This study examines the risk reorganization and pricing behavior to the potential threat of a severe disease, Avian Influenza, by measuring the risk premium for domestic poultry farmers in Taiwan. Through questionnaires focused on how and where bird farmers accessed information related to the quarantine systems in Taiwan, we analyze possible factors which affect the decision of program participation, calculate the levels of premium, and evaluate the effectiveness of current disease management tools.
964 poultry farmers in Taiwan from three different bird sectors - chicken, ducks and geese - were interviewed and analyzed by adopting a two stage decision-demand process. The significance of risk perception and information were supported by the statistical results at both decision and demand stages of insurance participation.