IDEAS home Printed from
   My bibliography  Save this paper

Investment Decision in Vegetable Oil Extraction Plants in North of Minas Gerais – Brazil: An Application of the Analytic Hierarchy Process in a Biodiesel Production Chain


  • da Silva Junior, Aziz Galvao
  • Perez, Ronaldo
  • Boratto, Metheus


In line with the social objectives of the PNPB (Brazilian Program of Production and Use of Biodiesel) and its “Social Seal” Framework, PETROBRAS has set up a 57 million liter/year biodiesel plant in the semi‐arid region of North of Minas Gerais State, where the socioeconomics indicators are very unfavorable. Despite the potential to boost the agricultural and agro‐industrial sector, the biodiesel plant is using mainly soybean oil from other regions. Funded by the Minas Gerais Government, the ongoing project aims to contribute to the development of oilseed supply chain in the North of Minas Gerais. To deal with these socioeconomic complex decisions, the Analytic Hierarchy Process (AHP) was used. Organization models were proposed for the following production chain: i) castor seed, ii) jatropha, iii) sunflower seed, iv) cotton seed, v) macaw palm and vi) soybean. For each chain, investment alternatives were analysed using the software BiodieselFAO. The organizational models and economic results will be discussed with the stakeholder in a workshop, when the alternatives will be selected. Partial results of the project demonstrate that the lack of trust between the stakeholders is the main challenge to the organization of the production chains. The AHP methodology has been proved to be adequate to accomplish the project objectives. Further researches on production chain modeling and building are, especially for the bioenergy sector, highly opportune.

Suggested Citation

  • da Silva Junior, Aziz Galvao & Perez, Ronaldo & Boratto, Metheus, 2010. "Investment Decision in Vegetable Oil Extraction Plants in North of Minas Gerais – Brazil: An Application of the Analytic Hierarchy Process in a Biodiesel Production Chain," 2010 Internatonal European Forum, February 8-12, 2010, Innsbruck-Igls, Austria 100500, International European Forum on Innovation and System Dynamics in Food Networks.
  • Handle: RePEc:ags:iefi10:100500

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iefi10:100500. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.