African Journal of Agricultural Economics and Rural Development

African Journal of Agricultural Economics and Rural Development ISSN 2375-0693 Vol. 9 (1), pp. 001-007, January, 2021. © International Scholars Journals

Full Length Research Paper

Effects of the economic performance of farmers of the risks encountered in the production of organic cotton, and risk management strategies

Hakan Adanacioglu* and F. Akin Olgun

Ege University, Faculty of Agriculture, Department of Agricultural Economics, 35100, Bornova-Izmir, Turkey.

Accepted 12 November, 2020

Abstract

This study has importance in terms of determination of risks and risk management strategies that affect the economic performance of farmers who produce organic cotton. With this aim, Turkey, a major organic cotton producer, was investigated as a case study. In the study, the most important sources of risk affecting economic performance of farmers were determined as variability in yield, high production costs and low price premiums. These were followed by the difficulties in production, climate conditions, and institutional uncertainty. Management of production, marketing and capital, conformity to regulations, sharing of information, and crop variety are the strategies developed for management of these risk sources, respectively. The strategies developed by the farmers towards risk sources will not be enough alone. The strategies developed by the farmers must be supported both by the government and NGOs.

Key words: Organic cotton, organic farming, risk, risk management, risk strategies.