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Ten Years later: A Comparison of Results of Simulation Scenarios under a Systems Dynamic Approach and the Actual Economic Performance of Small-Scale Agro-industries Supported by Brazilian Agro-industrial Development Programs

International Journal on Food System Dynamics

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Title Ten Years later: A Comparison of Results of Simulation Scenarios under a Systems Dynamic Approach and the Actual Economic Performance of Small-Scale Agro-industries Supported by Brazilian Agro-industrial Development Programs
 
Creator Fernandes, Aline R.
da Silva, Carlos Arthur B.
 
Subject system dynamics; food processing; agro industry; small and medium enterprises – SME; rural non-farm economy - RNFE
 
Description Agro-industrialization promotion is a policy option to aggregate value to a primary product and increase revenues for small farmers. However, experience has shown the vulnerability of small-scale agro-industries (SSAI) when facing a competitive environment under the constraints of several technological, institutional and managerial bottlenecks. A system dynamics model was built to simulate the financial performance of agrifood processing enterprises promoted by Brazilian SSAI development programs after the mid 1990s. Under different optimistic, conservative and pessimistic hypotheses related to SSAI operations and their business environment, model simulations allowed the identification of conditions for long-term financial sustainability. Ten years after the modeling exercise, the results of this analysis could be confirmed through a comparative assessment of the financial performance of selected enterprises supported by two of the promotion programs. The results of the original SD model could be mostly corroborated by the comparison between simulations and the observed enterprise performance. The relatively high SSAI survival rate over the ten-year period analyzed suggests the strong potential of these programs for agribusiness development promotion.
 
Publisher CentMA
 
Contributor
 
Date 2017-04-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
 
Identifier http://centmapress.ilb.uni-bonn.de/ojs/index.php/fsd/article/view/823
10.18461/ijfsd.v8i2.823
 
Source International Journal on Food System Dynamics; Vol 8, No 2 (2017); 106 - 129
1869-6945
 
Language eng
 
Relation http://centmapress.ilb.uni-bonn.de/ojs/index.php/fsd/article/view/823/660
 
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