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

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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)

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.

Suggested Citation

  • Aleksandra Tošović-Stevanović & Vladimir Ristanović & Dragan Ćalović & Goran Lalić & Milena Žuža & Gorica Cvijanović, 2020. "Small Farm Business Analysis Using the AHP Model for Efficient Assessment of Distribution Channels," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:24:p:10479-:d:462284
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    References listed on IDEAS

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    Cited by:

    1. Ching-Sung Lee & Yen-Cheng Chen & Pei-Ling Tsui & Ming-Chen Chiang, 2022. "Diversified and Sustainable Business Strategy of Smallholder Farmers in the Suburbs of Taiwan," Agriculture, MDPI, vol. 12(6), pages 1-14, May.
    2. Marko Šostar & Vladimir Ristanović, 2023. "Assessment of Influencing Factors on Consumer Behavior Using the AHP Model," Sustainability, MDPI, vol. 15(13), pages 1-24, June.
    3. Silvia Ștefania Maican & Andreea Cipriana Muntean & Carmen Adina Paștiu & Sebastian Stępień & Jan Polcyn & Iulian Bogdan Dobra & Mălina Dârja & Claudia Olimpia Moisă, 2021. "Motivational Factors, Job Satisfaction, and Economic Performance in Romanian Small Farms," Sustainability, MDPI, vol. 13(11), pages 1-23, May.
    4. Vladimir Ristanović & Aleksandra Tošović-Stevanović & Silvia Maican & Andreea Muntean, 2022. "Economic overview of the distribution channels used by Eastern European small farms for their agricultural products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(8), pages 299-306.

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