A Framework for Economic Resilience Assessment of Agricultural Production Systems

Abstract

This study tries to evaluate economic resilience and sustainability in industrial dairy cattle farms. Resilience explains how well production systems withstand or rebound from aberration. This includes preserving, and restoring agricultural systems under threats that impact national economic development. A dairy farm is a type of agricultural system, production quality and profitability of them are a dominant feature of the economic resilience. These features are used in a multi-indicator modeling approach to assess the economic resilience of 30 dairy farms in Khorasan Razavi Province (Iran). Total revenue and total cost across all farms are 5.18×10 09 IRR, and 2×10 09 IRR per day, respectively. The average milk quality is 0.52, which indicates the low-level milk quality. To evaluate the economic resilience indicator (ERI) for dairy farms, we developed an economic resilience indicator using profitability and milk quality which are normalized between zero and one. The economic resilience indicator was obtained using the arithmetic mean. The proposed indicator across all farms is about 0.49, meaning that dairy farms are at the low-level. Hence, to increase the economic resilience of dairy farms, it is essential to improve the revenue and production quality of these units while reducing the total cost.

A Multi-Criteria Approach for Assessing the Economic Resilience of Agriculture: The Case of Lithuania

“…Such an applied approach provides clear directions to decision makers where to direct Governmental measures aimed at increasing countries economic resilience of agriculture. This paper contributes Morkūnas, Volkov and Pazienza (2018), Michel-Villarreal et al (2019), Quendler and Morkūnas (2020), Hassani and Fantke (2020) [23][24][25][26] insights enriching it with more applied perspective on a meso-economic level. The scientific novelty of the proposed methodology relies on the aggregate-level approach towards resilience of agriculture.…”