Spreadsheet Tool for Economic Efficient Production Planning; Case of Macedonian Vegetable Farms

Macedonian vegetable farms face big challenge in decision making to improve their production plans. To increase economic efficiency, different tools could be applied that beside natural conditions, resource allocation, technical and technological conditions, consider also economic viewpoint. In this paper we present an example of a spreadsheet tool based on mathematical programming paradigm. It enables one to utilise optimization potential of linear programming, with an objective function of maximising the expected gross margin, subject to set of different constraints. To have a representative tool, special focus has been put on data that are obtained with direct interviews with relevant experts and stakeholders: researchers, crop technology specialists, extension agents, input suppliers and vegetable farmers and supplemented with Farm Monitoring System data for 2010. The tool was tested on hypothetical vegetable farm. It proved to be an efficient tool that could support operative, tactical and strategic planning at the farm level, since it facilitates the selection of adequate production activities of vegetable crops, while taking into consideration the limitations of the available production factors. Due to its flexibility it is also an appropriate tool for analysing decision making in different production conditions that may occur.