Die Bodenkultur - Journal for Land Management, Food and Environment

K. Pažek, Č. Rozman, J. Turk, M. Bavec und M. Pavlovič:

The simulation model for investment analysis of food processing on organic farms in Slovenia


In this paper the computer simulation model “EKOSIM 1.0” is developed for cost benefit analysis of food processing on organic farms in Slovenia. The model enables quick and effective analysis of different investment strategies in food processing on organic farms. The model was tested on three different organic farms. In most cases the planned food processing investments yielded positive net present values (NPV). In the case of investments that appear to be financially not feasible, the model was used in order to find better technical solutions, which subsequently improves simulation results. The computer model can be applied for investment planning and decision support on organic farms and has thus a good practical value.

Key words: Organic farming, processing, simulation, investment analysis.