Work

Risk Perception and Management Strategies Among Ecuadorian Cocoa Farmers: A Comprehensive Analysis of Attitudes and Decisions

Year: 2025

Type: article

Abstract: Cocoa farming in Ecuador faces significant challenges due to market volatility and climate-related risks, necessitating effective risk management strategies. This study investigates the interplay between risk attitudes (RAs), risk perceptions (RPs), and risk management strategies (RMSs) among Ecuadorian cocoa farmers, examining how these factors influence decision-making under uncertainty. Combining experimental lotteries to assess risk and loss aversion, with partial least squares structural equation modeling (PLS-SEM) to analyze survey data, we explore how farmers prioritize perceived impacts over probabilities in their risk assessments. The findings reveal that farmers focus more on mitigating severe perceived impacts, such as price drops and production losses due to adverse weather, than on probability-based strategies, commonly opting for diversification and nonagricultural activities. These results highlight the importance of designing policies and tools that address the perceived impacts of risks, align support with farmers’ needs, and improve access to financial resources and tailored insurances. This approach offers valuable insights for policymakers aiming to enhance cocoa farmers’ resilience in volatile agricultural environments.

Source: Agriculture

DOI: 10.3390/agriculture15080843

Authors: José Díaz-Montenegro, Raúl Minchala-Santander, Marco Faytong-Haro

Institution: Universidad Estatal de Milagro

Language: English

Topic: Agricultural risk and resilience

Subfield: Soil Science

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDG: Zero hunger

Open Access status: gold

Estimated APC paid: $3,137