STATE AND PERSPECTIVES IN COMPETITIVENESS OF ONE FARM TYPE IN SERBIA
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In the paper is analyzed competitiveness of Serbian family dairy farms in lowland
region in 2007, with some aspects of possible perspectives. Globalization process,
expected EU integrations and set of free trade agreements will expose Serbian farms in
close future to higher level of competition. Identified structural changes, refers on dairy
farms concentration and specialization in lowland region in recent years. Estimated
model of cost function revealed that family farms with bigger herd size have lower
average costs of milk production. Economic efficiency, measured in terms of cost
efficiency, shows that larger dairy farms are more efficient. But, not all smaller farms
are inefficient. Due to good management some smaller farms are competitive on
national market. Milk price volatility in period 2007 to 2009 hurts all farms, but the
most farms with higher average costs, which are usually inefficient dairy farms.