Tilapia farmers in Nigeria manage their risks through the following:
1. Pursuance of a business plan and management strategy, which anticipate absorbing risks. It may require a certain level of financial liquidity by reserving a fixed percentage of the profits in a sinking fund or strict regard to specific practices.
2. Management and control of risks through formation of professional associations (cooperatives), by setting appropriate standards and adopting codes of practice.
3. Applying the highest economic standard in locating the venture. They must embark on a pilot-scale project as a prelude to establishing their farm. High quality engineering standard must be followed.
4. Adherence to laws and regulations regarding the movement, handling and marketing of diseased stocks so as to reduce the risk of spreading the disease.
Tilapia farmers can reduce their risks by varying degrees, yet few can be entirely eliminated. Thus they have the option to absorb these risks themselves or to divert them. An important option is to insure the welfare of the fish. Unfortunately, agricultural insurance schemes are not well embraced in Nigeria. It is a satisfactory and reliable means of sharing risks with others or managing risks. The merit of the scheme is that, it boosts the confidence of lending institutions to make loans available to farmers.
1. Pursuance of a business plan and management strategy, which anticipate absorbing risks. It may require a certain level of financial liquidity by reserving a fixed percentage of the profits in a sinking fund or strict regard to specific practices.
2. Management and control of risks through formation of professional associations (cooperatives), by setting appropriate standards and adopting codes of practice.
3. Applying the highest economic standard in locating the venture. They must embark on a pilot-scale project as a prelude to establishing their farm. High quality engineering standard must be followed.
4. Adherence to laws and regulations regarding the movement, handling and marketing of diseased stocks so as to reduce the risk of spreading the disease.
Tilapia farmers can reduce their risks by varying degrees, yet few can be entirely eliminated. Thus they have the option to absorb these risks themselves or to divert them. An important option is to insure the welfare of the fish. Unfortunately, agricultural insurance schemes are not well embraced in Nigeria. It is a satisfactory and reliable means of sharing risks with others or managing risks. The merit of the scheme is that, it boosts the confidence of lending institutions to make loans available to farmers.