Risk Management is a practical technique for establishing and maintaining profitability of aquaculture enterprises.
Aquaculture, like all food producing industries, is a high risk business, not only because of its dependence on the survival of large numbers of living organisms in captivity (many of which are still only one or two generations from wild stocks), but also because of its dependence on the skills of man, the efficiency of machines, and the clemency of the physical forces of nature. However, like all high risk businesses, it is attractive to entrepreneurs because some practices can provide a quick and highly profitable return on investment.
For the last two decades, enterprises in aquaculture have been preoccupied with technology. Now chat the industry is rapidly becoming stabilized, and production of a number of important species has focussed on one or two practices, the next decade will become preoccupied with increasing farm efficiency through the application of modern management methods. Among these is risk management. The Aquaculture Development and Coordination Programme (ADCP) is producing this guideline document on risk management, which is not purported to be the definitive work on the subject, primarily for the benefit of producers to assist them in becoming more efficient and to reduce their risks.
However, the practice of risk management is not only beneficial to producers. It is equally important to government administrators who are responsible for the national sector. Appropriate actions on the part of administrators to avoid risks to the national industry include concern for a national policy, appropriate legislation, and the provision of information. Consequently, the ADCP is also directing this document to them in support of their growing aquaculture industries.
Colin E. Nash
Craig B. Kensler
Rome, 1989
