Risk Identification and Risk Assessment of Banana Plantation in Jeli, Kelantan

Farming is a risky occupation as farmers were confronted with a continuously changing landscape of prices, yield and welfare, among many others. Risk can be viewed as any future uncertainty which caused deviation from expected earnings or expected outcome. Risks went unmanaged will caused both monetary and non-monetary losses. Moreover, farm activities are highly interconnected with other stakeholders in a supply chain. As a result, the importance of risk management strategies is becoming more relevant than ever. By focusing on banana plantations, this study attempted to identify
and assess risk faced by the farmers involved. Banana is the second most widely cultivated fruit crop in Malaysia. Based on the balanced of trade figures, banana also had become the fourth in export revenue, worth USD5 million. Thus, a survey to 56 farmers was conducted to identify and assess the likelihood of risk occurrence and the severity of the risk in banana plantation in Jeli, Kelantan. Data from the survey was analyzed with descriptive analysis, and Risk Assessment Matrix (RAM) to assess the risk ranking. The finding found that to farmers, production risk which pest and disease attack were ranked as the highest risk. Thus, one of the most risk management strategies taken by the farmers was by making sure to sure treated corm and suckers. Results from this study are valuable especially to agencies responsible for agricultural extension services to hone their model of delivery. Besides, it is also useful for the farmer to plan in order to mitigate the risk and plan their risk management.