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Optimization of production on vegetable farm in the Republic of Macedonia

Author

Listed:
  • Stamenkovska, Ivana Janeska
  • Dimitrievski, Dragi
  • Erjavec, Emil
  • Zgajnar, Jaka
  • Martinovska-Stojcheska, Aleksandra

Abstract

The aim of the paper is to develop an optimization model to support the analysis of decision-making on Macedonian family farms. Normative linear programming paradigm is applied, utilising its optimization potential. The model is applied on a hypothetical vegetable farm case. The optimal structure in all scenarios indicates that the optimal solution is the production of tomato, pepper, cabbage, carrot and bean. The base scenario reveals a gross margin of 17,924 € which is highest compared to other scenarios. The working capital available is a binding constraint in second and third scenario, where the optimal solution reveals that the land resource is not exhausted. Gross margin sensitivity was examined using the working capital parameterisation. The model is quite flexible thus enabling different crop enterprises to be added additionally.....Cilj ovoga rada jest razvijanje modela optimiranja kako bi se pružila potpora analizi donošenja odluka na makedonskim obiteljskim farmama. Primijenjen je normativni obrazac linearnog programiranja, pri čemu se koristio njegov potencijal optimiranja. Model je primjenjen na hipotetski slučaj farme za proizvodnju povrća. Optimalna struktura, prema svim scenarijima, ukazuje da je optimalno rješenje proizvodnja rajčice, paprike, kupusa, mrkve i graha. Osnovni scenarij ukazuje da je bruto marža od 17,924 € najviša u odnosu na ostale scenarije. Postojeći obrtni kapital obvezujuće je ograničenje u drugom i trećem scenariju, u kojima optimalno rješenje ukazuje da zemljišni resursi nisu iscrpljeni. Osjetljivost na bruto maržu ispitivala se parametrizacijom obrtnog kapitala. Ovaj model je prilično fleksibilan, tako da pruža mogućnost naknadnog dodavanja poduzeća koja se bave proizvodnjom različitih kultura.

Suggested Citation

  • Stamenkovska, Ivana Janeska & Dimitrievski, Dragi & Erjavec, Emil & Zgajnar, Jaka & Martinovska-Stojcheska, Aleksandra, 2013. "Optimization of production on vegetable farm in the Republic of Macedonia," Agroeconomia Croatica, Croatian Society of Agricultural Economists, vol. 3(1), pages 1-8, September.
  • Handle: RePEc:ags:csaeac:172528
    DOI: 10.22004/ag.econ.172528
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    References listed on IDEAS

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    1. Strauss, P.G. & Meyer, Ferdinand H. & Kirsten, Johann F., 2008. "Facilitating decision-making in agriculture by using a system of models," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(3), pages 1-19, September.
    2. Gan, Jianbang & Kebede, Ellene, 1999. "The Economic Potential Of Vegetable Production For Limited Resource Farmers In South Central Alabama," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(1), pages 1-13.
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