OPTIMAL IDENTIFICATION AND COMPOSITION OF INVESTMENT PROJECTS IN AGRICULTURE
The aim of the presentation is to discuss the agricultural application
of a method that helps to identify and prepare investment projects. The
general project cycle concentrates on project selection. In the case of
Russian agriculture most of the projects are usually rejected. Hence project
identification and preparation processes need to be improved.
To describe the problem of project composition, a formalism is suggested
based on the following problem statement: given a) the quantities of resources
required for each goal; b) opportunities to share resources between goals
and to upgrade with superior resources; c) effects of goals and costs of
resources; d) available financing; e) incompatible goals, find the set
of goals that maximises the project's worth. The problem is an integer-programming
A well-known ARIS project implemented in Russia is used for illustrative
purpose. The project is spread over 5 territories and consists of 4 base
components: marketing, consulting, seed processing, training, plus one
supplementary component: development of informational infrastructure. Some
components allow alternative implementation. The components demonstrate
synergism due to joint use of different resources. The sample description
of the project was processed with the PC. Different funding opportunities
are considered. Even under complete financing, the best project worth is
achieved if one rejects training, consulting and informational components
in the South Urals, and seed processing plants in Northwest and Siberia.
The approach contributes to a project's worth and hence is able to considerably
expand investment project opportunities in agriculture.