Analysis of risk among agribusiness enterprises investment in Abia State, Nigeria

Abstract

The study analysed risk among agribusiness enterprises investment in Abia State of Nigeria. Specifically, it examined types of risk and the degree of influence on the agribusiness enterprises. The study also examined common risk reducing strategies among the agribusiness enterprises in the area. Primary data collected from 40 formal agribusiness firms were used in the study. The data were analysed with w-statistics and validated with Pearson criterion (χ2). The result indicated a w-statistics of 0.79. The result was verified by Pearson criterion and this gave χ2 calculated value of 4.81 which is lower than table value of 11.07 at 5% significant level. The result revealed that risk sources affecting agribusiness investment were financial, marketing, currency and production in that order. The common risk reducing strategies were diversification, integration, forward contracting, and insurance, among others. Based on this, it was recommended that government should make policies that will encourage investors adopt the highlighted risk reducing strategies in risk management.   Key word: Analysis, agribusiness, investment, Abia State, Nigeria.