How is profit maximisation defined in the supply models?
The profit depends on revenues from selling products to the markets, revenues from premiums allocated to production activities, the costs of intermediate inputs based on the fixed and given input coefficients, the costs of the endogenously determined feed quantities (feed input coefficient are not fixed, but vary depending on feed prices and requirement constraints), and finally, the values of cost function depending on the actual mix of activities. For sugar beet, a special sub-module is based on maximizing expected revenues to cover yield uncertainity and the A,B,C sugar beet regimes of the EU.
