Risk Perception and Risk Management Strategies of Oyster Farmers

The aquaculture sector is highly exposed to risks such as microbial pollution and oil-spills. This article analyzes risk perception in shellfish farming and the farmers' willingness to rely on hedging mechanisms using logit and ordered multi-nomial logit models. The results show that the degree of risk perception and reliance on risk management tools can be partly defined through a number of socioeconomic factors specific to the sector Beyond the conventional self-protective mechanisms, the study focuses on farmers' willingness to rely on risk-transfer mechanisms that the market has so far failed to provide.