Risk analysis of the Mediterranean mussel farming in Greece

Mediterranean mussel aquaculture as a captured based activity, is dependent on the natural primary productivity and thus faces risks similar to those of the agriculture sector. However, little or no attention has been paid yet to the risk assessment and moreover to the risk management of the activity. In order to fill up this “knowledge gap”, an exploratory research is carried out on risks and their management options associated with the mussel farming business in Greece. In this context, a working framework based on the AS/NZS ISO 31000:2009 Risk Management Standard has been tested. As this is a generic risk management standard tool, it has been successfully adapted to the specific national characteristics of the business activities at all levels and the industrial function of the sector. Results show that the ex‐farm price of the mussels were perceived to be the major source of risk while the financial/credit reserves were the most preferred risk management strategy. Furthermore, the farmers’ attitudes and comments on loss compensations bring up the need to develop a more effective and versatile insurance system. Taking in account that the majority of the Greek mussel farms are rather small (1‐3 ha), we concluded that for financial sustainability the sector needs to be restructured in order to benefit from scale economics and attract better funding. Proposed strategies to minimise losses, consisting of differential handling of the marketable mussels and of spatial extension of farm facilities due to harvest bans caused by HABs, are discussed. Finally, the present multi‐level risk analysis of the mussel farming could be used as a case model to verify the multi‐tiered diagnostic approach in exploring the polycentric governance of complex economic systems proposed by Ostrom’s theory