Importance and justification of investment measures towards improvement of production and processing activities at farms in Serbia

Nedeljković, Miroslav and Potrebić, Velibor and Petrović, Jana (2026) Importance and justification of investment measures towards improvement of production and processing activities at farms in Serbia. Lucrări Științifice Seria I, Management Agricol, 28 (2). pp. 260-269. ISSN 1453-1410

Text Nedeljković, Potrebić, Petrović - Lucrări Științifice Seria I, Management Agricol. 28(2) 2026.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (387kB)

Abstract

Science and practice at the service of agriculture” is widely used motto due to obtaining added value in the segment of sustainable development of agriculture and villages. In this research have been observed the case of one agricultural cooperative from Serbia that has planned to invest in purchase of mechanization and equipment due to improvement of its current level of production and processing of medicinal herbs. Cooperative will invest in new fixed assets, specifically tractor, plough, disc harrow, planting machine, potatoes and root medicinal herbs harvester, and dryer for fruits and vegetables. After the renewal of mechanization, cooperative is planning to gradually increase the areas under Valerian and Angelica (over the next five years), i.e. 5 ha annually up to a total area of 30 ha. Basically, the investment justification is considered through its cost-effectiveness, profitability and accumulativeness, indicating that investment exploitation will enable covering of used financing source, while reaching certain level of profit.

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