Aquaculture is a high risk business, not because it is based on biological processes or survival of large numbers of living organisms in captivity but because of its dependence on human skills, efficiency of machines and clemency of the physical forces of nature.
In Nigeria, however, slow aquaculture development and the developing status of the nation are major reasons why risk-measuring is unpopular and rarely considered. Probably in quantifying risks, farmers are interested in the frequency, cost and its economic consequences.
According to Ojo et al.(2004), they evaluate commercial decisions by weighing the risks and uncertainties of doing the business, whether to do it or not. They may also consider the mitigation and control decisions and the financial decisions.
Unfortunately, the current status of aquaculture in Nigeria makes the quantification of risks very individualistic for the farmer and his farm. Though there is dearth of adequate record of aquaculture industry in Nigeria, many farmers did not make these types of analysis or have the right level of risk capital available at the start of their projects.
In Nigeria, however, slow aquaculture development and the developing status of the nation are major reasons why risk-measuring is unpopular and rarely considered. Probably in quantifying risks, farmers are interested in the frequency, cost and its economic consequences.
According to Ojo et al.(2004), they evaluate commercial decisions by weighing the risks and uncertainties of doing the business, whether to do it or not. They may also consider the mitigation and control decisions and the financial decisions.
Unfortunately, the current status of aquaculture in Nigeria makes the quantification of risks very individualistic for the farmer and his farm. Though there is dearth of adequate record of aquaculture industry in Nigeria, many farmers did not make these types of analysis or have the right level of risk capital available at the start of their projects.