Price risk perceptions and management strategies in Vietnamese pangasius production

Abstract

Vietnamese pangasius prices have become more volatile over the past decade exposing the business to risk and uncertainty. This study explored Vietnamese pangasius farmers’ perceptions about the sources of price risk and the effectiveness of price risk management strategies through Likert scales. The relationships between farm and farmer socioeconomic characteristics and their perceptions were also examined by using Chi-square analysis. Data were obtained through a structured survey with 110 farmers in three provinces of An Giang, Can Tho, and Dong Thap. Results suggested that pangasius farmers mostly concerned the instability of input prices, the volume of input supply, the instability of output prices, and the legislation of sales contracts between farmers and processors. We further found that price risk management strategies were not perceived as less effective measures to mitigate the price risk. Gender, farmers’ experience, farm size, crop period, farm types, and access to credit are positively related to the farmers’ perceptions. Findings on the price risk perceptions and management strategies are useful to support public and private of price risk management decision towards increasing the sustainability of pangasius production.