Building and Applying TheZ-Score Model in Risk Management of Poultry Production Farm in Thai Binh Province

Z-score model was well-known as an application for enterprises risk forecasting. Nevertheless, there ithas been few application and useshort of empirical researches using Z- score model in agricultural farms, includung animal production farms. The survey was conducted on a database of 220 poultry production farms in Thai Binh province,using Principal Component Analysis (CPA)fortechnical analysis of five basic groups to caculate Z- score model, with the support of SPSS 20.0.The results of this research: Firstly, buildingTheZ- score model was constructed for the poultry production farmsin Thai Binh province. Besides, this research hasveapplied theismodel on a district in the study to calculate the density and zoning. TheisRresultsshowed that 34% of farms were in the healthy zone, 59% of inthe area is unclear zone,and 7% in the bankruptcy zone. To Rreduceingthe risk of bankruptcy of farms in Thai Binh province, theshould adopt following measuresshould be taken: (1) Raise awarenessraisingabout technical ranchers, markets and risks; (2) Having Self-insurance in the production; (3) Improving Aaccessibilityto agricultural insurance in the same animal stock assurance;and(4) Linkingproduction and consumption linkage to ensuring regulate production.