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Theme 2: Management of risks and uncertainties in the agri-food system

Risk and uncertainty are quintessential features of agriculture. Risk in agri-food systems emerges when alternative outcomes or conditions with probabilities exist. Primary sources include production risk, price risk, market rise, as well as financial, institutional and environmental risk. Specific examples include weather, price fluctuations and change in government policy. The Asia-Pacific region is particularly vulnerable to natural disasters, creating greater risk in agriculture. This context gives rise to the need to develop policies and strategies for managing and coping with risks and uncertainties in the agriculture sector. This requires the following key development outcomes:

• Policies and strategies for managing (minimizing) price and market risks in agriculture and agri-food systems are developed and adapted.
• Tools for coping with uncertainties arising from the effects of climate change, sea level rise, natural disasters and man-made catastrophes are developed and improved.
• Systematic processes of and partnerships in biosecurity at borders and on farms in preventing and managing the spread of transboundary pests and disease are developed.

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