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VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE
FACULTY OF ECONOMY & RURAL DEVELOPMENT
*****

TRAN LAN ANH

RISK MANAGEMENT IN DAIRY FARMING OF
HOUSEHOLDS IN MOC BAC COMMUNE, DUY
TIEN DISTRICT, HA NAM PROVINCE

GRADUATION THESIS


Hanoi, 2022

2


VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE
FACULTY OF ECONOMY & RURAL DEVELOPMENT
*****

GRADUATION THESIS
RISK MANAGEMENT IN DAIRY FARMING OF
HOUSEHOLDS IN MOC BAC COMMUNE,
DUY TIEN DISTRICT, HA NAM PROVINCE

Student’s name

: TRAN LAN ANH


Major

: AGRICULTURAL ECONOMY

Class

: K63KTNNE

School year

: 2018 – 2023

Advisor

: Dr. NGUYEN MINH DUC

Hanoi, 2022


AUTHOR’S DECLARATION

I hereby declare that: The data and research results in this thesis are
true and have never been used to protect a academic title or degree.
I hereby declare that: All help in the preparation of this thesis has been
thanked and all information cited is attribution.
Hanoi, May 20, 2022
The guarantor

TRAN LAN ANH


i


ACKNOWLEDGMENT

To complete this graduation thesis, in addition to my own efforts, is the
dedicated guidance of teachers as well as the encouragement of collective
organizations, family and friends.
Through this, I would like to express my deep gratitude to the teachers
of the Vietnam National University of Agriculture in general, the Board of
Directors and the teachers of the Faculty of Economics and Rural
Development in particular for their help, facilitate me during my studies at
school. In particular, I would like to thank Professor Dr. Nguyen Minh Duc,
who directly guided me to complete the thesis.
I would like to express my gratitude to the People's Committee of Moc
Bac commune for creating conditions for me to research and carry out the
thesis.
Finally, I would like to express my deep gratitude to my family, friends
and those who have encouraged, encouraged and helped me to complete the
course and carry out the thesis.
Due to limited research time and limited experience, shortcomings are
inevitable. Looking forward to the encouragement and suggestions of
teachers, family, and friends.
I sincerely thank!
Hanoi, May 20, 2022
Thesis author

TRAN LAN ANH

ii



SUMMARY OF THESIS
Animal husbandry is an important part of the agricultural sector, which
is the main economic activity of the majority of households in rural areas. In
Moc Bac commune, too, dairy cows are livestock that bring high income for
households, but dairy farming requires people with high technical skills.
Meanwhile, the households here mainly breed by experience, which makes
dairy farming potentially risky. In order for risk management to be most
effective in economic activities in general and risk management in households
in particular, it is necessary to study risk management.
Topic: "Risk management in dairy farming in farmer households in
Moc Bac commune, Duy Tien district, Ha Nam province".
Specific Objectives
To achieve the overall goal, the study proposes the following specific
objectives:
(1) Contributing to systematizing the theoretical basis of risk and risk
management of households in dairy cow production;
(2) Assessment of the current situation of risks and risk management in
dairy farming of farmers in Moc Bac commune;
(3) Proposing solutions to improve risk management in dairy farming
for farmers in Moc Bac commune.
Research subjects
Dairy farming households in Moc Bac commune, Duy Tien district, Ha
Nam province.
Research scope
 Content scope
The topic focuses on researching contents related to risk management
and risk coping in livestock farming households in Moc Bac commune, Duy
Tien district. From there, propose a system of management solutions to

minimize risks in dairy farming in Moc Bac commune, Duy Tien district.
iii


 Spatial scope
Research topic in Moc Nam commune, Duy Tien district, Ha Nam
province.
 Time scope
Secondary data was collected from 2019 to 2021, primary data was
collected in 2022, the research period was from December 24, 2021 to June
14, 2022.
To achieve the goal of the topic, I have collected primary and secondary
information. Secondary information is collected from books, newspapers,
magazines, websites, reports of the People's Committee of Moc Bac Commune.
Primary information was collected by direct interview with officials in charge of
dairy farming management of the commune. Survey to select a sample of 60
dairy farming households. In which, there are 20 small-scale households raising
less than 10 heads, 20 medium-sized households raising 10-20 animals, 20
large-scale households raising 20 or more heads using a pre-prepared survey
form according to the survey content, with corrections and additions to suit local
realities. Collected data was aggregated, classified and processed using
Microsoft Excel software. Using descriptive statistics, comparative methods to
analyze, describe information, make comments and draw conclusions. The
results of the study are as follows:
(1) The dairy farming of Moc Bac commune is developing day by day.
From 2019 to now, the commune's dairy herd tends to increase rapidly in both
the number of households raising and the number of cows raised. In 2019, the
whole commune had only 142 raising households with 2256 cows, then a year
increased by 12 raising households and 362 cows. By 2021, the whole
commune has 3226 cows with 186 breeding households, an increase of 608

cows, equivalent to 23.22% and 32 breeding households compared to 2020.
This is the period when the commune has completed the planning of

iv


concentrated breeding areas. far from residential areas. Along with the
province's policies to develop dairy herds, many people switched to raising
dairy cows, and livestock production began to develop stably and expand. From
the above situation, it can be seen that the dairy cow herd of the commune is
growing rapidly in number, the new breeding conditions are relatively favorable
for people to stabilize production and invest in expanding the livestock
production scale. However, this also poses many challenges in terms of milk
consumption when the number of cows increases beyond the control threshold
and exceeds the milk purchasing capacity of processing enterprises. In the past
year, there were many risks in the commune, mainly risks of diseases, markets,
and food. However, with the strict management of the local government and the
people's many years of breeding experience, these risks are always strictly
controlled.
(2) Livestock barns of the majority of households have been solidified, the
husbandry method has changed from livestock rearing to semi-industrial and
industrial. The main risks appearing in surveyed households are risks of seed,
disease, feed, technology, finance, and market. These are common risks in
livestock production in general and dairy farming in particular.
3) Risk management in dairy farming of farmer households in Moc Bac
commune:
Risk identification in dairy farming of farmers in the commune. Among
the types of risks on indicators such as varieties, feed,… market risks account for
the greatest frequency, and risks of diseases and techniques account for a lower
proportion. The level of market risk is highest because output in production is

always the most important issue. Next is the risk of disease because if the disease
is not well controlled, it can lead to death, and the quantity and quality of milk
are not qualified, leading to huge losses.
Risk analysis in dairy farming of farmers in the commune. The process of
analyzing hazards, determining the causes of risks on the basis of which to find
v


out preventive measures. Therefore, we need to delve into the analysis of 6 main
risks: risks of breed, feed, disease, technology, finance, market in dairy farming
of farmers to find out the causes of risks, as well as finding ways to prevent,
prevent and overcome unexpected risks.
Control and monitor risks in dairy farming of farmers.
(4) Factors affecting risk management in dairy farming of households are:
Livestock farmers; Local government; The state livestock support policy in dairy
cow production risk management is education level, livestock experience, and
participation in training courses. There are also other factors such as access to
capital, access to information,…
(5) Current solutions focus mainly on overcoming risks instead of
“prevention is better than cure”. Therefore, in order to limit and minimize risks
to develop the dairy industry, contributing to creating local jobs and increasing
income for households. It is necessary to perform well the solutions on: Breeding
risk management solution, Feed risk management solution, Disease risk
management solution, Weather risk management solution, Financial risk
management solution, Market risk management solutions.
Finally, the topic gives conclusions and recommendations to the State and
local authorities.

vi



TABLE OF CONTENTS
AUTHOR’S DECLARATION .......................................................................i
ACKNOWLEDGMENT................................................................................ii
SUMMARY OF THESIS...............................................................................iii
TABLE OF CONTENTS..............................................................................vii
LIST OF TABLES...........................................................................................x
LIST OF DIAGRAMS..................................................................................xii
PART I. INTRODUCTION............................................................................1
1.1 Research problems......................................................................................1
1.2 Research objectives.....................................................................................3
1.2.1 General Objective.....................................................................................3
1.2.2 Specific Objectives...................................................................................3
1.3 Subjects of research.....................................................................................4
1.3.1 Surveyed participants...............................................................................4
1.3.2 Research problems...................................................................................4
1.4 Research scope............................................................................................4
1.4.1 Content scope...........................................................................................4
1.4.2 Spatial scope.............................................................................................4
1.4.3 Time scope................................................................................................4
PART II. THEORETICAL BASIS AND PRACTICE.................................5
2.1 Theoretical basis of risk and risk management in livestock........................5
2.1.1 Several definitions....................................................................................5
2.1.2 Common risks in dairy farming..............................................................11
2.1.3 Risk management in agriculture.............................................................12
2.1.4 Risk management content......................................................................14
2.1.5 Factors affecting risk management in animal husbandry.......................16
2.2 Practical basis for risk management in dairy farming...............................21

vii



2.3 Lessons learned on risk management in dairy farming for farmers in Moc
Bac commune..................................................................................................25
PART

III.

LOCAL

CHARACTERISTICS

AND

RESEARCH

METHODS.................................................................26
3.1 Characteristics of the study area................................................................26
3.1.1 Natural features......................................................................................26
3.1.2 Socio-economic characteristics..............................................................30
3.2 Research methods......................................................................................36
3.2.1 Methods of choosing a research site and selecting a survey sample......36
3.2.2 Methods of information collection.........................................................37
3.2.3 Data processing method.........................................................................39
3.2.4 Data Analysis Methods...........................................................................39
3.2.5 Research indicators................................................................................41
PART IV. RESEARCH RESULTS AND DISCUSSION............................42
4.1 Overview of dairy cow farming in Moc Bac commune............................42
4.1.1 Changes in dairy cows............................................................................42
4.1.2 The situation of risk management of the commune...............................45

4.2 General information of surveyed households............................................49
4.3 Risk management in dairy farming in Moc Bac commune.......................53
4.3.1 Risk identification in dairy farming of farmers in the commune...........53
4.3.2 Risk analysis in dairy farming of farmers in the commune................55
4.3.3 Risk control in dairy farming of households in Moc Bac commune.....65
4.3.4 Factors affecting risk management in animal husbandry.......................74
4.4 Orientation and propose solutions to strengthen risk management in dairy
farming of farmers in Moc Bac commune......................................................79
4.4.1 Orientation of risk management in dairy farming..................................79
4.4.2 Solutions to enhance risk management in dairy cow farming in Moc Bac
commune.........................................................................................................80
viii


PART V. CONCLUSIONS AND REQUEST..............................................88
5.1 Conclude....................................................................................................88
5.2 Request......................................................................................................90
REFERENCES .............................................................................................92

ix


LIST OF TABLES
Table 2.1: Risk management strategies in agriculture.....................................13
Table 3.1: Current status of land use of Moc Bac commune in the period of
2019 - 2021......................................................................................................29
Table 3.2: Production and business situation of the commune in the period of
2019 – 2021.....................................................................................................31
Table 3.3: Population and labor situation of the commune in the period of
2019 - 2021......................................................................................................35

Table 3.4: Information on the content of the investigation interview.............39
Table 4.1: Changes in the cow herd of the commune from 2019 to 2021.......42
Table 4.2: Situation of risks occurring in the commune in the past year........46
Table 4.3: Demographic and labor situation of surveyed households.............49
Table 4.4: Breeding experience of households by size...................................50
Table 4.5: Stables and methods of raising dairy cows in households.............52
Table 4.6: Frequency of occurrence of risk.....................................................54
Table 4.7: Rating of damage levels of risks in dairy farming.........................54
Table 4.8: The risks on seed that the household encounters............................56
Table 4.9 Level of risk of damage to the breed for dairy households.............57
Table 4.10: Risks of animal feed Unit: %.......................................................58
Table 4.11: Common illnesses in the past 3 years...........................................60
Bảng 4.12: Market risk....................................................................................61
Table 4.13: Capital status of cow raising households in the commune...........63
Table 4.14: Causes of technical risks..............................................................64
Table 4.15: Factors to control breed risk of dairy farming households in the
commune.........................................................................................................65
Table 4.16: Some factors of animal feed affecting the dairy farming process of
farmers.............................................................................................................67
Table 4.17: Handling when facing risks..........................................................70
Table 4.18: Source of information to know about risks from the market.......71
Table 4.19: Methods to avoid market risk.......................................................72
Table 4.20: Level of financial risk of dairy farming households....................72
Table 4.21: Ways to control the level of technical risk...................................73
Table 4.22: Education level to risk management in dairy farming.................75
Table 4.23: Level of household satisfaction with community organizations in
risk management.............................................................................................76
Table 4.24: Support from the state when facing risks.....................................77
x



Table 4.25: Support from the state when facing risks....................................78

xi


LIST OF DIAGRAMS
Graph 3.1: Economic structure of Moc Bac commune in 2021......................30
Graph 4.1: Structure of dairy cows in Moc Bac commune 2021....................44

xii


PART I. INTRODUCTION
1.1 Research problems
Vietnam is still an agricultural country today, with nearly 96 million
people (accounting for 66.5% of the country's population) living in rural areas
(GSO 2016) and nearly 70% of the social labor force. operates in the
agricultural sector. Therefore, agriculture and rural areas are always
considered as the leading front in the socio-economic development of the
country. Over the years, agriculture has achieved remarkable achievements,
contributing to the overall development of the country. But it also has many
potential risks that reduce profitability, even farmers suffer losses. In the
current integration period, the more diversified production is, the more risks it
contains. The phenomenon of harvest, devaluation or gain, loss of crops has
always been a round of military debate surrounding people who have not been
able to escape or continuously suffered from natural disasters, epidemics,... It
has caused great damage. and have severe consequences for agricultural
production. Especially in dairy farming, people often face many risks in the
process of producing and consuming products.

In which livestock is an important part of the agricultural sector, playing
an important role in the process of industrialization and modernization of rural
areas. In 2020, the production value of the livestock industry accounts for
24.65% of the agricultural production value. The livestock industry in general
and dairy farming in particular in our country is gradually developing and
asserting its position. According to the 2020 socio-economic report of the
General Statistics Office, the total dairy herd nationwide is 331,368 thousand
heads, an increase of 4.29% compared to 2019 and tends to continue to
increase. Thereby, it can be affirmed the important role of dairy farming
households in the development of household economy in particular and the
whole economic sector in general.
1


Recognizing this strength, the Government has issued many policies
related to breed, finance, husbandry, market, tax to promote the development
of dairy farming. Encourage the development of dairy farming in the direction
of concentration, large scale, far from residential areas. There is a close
connection between livestock households and banks, businesses and
authorities at all levels. Linking dairy farming households with grass growing
households in order to transform economic structure, labor in agriculture,
improve production value and increase income for farmers.
Besides, the livestock production sector is facing many difficulties and
challenges, etc. Livestock activities are affected by natural conditions, climate
as well as market prices. Those are the risks that hinder the development of
the livestock industry. Risks in livestock production are unpredictable. The
main causes of risk are epidemics, fluctuating market prices, lack of food
sources, people's lack of knowledge and skills to avoid risks,... The risk of
large capital loss, income reduction, profiteering, stop production and the one
who suffers directly here is the farmer. Therefore, the ability of farmers to

manage such risks is an important factor in determining the efficiency of dairy
farming. Therefore, the risk management of farmers in dairy farming is
essential.
Moc Bac is a commune in Duy Tien district, Ha Nam province, located
along the Red River dyke, with a geographical location and suitable resources
for the development of large-scale dairy farming. Although the commune has
a small natural land area and an average population, the total dairy herd of the
commune accounts for 50% of the total dairy herd of Ha Nam province. The
annual output of cow's milk reaches nearly 5,000 tons. Dairy farming is
considered an important economic sector of Moc Bac commune. Dairy
farming in the commune has been around since 2002 but has only recently
developed. Taking Moc Bac commune as the focus of developing the
2


province's dairy herds, encouraging farmers to expand their livestock
production in a concentrated, large-scale form, located outside of residential
areas. This promotion brings people many advantages but also many
challenges and risks lurking; requires households to have the capacity to own
and manage risks to minimize the possibility of risk occurrence.
Stemming from the above facts and theories, I do a research “Risk
management of households in dairy farming in Moc Bac commune, Duy Tien
district, Ha Nam province” in order to find out the causes of risks and solutions
for farmers in Moc Bac commune to get better capacity to manage risks.
1.2 Research objectives
1.2.1 General Objective
The overall objective of the study is to find out the current situation of
dairy farming in the commune and the risks that dairy farming households are
facing; assess and analyze how farmers manage these risks. After that, the
study will propose solutions to improve risk management of dairy households

in the study area in the near future.
1.2.2 Specific Objectives
To achieve the overall goal, the study proposes the following specific
objectives:
(1) Contributing to systematizing the theoretical basis of risk and risk
management of households in dairy cow production;
(2) Assessment of the current situation of risks and risk management in
dairy farming of farmers in Moc Bac commune;
(3) Proposing solutions to improve risk management in dairy farming for
farmers in Moc Bac commune.

3


1.3 Subjects of research
1.3.1 Surveyed participants
The subjects of the survey and collection of documents to serve the
research of the topic are mainly dairy farming households of Moc Bac
commune.
In addition, regarding the issue of risk management in dairy farming,
the study will also survey the veterinary staff who manage and are in charge
of dairy cows in the commune.
1.3.2 Research problems
The risks in dairy farming in the farming households in the commune
and the behavior of farmers in managing those risks.
Factors affecting the risk in dairy farming in farming households in
Moc Bac commune.
1.4 Research scope
1.4.1 Content scope
The topic focuses on researching contents related to risk management

and risk coping in livestock farming households in Moc Nam commune, Duy
Tien district. From there, propose a system of management solutions to
minimize risks in dairy farming in Moc Nam commune, Duy Tien district.
1.4.2 Spatial scope
Research project in Moc Bac commune, Duy Tien district, Ha Nam
province.
1.4.3 Time scope
Secondary data is collected from 2019 to 2021, primary data is collected in
2022. Research period is from December 24, 2021 to June 14, 2022.

4


PART II. THEORETICAL BASIS AND PRACTICE
2.1 Theoretical basis of risk and risk management in livestock
2.1.1 Several definitions


Risks

According to Assoc. Prof. Dr. Doan Thi Hong Van, so far, there is no
unified definition of risk, different schools, different authors give different
definitions of risk. These definitions are given very diversely, but in short,
they can be divided into 2 major schools: the Traditional school (the negative
school) and the Neutral school.
* According to the traditional school
According to the Traditional School (the negative school), "risk is the
possible harm, loss, danger, difficulty, or uncertainty to a person". According to
this school of thought, risk has the following definition:
- "Risk is something that is, not good, happens unexpectedly"

(Vietnamese Dictionary, 1995).
- “Risk (synonymous with risk) is bad luck” (Vietnamese words and
phrases, 1998).
- “Risk is the possibility of danger or pain or damage” (Oxfort
Dictionary).
- "Risk is an uncertainty that causes loss or damage" or "Risk is an
element involving danger, difficulty or uncertainty".
- In the field of business, Ho Dieu defines "risk as loss of property or
decrease in actual profit compared with expected profit".
- "Risks are unforeseen uncertainties that occur in the production and
business process of an enterprise, adversely affecting the existence and
development of the enterprise".
5


* According to the neutral school, risk is defined as follows:
- “Risk is a measure of uncertainty” (Frank Knight, 1921).
- “Risk is the uncertainty that may be associated with the occurrence of
unexpected events” (Allan Willent, 2010).
- “Risk is a set of contingencies that can be measured with probability”
(Irving Preffer, 1974).
- "Risk is the value and outcome of which is currently unknown"
- Risk is the potential variation in outcomes. Risk can appear in almost
any human activity. When there is a risk, one cannot accurately predict the
outcome. The presence of risk causes instability. The hazard arises whenever
an action leads to an unpredictable possibility of gain or loss” (C. Arthur
William, Jr. Smith, 1998).
According to the neutral school, "risk is the uncertainty that can be
measured". Risks are both negative and positive. Risks can bring harm, loss,
danger ... to people, but can also bring opportunities. If people actively study

risks, identify and measure risks, one can find preventive measures, limit
negative risks, and accept opportunities that bring good results for the future
(Doan Thi Hong Van, 2013).
- Pure risk is the risk that only brings about damage, loss, danger such
as fire, theft, traffic accident, labor accident...
- Speculative risk is a risk in which favorable opportunities are
associated with threats of loss.
- Distributable risk is the risk that can be reduced by contributing a
common fund to share the risk.
- Non-distributable risk is the risk that cannot be reduced by the way of
common fund contribution and risk sharing.

6


Risks can appear in any industry, in any field. In each field, in addition
to the common points as mentioned above, there are also specific
characteristics of each industry, each field.
Risks occur due to many causes. But regardless of the cause, when
risks occur, they often cause people difficulties in life such as loss or
reduction of income, destruction of many properties, stopping production and
affecting socio-economic life in general.
 Risk management
Risk management is a systematic and scientific approach to risk in order
to identify, control, prevent and minimize losses, losses, adverse effects of risk
while turning risks into opportunities for success (Doan Thi Hong Van, 2013).
According to Ron Ashkenas (2011) “Risk management is the process of
predicting, prioritizing and minimizing the adverse effects of possible future
events. In other words, risk management is a proactive form of contingency
planning, or to completely avoid a possible bad situation. It is a process of

comprehensively reviewing an enterprise's activities to identify potential
threats that may adversely affect all aspects of the business's operations. On
that basis, give appropriate response and prevention solutions corresponding
to each risk.
Identifying and delivering risk management solutions is at the heart of
risk management. Many researchers have deeply analyzed to find out the rules
of risks, uncertainties and damages occurring in the agricultural sector in
general and the livestock industry in particular. Risk research is developed in
all fields: market, finance, management, insurance...
Thus, risk management in dairy farming is the identification of risks
that may occur in the production process. Make investment decisions,
decisions to avoid, respond to and overcome losses when risks occur.
 Risk management in agriculture

7


Risk management is a new concept that has come into use in recent
years. The diversity of ideas and wide applications of risk management mean
that there is no universally recognized exact definition or approach, although
ISO 31000 has gained wider recognition in recent years. There are different
definitions of risk management.
According to Hardaker et al (1977) introduced the concept that "Risk
management is the systematic application of management policies, principles
and actions in the format, analysis, assessment, treatment and monitoring of
risks, in order to minimize losses and maximize opportunities. However, this
principle is not fixed and adaptive to each specific case."
Risk management is a part of project planning that identifies key risks
and develops plans to prevent or minimize adverse impacts.
In the traditional sense, the presumptive form of risk management has

three main objectives:
1. Identify and determine the extent of the hazards
2. Take action to avoid or reduce key risks
3. Implement a plan to deal with unexpected incidents and handle
possible failures (according to the large and small project management
textbook).
Risk management is the process of approaching risk in a scientific,
comprehensive and systematic way in order to identify, control, prevent and
minimize losses, losses and adverse effects of risks; while looking for ways to
turn risks into opportunities for success.
Thus: Risk management is a systematic process that includes
identifying, controlling, preventing, combating and overcoming risks in order
to minimize and limit possible losses when there are risks.
It is necessary to distinguish risk management and risk mitigation

8


- Risk management implies not only risk prevention, but also planning
to adapt to risk.
- Resisting or not accepting risks to ensure the safety of their activities
in the event that the bad possibility may happen, although the possibility of
occurrence is only a certain probability.
- A risk-neutral attitude with a desire to achieve an average return
between a risky and a favorable event.
- From the attitude to risk that divides farmers into 3 groups of people
who are risk averse, risk neutral and risk accepting.
Meanwhile, risk mitigation is the actions or reactions after a risk occurs
in order to minimize harm.
 Breed

Animal husbandry is an important branch of modern agriculture,
raising livestock to produce products such as food, fur, and labor. Products
from livestock to provide profit and serve the daily life of people. Livestock
farming has existed for a long time in many different cultures since humans
transitioned from a hunter-gatherer lifestyle to a sedentary lifestyle.
Article 2-The Law on Livestock 2018 stipulates: Livestock is an
economic-technical industry, including activities in the field of livestock
breeds, animal feed, breeding conditions, processing and livestock product
market.
If the 2004 Ordinance only stipulates that “livestock breeds” include
cattle, poultry, bees, silkworms, aquatic animals, and their breeding products
such as sperm, embryos, eggs, larvae and genetic material. In the 2018 Law
on Animal Husbandry, this concept is defined in a broader sense, which is
"population of livestock of the same species, of the same origin, with similar
appearance and genetic structure, formed and consolidated. , developed by
human impact; there must be a sufficient quantity to propagate and pass on
9


the characteristics of the breed to the next generation, including cattle, poultry
and other animals in breeding”.
The concept also states:
Cattle are mammals with four legs that are domesticated and raised by
humans. Poultry are two-legged, feathered animals belonging to the group of
winged animals domesticated and raised by humans.
Other animals in livestock are animals other than cattle and poultry and
outside the list of endangered species and rare animals being prioritized for
protection, the list of endangered, rare or common forest animals, aquatic
animals or the list of wild animals listed in the Appendix to the Convention on
International Trade in Endangered Species of Wild Fauna and Flora.

 The role of risk management in dairy farming
We see that risks are always hidden and can happen at any time during
the breeding process. Therefore, risk management is an important part of
livestock production in general and dairy farming in particular, and its
management is not only a concern of the state, the community but also of all
farmers. Risk management is so that farmers can:
• Risk identification and proactive prevention
• Realizing production goals through low-risk strategic choices
• Improve efficiency in the use of investment resources
For dairy farmers, good risk management will help households
anticipate possible risks in the production process, the extent of damage that
risks cause. From there, there are timely response solutions to minimize the
damage from risks.
For the community, good risk management will avoid the spread of
disease from one area to another. At the same time, it helps to stabilize
product prices on the market, improve public awareness, and develop a stable
and sustainable economy.
10


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