THE EFFECT OF RISK MANAGEMENT PRACTICES ON PRODUCTIVITY: PERSPECTIVE FROM GOVERNMENT ON VARIOUS MALT BARLEY PROJECTS

Abstract

Managing risks and uncertainties in the agriculture sector is crucial as it affects productivity and other sectors of the economy. The target population for this study was 420 employees of appropriate government staffs from selected federal government offices in Addis Ababa. It employed 178 sampled respondents to investigate the effect of risk management practices on productivity based on government perspective on various malt barley projects in Ethiopia. Multivariate regression diagnostic tests were also carried out. Questionnaires were self-administered and were dropped and picked up closely after respondents were done filling them out. The data collected was then presented using tables and figures. Statistical Package for Social Sciences (SPSS) software was used to analyze the data. The findings reveal that the most significant malt barley productivity are innovativeness, diversification, saving and contract farming. Among them, contract farming is an essential risk management strategy for malt barley production in Ethiopia. Thus, the study concluded that consequences in malt barley improvement will be facilitated by innovativeness, diversification, saving and contract farming. Finally, this study recommends: malt enhancement projects should mainly focused on contract farming and stakeholders may continually provide risk management awareness program and they may include risk management strategies in their projects.