Economic aspects of tomato production on family farms in the Republic of Serbia

Petrović, Mladen and Dimitrijević, Bojan and Cvijanović, Vojin (2024) Economic aspects of tomato production on family farms in the Republic of Serbia. In: Second International Scientific Conference GIRR 2024 “Global challenges through the prism of rural development in the sector of agriculture and tourism”. Academy of Applied Studies, Šabac, pp. 132-141. ISBN 978-86-80417-96-7

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Abstract

Agriculture is one of the most important activities in the Republic of Serbia, and the production of vegetables, which is carried out on about 90,000 hectares, is of great importance for the total value of production and the participation of the agricultural sector in the country's GDP. According to the results of research conducted by the Institute for Science Application in Agriculture, in the period 2015-2019, one of the most profitable lines within the vegetable production is the production of tomatoes. The total area under tomatoes ranged between 7,000 and 10,000 hectares, while the production ranged between 110,000 and 170,000 tons, while the average yield ranged between 14.20-16.60 t/ha in the period above mentioned period. The gross margin of tomato production was between 1.5-2.1 million dinars per hectare. The following methods were used in the present research calculation based on variable costs, sensitivity analysis, surveys and desk research. The aim of the paper is to show the trend of changes in the area under tomatoes, total and average yields of tomatoes based on the analyzes done, as well as to investigate the economic aspects of tomato production as one of the most represented vegetable crops in the Republic of Serbia. By applying sensitivity analysis, the impact of price and yield changes, as well as certain most common costs, on the amount of the gross margin in tomato production was determined. Based on all of the above, it was determined that the increase in price and yield led to a 77% increase of the gross margin in tomato production, while the decrease in price and yield led to a decrease of the gross margin by 60%. In the structure of variable costs, the costs of seedlings had the largest share (56.53 %), followed by the costs of contracted services (18.42 %).

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