Analysis of Broiler Industry Insuring Performance Using Negotiation-Oriented Approach

Insurance is one of the main tools for risk management in the agricultural sector. Risks related to the poultry industry impair chicken meat production in the short run and complicate planning in the long run. The continuous growth of the risk ratio and the daily increasing moral hazards are the most important reasons for changing the poultry insuring method. This study has used the Data Envelopment Analysis (DEA) method and the Malmquist index to evaluate the effectiveness of negotiation-oriented approach for broiler insurance, using data and information of the Comprehensive System (CS) of the Agricultural Insurance Fund. According to the results, the insurance technology improvement has taken place only in 2013 and 2014, before the implementation of the new method. However, the progress of broiler industry insurance technology is evident in all years after the implementation of the negotiation-centered insurance plan. The research data shows an annual decline of 5.3% in the Total Factor Productivity (TFP) in broiler insurance during 2011-2015. On the other hand, there are an annual growth of 22.7% in insurance performance after the implementation of the negotiation-centered insurance method for 2016-2020.