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Risk perception and risk responses of Greek mussel farmers are important for understanding their risk behavior and the likely success of different risk mitigation strategies. This allows policy makers and actuarial companies to decide what risk management products to offer to address specific types of risks. Results from an empirical survey showed that ex-farm prices and health/disability status of farmers are perceived as the most important sources of risk. Risk management decisions were strongly influenced by the attitudes of mussel farmers rather than their socioeconomic status or perception of risk sources. Financial reserves and an alternative source of stable income are both preferred by mussel farmers as risk management strategies, while optimizing farm management to produce at the lowest possible cost is commonly practiced to eliminate losses. Farmers recommend that for certain types of risks that lead to total losses, e.g. anoxia, tsunamis, harmful algal blooms (HABs), insurance contracts should be provided by the public sector, as in similar situations in agriculture. For other needs, customized insurance contracts should be provided by the actuarial market.

Empirical approach to risk management strategies of Mediterranean mussel farmers in Greece