Optimization of small farmers production in Georgia

Agricultural cooperatives play an important role in supporting small agricultural producers and marginalized groups such as young people and women. They empower their members economically and socially and create sustainable rural employment through business models that are resilient to economic and environmental shocks. Agriculture optimization ensures that cooperatives achieve economic and farm household goals as efficiently as possible in the face of competing constraints of physical, environmental, legal or socio-cultural nature. In this study linear programming technique was used to model alternative profit maximization strategies for 2 cooperatives in Imereti while at the same time utilizing their resource capacities. Questionnaires were used to collect the variable data which were used to formulate scenarios for the model .The model scenario was determined by the crop allocation pattern and net profit returns for each scenario. Results show that Dovlati cooperative farmers can save up to 60,000 GEL, while Kvitiri cooperative can save up to 20,000 GEL if they follow the strategy highlighted in scenario 3 which in this study was taken as the model scenario. In our scenarios the model had its land bounds going to the upper level and this strongly illustrated that farmers have are using more resources on smaller land pieces . However our recommended model shows that optimal profit reduced as the model progressed from scenario 1 to 3. Kvitiri cooperative is best suited for immediate adoption and application of our model since farmers already cooperate on both production and marketing. The model presents Dovlati with an opportunity to maximize their profit margin if the farmers cooperate both on production and marketing