Economic-financial Assessment of Full-fat Cheese Production

Subić, Jonel and Jeločnik, Marko and Gantner, Vesna (2024) Economic-financial Assessment of Full-fat Cheese Production. Lucrări Științifice Management Agricol, 26 (2). pp. 151-162. ISSN 1453-1410

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Abstract

Favorable natural conditions point out to possibility for developing a very diverse agricultural production at the territory of the Republic of Serbia, and therefore to achieve significantly better production results, primarily in the livestock sector. Meanwhile, considering the period 2012-2023., in livestock sector occurs negative trend: there have come to decrease in number of farms specialized in livestock production (for 41.54%), as well as decrease in number of cattle heads (for 20.12%), or farms engaged in milk production and processing (drop for even 62.94%). In order to encourage other profitable activities related to the farm, Serbian Ministry of Agriculture has launched the support measures for process of investing in production and processing of agri-food products at the farm level, while the commercial banks are approving the subsidized loans to farmers towards the purchase of fixed assets and financing the permanent working capital. Besides, wanting to give greater support to farms to step in the milk processing, performed research was focused to assessment of economic effectiveness of investment in production of full-fat cheese. Business idea assumes the purchase of 70 dairy heifers, investments in required facilities, or equipment and cold storage that will be used in milk processing. The economic justification of the made investment will be assessed through static and dynamic indicators, or indicators for investment evaluation under the conditions of risk and uncertainty. Gained research results indicates that the investment in full-fat cheese production at certain farm could be highly welcome business decision.

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