European aquaculture companies; perceptions and attitudes toward risk; risk management practices; risk matrix; risk sources; Geography, Planning and Development; Aquatic Science; Ecology
Abstract :
[en] Aquaculture is the fastest-growing food production technology, having surpassed wild catch as a source of seafood. Yet, modern aquaculture is one of the riskiest businesses to enter as entrepreneurs, farmers or investors. As a result, it is critical to understand how aquaculture companies perceive risks, as well as their most relevant risk sources and management practices, as these are necessary steps toward creating a better environment for aquaculture development. Using a mixed-methods approach, the current study examines the perceptions of risk sources and risk management practices by European aquaculture companies. Our findings suggest that risk sources are rated differently depending on the type of company, withdiseases risks beingthe most important for closed-system land-based companies and grow-out sea-cage farms, while land-based companies using open or semi-open systems rated higher environmental risks, and full-cycle sea-cage the market and financial risks. Similarly, results show that there are differences in the ratings of risk management practices among the types of companies. The findings also indicate that land-based companies using open or semi-open systems and full-cycle sea-cage companies were more willing to take risks than other types of companies, while all types of companies consider aquaculture to be a risky business.
Research Center/Unit :
CEPE - Centre d'Études de la Performance des Entreprises - ULiège
Disciplines :
General management, entrepreneurship & organizational theory
Author, co-author :
Cantillo, Javier ; HEC Management School, University of Liège, Liège, Belgium ; Institute of Tourism and Sustainable Economic Development, Universidad de Las Palmas de Gran Canaria, Las Palmas de Gran Canaria, Spain
Van Caillie, Didier ; Université de Liège - ULiège > HEC Liège : Centres attachés > Centre d'Etude de la Performance des Entreprises (C.E.P.E.)
Language :
English
Title :
Understanding european aquaculture companies’ perceived risks and risk management practices
Alternative titles :
[fr] Comprendre les risques perçus et les pratiques de gestion des risques des entreprises aquacoles européennes
H2020 - 766347 - BioMedaqu - Aquaculture meets Biomedicine: Innovation in Skeletal Health research.
Name of the research project :
BioMedaqu - Aquaculture meets Biomedicine: Innovation in Skeletal Health research
Funders :
EU - European Union
Funding text :
This work is part of the project BioMedAqu, which has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie grant agreement [No. 766347].
Ahsan, D. A. (2011). Farmers’ motivations, risk perceptions and risk management strategies in a developing economy: Bangladesh experience. Journal of Risk Research, 14 (3), 325–349. https://doi.org/10.1080/13669877.2010.541558
Ahsan, D. A., & Roth, E. (2010). Farmers’ perceived risks and risk management strategies in an emerging mussel aquaculture industry in Denmark. Marine Resource Economics, 25 (3), 309–323. https://doi.org/10.5950/0738-1360-25.3.309
Alam, M. A., & Guttormsen, A. G. (2019). Risk in aquaculture: Farmers’ perceptions and management strategies in Bangladesh. Aquaculture Economics & Management, 23 (4), 359–381. https://doi.org/10.1080/13657305.2019.1641568
Anderson, J. M. (2003). The international seafood trade. Elsevier.
Arthur, J. R., Bondad-Reantaso, M. G., Campbell, M. L., Hewitt, C. L., Phillips, M. J., & Subasinghe, R. P. (2009). Understanding and applying risk analysis in aquaculture: A manual for decision-makers. FAO Fisheries and Aquaculture Technical Paper [Report]. FAO. https://digitalarchive.worldfishcenter.org/handle/20.500.12348/1461
Asche, F., Guttormsen, A. G., & Tveteras, R. (2008). Aquaculture—Opportunities and challenges special issue introduction. Marine Resource Economics, 23 (4), 395–400. https://doi.org/10.1086/mre.23.4.42629670
Asche, F., & Oglend, A. (2016). The relationship between input-factor and output prices in commodity industries: The case of Norwegian salmon aquaculture. Journal of Commodity Markets, 1 (1), 35–47. https://doi.org/10.1016/j.jcomm.2015.11.001
Avdelas, L., Avdic‐Mravlje, E., Borges Marques, A. C., Cano, S., Capelle, J. J., Carvalho, N., Cozzolino, M., Dennis, J., Ellis, T., Fernández Polanco, J. M., Guillen, J., Lasner, T., Le Bihan, V., Llorente, I., Mol, A., Nicheva, S., Nielsen, R., Oostenbrugge, H., Villasante, S., … Asche, F. (2021). The decline of mussel aquaculture in the European Union: Causes, economic impacts and opportunities. Reviews in Aquaculture, 13 (1), 91–118. https://doi.org/10.1111/raq.12465
Bergfjord, O. J. (2009). Risk perception and risk management in Norwegian aquaculture. Journal of Risk Research, 12 (1), 91–104. https://doi.org/10.1080/13669870802488941
Bronnmann, J., & Asche, F. (2017). Sustainable seafood from aquaculture and wild fisheries: Insights from a discrete choice experiment in Germany. Ecological Economics, 142, 113–119. https://doi.org/10.1016/j.ecolecon.2017.06.005
Darby, J., & Incedursun, D. (2019). What are the risk preferences (attitude towards risk), most important risk sources and the risk management tools used in the Norwegian aquaculture industry? Empirical study on the Norwegian aquaculture industry. University of Stavanger. https://uis.brage.unit.no/uis-xmlui/handle/11250/2616553
Elwin, A., Jintana, V., & Feola, G. (2020). Characterizing shrimp-farm production intensity in Thailand: Beyond technical indices. Ocean & Coastal Management, 185, 105019. https://doi.org/10.1016/j.ocecoaman.2019.105019
FAO. (2018). The state of world fisheries and aquaculture 2018: Meeting the sustainable development goals. FAO. www.fao.org/3/i9540en/I9540EN.pdf
Guillen, J., Asche, F., Carvalho, N., Fernández Polanco, J. M., Llorente, I., Nielsen, R., Nielsen, M., & Villasante, S. (2019). Aquaculture subsidies in the European Union: Evolution, impact and future potential for growth. Marine Policy, 104, 19–28. https://doi.org/10.1016/j.marpol.2019.02.045
Hukom, V., Nielsen, R., & Nielsen, M. (2022). Effects of co-management on technical efficiency and environmental stressors: An application to small-scale shrimp polyculture in Indonesia. Aquaculture Economics & Management, 26 (1), 98–117. https://doi.org/10.1080/13657305.2021.1897190
Jensen, F., Nielsen, M., & Nielsen, R. (2014). Increased competition for aquaculture from fisheries: Does improved fisheries management limit aquaculture growth? Fisheries Research, 159, 25–33. https://doi.org/10.1016/j.fishres.2014.05.004
Joffre, O. M., Poortvliet, P. M., & Klerkx, L. (2018). Are shrimp farmers actual gamblers? An analysis of risk perception and risk management behaviors among shrimp farmers in the Mekong Delta. Aquaculture, 495, 528–537. https://doi.org/10.1016/j.aquaculture.2018.06.012
Joffre, O. M., Poortvliet, P. M., & Klerkx L. (2019). To cluster or not to cluster farmers? Influences on network interactions, risk perceptions, and adoption of aquaculture practices. Agricultural Systems, 173, 151–160. https://doi.org/10.1016/j.agsy.2019.02.011
Kabir, J., Cramb, R., Alauddin, M., Gaydon, D. S., & Roth, C. H. (2020). Farmers’ perceptions and management of risk in rice/shrimp farming systems in South-West Coastal Bangladesh. Land Use Policy, 95, 104577. https://doi.org/10.1016/j.landusepol.2020.104577
Khan, M. A., Begum, R., Nielsen, R., & Hoff, A. (2021). Production risk, technical efficiency, and input use nexus: Lessons from Bangladesh aquaculture. Journal of the World Aquaculture Society, 52 (1), 57–72. https://doi.org/10.1111/jwas.12767
Kumbhakar, S. C. (2002). Risk preferences and technology: A joint analysis. Marine Resource Economics, 17 (2), 77–89. https://doi.org/10.1086/mre.17.2.42629353
Le Bihan, V., Pardo, S., & Guillotreau, P. (2013). Risk perception and risk management strategies of oyster farmers. Marine Resource Economics, 28 (3), 285–304. https://doi.org/10.5950/0738-1360-28.3.285
Le, T. C., & Cheong, F. (2009). Measuring risk levels and efficacy of risk management strategies in vietnamese catfish farming. International Journal of Economics and Management Engineering, 3 (9), 1744–1755. https://doi.org/10.5281/zenodo.1085175
Le, T. C., & Cheong, F. (2010). Perceptions of risk and risk management in Vietnamese catfish farming: An empirical study. Aquaculture Economics & Management, 14 (4), 282–314. https://doi.org/10.1080/13657305.2010.526019
Lebel, L., Lebel, P., & Lebel, B. (2016). Impacts, perceptions and management of climate-related risks to cage aquaculture in the reservoirs of Northern Thailand. Environmental Management, 58 (6), 931–945. https://doi.org/10.1007/s00267-016-0764-5
Lebel, L., Lebel, P., Soe, K. M., Phuong, N. T., Navy, H., Phousavanh, P., Jutagate, T., Akester, M., & Lebel, B. (2020). Aquaculture farmers’ perceptions of climate-related risks in the Mekong Region. Regional Environmental Change, 20 (3), 95. https://doi.org/10.1007/s10113-020-01688-5
Lebel, P., Whangchai, N., Chitmanat, C., & Lebel, L. (2015). Climate risk management in river-based tilapia cage culture in northern Thailand. International Journal of Climate Change Strategies and Management, 7 (4), 476–498. https://doi.org/10.1108/IJCCSM-01-2014-0018
Martins, C. I. M., Eding, E. H., & Verreth, J. A. J. (2011). The effect of recirculating aquaculture systems on the concentrations of heavy metals in culture water and tissues of Nile tilapia Oreochromis niloticus. Food Chemistry, 126 (3), 1001–1005. https://doi.org/10.1016/j.foodchem.2010.11.108
McIntosh, D. (2008). Aquaculture risk management. NRAC Publication.
Mitra, S., Khan, M. A., & Nielsen, R. (2019). Credit constraints and aquaculture productivity. Aquaculture Economics & Management, 23 (4), 410–427. https://doi.org/10.1080/13657305.2019.1641571
Nielsen, R., Ankamah-Yeboah, I., & Llorente, I. (2021). Technical efficiency and environmental impact of seabream and seabass farms. Aquaculture Economics & Management, 25 (1), 106–125. https://doi.org/10.1080/13657305.2020.1840662
Pimolrat, P., Whangchai, N., Chitmanat, C., Promya, J., & Lebel, L. (2013). Survey of climate-related risks to tilapia pond farms in Northern Thailand. International Journal of Geosciences, 04 (05), 54–59. Article 5. https://doi.org/10.4236/ijg.2013.45B009
Rahman, M. T., Nielsen, R., Khan, M. A., & Ahsan, D. (2021). Perceived risk and risk management strategies in pond aquaculture. Marine Resource Economics, 36 (1), 43–69. https://doi.org/10.1086/711066
Sjöberg, L., Moen, B.-E., & Rundmo, T. (2004). Explaining risk perception. An evaluation of the psychometric paradigm in risk perception research. Rotunde Publikasjoner Rotunde, 84, 55–76.
Theodorou, I. (2015). Risk analysis of the Mediterranean mussel farming in Greece [Dissertation]. Ghent University. http://hdl.handle.net/1854/LU-6846893
Thorvaldsen, T., Holmen, I. M., & Moe, H. K. (2015). The escape of fish from Norwegian fish farms: Causes, risks and the influence of organisational aspects. Marine Policy, 55 (C), 33–38. https://doi.org/10.1016/j.marpol.2015.01.008
Tveterås, R. (1999). Production risk and productivity growth: Some findings for Norwegian salmon aquaculture. Journal of Productivity Analysis, 12 (2), 161–179. https://doi.org/10.1023/A:1007863314751
Wachinger, G., Renn, O., Begg, C., & Kuhlicke, C. (2013). The risk perception paradox—Implications for governance and communication of natural hazards. Risk Analysis, 33 (6), 1049–1065. https://doi.org/10.1111/j.1539-6924.2012.01942.x
