Western Balkan Journal of Agricultural Economics and Rural Development
how to cite this article
share this article


  • citations in SCIndeks: [1]
  • citations in CrossRef:[1]
  • citations in Google Scholar:[]
  • visits in previous 30 days:9
  • full-text downloads in 30 days:7


article: 1 from 6  
Back back to result list
Economic effects of investment in dairy farming
Institute of Agricultural Economics, Belgrade, Serbia,,
Ministry of Education, Science and Technological Development, Republic of Serbia (Institution: Institute of Agricultural Economics, Belgrade) (MESTD - 451-03-68/2020-14/200009)

Keywords: milk production; economic effects of investment; NPV; Republic of Serbia
Dairy farming is the most significant part of cattle raising. During the previous several years the volume of milk production has been maintained at a stable level, while there came to fall in number of dairy cows and number of farms engaged in dairy farming. Although the farms that own just a few heads of dairy cows usually step out the milk production, there are still a small number of farms specialized in dairy farming. The main paper objective is to present the economic effects of investment in the construction and equipping of dairy farm adequate for raising of 12 dairy cows. Economic analysis was based on the use of static and dynamic methods for investment assessment. Besides, there is also conducted the analysis of investment under the risk conditions (use of the break-even analysis). According to gained results (e.g. Internal rate of return, 11.98%, positive value of the Net present value, Payback period shorter than 5 years) the investment implementation is economically justified.
Andrić, J. (1998) Troškovi i kalkulacije u poljoprivrednoj proizvodnji. Beograd: Savremena administaracija
Bewley, J.M., Boehlje,, Gray, A.W., Hogeveen, H., Kenyon, S.J., Eicher, S.D., Schutz, M.M. (2010) Stochastic simulation using @Risk for dairy business investment decisions. Agricultural Finance Review, 70(1): 97-125
Gogić, P., Ivanović, S., Nastić, L. (2012) Investments in dairy farms enlargement in Serbia: A tool for poverty reduction in rural areas. African Journal of Business Management, 6(1), 422-429
Gogić, P. (2014) Teorija troškova sa kalkulacijama u proizvodnji i preradi poljoprivrednih proizvoda. Beograd: Poljoprivredni fakultet
Hyde, J., Engel, P. (2002) Investing in a Robotic Milking System: A Monte Carlo Simulation Analysis. Journal of Dairy Science, 85(9): 2207-2214
Institute Of Agricultural Economics I.A.E. (2020) Internal documentation: Reports from the in-depth interviews with farmers oriented to dairy farming. Belgrade
Ivanović, S., Subić, J., Ivanović, L. (2007) Economic Efficiency of Investments in Milking Equipment on Family Farms in Serbia. in: Manole V. [ed.] International Symposium (VII): Investments and Economic Recovery, Proceedings, Bucharest, Romania: ASE, pp. 92-101
Ivanović, S. (2006) Utvrđivanje prinosne vrijednosti staje za muzne krave. Ekonomika poljoprivrede, vol. 53, br. 4, str. 1039-1053
Ivanović, S., Ivanović, L., Bratić, S. (2008) Uticaj tipa govedarske proizvodnje na investicije u savremene objekte i opremu - rezultati anketnog snimanja. Ekonomika poljoprivrede, vol. 55, br. 2, str. 189-196
Ivanović, S., Radivojević, D., Pajić, M. (2008) Ekonomska efikasnost investicija u proizvodnji mleka na porodičnim gazdinstvima. Poljoprivredna tehnika, vol. 33, br. 4, str. 87-95
Ivanović, S., Radivojević, D., Vasiljević, Z. (2011) Influence of the milk price changes on economic efficiency of investments into the modern cattle farms. in: Perović N., Despotović A., Jovanović M. [ed.] Agriculture in the Light of the Global Economic Crisis, Podgorica: University of Montenegro-Biotechnical Faculty, 20-29
Junior, C., Daher, R., de Souza, P., Ponciano, N., de Almeida, J.G., Haddade, I., Wendling, I., Stida, W., Vidal, K., Freitas, R. (2019) Financial Evaluation, Under Conditions of Risk in a Family Dairy Production System. Journal of Experimental Agriculture International, 41(6): 1-10
Milić, D.M., Glavaš-Trbić, D.B., Tomaš-Simin, M.J., Zekić, V.N., Novaković, T.J., Vukelić, N.B. (2020) Ekonomski pokazatelji proizvodnje polutvrdog i tvrdog sira u mlekarama malog kapaciteta u Srbiji. Journal of Agricultural Sciences (Belgrade), vol. 65, br. 3, str. 283-296
Petrović, M.M., Aleksić, S., Petrović, M.P., Petrović, M., Pantelić, V., Novaković, Ž., Ružić-Muslić, D. (2013) Mogućnosti stočarstva Srbije - perspektiva i budućnost. Biotechnology in Animal Husbandry, vol. 29, br. 1, str. 1-17
Schulte, H.D., Musshoff, O., Meuwissen, M.P.M. (2018) Considering milk price volatility for investment decisions on the farm level after European milk quota abolition. Journal of Dairy Science, 101(8): 7531-7539
SEEDEV (2020) Sektorska analiza proizvodnje i prerade mleka u Republici Srbiji - za potrebe IPARD 3 programiranja. Beograd
Statistical Office of the Republic of Serbia (SORS) (2020) Data related to milk production. Belgrade, Data base of the Statistical Office of the Republic of Serbia (SORS), retrieved at: rs/, 17 th November 2020
Statistical Office of the Republic of Serbia (SORS) (2012) Census of Agriculture in Serbia - 2012. Belgrade, Data base of the Statistical Office of the Republic of Serbia (SORS), retrieved at:, 17 th November 2020
Statistical Office of the Republic of Serbia (SORS) (2018) Farm structure survey in Serbia - 2018. Belgrade, Data base of the Statistical Office of the Republic of Serbia (SORS), retrieved at:, 17 th November 2020
Subić, J. (2010) Specifičnosti procesa investiranja u poljoprivredi. Belgrade: IAE
Subić, J., Tomić, V. (2020) Ekonomski efekti prerade stočarskih poljoprivrednih proizvoda na malim porodičnim poljoprivrednim gazdinstvima. in: Jelocnik M. [ed.] Unapređenje transfera znanja radi dobijanja bezbednih i konkurentnih poljoprivrednih proizvoda, koji su dobijeni preradom na malim gazdinstvima u sektorima mleka, mesa, voća i povrća, Belgrade: IAE, knjiga 2
Veljković, B., Petrović, M., Koprivica, R., Radivojević, R. (2017) Ekonomski parametri u proizvodnji mleka na poljoprivrednom gazdinstvu. in: Šekularac B. [ed.] Savetovanje o biotehnologiji (XXII), Proceedings II, Čačak, Srbija: Agronomski fakultet, pp. 761-766
Zsoter, B. (2018) Economic calculations related to a milk-house investment. Quaestus, 13: 9-17


article language: English
document type: Paper
DOI: 10.5937/WBJAE2002135S
received: 08/12/2020
accepted: 15/12/2020
published in SCIndeks: 23/12/2020
Creative Commons License 4.0

Related records

No related records