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Multiple-perspective Reorganisation of the Dairy sector: Mathematical Programming Approach

Author

Listed:
  • Kocjančič Tina

    (Biotechnical Faculty of the University of Ljubljana, Slovenia)

  • Žgajnar Jaka

    (Biotechnical Faculty of the University of Ljubljana, Slovenia)

  • Juvančič Luka

    (Biotechnical Faculty of the University of Ljubljana, Slovenia)

Abstract

Background: Agriculture is a production system in which the economic principles of organisation act in mutual dependence with its ecological boundaries.Objectives: Building on this premise, the paper evaluates performance of a chosen agricultural production system (dairy production in Slovenia) from two complementary perspectives, the socio-economic and the biophysical.Methods/Approach: The latter is presented by means of emergy analysis, which is a system-based approach that measures the aggregate work of biosphere needed for the provision of goods or services in the units of solar energy joules. The novelty aspect of this paper is the introduction of emergy indicators into the standard socioeconomic optimisation model of the chosen agricultural production system. The optimisation model based on linear mathematical programming is designed to empirically investigate different alternatives to the sector’s reorganisation.Results: The results of the optimisation models suggest considerable restructuring of the sector and, consequently, large discrepancies in the sector’s performance.Conclusions: The results suggest that further expansion of organic production systems as a result of a stronger environmental focus in farm management would improve the sector from both, the socio-economic and the emergy perspective. Moreover, even pursuing certain socio-economic targets may improve the sector’s biophysical performance and lower pressure on the local environment.

Suggested Citation

  • Kocjančič Tina & Žgajnar Jaka & Juvančič Luka, 2016. "Multiple-perspective Reorganisation of the Dairy sector: Mathematical Programming Approach," Business Systems Research, Sciendo, vol. 7(2), pages 35-48, September.
    • Handle: RePEc:bit:bsrysr:v:7:y:2016:i:2:p:35-48
    DOI: 10.1515/bsrj-2016-0011
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    References listed on IDEAS

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    1. Brown, Mark T. & Ulgiati, Sergio, 2010. "Updated evaluation of exergy and emergy driving the geobiosphere: A review and refinement of the emergy baseline," Ecological Modelling, Elsevier, vol. 221(20), pages 2501-2508.
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    3. Jaklič, Tina & Juvančič, Luka & Kavčič, Stane & Debeljak, Marko, 2014. "Complementarity of socio-economic and emergy evaluation of agricultural production systems: The case of Slovenian dairy sector," Ecological Economics, Elsevier, vol. 107(C), pages 469-481.
    4. Gasparatos, Alexandros & El-Haram, Mohamed & Horner, Malcolm, 2009. "The argument against a reductionist approach for measuring sustainable development performance and the need for methodological pluralism," Accounting forum, Elsevier, vol. 33(3), pages 245-256.
    5. Ghisellini, Patrizia & Zucaro, Amalia & Viglia, Silvio & Ulgiati, Sergio, 2014. "Monitoring and evaluating the sustainability of Italian agricultural system. An emergy decomposition analysis," Ecological Modelling, Elsevier, vol. 271(C), pages 132-148.
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    More about this item

    Keywords

    agriculture; dairy sector; system approach; mathematical programming; emergy analysis;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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