Question

Describe the risks and uncertainties encountered by sugarcane farmers in Kenya.

Answer 1

• Fluctuation of commodity prices
• Physical yield uncertainty where the farmer does not know how much to expect
• Ownership uncertainty. Farmer lose produce through theft, fire, death or change in government policy
• Outbreak of pests and diseases which affect expected outcome
• Sickness and injury uncertainty. Farmer affected lose ability to work due to sickness or injury
• New production technique uncertainty. The farmer may not be certain as to whether technology is as effective as the previous one
• Farmer investing in machinery which may become outdated(obsolete) within a short time
• Natural catastrophe. Things like floods, drought, earthquakes, storms and strong winds may destroy the crops.