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Multiple criteria decision making for setting priorities of investments into the table egg production

Published online by Cambridge University Press:  13 December 2013

A. CRNČAN ,
J. KRISTIĆ  and
LJ. RANOGAJEC
A. CRNČAN*
Affiliation:
Department for Agroeconomics, Faculty of Agriculture, J.J. Strossmayer University of Osijek, K.P. Svačića 1d, 31000 Osijek, Croatia
J. KRISTIĆ
Affiliation:
Department for Agroeconomics, Faculty of Agriculture, J.J. Strossmayer University of Osijek, K.P. Svačića 1d, 31000 Osijek, Croatia
LJ. RANOGAJEC
Affiliation:
Department for Agroeconomics, Faculty of Agriculture, J.J. Strossmayer University of Osijek, K.P. Svačića 1d, 31000 Osijek, Croatia
*
Corresponding author: acrncan@pfos.hr
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Abstract

The process of growth and development of any business entity is tightly linked to investments. This paper elaborates on the application of multiple criteria methods from the Analytic Hierarchy Process (AHP) with the aim to create assumptions for the development of production, particularly focused on opportunities for investments in table egg production. There were two alternatives analysed: investment in enriched cages and investment in alternative production systems. Each of these options had advantages and disadvantages, that were graded by criteria. Investment in alternative systems was assessed as a better alternative, as eggs produced in these systems were estimated to achieve higher income. Financial investments in such systems are higher, but eggs achieve a higher price in the market than those from enriched cages. Sensitivity analysis presented the effects that changes in the egg price and in costs structure have on the net present value of investment. Sensitivity analysis showed that changes in egg price significantly affect the success of business, while input costs have less impact on the business result.

Keywords

investmentstable eggsmultiple criteria methodsensitivity analysis
Type
Review Article
Information
World's Poultry Science Journal , Volume 69 , Issue 4 , December 2013 , pp. 903 - 908
Copyright
Copyright © World's Poultry Science Association 2013 

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