A business model in agricultural production in Serbia, developing towards sustainability

Abstract

Agricultural production is a Serbian main economic sector, presenting a base for the food industry. By analysing the public available data of the agriculture sector, applying a newly developed business model it is possible to assess the current situation and to realize the relation between variables, which can also be used for prediction of future trends in agricultural production and food industry. Within this paper an attempt was made to develop a novel artificial neural network model for better understanding the relation between the observed parameters and to estimate the efficiency in sustainability achievement and sector potential the well-known Cobb-Douglas production model was compared to the newly developed model. The presented models could be used to achieve the transformation towards a circular bioeconomy, by developing the national strategies for sustainable agricultural production, with the aim of better utilization of resources and reduction of wastes.

Keywords

• business model
• agricultural production
• Cobb-Douglas
• Artificial Neural Network
• Serbia