Risk Management in Agricultural Marketing: A Comprehensive Review of Strategies, Challenges, and Effectiveness

Risk management identifies, assesses, and controls threats to an organization's resources, returns, and operations. Risk management is essential in agricultural marketing because it addresses the uncertainties producers and agribusinesses face. The overview describes the implications of risk management for achieving the utility and sustainability of rural marketing strategies. It highlights numerous production, market, financial, and operational risks that affect agricultural activities. Effective risk management enables stakeholders to recognize, assess, and alleviate these risks, leading to better decision-making and better allocation of resources. The review article examines various risk management tools and techniques, including insurance, divergence, futures, and hedging strategies, underlining their role in protecting income and ensuring market stability. By assimilating risk management into agricultural marketing, producers can enhance their sustainability by justifying market variations, improving productivity, and contributing to food security. This overview covers the way for an all-inclusive analysis of the effectiveness of risk management in agricultural marketing, intending to provide information for practitioners and policymakers.