A framework for economic resilience assessment of agricultural production systems

Leila Hassani*, Mahmoud Daneshvar Kakhki, Mahmoud Sabuhi Sabouni, Peter Fantke

*Corresponding author for this work

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This study tries to evaluate economic resilience and sustainability in industrial dairy cattle farms. Resilience explains how well production systems withstand or rebound from aberration. This includes preserving and restoring agricultural systems under threats that impact national economic development. A dairy farm is a type of agricultural system; production quality and profitability of them are a dominant feature of the economic resilience. These features are used in a multi-indicator modeling approach to assess the economic resilience of 30 dairy farms in Khorasan Razavi Province (Iran). Total revenue and total cost across all farms are 5.18 × 1009 IRR and 2 × 1009 IRR per day, respectively. The average milk quality is 0.52, which indicates low-level milk quality. To evaluate the economic resilience indicator (ERI) for dairy farms, we developed an economic resilience indicator using profitability and milk quality which are normalized between zero and one. The economic resilience indicator was obtained using the arithmetic mean. The proposed indicator across all farms is about 0.49, meaning that dairy farms are at the low level. Hence, to increase the economic resilience of dairy farms, it is essential to improve the revenue and production quality of these units while reducing the total cost.
Original languageEnglish
Title of host publicationThe Economics of Agriculture and Natural Resources
Publication date2020
ISBN (Electronic)978-981-15-5250-2
Publication statusPublished - 2020


  • Economic resilience indicator
  • Quality factors in milk
  • Dairy farms profitability
  • Arithmetic mean
  • Dairy farms
  • Iran


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