Analysis of Production Risk in Intensive Chicken Farms – The Case of Kosovo

Abstract

Abstract Research background The egg production sector in the poultry industry in Kosovo is well developed, with intensive chicken farms that meet 99% of domestic demand (MAFRD, 2021). However, this industry is not without risks. As such, this research investigates the production risks faced by intensive chicken farms. Purpose This study aims to investigate the severity of production risks and familiarize farmers with their levels. Research methodology Both qualitative and quantitative statistical methods were utilized in this study. Indicators are defined to measure the perception of farmers according to the Likert scale ranging from 1 (very low) to 5 (very high). A quantitative analysis is then performed to calculate the interval width, loss distribution, damage standard deviation, and coefficient of variation. Results The qualitative analysis reveals that farmers’ perceptions of production risks are not necessarily related to financial damages. The risk matrix is used to convey the levels and severity of production risks. The quantitative analysis shows that production risks have a high degree of dispersion (82.35%), a high standard deviation (€13,526), and a very high coefficient of variation (204%). Novelty This study is novel in that it is the first to explore production risks in the intensive chicken production industry in Kosovo. Previous studies have only focused on financial risk, market risk, legal risk and human resource risk.