The present study looks into farmers perception of risks and effectiveness of major risk management strategies being adopted by dairy farmers of Kerala. Primary data was collected from 226 farmers of Calicut and Malappuram districts. Majority of the farmers opined there was only moderate increase in both production and price during the past five years. Lack of capital, unavailability of inputs on time, high temperature, input price hike, volatility in prices and price policy of government were the major sources of risks perceived by the farmers. Membership in cooperative societies and adoption of value addition were found to be effective strategies for risk reduction. Whereas coping strategies like reduction of spending on management practices when faced with income shock was found not effective as it leads to long term negative effects. The study stressed on the need for awareness creation and further support measures

for risk management and for continuing with proper adoption of recommended management practices.