We have more than 35 years of experience in the development and application of Linear Programming models to the economic optimization of crop and livestock production systems, subject to technical, commercial and management constraints.

Linear Programming is a mathematical technique which enables the economic optimization of a production system by allocating scarce resources to different activities according to their best alternative economic use, increasing or decreasing the dimension of an activity up to the point where marginal revenue equals marginal cost, following an iterative logic of improvement towards the optimal allocation of resources to different activities, in a manner similar to that of climbing a mountain.

Linear Programming is also a useful tool for fine tuning a production system:

1. Identification and management of bottlenecks: the identification and quantification of the economic value of limiting factors enables the evaluation of mitigation actions in terms of economic impact and reallocation of resources.

2. Sensitivity analysis: allows to evaluate the effect of changes in resource availability, relative prices and/or management constraints in terms of economic impact and reallocation of resources. Sensitivity analysis also facilitates the identification of a production system’s core activities by reason of a better alignment between activity requirements and the production system’s resource endowments, and the identification of ancillary activities the participation and contribution of which is more conditioned by relative prices and other context related peculiarities.

At Amaltea Agro we also have developed experience with the development and application of optimization models to agro industrial processes where multiple products can be obtained from multiple raw ingredients.

Please get in contact with Alejandro Bustamante for further details or for talking about any initiative you may have in connection with this topic.