@kspjournals.org   Secretarial: secretarial@kspjournals.org   Istanbul - Turkey.

Copyright © KSP Journals