Impact of cattle insurance on the reduction of slaughter

Abstract

The losses suffered by farmers following the slaughter of cattle have reached very high levels. They are reflected in a drop in production that has called into question the regularity of the farmer within the production cycle. The National Agricultural Mutual Fund (NAMF), which represents insurance in rural areas, covers losses caused by providing coverage for slaughter risks due to diseases and environmental damage. This study attempts to reveal the role of beef insurance in the development of the rural economy. Despite its small share of the insurance market in all sectors, it makes a significant contribution to reducing the insured risk. Indeed, the slaughterings of insured cattle are represented by 4% while the slaughterings of uninsured cattle are represented by 18%, insured cattle farms are subject to fewer risks and the involvement of insurance in risk prevention would deserve that the state intervene in their upstream management.