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The aim of this study was to investigate the economic impact of an investment in an apple orchard in the Republic of Srpska, using the cost-benefit analysis method. All investment costs, annual production costs, production volumes and annual revenues were collected through an unstructured survey of the leading fruit production company in the Republic of Srpska "Agroimpex Nova" and based on similar studies from the region on this topic. Investments in fixed assets, materials, services, salaries, loans and depreciation costs were structured and calculated for a period of 15 years. In addition, all quantities produced and other revenues were totaled. Payback period, net present value (NPV) and internal rate of return (IRR) were calculated as the main economic indicators for this production. The total expenditure of the project is €2,836,316 and the net income for 15 years of the project is €5,054,705, so the net cash flow is €2,218,389. The net present value for the assumed discount rate of 6% is €927,691. The net present value per hectare is €46,385. The undiscounted payback period is 7.973 years. At a discount rate of 6%, the payback period is 9.313 years. The internal rate of return is 16.13%. The calculated results suggest that the investment in an apple orchard in the Republic of Srpska is economically feasible and represents an opportunity for future investment in agricultural production.

The aim of this research was to determine a sustainable economic model of a milk farm in Bosnia and Herzegovina through the possibility of reorientation of raw milk production into cheese on-farm processing. All investment costs, annual production costs, production quantities, prices and annual income were collected through an unstructured questionnaire. The case study farm, originally engaged in milk production, reoriented itself to processing milk into several products. A cost–benefit analysis was applied for the 14-year project lifetime, as well as the Black–Scholes and binomial models of real options evaluation for shifting to cheese production in the fourth year of the project. The milk production farm is economically inefficient, and the investment project is unacceptable, resulting in negative net present value under assumed typical production parameters, and the payback period is longer than the project lifetime. The cheese production option value is positive according to the Black–Scholes and binominal models. Both real options models confirmed that processing milk into cheese is sustainable long-term and economically.

PurposeThis paper aims to analyse the main variables and causal relationships in the system structure of the diversification of non-agricultural activities on agricultural holdings using system dynamics (SD) modelling. The SD model aims to simulate depictions of the behaviour of the real system while testing the effects of alternative decisions over time.Design/methodology/approachAn SD methodology was chosen to model diversification in farm tourism.FindingsA system approach increases the authors’ understanding of the transition of agricultural holdings to farm tourism. The results indicate that the transition to farm tourism depends on the level of tourism development in a certain area. The system is influenced by subsidies allocated by authorities to expand primary agricultural activities. The model describes a situation in which the tourism and agricultural industries have been affected by the COVID-19 pandemic.Research limitations/implicationsThe research is limited by the small set of available data due to the limited number of farms in Slovenia. One major problem is the difference in statistical data on the same activity collected from different institutions in Slovenia.Practical implicationsThe paper includes implications for understanding the transition process to farm tourism, allowing policymakers to experiment with subsidies and promotion to explore the efficacy and efficiency of proposed policies.Originality/valueThis study provides a structured, systemic view of the diversification of non-agricultural activities on agricultural holdings, where the simulation results are a reliable reflection of the behaviour of the actual system being modelled.

In this work, a new multi-criteria model for the evaluation of traditional and indigenous horse breeds, the HORQUAL model, was developed by applying the DEX (Decision Expert) method. The idea for this study culminated from brainstorming among researchers who had the importance of conserving traditional and indigenous horse breeds in Slovenia and their universal uses (recreative and sport) in mind. The conservation of native domestic animal breeds is one of the important indicators of sustainable agricultural development in particular countries. Here, the assessment process considered the horse breeds in terms of lifestyle, expectations, requirements and experiences. The development process was based on the multi-criteria decision analysis approach, and it was applied to seven traditional and indigenous Slovenian horse breeds. The horse breeds were classified into four groups of breed ratings according to the chosen criteria. The horse breeds were categorised as follows: “does not correspond to the criteria”, “less correspondence with the criteria”, “corresponds to the criteria” and “completely corresponds to the criteria”. The results of the HORQUAL model clearly show that it is easier and more effective to choose the most suitable breeds for specific purposes (i.e., recreative/sport horses with the potential for breeding along with acceptable costs, favourable temperament and suitable price) as they can easily be analysed or compared with each other, according to the criteria chosen in this paper. The rating by group takes the criteria for the multi-attribute evaluation that were identified by an expert group into account and balances between the assessment of recreational and sports needs for riders and the life expectancy for breeders. Additionally, incorporating the Plus-minus-1 analysis proved to be a useful support tool to analyse the assessments and to further improve horse breeding plans.

The advisory service in the Republic of Serbia is specific, has a long tradition, has undergone significant organizational changes, and today's agrarian structure is characterized by a large number of agricultural holdings with a relatively small number of agricultural advisers. The agricultural advisory service is important for the improvement of agricultural production, because the quality of the advisory work determines the speed of progress in agriculture, and in that sense it is important to perceive the factors influencing its functioning and the attitudes of the employees' advisors. A survey disputed in PSS Požarevac was mirrored in the interview of five advisers working on the improvement of agricultural production in the Braničevo district, within the framework of the advisory service. The advisers expressed their views on the characteristics of the organization and the advisory work they deal with, the cooperation with agricultural producers, highlighted the difficulties they face in their efforts to achieve better functioning of the service and provided suggestions for improving advisory and cooperation with farmers, all with the aim improving the quality of agricultural production., Savjetodavstvo u Republici Srbiji je specifično, ima dugu tradiciju, prošlo je kroz značajne organizacijske promjene i današnju agrarnu strukturu karakterizira veliki broj poljoprivrednih gospodarstava uz relativno mali broj poljoprivrednih savjetodavaca. Poljoprivredna savjetodavna služba je značajna za unapređenje poljoprivredne proizvodnje, jer kvalitetu savjetodavnog rada određuje brzinu napretka u poljoprivredi, te je u tom smislu značajno sagledati čimbenike od utjecaja za njezino funkcioniranje i stavove savjetodavaca zaposlenih u istim. Istraživanje provedeno u PSS Požarevac se ogledalo u intervjuiranju pet savjetodavaca koji rade na unapređenju poljoprivredne proizvodnje u Braničevskom okrugu, u sklopu savjetodavne službe. Savjetodavci su iznijeli stavove o karakteristikama organizacije i savjetodavnog posla kojim se bave, o suradnji s poljoprivrednim proizvođačima, istaknuli su poteškoće s kojima se susreću u težnji da ostvare što bolje funkcioniranje službe i pružili prijedloge za unaprjeđenje savjetodavstva i suradnje s poljoprivrednicima, a sve u cilju unapređenja kvalitete poljoprivredne proizvodnje.

We present a crop plan that aims to maximize farmers’ returns and minimize production costs for the analyzed agricultural holding. This study describes a model that combines linear programming (LP) and the weighted goal programming (WGP) method with penalty functions to simultaneously satisfy a variety of goals within the tolerance interval bounds in terms of their weights. The results indicate that, from an economic perspective, WGP sub-model including LP gives a better solution than using the LP sub-model separately. We designed the model to handle five different types of field and vegetable crops during crop planning and was tested for WGP optimization [WGPSC1, WGPSC2, WGPSC3, and WGPSC4 (SC4 for testing model parameterization)) on four different scenarios. For example, the farmers’ returns in the WGP scenarios were higher or equal as in LP scenario (by approx. €100 to €110) while the costs were reduced (from €2.58 in the case of mechanical labor costs and to €1,376.66 for fertilizer costs). In addition, the combination of both serves as a more viable option for diversified and economically optimized crops to be included in crop plans. It is also important that the WGP calculated higher farmer returns, even though it was run on a cropping area that was 0.02 ha smaller than that in the LP. Further, the model was tested with a parameterization process to determine and explain the role of weights and penalty functions on the quality of the model results. Keywords: Agricultural application, Agricultural economics, Farmer’s return, Mathematical modelling.

In this Chapter we present the development of post graduate Doctoral Study Programmes in the field of Agricultural Economics at the University of Maribor. The first part of the Chapter describes the development before implementation of the Bologna reform. Then we describe development after the Bologna reform, and after the last reform of Doctoral Studies at the University of Maribor in 2018.

In this paper, the quality of the municipal waste sorting process in seven waste management centers in Slovenia was assessed using the qualitative multicriteria analysis (MCA) method DEX (Decision EXpert) implemented in DEXi software, which is based on multicriteria decomposition of the problem and utility functions in the form of &ldquo, if&ndash, then&rdquo, decision rules. The study was based on eight types of secondary raw materials. The quality of the secondary raw materials, the regularity of the delivery of secondary raw materials to recycling units based on the sorting efficiency, and the loading weight of the individual baled fractions in the transport of secondary raw materials for recycling were the main parameters used in the model. The final assessment shows &ldquo, good&rdquo, waste management service in centers A and D. Centers B, C, and F were rated &ldquo, average.&rdquo, The &ldquo, bad&rdquo, rating was assigned to centers E and G.

Wirtschaftliche Nachhaltigkeit einer nicht kommerziellen und intensiven Kaninchenzucht: Fallstudie aus Slowenien Ziel dieser Arbeit ist es, die technologische und wirtschaftliche Nachhaltigkeit der Herstellung von Kaninchenfleisch zu zeigen. Die Eingangsangaben und gewonnenen Ergebnisse wurden aus der geschäftlichen Tätigkeit einer auserwählten Farm aus Slowenien übernommen. Die Farm stellt Kaninchenfleisch in erster Linie für den Eigenbedarf und nicht zu kommerziellen Zwecken her. Die Berechnung der wirtschaftlichen Parameter beruht auf Angaben, die während zwei Herstellungszyklen gesammelt wurden, von insgesamt 221 Kaninchen. Die Ergebnisse zeigen eine wirtschaftliche Produktion bei einem Verkaufspreis für Kaninchenfleisch von mindesten 8 EUR/kg. Bei einem Verkaufspreis für Kaninchenfleisch von 9 EUR/kg, würden die finanziellen Ergebnisse um circa 15% ansteigen. Die Analyse der wirtschaftlichen Nachhaltigkeit der Herstellung von Kaninchenfleisch bestätigt die Wirtschaftlichkeit seiner Herstellung.

The aim of this paper is to assess the economic aspects of bedding materials for sport/recreational horses. Four materials are tested: sawdust in bulk, wood shavings, squared harvest straw, and slice-dusted straw. The process of collecting data for feasibility analysis is structured into two different trials. In Trial 1, daily observations are collected and measured to obtain data about the technical and cleaning characteristics of the four different bedding materials, and in Trial 2, the durability of the bedding materials is tested. From an economic (cost) standpoint, the most suitable bedding materials are squared harvest straw and slice-dusted straw. Unfavourable economic results are found for wood shavings and sawdust in bulk. However, the durability analysis shows wood shavings and slice-dusted straw to be the better options. Thus, the results indicate that some bedding types are better for durability reasons and others are better for economic reasons.

The success or failure of an investment project in fruit production also depends on the selection of the fruit species and variety. When selecting the variety for the creation of a new orchard it is necessary to perform the synthesis of different data and to look at all aspects of the investment. This paper presents the application of DEX multi-criteria decision making. The model was applied on 7 varieties of plum from the western Balkans region that were assessed by experts from “The association of agricultural economists of Western Balkans” using the Delphi method. By applying this model it has been shown that the ’Stanley’ is the most suitable for starting a new orchard while the varieties ’Cacanska ljepotica’ and ’Cacanska rodna’ are also very suitable for starting new fruit orchards and they have also received the value attribute “very acceptable”. Using this model all strong and weak sides of the observed plum variety were shown. For the final selection it is necessary to conduct research at a specific micro location where all characteristics of that area would also be taken into consideration.

The attention of this paper is drawn to analyze the economic potential of involvement of farmers into the small-medium sized value-based food chain (VBFC). The survey represents a solid data basis from which econometric modelling approach was further developed. Empirical results reveal the positive economic viability on a general level ; this means more stable purchase price of raw milk for dairy farms, which are the part of value-based food chain. Results point at inelastic demand for milk and milk related products. Furthermore, there are some accompanying and underlying indirect social benefits, such as production of high-quality food products, more stable and constant demand for raw milk, steady payments and better social situation. The last one is especially important for the farms operating in less-favored mountain areas where the survey was actually conducted.

The placement of a theme park in the form of a Zen garden, as a business opportunity in the Slovenian rural area, is discussed. The design of the garden, with all the major points of a standard business plan, is accurately presented, with a description of the business, branch, and services, market analysis, marketing strategy, financial projections, and a plan of the work and activities. The financial aspect is presented as the amount of investment, net present value, and internal rate of return. The amount of investment is estimated at € 14.891, which should be reimbursed within 4 years of operations. The estimated internal rate of return is estimated at 16.86%. Part of the study is the market analysis - conduction of a survey into knowledge of, and interest in, Zen and Zen gardens. The principles of landscape ecology are respected, as the Zen garden would be set in the woods and will blend seamlessly into the landscape.

This paper explores ethno-villages in Bosnia and Herzegovina as an important element of rural and cultural tourism. The attractiveness of natural and cultural heritage is very important for sustainable rural tourism development. In order to improve the process of decision making to enable the sustainable development of ethno-villages, a multi-criteria assessment model has been developed. The methodology is based on qualitative modeling using a multi-criteria analysis via the DEXi software. The model is based on hierarchical relations consisting of three main criteria that are the basis of sustainable tourism development: economic, social, and environmental criteria. The ultimate goal of the model in this study was to evaluate ethno-villages, namely six ethno-villages in Bosnia and Herzegovina. The results of the study show how ethno-villages contribute to sustainable development.

The paper present a multi-criteria decision DEXi model for assessment of less favoured areas (LFAs). The tool enables easier assessment of farming in different areas of Slovene LFAs with respect to criteria of sustainability. Analysis of LFAs and final integration of the assessment of LFAs depend upon various criteria. In this paper we analyze individual LFAs and farming systems in these areas at the state level with respect to criteria of sustainability and farming potential.

The aim of this study is to present the calculation of technological and economic viability in rabbit meat production. The input data and due results were based on a real case (farm) from Slovenia. The farm primarily produces rabbit meat for self-sufficient consumption, not for commercial purposes. The economic calculations were based on data collected from two production cycles, totalling 221 rabbits. Results show that production is economically justified when the selling price of rabbit meat amounts to at least 8 EUR/kg. Should the selling price of rabbit meat reach 9 EUR/kg, the financial result would increase for approximately 15 %. The analysis of economic viability in rabbit meat production confirms that such production is economically justified., Cilj ovog rada je prikazati tehnološku i ekonomsku održivost proizvodnje mesa kunića. Ulazni podaci i dobiveni rezultati preuzeti su iz poslovanja odabrane farme u Sloveniji. Farma meso kunića prvenstveno proizvodi za vlastite potrebe, a ne u komercijalne svrhe. Izračuni ekonomskih pokazatelja temelje se na podacima prikupljenima tijekom dva proizvodna ciklusa, ukupno 221 kunić. Rezultati pokazuju da je proizvodnja ekonomski opravdana pri prodajnoj cijeni mesa kunića od najmanje 8 EUR/kg. Kada bi se postigla prodajna cijena mesa kuniće od 9 EUR/kg, financijski bi rezultati bili uvećani za otprilike 15 %. Analiza ekonomske održivosti proizvodnje mesa kunića potvrđuje ekonomsku opravdanost njegove proizvodnje., Ziel dieser Arbeit ist es, die technologische und wirtschaftliche Nachhaltigkeit der Herstellung von Kaninchenfleisch zu zeigen. Die Eingangsangaben und gewonnenen Ergebnisse wurden aus der geschäftlichen Tätigkeit einer auserwählten Farm aus Slowenien übernommen. Die Farm stellt Kaninchenfleisch in erster Linie für den Eigenbedarf und nicht zu kommerziellen Zwecken her. Die Berechnung der wirtschaftlichen Parameter beruht auf Angaben, die während zwei Herstellungszyklen gesammelt wurden, von insgesamt 221 Kaninchen. Die Ergebnisse zeigen eine wirtschaftliche Produktion bei einem Verkaufspreis für Kaninchenfleisch von mindesten 8 EUR/kg. Bei einem Verkaufspreis für Kaninchenfleisch von 9 EUR/kg, würden die finanziellen Ergebnisse um circa 15% ansteigen. Die Analyse der wirtschaftlichen Nachhaltigkeit der Herstellung von Kaninchenfleisch bestätigt die Wirtschaftlichkeit seiner Herstellung., L’obiettivo di questo studio consiste nell’illustrare la sostenibilità tecnologica ed economica della produzione della carne di coniglio. I dati d’input e i risultati ottenuti sono stati attinti dall’attività di una certa fattoria operante in Slovenia. Questa fattoria produce carne di coniglio prevalentemente per uso proprio; non si tratta, dunque, di un allevamento commerciale. I calcoli degli indicatori economici si basano sui dati raccolti nel corso di due cicli di produzione, per un totale di 221 conigli. I risultati ottenuti ci dicono che tale produzione sarà giustificata dal punto di vista economico se il prezzo di vendita della carne del coniglio sarà pari ad almeno 8 EUR/kg. Se si riuscisse ad ottenere un prezzo di vendita pari a 9 EUR/kg, i risultati finanziari subirebbero un aumento di circa il 15%. L’analisi della sostenibilità economica della produzione della carne di coniglio conferma la giustificazione economica della sua produzione., El objetivo de este trabajo fue mostrar la sostenibilidad tecnológica y económica de la producción de carne de conejos. Los datos de entrada y los resultados fueron tomados de una granja elegida de Eslovenia. La granja produce la carne de conejos principalmente para sus propias necesidades y no con el fin comercial. El cálculo de indicadores económicos está basado en datos recogidos de dos ciclos de producción, con 221 conejos en total. Los resultados muestran que la producción tiene la justificación económica con el precio de venta de carne de conejos por lo menos 8 EUR/kg. Si se alcanzaría el precio de venta de carne de conejos de 9 EUR/kg, los resultados financieros aumentarían aproximadamente 15%. El análisis de sostenibilidad económica de la producción de carne de conejos confirma la justificación económica de su producción.

Background and Purpose: The sugar beet is the main field crop used for sugar production in the temperate climatic zone. Since investment in sugar beet industry are long term and ireversible the decision support and economic analysis are required in order to maximise investment returns. Methodology: A system dynamics methodology was chosen to model the impacts of regional sugar factory investments. We present the basic concepts of system dynamics (SD) models and their development in the case of sugar beet production and processing systems. Sugar beet economics are also analyzed using the static technological economic simulation model. Results: The simulation provides answers to strategic questions related to the total sugar beet production and processing system and will be used for the simulation of different scenarios for sugar production and their impact on economic and environmental parameters at an aggregate level. Furthermore, the feasibility analysis of sugar beet production revealed that at the current price and intensity levels (yields), we can expect profitable sugar beet production for both white sugar and ethanol. Conclusion: Preliminary results show that under expected production parameters the sugar beet processing and production would be economically feasible.

Selection of a proper cultivar is one of the most important management decisions when investing into apple orchard. This paper presents a methodology for evaluation of suitability for cultivation of some apple cultivars by using a multi-criteria model based on analytical hierarchy process. The software tool Expert Choice was used to support growers in making decisions about which new apple cultivar to grow. The model was applied to 13 cultivars with data derived from questionnaires completed by group of experts of different fields (orchardists, experts for fruit production economics and fruit marketing, cultivar breeders, experts of state service and commission for introduction of new cultivars, experts for fruit storage and fruit quality assessment, plant protection and fruit growing advisers). The results are shown as priority for individual cultivar. The potential of the model for assessing apple cultivar is demonstrated with the aim of providing a comprehensive explanation and justification of the assessment technique. It also indicates strong and weak points (in market potential, fruit estimation, production demands and tree estimation) of each assessed cultivar.

Worldwide and especially in Slovenia, family tourism businesses have a fundemantal economic role. This role has been constantly increasing and gaining its importance. The critical time in family tourism businesses, however, is mainly managing succession, which is defined as a transfer of ownership and is in close relation to the transfer of leadership. Data show that the process of the transfer to the next generation is survived by only one third of family businesses; many family businesses go bankrupt when the next generation takes over the business. This paper, therefore, examines the succession characteristics of individual family tourism businesses (restaurants) through the application of a multi-criteria model based on the DEXi and AHP methodologies. Multiple-criteria decision analysis is a sub-discipline of operations research that explicitly considers multiple criteria in decision-making environments., Diljem svijeta, a osobito u Sloveniji, obiteljska turistička gospodarstva igraju ključnu ulogu u gospodarstvu. Ta uloga je svakim danom sve važnija. Kritično vrijeme kod obiteljskih turističkih gospodarstava je uglavnom vezano uz postupak nasljeđivanja koji se definira kao prijenos vlasništva i usko je vezan uz promjene u rukovodstvu gospodarstva. Podaci pokazuju da postupak prelaska vlasništva na sljedeću generaciju preživi tek jedna trećina obiteljskih gospodarstava; brojna obiteljska gospodarstva bankrotiraju kada poslovanje preuzme sljedeća generacija. U ovom se radu razmatraju karakteristike nasljeđivanja pojedinačnih obiteljskih turističkih gospodarstava (restorana) i to pomoću primjene višekriterijskog modela temeljenog na DEXi i AHP metodologijama. Analiza odluke pomoću višestrukih kriterija je poddisciplina operativnih istraživanja koja eksplicitno razmatraju višestruke kriterije u okruženju donošenja odluka.

Background and Purpose: The purpose of this study is to describe the principles of the development of parallel system-dynamics and agent-based models of organic farming for the case of Slovenia. The advantage of agent-based modeling is demonstrated by including geospatial information as an agent attribute. The models were compared by the validation, confirming the appropriate level of similarity. Design/Methodology/Approach: Both system-dynamics and agent-based modeling approaches were applied. Statistical methods were used in the validation. Results: The results of the validation confirm the appropriateness of the proposed agent-based model. Introducing additional attributes into the agent-based model provides an important advantage over the system-dynamics model, which serves as the paradigmatic example. Conclusion: A thorough validation and comparison of the results of the system-dynamics and agent-based models indicates the proper approach to combining the methodologies. This approach is promising, because it enables the modeling of the entire agricultural sector, taking each particular farm into account.

This study examined the multi-criteria assessment of four dairy products: “Pomursko mlejko” (Pomurje milk), “Lejko mleko” (light milk), “Fyto mleko” (Fyto milk) and “Posneto mleko v prahu” (dried milk). The research was executed by using a multi-criteria methodology, DEX, which was complemented by an econometric analysis for light milk to estimate the trends in production and consumption before analyzed dairy products were implemented on the market. DEXi computer program results indicated that all analyzed milk products were ‘above average’. The econometric model was applied to examine changes in the demand for low-fat milk (light milk). Empirical results showed significant consumer re¬sponse to the increase in the prices of low-fat milk demonstrating income elasticity (1,15 unit).

Background: The sugar beet is the main field crop used for sugar production in the temperate climatic zone. The abolishment of the quota system will open new investment opportunities in countries that were forced to abandon sugar industry as the result of the reform in 2006. Present paper describes the modeling of sugar beet production and its processing into sugar for purpose of decision support. Methods: A system dynamics methodology was chosen to model impacts of regional sugar factory investment. We present two basic concepts of system dynamics models at causal loop diagram level. The first holistic model deals with regional planning of new product development and the second one deals with factory model. Results: The holistic model presented main feedback loops and dynamics of main elements in the case of regional investment into sugar industry. The factory model considered the specifics of the beet processing which is a) limited period of beet processing and b) initial adjustment to the production capacity at the start of the production season Conclusions: The model seeks answers to strategic questions related to the whole sugar beet production and processing system and will be used for simulation of different scenarios for sugar production and their impact on economic and environmental parameters at an aggregate level.

The objective of this study was to develop a model to assess economical and balanced feed rations for sport horses. It was based on non- parametric modelling with a combination of linear programming and a multi- objective optimization technique: weighted goal programming. The method incorporates multiple goals into optimization. The technical data presented the feed nutritional value (dry matter, metabolizable energy, metabolizable pro- tein, etc.) and nutritional requirements, which were represented in weighted goal programming as targets. The model was tested for optimization of winter and summer feed rations, where summer feed rations are more expensive but more balanced. Optimization results show that the method of weighted goal programming is more accurate and useful in practice compared with linear pro- gramming, where only one goal (economically optimal feed rationing) is taken into account.

A multi-criteria model for a qualitative assessment of the production and marketing of local food products (LFP) from mountain areas has been developed by applying the DEX method. The development of the model was carried out and finally applied to ten local food products. The results were given in the form of a qualitative final assessment of both the production and marketing phases. By applying a plus–minus-1 analysis, the influence of various attributes on the final assessment of the LFP was examined. The main bottlenecks in the production and marketing processes were found. A sensitivity test was used to explain the influence of production and marketing on the final assessment. The results give clear directions as to which of the main attributes must be changed/improved or further developed to enable the successful promotion of local food products, which would give rise to an improved economy in mountain areas.

During the 2008–2010 growing seasons, an alternative ‘zero residue apple production system’ was compared with integrated apple production with cvs ‘Idared’, ‘Golden Delicious’, ‘Jonagold’ and ‘Gala’ in commercial orchards at several locations throughout Slovenia, using data envelopment analysis (DEA), and multi criteria assessment by an analytical hierarchical process (AHP). The principle of the ‘zero residue apple production’ is a combination of integrated (IP) and organic apple production. During the first 3 months of the growing season (1 April–30 June), pesticides used in IP with rapid degradation (8–10 applications) were used to control pests and diseases. During the second part of the season from 1 July to harvest, organic products (6–12 applications) were employed compared with 19–25 applications overall in IP. The goal of the alternative system was to reduce the amount of applied conventional pesticides by 40 % and to minimize pesticide residues in fruits to below the limit of 0.5 % of the legal maximum residue level (MRL) or below the residue concentrations of 0.005–0.01 mg/kg and to retain the high long-term level of yield, fruit quality, and net income per hectare. The number of pesticide residues was reduced from 4.2–5.5 in IP to 1.8–3.4 in zero residue cultivation, while 3 year average yields (class 1 fruit) were 4–9 % lower than in IP. The break even prices ranged from € 0.31 for Idared in IP, € 0.34 for ‘Elstar’ of both production systems to € 0.35/kg for zero residue cultivated ‘Golden Delicious’. Overall, a price increase of just € 0.02/kg for residue free apples would make this new ‘zero residue apple production’ profitable then representing a realistic alternative to the standard integrated apple production system.

The attention of this paper is drawn to analyze the economic potential of involvement of farmers into the small-medium sized value-based food chain (VBFC). The survey represents a solid dana basis from which econometric modelling approach was further developed. Empirical results reveal the positive economic viability on a general level; this means more stable purchase price of raw milk for dairy farms, which are the part of value-based food chain. Results point at inelastic demand for milk and milk related products. Furthermore, there are some accompanying and underlying indirect social benefits, such as production of high-quality food products, more stable and constant demand for raw milk, steady payments and better social situation. The last one is especially important for the farms operating in less-favored mountain areas where the survey was actually conducted., Cilj rada je analizirati ekonomske koristi uključenosti poljoprivrednika u male i srednje velike prehrambene lance temeljene na vrijednosti proizvoda. Istraživanjem su prikupljeni podatci pomoću kojih je razvijen ekonometrijski model. Empirijski rezultati pokazuju pozitivne ekonomske koristi. Na općoj razini, to znači stabilniju otkupnu cijenu sirovog mlijeka za mliječne farme koje su dio prehrambenog lanca temeljenog na vrijednosti. Rezultati pokazuju neelastičnu potražnju za mlijekom i proučavanim mliječnim proizvodima. Nadalje, tu se pokazuju i neke društvene koristi, kao što je proizvodnja visokokvalitetnih prehrambenih proizvoda, stabilnija i postojana potražnja za sirovim mlijekom, što u konačnici poljoprivrednicima donosi stabilan prihod i bolju socijalnu situaciju. Posljednje je posebno važno za poljoprivredna gospodarstva u područjima s težim uvjetima gospodarenja gdje je istraživanje i provedeno.

This paper presents the system dynamics model of organic farming development in order to support decision making. The model seeks answers to strategic questions related to the level of organically utilized area, levels of production and crop selection in a long-term dynamic context. The model will be used for simulation of different policy scenarios for organic farming and their impact on economic and environmental parameters of organic production at an aggregate level. Using the model, several policy scenarios were performed.

The paper presents the application possibility of “Effect size” and Cohen’s-d index in the case of introduction of new milk products on the market. The field and online survey were used to establish the potential interest of final consumers for new functional food product of dairy company in Slovenia - milk with phytosterols additives. Two techniques possibilities of Cohen-d index were calculated; manual and using the Cohen’s-d calculator. Further, the application is focused on two main questions in survey regarding observed problem: 1) Would you buy milk with phytosterols additives, which scientifically proven lowers concentration of cholesterol in blood? 2) Would you pay for it at a higher price? The sample includes 419 surveys, 150 surveys were conducted on field (control group) and 269 surveys were provided online (experimental group). The Cohen’s-d index (d) results show by using manual and Cohen’s-d calculator for both groups “small” effect (d=0.35, i.e. d=0.34 ), and “zero or near zero” effect (d=0.15, i.e.= 0.15) when deciding to buy new milk product.

Streuobst stands, i.e., tall fruit trees on vigorous rootstock on traditional grassland, represent an important source of raw material for the processing industry and for traditional fruit processing on family-run farms. Apart from production aspects, the high-stem orchards also play a role in the conservation of the traditional landscape, and indirectly in maintenance of the viability of rural areas. In this paper, a qualitative multi-attribute model for the assessment of Streuobst stands with respect to their multifunctional characteristics is presented. The assessment is based on four groups of attributes: (1) production criteria (percentage of missing trees), (2) biodiversity (fruit species and varieties, artificial human intervention), (3) landscape diversity (visual appearance, eco-diversity and erosion protection), and (4) function of the stand (row or individual trees, countryside appearance). The assessment is based on the aggregation of input attribute values to an overall assessment through user-defined decision rules. The model was applied to 85 sample stands in NE Slovenia. The assessment shows that most of the stands (48) were rated as “very poor” or “poor”, mainly as a result of poor cultivation and lack of maintenance.

Decision making in organic farming is related to risk and uncertainty, and options must be evaluated in the decision-making process. This paper presents the methodology of an integrated deterministic simulation system (KARSIM 1.0) application for decision-making support on organic farms in northeastern Slovenia. An emphasis to modify the net present value (NPVt) criterion by incorporating the real options approach was made. Its application is shown in organic spelt (Triticum aestivum ssp. spelta McKey) production and processing using two real options approaches, the Black–Scholes and binomial models. The NPVt indicates that the decision to process spelt for animal fodder is financially unfeasible, while the real options approach differentiates the results by organic spelt grain and flour production for human nutrition. It may be concluded that the real options approach can be useful when assessing projects with uncertainty, sunk costs and irreversibility, and it can provide for examining agricultural investment decisions.

Mountain regions are important producers of organic food. For them, reliable decision making regarding business planning necessitates different critical support methods. KARSIM 1.0 (DSM) is a methodology based on an integrated deterministic simulation system application for decision-making support, consisting of 74 deterministic production simulation models. DSM enables different types of cost and financial feasibility calculations for organic production and food processing. KARSIM 1.0 was used to simulate three specific business alternatives for mountain organic farms. (Alternative 1: spelt grain, fruit cider, wine and brandy, plum brandy, calves meat and sheep–soft cheese production, Alternative 2: spelt flour, pear and apple juice, plum brandy, veal and sheep's milk, Alternative 3: spelt grain, dried fruit, calves, soft and hard sheep cheese). Simulation model results were compared using two multi-objective analysis methods: the analytical hierarchical process (Expert Choice Decision Support System sof...

Farm tourism is a significant means of supplementing farmers' incomes. This paper presents a methodology for ranking tourist farms by using a multi-criteria model based on the qualitative multi-criteria modeling methodology, DEX, to assess service quality. The software tool DEXi was used to achieve this end. The model was then applied to seven tourist farms with data derived from questionnaires completed by tourist farm operators and guests. The results are shown as service quality assessments for individual farms. The potential of the model for assessing the farms is demonstrated with the aim of providing a comprehensive explanation and justification of the assessment technique. It also indicates potential improvements that farms can make through “what-if” analysis and visualization. Despite limitations, such as use of qualitative data only, the approach is proposed as being both appropriate and advantageous when compared with other means of ranking enterprises.

This article describes the problem state of organic farming development and procedures for modeling by the means of system dynamics, with emphasis on the organic products market. The modeling principles are described in the following steps: problem state formulation, development of causal loop diagrams, model development, scenario analysis and formulation of acceptable strategies. Basic structures developed by the system dynamics principle are presented. The concept of archetypes in the field of organic agriculture modeling is described. The simulation scenarios are formulated as a case study for the Slovenian organic agriculture.

This paper presents and reviews agricultural terminology to gain a better understanding of the terms. The authors examine such phrases as sustainable agriculture, sustainable animal production, good agricultural practice, integrated crop management, ecological agriculture, biological agriculture, organic agriculture, permaculture and peaceful agriculture. In addition, they discuss possibilities for the further development of environmental measures by categorizing them into‘Brussels' and‘non-Brussels’. Finally, the authors raise questions about the new challenges that have arisen through data analysis and practical experiences during the establishment of organic and integrated agriculture in Slovenia.

Streuobstbestande auf Hochstammen bereichern einerseits das Landschaftsbild, andererseits liefern sie grose Obstmengen fur die Ernahrungsindustrie und fur die traditionelle bauerliche Obstverarbeitung (Weinherstellung, Brennen, Trockenobst, Apfelessig, Apfelkompott und Apfelmus). Weiterhin tragt der Streuobstbau in einem dicht besiedelten Land zur Vernetzung naturlicher Lebensraume bei. Ziel dieser Arbeit ist die Entwicklung eines Modells zur Bewertung bestehender Streuobstanlagen in Slowenien, das sich u. U. auf andere Lander ubertragen lasst. Das Modell ermoglicht eine empirische Bewertung bestehender Streuobstanlagen und wurde bei einer Erhebung von 51 zufallig ausgewahlten Streuobstbestanden in Nordostslowenien erfolgreich angewendet.

The need for reliable information in the organic farm planning process dictates the use of modern decision support methods. The methodology of an integrated deterministic simulation system application for decision-making support on organic farms is described in this article. The deterministic simulation system KARSIM 1.0 consists of 74 deterministic production simulation models that enable different types of costs and financial feasibility calculations for organic production and food processing. The KARSIM 1.0 was applied on a sample organic farm for the simulation of five different business alternatives. The simulation model results are further evaluated with two multi-objective analysis methods: analytical hierarchical process (Expert Choice Decision Support System software) and DEX-i expert system (computer software for multi attribute decision making). Alternative 3 (spelt grain processing) results with the highest multi-objective decision evaluation (Expert Choice = 0.275 and DEX-i evaluatio...

Hierarchical decision models are a general decision support methodology aimed at the classification or evaluation of options that occur in decision-making processes. Decision models are typically developed through the decomposition of complex decision problems into smaller and less complex subproblems. This paper presents an approach to the development and implementation of multicriteria decision model based on Analytical Hierarchy Process – AHP (Expert Choice, EC). Likewise, the AHP is used as a potential multicriteria decision making method for application in agriculture. In order to show the implementation of explained MCDA methods in real situation in agriculture, the application of AHP on a sample model farm is presented in the second part of the article.

The aim of this paper is to present the basic characteristics of linear programing (LP) and weighted goal programming (WGP) to optimize processes on farms. Characteristics of both mathematical techniques are presented through the development of the crop planning model for solving some objective problems: maximizing financial results and minimizing different production costs on agricultural holdings. The model is structured from two sub-models, where the first based on linear programming and the second based on weighted goal programming are supported with penalty functions. The authors dispatch the weaknesses of LP with the application of WGP in the model and support this statement with results in this paper. The model was tested and validated on crop rotation with combinations of different field and vegetable crops in two different scenarios (WGPSC1 and WGPSC2) on a real agricultural holding in Slovenia. The results show that WGP combines more suitable crop rotation from an economic perspective than LP and provides a better solution for diversified and economically feasible crops that are included in the crop rotation. LP gives completely unacceptable results from the aspect of underachievement (for more than 100 %) of the maximum cropping area on a farm, while WGP completely satisfies all goals. From the obtained results in this paper, the authors identify several weaknesses of LP and present how it could be removed by applying the WGP technique.

This study examined the multi-criteria assessment of four dairy products: “Pomursko mlejko” (Pomurje milk), “Lejko mleko” (light milk), “Fyto mleko” (Fyto milk) and “Posneto mleko v prahu” (dried milk). The research was executed by using a multi-criteria methodology, DEX, which was complemented by an econometric analysis for light milk to estimate the trends in production and consumption before analyzed dairy products were implemented on the market. DEXi computer program results indicated that all analyzed milk products were ‘above average’. The econometric model was applied to examine changes in the demand for low-fat milk (light milk). Empirical results showed significant consumer response to the increase in the prices of low-fat milk demonstrating income elasticity (1,15 unit)., Multikriterijski pristup ocjenjivanja mliječnih proizvoda u smislu upotrebe DEX bio je nadograđen ekonometrijskom analizom za ocjenjivanje proizvodnih i potrošačkih trendova prije negoli su analizirani proizvodi uvršteni u prodaju. Studija istražuje četiri različita mliječna proizvoda odnosno proizvodne alternative: “Pomursko mlejko”, “Lejko mleko”, “Fyto mleko” i “Posneto mleko v prahu”. Rezultati DEXi analize ukazuju na to da se svi analizirani mliječni proizvodi svrstavaju u kategoriju “iznadprosječni”. Istraživana je mogućnost poboljšanja situacije s mlijekom u prahu preko povećanja njegove distribucijske moći na tržištu, te je pri tome upotrijebljena “what-if‘” (“što-ako”) analiza. U zadnjoj fazi izgrađen je ekonometrijski model za ocjenjivanje promjena u strukturi potraživanja mlijeka s malim postotkom masnoće. Empirijski rezultati pokazali su veliku reakciju kupaca na promjene u cijenama te vrste mlijeka, s relativno visokim vrijednostima elastičnosti potraživanja (1,15 jedinice).

The paper presents the application possibility of “Effect size” and Cohen’s-d index in the case of introduction of new milk products on the market. The field and online survey were used to establish the potential interest of final consumers for new functional food product of dairy company in Slovenia - milk with phytosterols additives. Two techniques possibilities of Cohen-d index were calculated; manual and using the Cohen’s-d calculator. Further, the application is focused on two main questions in survey regarding observed problem: 1) Would you buy milk with phytosterols additives, which scientifically proven lowers concentration of cholesterol in blood? 2) Would you pay for it at a higher price? The sample includes 419 surveys, 150 surveys were conducted on field (control group) and 269 surveys were provided online (experimental group). The Cohen’s-d index (d) results show by using manual and Cohen’s-d calculator for both groups “small” effect (d=0.35, i.e. d=0.34 ), and “zero or near zero” effect (d=0.15, i.e.= 0.15) when deciding to buy new milk product., U ovom radu prikazan je primjer mogućosti primjene “Utjecaja veličine” i Cohen-d indeksa u slučaju plasiranja novog mliječnog proizvoda na tržište. Terenska i online anketa korištene su za ocjenjivanje potencijalnog interesa potrošača za kupnju novog, funkcionalnog mliječnog proizvoda u Sloveniji - mlijeko s aditivom fitosterolom. Korišten je izračun za dvije vrste Cohen-d indeksa, ručno i pomoću Cohen’s-d kalkulatora na primjeru dvaju glavnih pitanja: 1) Zainteresirani ste za kupnju mlijeka s aditivom fitosterola, koji znanstveno dokazuje sniženje koncentracije kolesterola u krvi i 2) Spremni ste platiti za taj proizvod veću cijenu? Uzorak obuhvaća 419 anketa, od toga provedeno je 150 anketa na terenu (kontrolna skupina), dok je 269 anketa provedeno online (eksperimentalna skupina). Cohen-d indeks (d) rezultati prikazani su za dva prije spomenuta načina izračuna, “mali” učinak (d=0,35, odnosno d=0,34) i “nula ili blizu nule” učinak (d=0,15, odnosno = 0,15).

This article describes the problem state of organic farming development and procedures for modeling by the means of system dynamics, with emphasis on the organic products market. The modeling principles are described in the following steps: problem state formulation, development of causal loop diagrams, model development, scenario analysis and formulation of acceptable strategies. Basic structures developed by the system dynamics principle are presented. The concept of archetypes in the field of organic agriculture modeling is described. The simulation scenarios are formulated as a case study for the Slovenian organic agriculture. [Article copies are available for purchase from InfoSci-on-Demand.com]

The research is based on the economic analysis of growing peppers (Capsicum annum L.) and salad cucumbers (Cucumis sativus L.) in an open land and in a protected space. For this purpose the simulation models were developed for the growing of the peppers and salad cucumbers that were based on the technological-economic input data for two growing systems, in the open and in the protected space. The results of the economic analysis show that the growing of peppers and salad cucumbers in the protected space is more profi table than growing them in the open land. The growing of salad cucumbers in the protected space has proven to be more reasonable than growing peppers, as the coefficient of economics (Ce) of growing salad cucumbers reached the value Ce = 1.4, while the value in growing peppers was Ce = 1.1. This was also confirmed with two scenarios that were analysed using the sensitivity analysis.

In decision under uncertainty individual decision makers (farmers) have to choose one of a set number of alternatives with complete information about their outcomes but in the absence of any information or data about the probabilities of the various state of nature. This paper examines a decision making under uncertainty in agriculture. The classical approaches of Wald’s, Hurwicz’s, Maximax, Savage’s and Laplace’s are discussed and compared in case study of oil pumpkin production and selling of pumpkin oil. The computational complexity and usefulness of the criterion are further presented. The article is concluded with aggregate the results of all observed criteria and business alternatives in the conditions of uncertainty, where the business alternative 1 is suggested., Kod odlučivanja u riziku i neizvjesnosti, poljoprivrednik bira između alternativa. Nema informacija o vjerojatnosti pojedinih informacija. U ovom radu predstavljamo primjer odlučivanja u riziku i neizvjesnosti aplikacijom klasičnih metoda, kao što su Waldov, Hurwiczov, Maximax, Savageov i Laplaceov kriterij, na primjeru proizvodnje i prerade uljanih tikva. U radu je predstavljena kompleksnost i korisnost računatih parametara. Rad je zaključen s agregacijom rezultata. Razultati kažu da je najprimjerenija poslovna alternativa 1.

Organic agriculture is the highest environmentally valuable agricultural system, and has strategic importance at national level that goes beyond the interests of agricultural sector. In this paper we address development of organic farming simulation model based on a system dynamics methodology (SD). The system incorporates relevant variables, which affect the development of the organic farming. The group decision support system (GDSS) was used in order to identify most relevant variables for construction of causal loop diagram and further model development. The model seeks answers to strategic questions related to the level of organically utilized area, levels of production and crop selection in a long term dynamic context and will be used for simulation of different policy scenarios for organic farming and their impact on economic and environmental parameters of organic production at an aggregate level.

Official, inspected and certified organic farming started in Slovenia in 1998 and almost one decade later we have the first accredited Organic farming study programme on B.Sc. professional level at the Faculty of Agriculture, University of Maribor. It is also possible to continue the study programme on master and PhD level, too. At the moment there is no special programme for organic farming on the secondary education level, but there are some courses on organic farming on this level. Almost all agricultural schools have nowadays part of their estates converted to organic farming and one of them converted the whole estate (Kranj). Getting also a very some practical knowledge is important part of new study programmes in Slovenia. On the other hand there is lack of new knowledge on organic farming among farmers and especially among agricultural advisors. Based on this, the Leonardo da Vinci pilot project the central data bank has been established on European level for the education of ecological farming advisers. Knowledge and education centres at eight partner institutions have been developed. Collection of the basis of ecological farming knowledge is on a joint server called Ecolibrary. The Knowledge centres disseminate collected database to advisers and other interested groups in the frame of e-learning training courses based on the mutually developed education material that would be adapted to the given ecological, technological, social, national and economical circumstances of the partners. 14 modules have been developed: (i) ecological farming, (ii) EU and national cultural knowledge, (iii) marketing, quality control, communication abilities, (iv) advising knowledge, (v) plant growing, (vi) animal husbandry, (vii) plant protection, (viii) post harvest, storage and processing, (ix) horticulture, (x) agricultural regulations and programs, (xi) conversion to ecological farming, (xii) management and planning of organic farms, (xiii) inspection and certification of ecological farms, (xiv) soil fertility, fertilizing and composting. Training of advisers takes 14 weeks to 6 months depending on the level of preliminary education. The participating advisers will get access to the on-line system, receive education material weekly, and be examined by test and will have tasks controlled regularly by a tutor. They can perform and finish the training in 14 weeks; the shortest and the longest training period is 6 months. The graduated advisers receive a certificate on finishing the training programme. It is possible to disseminate this project in Croatia and some other interested countries. Based on three international summer schools Erasmus Socrates “Alternatives for organic crop production” in the years 2003, 2005 and 2007 in Maribor, new activities are going on, such as “double degree” with University of Kassel and preparation of Erasmus Mundus M.Sc. study programme on Organic farming with international partners., Ecologica je nov pristup dobivanja znanja putem e-obrazovanja. Putem Leonardo da Vinci pilotnog projekta Razvoj centralne baze podataka na europskoj razini za e-obrazovanje u ekološkoj poljoprivredi izrađena je platforma za e-obrazovanje savjetodavaca za ekološku poljoprivredu. U osam partnerskih organizacija razvijeni su Centri znanja i izrađena je internetska veza. Elektronska zbirka znanja nalazi se na zajedničkom serveru pod imenom Ecolibrary. Centri znanja brinu se za širenje nakupljenog znanja i informacija pojedinaca kao što su savjetodavci za poljoprivredu i drugi zainteresirani za ekološku poljoprivredu te prihvaćaju program e-obrazovanja. Sadržaji se temelje na zajedničkom razvijanju i pripremi obrazovnog gradiva prilagođenog specifičnim ekološkim, tehnološkim, socijalnim i ekonomskim uvjetima pojedinih zemalja. Razvijena su 14 modula: (i) ekološka poljoprivreda –osnove, (ii) EU i poznavanje nacionalnih kultura, (iii) marketing, kontrola kakvoće, komunikacijske vještine, (iv) znanja na području savjetodavanja, (v) biljna proizvodnja, (vi) stočarstvo, (vii) zaštita bilja, (viii) požetvene tehnologije, skladištenje i prerada, (ix) hortikultura, (x) legislativa i programi u poljoprivredi, (xi) preusmjerenje na ekološku poljoprivredu, (xii) management ekoloških gospodarstava, (xiii) kontrola i certificiranje, (xiv) plodnost tla, gnojidba i kompost. Program obrazovanja traje između 14 tjedana do 6 mjeseca ovisno o prethodnom obrazovanju i znanju. Sudionici imaju on-line vezu sa studijskim gradivom i mogu tjedno dobivati novo gradivo. Testovima se tjedno provjerava njihovo znanje i nastavnici redovito provjeravaju njihov rad. Na kraju dobivaju certifikat koji dokazuje, da su program e-obrazovanja uspješno završili.

The aim of the research was the comparison of economic feasibility of most common conventional and organic farm production in Slovenia. The methodology of an integrated deterministic technologic-economic simulation system KARSIM 1.0 (DSM) application for cost analysis and decision-making support on farms is described in this article. The direct simulation model result is an individual conventional or organic farm product enterprise budget. The DSM consists of 148 deterministic production simulation models that enable different types of costs and financial feasibility calculations for conventional and organic production and food processing. The developed simulation model enables economical evaluation of some most important economic parameters (breakeven price, breakeven yield, financial result, total revenue and coefficient of economics). In conventional farming system the most suitable farm product is potato (Ke = 1.52), followed by milk and maize production (Ke = 1.10), wheat production (Ke = 1.06) and suckling cows production (Ke = 1.02). The husked spelt production is in conventional farming system economically infeasible (Ke= 0.82). In organic farming system the most feasible farm product is husked spelt (Ke = 1.56), followed by potato (Ke = 1.15), milk (Ke = 1.04) and suckling cows production (Ke = 1.03). Maize (Ke = 0.90) and wheat production (Ke = 0.83) are economically infeasible.