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Sugar Beet Production: A System Dynamics Model and Economic Analysis

Organizacija, 2015-08, Vol.48 (3), p.145-154 [Peer Reviewed Journal]

Copyright De Gruyter Open Sp. z o.o. 2015 ;ISSN: 1581-1832 ;ISSN: 1318-5454 ;EISSN: 1581-1832 ;DOI: 10.1515/orga-2015-0017

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  • Title:
    Sugar Beet Production: A System Dynamics Model and Economic Analysis
  • Author: Rozman, Crtomir ; Kljajic, Miroljub ; Pazek, Karmen
  • Subjects: Agriculture ; Economic analysis ; economic feasibility ; Farmers ; modeling ; Studies ; Sugar ; sugar beet ; Sugar industry ; system dynamics
  • Is Part Of: Organizacija, 2015-08, Vol.48 (3), p.145-154
  • Description: 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.
  • Publisher: Kranj: De Gruyter Open
  • Language: English;Slovenian
  • Identifier: ISSN: 1581-1832
    ISSN: 1318-5454
    EISSN: 1581-1832
    DOI: 10.1515/orga-2015-0017
  • Source: De Gruyter Open Access Journals
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals
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