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Small Farm Business Analysis Using the AHP Model for Efficient Assessment of Distribution Channels

Aleksandra Tošović-Stevanović, Vladimir Ristanović, Dragan Ćalović, Goran Lalić, Milena Žuža and Gorica Cvijanović
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Aleksandra Tošović-Stevanović: Department of Economy, Faculty of Business, Economics and Entrepreneurship, 11 000 Belgrade, Serbia
Vladimir Ristanović: Department of Economy, Institute of European Studies, 11 000 Belgrade, Serbia
Dragan Ćalović: Faculty of Contemporary Arts, University Business Academy, 11 000 Belgrade, Serbia
Goran Lalić: Department of Economy, Faculty of Social Sciences, University Business Academy, 11 000 Belgrade, Serbia
Milena Žuža: Department of Agriculture, Faculty of Biofarming, Megatrend University, 11 000 Belgrade, Serbia
Gorica Cvijanović: Department of Technical-Technological Sciences, Institute of Information Technologies, University of Kragujevac, 34000 Kragujevac, Serbia

Sustainability, 2020, vol. 12, issue 24, 1-15

Abstract: Distribution of agricultural products from the aspect of farms is a continuous issue. Efficient application of the distribution model should provide a farm owner with regular income, as well as with a competitive advantage. Assessment of distribution channels in the context of an agricultural producer is subject to multi-criteria decisions, including both qualitative and quantitative factors. The aim of this paper is to develop a model which enables a structured analysis and an efficient assessment of distribution channels. The methodology based on the Analytical Hierarchy Process (AHP) will be a useful tool in setting various criteria for deciding on distribution channels, as well as a tool for managing a multi-variant qualitative assessment of data included in decision-making processes. The survey results show that the most important distribution channel for agricultural products is the channel of sales via processing plants (cooling and drying facilities, silos and agricultural combines), compared to sales through advertising (which significantly increased its share with the COVID-19 pandemic), sales through sales channels or at farmers’ markets.

Keywords: small farms; business analysis; AHP model; sales of agricultural products; distribution channels (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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