A study of the losses faced by cattle farmers and the possibility of introducing cattle insurance in Malta

Abstract

The researcher investigates what are the losses faced by cattle farmers and the possibility of introducing cattle insurance in Malta. The reason for doing this study is because some of the farmers decide to switch from full-time to part-time farmers because they couldn't sustain the expenses and losses that such business will incur. Others will also end their business. To date, most of the cattle that would require a surgery are sent to the slaughter house because surgeries might be too expensive for the farmer to afford. This research analyse the several losses, illnesses and injuries sustained by cattle farmers during the past few years. Other research results include the view of cattle farmers about cattle insurance and also the view of the state about such product. This study discusses the specific measures taken by cattle farmers and the imposition of EU regulations which all would result in less losses and therefore higher production. The study also analyse the results obtained from questionnaires carried out with cattle farmers and semi-structured interviews carried with agricultural expertise regarding cattle insurance. A brief summary of the study carried out by the state regarding agricultural insurance is also provided. From this study it was found that Maltese cattle farmers experience losses mostly due to fertility problems, leg injuries and sudden death. It was also found that most cattle die due to fertility problems. Maltese cattle farmers are willing to purchase cattle insurance if it is subsidised. The state is currently holding discussions whether it would be viable to introduce agricultural insurance in Malta. These results suggest that if cattle insurance had to be introduced it would be most beneficial for Maltese farmers to cover death of cattle caused by fertility problems, sudden death and injuries. It is a good start that discussions are being held by the state for the introduction of iv agricultural insurance but this might be a very wide concept to discuss so it would be better to focus on specific sectors rather than taking the agricultural sector as a whole. Final recommendations are provided about a suggested structure on how cattle insurance may be introduced in the Maltese market.