Analysis of Legal Risk in Farms of Intensive Chicken Production -

The Case of Kosovo

AGIM NDREGJONI

Faculty of Business,

“Aleksander Moisiu” University Durrës,

ALBANIA

ARIF MURRJA

Faculty of Economics and Agribusiness,

Agricultural University of Tirana,

ORCID: 0000-0002-6794-8782,

ALBANIA

LLAMBI PRENDI

Faculty of Business,

“Aleksander Moisiu” University Durrës,

ALBANIA

Abstract: - The intensive poultry industry in Kosovo fulfills a significant portion of the local demand for eggs.

Considering this context, the sustainable development of this industry necessitates specific attention due to

potential risks and threats. This paper aims to identify and evaluate legal risk events associated with the

industry. We created a questionnaire with eight questions, using information from previous research and

considering the actual conditions of the intensive poultry industry in Kosovo. Through face-to-face interviews

with farmers and agricultural economists, we empirically assessed the likelihood and impact of each legal risk

event. We set using a Likert scale ranging from 1 (very low) to 5 (very high). Both qualitative and quantitative

methods were employed to evaluate the risk level of each event. The qualitative analysis and interpretation of

the results emphasized the risk factors, which were categorized based on severity. The findings indicate that

two events exhibit a mouse-like level of aggressiveness; one mirrors the aggressiveness of a rabbit, another

resembles that of a shark, and four display the hostility of a lion. The quantitative analysis and interpretation of

the results revealed a relatively high distribution of 75%, with a standard deviation of 9,608 euros and a

considerably high coefficient of variation (95%) if these events were to occur. To mitigate the adverse impact

of legal risk events, we recommend that farmers seek additional information and consult with professionals

such as economists, veterinarians, animal husbandry experts, and lawyers.

Key-Words: - Risk, legal/law, probability, qualitative and quantitative evaluation, matrix, Kosovo.

Received: January 24, 2023. Revised: May 14, 2023. Accepted: June 12, 2023. Published: July 6, 2023.

1 Introduction

Thanks to its geographical position, number of

sunny days, fertile soil, [1], [2], [3], road

infrastructure, suitable market, and consumer

culture, Kosovo has a consolidated industry in egg

production, [2]. Eggs are an essential food product

and traditional food with the highest consumption in

Kosovo, [4]. Currently, producers in Kosovo

operate in a functional market and meet domestic

consumption requirements for eggs. Unlike the

situation with eggs, the chicken meat sector is under

development, the satisfaction of consumer needs is

low, and imported products dominate the market.

Investments in the construction of farms,

slaughterhouses, and meat processing companies in

this sector will increase production. They will

gradually replace the need for imports. The

development of intensive farms for the production

of eggs and meat has a relatively short history in

Kosovo (the last two decades), [2], [5].

The Republic of Kosovo is part of the Western

Balkans in Europe. Currently, “Western Balkans” is

a political term that refers to the countries that are

located in the Balkans but have not yet been

integrated into the European Union (EU), [6]. These

countries are Albania (AL), Kosovo (KS), Bosnia

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and Herzegovina (BIH), Montenegro (ME), Serbia

(SB), and North Macedonia (MNK), [7], [8], [9],

[10], [11], [12], [13], [14], [15]. Despite being

situated in the Western Balkan, Croatia is typically

not classified in that group due to its membership in

the European Union (EU). Our research focuses on

Kosovo, which has an area of 10,908 km², divided

into seven regions and 1,798,188 inhabitants, [2],

[16], [17], [18]. A map of Kosovo is presented in

Figure 1.

Fig. 1: Map of the Republic of Kosovo

The production is oriented only to the

production of eggs. Consumption is 206 eggs per

year per resident. Eggs produced in Kosovo meet

99% of consumer needs. In recent years, the

production of chicken meat has started.

Domestically produced flesh covers 7.1% of

consumption needs. The number of birds in 2020

has increased by 4.4% compared to 2021, [2], [5],

[16], [17], [18].

The cost of egg production is higher compared

to other countries because the size of the farm is

small, and the technology is old. The average output

per head is about 295 eggs per year. The average

price of eggs varies from 3.59 euros/pack to 4.19

euros/pack (the pack contains 30 eggs). Variable

expenses account for 81% of total revenue.

Regarding payments, a significant % of our budget,

70%, is allocated toward purchasing feed for our

broiler chickens.

We allocate 23% of our budget towards

purchasing 18-week-old birds. It's crucial to

efficiently manage these expenses to maintain the

success and longevity of our operation. The

remaining expenses include municipal, veterinary,

slaughterhouse fees, packaging, and delivery costs.

These additional expenses make up only 4% of the

total income. In 2013 somebody introduced an

initiative to offer subsidies to the poultry industry.

The amount of payment a farm receives depends on

the number of chickens they have. Farms with 2,400

to 10,000 chickens receive a donation of €0.50 per

head. Farms with 10,000 to 20,000 chickens receive

€0.40 per head, while those with over 20,000

chickens receive €0.30 per head, [2], [5], [16], [17],

[18].

Legal risk events in the poultry sector are

numerous. There is no similar research. Previous

research analyzes the cost of egg production, [5],

[19], various diseases, [20], [21], [22], and the use

of antibiotics in chicken feed, [23]. In the poultry

sector in Kosovo, research has been done on

production risk, [16], market risk, [17], financial

risk, [18], and human resources risk, [2].

This paper focuses on the identification and

qualitative and quantitative assessment of legal risk

in intensive chicken farms. The research results will

help farmers recognize the levels of risk and the

aggressiveness of legal risk events. Also, this study

aims to recommend to the farmer the means or

strategies for coping with legal risk events.

2 Literature Review

Farmers' daily activities have legal implications,

[24], particularly in fulfilling business agreements

and contracts. Please comply with these agreements

to avoid significant costs associated with legal risks.

Another primary source of legal trouble is legal

wrongdoing - causing harm to another person or

damage to property due to negligence, [25]. Legal

risks underlie all other types of hazards. Production

practices must comply with environmental laws;

otherwise, it leads to significant penalties. Most

marketing and financial decisions are subject to

contract law, and the inability to meet legal

standards leads to disputes that have disadvantages,

[26]. Farmers must also meet legal obligations

regarding paying taxes, workers' salaries, pension

insurance, health insurance, and occupational safety

requirements. Behavioral and communication

responsibility is another important source of legal

risk. Accidents resulting in injury or death of

farmworkers severely impact farm activity.

Meanwhile, one of the problems of legal risk is

institutional risk, which includes uncertainties about

government policies / adverse changes, [27], [28].

Finally, legal risk is closely related to environmental

responsibility, water quality concerns, erosion,

pesticide use, [25], and food safety, [29]. Legal risk

management has a significant impact on the success

and longevity of the farm.

Farm risks fall into five main categories:

production risk, market risk, financial risk,

legal/institutional risk, and human resource risk, [2],

[16], [17], [18] [24], [25], [26], [28], [29], [30],

[31], [32], [33], [34], [35], [36], [37], [38], [39],

[40], [41], [42]. The five primary sources of risk

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(the five significant risks) of the farm are otherwise

called, [25].

Figure 2 illustrates the conceptual framework of the

research. Our team drew from the works of multiple

authors along with various international risk

management standards, [2], [16], [17], [18], [32],

[33], [34], [43], [44], [45], [46], and tailored them to

fit our research.

Theoretical framework

-How is the literature

searched?

-Literature review

2) Research questions

-Seven research

questions

3) Data sample

-Champion reliability

Risk identification techniques

-List of all risk events

-Dynamic analysis

-Empirical analysis

5) Psychometric analysis of legal risk

Risk matrix

6) Communication of legal risks

Qualitative evaluation

-Probability measurement

-Consequence measurement

Quantitative evaluation

-Interval width

-Depression

-Standard deviations

-Coefficient of variation

7) Responds to

legal risk

FIVE

MAJOR

FARM

RISKS

I. Production

risk

III. Financial

risk

II. Market risk

V. Human

resourse risk

IV. Legal risk

Fig. 2: Conceptual framework of the study

Source: Adopted to our study from [2], [16], [17], [18]

This study addresses the following research

questions:

RQ1: Out of eight legal risk events, how many

are low- and low-risk factors? (or have the

aggressiveness of a mouse).

RQ2: Out of eight legal risk events, how many

are average risk factors? (or have the aggressiveness

of a rabbit).

RQ3: Out of eight legal risk events, how many

are high-risk factors? (or have the aggressiveness of

a shark).

RQ4: Out of eight legal risk events, how many

are high-risk factors? (or have the aggressiveness of

a lion).

RQ5: Is the perceived risk more significant than

the anticipated financial gain?

RQ6: What is the dispersion of the predicted

bulls?

RQ7: What is the standard deviation of the

predicted damages?

2.1 Research on the Risk of Poultry in

Kosovo

From the empirical analysis of the types of

production risk, market risk, financial risk, and

human risk in farms of intensive growth of chickens

for egg production in Kosovo, the following

conclusions have been reached, [2], [16], [17], [18]:

For production risk: 17 production risk events

were analyzed empirically. Of these events: 2 events

(Rp2-Low temperatures up to -200C, Rp17-Damage of

production during transportation) are a low or very

low-risk factor or have mouse aggressiveness; 12

events (Rp3-Fire, Rp5-Pests, Rp7-Covid-19

pandemics, Rp8-Production bio-chemical damage,

Rp9-Production damage from human resource

incompetence, Rp10-Uncertainty in the use of

medications, Rp11-Workforce poor health, age, and

wellbeing, Rp12-Production theft, Rp13-Poor quality

of the production, Rp14- Damage of the production

growth and storage process, Rp15-Breakdown in the

use of machinery and equipment, Rp16- Breakdown

due to electrical power outage) is an average risk

factor or have the aggressiveness of a rabbit; 3

events (Rp1-High temperatures up to 350C, Rp4-

Lightning, Rp6-Poultry diseases) are a high-risk

factor or have the hostility of a shark; and no very

high-risk event results, [16].

For market risk: Empirical analysis was

conducted on seven market risk events. Of these

events: 2 events (Rm2- packaging standards, Rm7-

failure to record income and expenses) are a

low/very low-risk factor or have mouse

aggressiveness; 2 events (Rm3-Competition, Rm5-

Reduction of consumer revenues) are an average

risk factor or have the hostility of a rabbit; 1 event

(Rm6- Applying 100% tax to Serbian, and Bosnian

goods is a high-risk factor or has the aggressiveness

of a shark, and one event (Rm1- Price

fluctuation/price declining) is a very high-risk factor

or has the hostility of a lion, [17].

For financial risk: 9 financial risk events were

empirically analyzed. Of these events: 3 events (Rf7-

Currency exchange rate, Rf9- Inflation, Rf8-

Economic decline) are a low or deficient risk factor

or have mouse aggressiveness; 2 events (Rf6- Failure

to forecast production, Rf5- High expenses for the

family); 1 event (Rf4- High cost of debt) is a high-

risk factor or has the aggressiveness of a shark; and

three events (Rf2- Low profits, Rf1- Lack of liquidity,

Rf3- High prices of production factors) is a high-risk

factor or has the aggressiveness of a shark; and three

events, [18].

For the risk of human resources: 9 risk events

were empirically analyzed. Of these events: 2 events

(Rh9- Accidents of employees at work, Rh6-

Environmental pollution) are a low or very low-risk

factor or have mouse aggressiveness; 4 events (Rh1-

Managerial incompetence of the farm owner, Rh4-

Displacement of family members from the farm,

Rh5- Professional incompetence of employees in

agriculture, Rh7- Failure to train employees) are an

average risk factor or have the aggressiveness of a

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rabbit; 2 events (Rh2- Premature death of the farm

owner, Rh3- Divorce in the family) are a high-risk

factor or have the aggressiveness of the shark; 1

event (Rh8- Lack of legal provisions knowledge) it is

a very high-risk factor, or they have the hostility of

a lion, [2].

2.2 Research on the Risk of Poultry in the

World

Poultry farmers finance the farm activity

themselves. Financial institutions see the farm

business in the poultry field as high risk because

they have high mortality and low production, [47],

[48]. In addition to financial factors, obstacles in

raising poultry for production are human resources,

production factors, marketing, and technology, [49].

Economic risk consists of input price fluctuations,

output price fluctuations, and input unavailability.

Production risk is associated with poor yields due to

bad weather, disease outbreaks, insufficient and

untimely supplies of inputs, adequate credit, and

lack of processing technology, [50]. Financing

agricultural operations with debt can expose farmers

to financial risk when expenses exceed income

resulting in a financial deficit, [51]. Extensive

research has shown that financial risk is a highly

significant risk category within the poultry industry,

[18], [50], [52], [53], [54], [55]. Financial risk is an

essential barrier to farm entrepreneurship

development, [56], [57]. Covid 19 hurt the poultry

production industry. The closing of restaurants

reduced the demand for poultry products. Avian

influenza outbreaks have negative financial impacts,

[58], [59].

3 Materials and Methods

The study employed a combination of both

qualitative and quantitative methods. Many

researchers consider this combination practical and

logical, requiring experience, knowledge, and

creativity. The research findings are grounded in

empirical data cited in sources, [60], [61], [62]. The

same methodology was used in studies of

production risk, market risk, financial risk, and

human resources risk in the intensive poultry

industry in Kosovo, [2], [16], [17], [18]. Qualitative

risk assessment aims to provide knowledge about

the levels and aggressiveness of legal risk events,

[2], [16], [17], [18], [63]. Quantitative evaluation

aims to measure the dispersion and standard

deviation of the financial bull, [2], [16], [17], [18],

[63], [64], [65].

To find the literature on which we base our

search, we used these phrases: Farm/agricultural

risk management, Qualitative assessment of legal

risk on the farm, Quantitative assessment of legal

trouble on the farm, Qualitative evaluation method,

Quantitative evaluation method, Qualitative and

quantitative evaluation method, Farm/agriculture

risk analysis, [2], [16], [17], [18], [66].

3.1 Data Sample

In our research, we utilized primary data. Out of 160

farms throughout Kosovo, [2], [18], we have

conducted surveys with 33 of them. The survey was

conducted in 7 regions of Kosovo (Table 1). To

measure the reliability of our caption, we used the

following formulas, [67].







where

tx 



µ - Average population data; x – Average choice

(5.5); t – Confidence level (1-α) = 0.95 and safety α

= 0.05, where value Zα = 1.96; S – The variance of

choice (3,26); n – Sample size (33).

Table 1 presents the calculations of the

reliability components of the sample.

Table 1. Estimation of the sample confidence level

From the calculations, S2=63.8/6 =10.63. And

choosing the confidence level (1-α) = 0.95, we get:

in which variance with the distribution farmer t with

(n - 1) degrees of freedom is such that the value t(n-

1;0.05) satisfies the condition that the integral if (t;

n-1) between –t(n - 1;0.05) and t(n-1;0.05) is 0.95.

In our study, we have 0.95 = probability [5.5 - 0.95

(3.26/5.74)] ≤ µ ≤ [5.5 + 0.95 (3.26/5.74)]. Thus, we

get 4.96 ≤ µ≤ 6.04, [2], [19], [17], [18].

3.2 Legal Risk Identification Techniques

No.

Region

(xi -

)

(xi -

Ferizaj

5.5

(3.5)

12.3

Gjakova

5.5

2.5

6.3

Gjilan

5.5

(0.5)

0.3

Mitrovica

5.5

(3.5)

12.3

Peja

5.5

(2.5)

6.3

Prishtina

5.5

4.5

20.3

Prizren

5.5

(2.5)

6.3

No. of regions = 7

n=33

∑(xi-

)2 =

63,8

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Identification of risk events in business is one of the

stages of the risk management process, [2], [16],

[17], [18], [42]. In this process, it is essential to

understand the risk sources and event selection

techniques, [61], [68], [69], [70], [71]. First, we

have listed all types of legal risks. Then a survey

was conducted, where the farmers selected the eight

legal risk events. A list of all legal risks has been

made based on event dynamics and empirical

analysis (reliance on practice and experience),

(Table 3). We identified nine events that could lead

to legal risk. However, we only analysed eight of

them because the “Farm Owner Offense” event had

no impact, according to the surveys conducted with

farmers, with zero probability and consequence.

3.3 Legal Risk Analysis

The term risk is complex. The two measures of risk

are probability and consequence. Their combination

evaluates the risk in quantitative terms, [34], [71],

[72]. In risk level assessments, the 5-point Likert

scale method is known, [62], [73], [74], [75]. In

Figure 3 and Figure 4, you can find risk matrices

that show the likelihood and potential impact of

legal risks. The accompanying Table 2 and Table 3

provide further details and qualitative evaluations of

these events.

Table 2. Generic description and empirical

assessment (in numbers, words, and colors) of the

event probability, [2], [16], [17], [18].

Possibility

of event

occurrence

Freq.

Sc.

(P)

Color

ratin

Event

occurrence

almost

impossible

(1%)

1 time

Very

low

Gree

Rare event

occurrence

(2%)

2-10

times

Low

Light

green

Possible

event

occurrence

(3-9%)

11-30

times

Avera

Yello

Frequent

event

occurrence

(10-39%)

31-40

times

High

Oran

Almost

certain event

occurrences

(by 40%)

Over

times

Very

high

Red

Table 3. Generic description and qualitative

assessment (in numbers, words, and colors) of the

event consequences, [2], [16], [17], [18].

Consequence

description

Value of

damage

Scale

Conseq.

Color

rating

Very low

consequence

Up to

1,150€

(1-3)

Very

low

Green

Low

consequence

1,151€ -

2,300 €

(4-6)

Low

Light

green

Average

consequence

2,301€ -

10,150 €

(7-9)

Average

Yellow

High

consequence

10,151€-

44,000

€

(10-

12)

High

Orange

Very high

consequence

Over

44,000€

(13-

15)

Very

high

Red

Questionnaire design: The questionnaire consists of

two parts, each containing eight open-ended

questions. To begin, we need to evaluate the

probability of the event empirically. The second part

requires a practical assessment of the event's

consequences. Then the combination of the

likelihood and impact of the event is done. This

combination determines the risk factor for each

event.

The conversion of concepts into measurable

variables for the study was carried out according to

the following Table 4, [2].

Tabela 4. Conversion of concepts into study

variables

First section/Qualitative assessment

Second section/

quantitative

assessment

Vari

able

Qualitative

measurement

method

Likert

scale

Quantitative

measurement

method

Legal

risk event

Probability (P)

(1)

Very

low

RF = P*C

1 time

Frequency

in 5 years

(2) Low

2-10 times

(3)

Average

11-30

times

(4)

High

31-40

times

(5)

Very

high

Over

41 times

Consequence (C)

(1)

Very

low

Up to

€1,150

Value of damage

(2) Low

€1,151 –

€2,300

(3)

Average

€2,301 -

€10,150

(4)

High

€10,151 -

€44,000

(5)

Very

high

Over

€44,000

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3.3.1 Empirical (Qualitative) Assessment of Legal

Risk

We have coded the risk factors in the matrix. The

coding of risk factors is the nominal assessment of

risk, [76], [77], [78]. Table 5 presents the coding of

risk factors using their respective symbols.

Table 5. Nominal assessment of legal risk events

(placement of codes or symbols)

Legal risk events

Symbol

The failure of the farm owner to meet

their financial responsibilities is

considered negligent and irresponsible.

RL1

If clients, customers, or rental properties

do not follow the agreements or

contracts, non-compliance will occur.

RL2

Court cases.

RL3

They need to meet the instructions for

using nutrients and keeping proper

records.

RL4

Not following laws related to food safety

can lead to failures.

RL5

Lack of information.

RL6

Lack of consultation with experts

(lawyers, economists, veterinarians,

zootechnicians.

RL7

I have a limited amount of time to study.

RL8

Source: Authors' elaboration

Risk matrix: One of the simplest ways to illustrate

the risk factor is the matrix. The use of the risk

matrix is an essential risk management tool, [2],

[16], [17], [18], [42], [71]. Figure 3 presents the risk

according to levels (from 1 to 5) and illustrates the

aggressiveness of the risk, [2], [16], [17], [18].

The impact

Very

high

(5)

High

(4)

Average

(3)

Low

(2)

Very

low

(1)

Very

low

(1)

Very

low

(2)

Averag

(3)

High

(4)

Very

high

(5)

Likely

Fig. 3: Matrix of qualitative risk levels

3.3.2 Quantitative Estimation of Legal Risk

There are many statistical risk measures. In our

research, we used: interval width, dispersion,

standard deviation, and coefficient of variation, [2],

[16], [17], [18], [79], [80]. These measurements are

called variable measurements. The calculation

formulas are:

1. Interval width: Iwidth = Xmax – Xmin;

2. Dispersion (the extent to which values of a

variable differ from a fixed value such as

the mean): D2 = Σ (xi -x)2/n-1;

3. Standard deviation;

4. Coefficient of Variation Cv = (D/ x).

3.4 Legal Risk Communication

The purpose of our research is very dimensional. In

addition to identification, quality assessment is also

the communication of recommendations to

stakeholders. The results and requests are

prioritized: first to the farmers, second to the central

and local governments, and third to the researchers

in the field. Communication of results should

provide information for better decision-making, [2],

[16], [17], [18], [81], [82].

4 Analysis, Results and Discussion

4.1 Empirical Assessment of Legal Risk

Table 6 reflects the qualitative statements according

to empirical reviews of probability and

consequence; and quantitative data. The primary

data present the average value of the financial loss

in euros for the last five years.

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Table 6. Combined probability assessment with the

consequence (risk factor) and damage values in

euros for each event

Risk

code

Legal risk

events

(P)

(C)

(RF)

Damage

value

(1)

(2)

(3)

(4)

(5)=3*4

(6)

RL1

The failure of the

farm owner to

meet their financial

responsibilities is

considered

negligent and

irresponsible.

27,500

RL2

If clients,

customers, or

rental properties do

not follow the

agreements or

contracts, non-

compliance will

occur.

2,500

RL3

Court cases.

5,500

RL4

They need to meet

the instructions for

using nutrients and

keeping proper

records.

6,000

RL5

Not following laws

related to food

safety can lead to

failures.

500

RL6

Lack of

information.

10,000

RL7

Lack of

consultation with

experts (lawyers,

economists,

veterinarians,

zootechnicians,

etc).

25,000

RL8

I have a limited

amount of time to

study.

5,000

Source: Authors' elaboration

Farmers' perception does not follow the trend of

damages for all legal risk events, which means we

have inconsistencies between them.

Consequence

Very

high

(13-15)

High

(10-12)

RL1;RL8

RL3

RL7

RL6

Avarge

(7-9)

Low (4-

RL5

Very

Low (1-

RL4

RL2

Legal Risks on

intensive

growth farms

in Kosovo

Very

Low

Average

High

Very

High

Probability

Fig. 4: Legal risk analysis matrix

Source: Authors' elaboration

From the legal risk matrix analysis in Figure 4,

we find that for the eight legal risk events, the

farmers' perceptions are:

 Four events are very high-risk factors.

 One event is a high-risk factor.

 One event is a medium risk factor.

 Two events are low-risk factors.

4.2 Quantitative Legal Risk Assessment

Analysis

Table 7 shows the calculation of the Dispersion

(D2), Standard Deviation (D), and Coefficient of

Variation (Cv) components.

Table 7. Calculation of statistical measures of legal

risk events (EUR)

(xi-

)

(xi-

27,500

10,250

17,250

297,562,500

2,500

10,250

(7,750)

60,062,500

5,500

10,250

(4,750)

22,562,500

6,000

10,250

(4,250)

18,062,500

500

10,250

(9,750)

95,062,500

10,000

10,250

(250)

62,500

25,000

10,250

14,750

217,562,500

5,000

10,250

(5,250)

27,562,500

Interval width (Iwidth)

27,000

Dispersion (D2)

75%

Standard deviation (D)

9,608

Coefficient of Variation (Cv)

94%

Source: Authors' elaboration

The financial impact of legal risk events can

vary greatly, with a range of €27,000 and an average

standard deviation of €9,608. The evaluation

considers the different categories listed in Table 3

and considers the standard deviation and dispersion.

Additionally, the coefficient of variation is high at

94%.

Fig. 5: Dispersion of damage from legal risk events

Source: Authors' elaboration

The distribution of the value of damages is over

€ 500 and under € 2,500, which includes 75% (6/8)

5.000

10.000

15.000

20.000

25.000

30.000

12345678

The value of legal damagele

Number of events studied

Legal damages of

events

Average legal

damage

Average plus

Standard

deviation

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of the total surveys taken in the study (See Figure

5).

5 Conclusions

5.1 From the Analysis, Results, and

Discussions, we Come to the Following

Conclusions

RL1- The negligence or irresponsibility of the farm

owner in paying the financial obligations is a very

high-risk factor. They explain the inability to pay

due to a lack of liquidity. Non-payment increases

the cost of financial obligations as the interest

burden increases. When laws related to taxes and

fees are not applied, the issue usually ends up in

court. Regrettably, this often results in a financial

loss.

RL2- Non-compliance with agreements or

contracts (clients, clients, and rents), the risk factor

is low. Non-compliance with customer requirements

is uncommon but can occur when inaccurate

production forecasts occur.

RL3- In various court cases, the risk factor is

high. Litigation is mainly about delays in paying

fiscal obligations. In addition to interest on arrears,

farmers also pay court costs.

RL4- The average risk factor is failing to follow

the instructions for using nutrients and keeping

proper records. Farmers do not consult a master

technician for drafting food rations.

RL5- Non-implementation of legal provisions on

food safety is a low-risk factor associated with very

little financial damage. There is opposition between

RL5 and RL4, but currently, there are no identified

safety issues with production.

RL6- Lack of information is a very high-risk

factor. Farmers are not receiving updated

information from the Ministry of Agriculture,

Forestry and Rural Development or other private

and public institutions such as institutes and

universities' information bulletins.

RL7- Failure to consult with experts (lawyers,

economists, veterinarians, technicians) is a very

high-risk factor. Farmers do not consult with experts

in the field. They manage the farm solely based on

their experience.

RL8- Limited time to study is a significant risk

factor, as mentioned in RL6, where the individual

expressed difficulty gathering information.

5.2 From the Quantitative Analysis of Legal

Risk, We Draw These Conclusions

According to empirical evaluation, legal risk factors

do not follow the claims trend. So the perception of

the farmers needs to follow the value of the

damages caused. The perception is related or

dependent on several variables, such as mode,

gender, farm size, family size, and others, [83].

Legal risk events have a considerable interval

width (€27,000 = 27,500-500);

Relatively large dispersion to the extent of 75%;

According to Table 3, the moderate financial

consequence segment (€2,301-€10,150) includes an

average standard deviation of €9,608;

The coefficient of variation is high at 94%.

The forecast of the relative variation of losses

from the average of € 10,250 results in minus or

plus € 9,608, which means: in the case of good

management, losses from legal risks for the farm

may be minimal (€ 642); and in case of

mismanagement, losses from legal threats to the

farm may be high (€ 19,858).

6 Recommendations

Our research ensures that the farm's carrying

capacity is not exceeded, thus avoiding potential

risks. Accepting the threat beyond the carrying

capacity of the farm enterprise will make it

impossible to cover the losses, [84]. After the

analysis and conclusions, to help farmers in

successful decision-making, we inform and

recommend the following:

 Events: (RL2-Non-compliance with

agreements or contracts (clients, clients, and

leases); RL5- Non-implementation of legal

provisions on food safety) are deficient risk

factors. The negative impacts of the two

events are negligible. They do not affect the

objectives of the enterprise. And the means

of their treatment is self-financing.

 Event: (RL4-Failure to follow instructions

for using nutrients and keeping proper

records) are average risk factors. There is

fear and uncertainty. Farmers should consult

with experts (veterinarians, economists,

lawyers).

 Event: (RL3-Various court cases) It is a

high-risk factor. Public and private

institutions should inform farmers.

 Events: (RL1-Negligence or irresponsibility

of the farm owner in paying fiscal

obligations; RL6- Lack of information; RL7-

Do not consult with experts (advocate,

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economist, veterinarian, technician); RL8-

Limited time to study) have a catastrophic

impact. They affect the objectives of the

enterprise. Farmers should review their

insurance policies, consult legal provisions,

and consider joining cooperatives for

guidance.

In conclusion, an important role is played by the

government or governments and mainly the line

ministry (Ministry of Agriculture, Forestry and

Rural Development). Therefore, we sensitize the

political management in Kosovo in the future to

provide unique training programs for farmers,

especially for the issues raised in this study

regarding legal risks. The study shows that four

legal troubles, or 50% of the events included in the

analysis, have lion aggressiveness (very high-risk

factors). Their impact can have catastrophic

consequences for the enterprise of intensive

production on these farms.

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

The authors have supported the project, but the

funding will come from “Aleksander Moisiu”

University in Durres, Albania. To support scientific

research, the University finances publications in

SCOPUS.

Conflict of Interest

The authors have no conflict of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

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WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT

DOI: 10.37394/232015.2023.19.64

Agim Ndregjoni, Arif Murrja, Llambi Prendi

E-ISSN: 2224-3496

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Volume 19, 2023