The article is devoted to the application of methods of mathematical programming for the solution of the problems associated with excess milk produced. Under the process of agricultural activities there is a frequent question as to how much milk should be divided between milk for consumption, butter and cheese, and what prices (the policy tool) should then maximize revenues and at the same time minimize dairy subsidies to farmers. Some not very large agricultural enterprises (for example, small farms) may be faced with the fact that milk production can exceed demand if milk prices are set at a level that covers the cost of production. Long-term market equilibrium can not persist in a short period without disturbing social equilibrium. Therefore, it is necessary to find such an optimal possible short-term policy that would determine the structure of the existing market equilibrium. The article realizes two goals. On the one hand, it mentions a very relevant subject of research, the results of which can have a significant impact on future political or economic decisions. On the other hand, it is an illustration of quadratic programming methods, since revenue is supposed to be maximized, which can be written down as a quadratic function of product prices. The article shows the possibility of using these methods, and on the hypothetical example, the extremal problem of optimizing the use of milk and dairy products is solved.
Translated title of the contributionUsing quadratic programming to solve problems of optimization of use of the milk and dairy products in the region
Original languageRussian
Pages (from-to)48-55
JournalАгропродовольственная экономика
Issue number10
StatePublished - 2018

ID: 36674200