A Multi-Criteria Decision Analysis Framework Tool for the Selection of Farm Business Models on Organic Mountain Farms

Abstract

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 software) and DEX-i method. The results showed the highest multi-objective decision evaluation for alternative 2 (Expert Choice = 0.361 and DEX-i evaluation = excellent). We can conclude that the combination of a deterministic cost simulation model and multi-criteria decision analysis presents an acceptable decision support tool for mountain organic farms; however, further research is desirable.

Keywords:

• simulation modeling
• KARSIM 1.0
• MCDA
• DEX-i
• analytical hierarchical process
• mountain organic farms

ACKNOWLEDGMENTS

We express our grateful thanks to the Slovenian Ministry of Agriculture, food and forestry for founding two very important research projects: “Some chances to stimulate the farm competitiveness in the highland regions in south-east Slovenia by activating the utilized areas (L4-3245 (B))“ and “Development of a Decision Support System for Organic Farms (V4-0334(B))“. The authors would like to thank also to both anonymous reviewers and editor for their useful comments and suggestions.