Sources and Perceptions of Risk Among Small-Scale Commercial Farmers in the Three Zobatat of Eritrea

Abstract

This study surveyed commercial farmers
from three zobatat of Eritrea to examine
the percepted and actual sources of risk
challenging their livelihoods. Findings revealed
that whilst some risks were of concern to
most farmers, others were more enterprise- or
region-specifi c. Results of a factor analysis
indicated that programmes designed to assist
farmers in Eritrea to manage production and
price risks should vary between enterprises
and between regions. Policy implications
arising from this article are that the Eritrean
government should include and inform farmers
in the development of agricultural tax and
land policies, demobilisation and rehabilitation
programmes. Farmers' understanding of foreign
exchange rate controls could also alleviate
their price risks in input and product markets.

African Insight Vol. 36 (3&4) 2006: pp. 229-248