Традиционални производи од млека у функцији диверзификације руралне економије у Републици Србији

The subject of the research is the analysis of the business of family farms engaged in the production of cow's milk and which in order to improve economic results plan to introduce milk processing and production of the traditional dairy products (cream and white semi-fat cheese, cottage cheese, whole cheese, ripe caciocavallo cheese and rolled caciocavallo cheese). Investments in small processing plants on farms can significantly contribute to the reorientation of a number of raw milk producers to the producers of cheese, cream and other traditional value-added products, which would help them to achieve better economic effects from the milk production and processing, and thus contribute to the sustainable rural development. The aim of this dissertation is to investigate how the production of certain traditional dairy products on family farms in the Republic of Serbia can contribute to the diversification of activities on farms, and thus to diversification of the rural economy in the Republic of Serbia, which would increase the competitiveness of family farms and domestic dairy sector as well. This research is based on the formed organization and economic models that are related to the technology of production of certain traditional dairy products. The analysis of these organization and economic models enabled an evaluation of investments’ justification into the construction and equipping of small processing facilities for the production of traditional dairy products on family farms. In order to collect data related to the research, a survey was conducted on a sample of 242 farms within the territory of the Republic of Serbia, through a survey on the farm itself. These are farms that have a daily milk production of about 150 liters. A supplementary survey was conducted on 84 family farms that place their dairy products on their farm and/or within green markets. Along with the survey, it has been used the method of interview in direct contact with farmers and advisors of the Agricultural Advisory Service of the Republic of Serbia. When calculating the basic economic indicators of milk production and traditional dairy products, the methodical procedure of Direct costing calculation was used as the most suitable when it comes to family farms. Static and dynamic methods of investment calculation were used to assess the economic effectiveness of investments made on farms in order to provide conditions for the production of traditional dairy products. These methods were applied to determine the effects of investing into certain organization and economic models of milk production and traditional dairy products that have been analyzed in dissertation, and are based on the net cash flow data. Additional methodological tools used in dissertation are the calculation of the break-even-point, sensitivity analysis, as well as the software solution "OPTIMIX". The analysis showed that in all five analyzed organization and economic models, positive financial results were obtained, with the best financial results being achieved in the production of cream and white semi-fat cheese. The production of certain products requires respect for certain technological procedures, i.e. the purchase of modern equipment and the necessary investment on the farm. The lowest investment is needed for the production of traditional rolled caciocavallo cheese, and the highest for the production of ripe caciocavallo cheese. Dynamic indicators of economic efficiency of investments show that in all analyzed models, the investments are acceptable in terms of the size of invested funds and the realized effects of investment. The shortest pay-back period is in the production of rolled caciocavallo cheese, and the longest one in the production of ripe caciocavallo cheese. Sensitivity analysis showed that all analyzed models are most sensitive to decrease of revenues (due to changes in prices or production quantity), somewhat less sensitive to increases in production costs, and the least sensitive to increase in investment. The results of this research can serve to the raw milk producers in making the most economically acceptable business decisions in order to reorient themselves to the processing of milk on their own farm into traditional dairy products, which would contribute to higher employment of the rural population, higher income, raising the living standard of the rural population, and consequently to the sustainable development of rural areas in the Republic of Serbia. In addition, the research presented in this paper can serve as a reliable analytical basis for competent institutions and agricultural policy makers when making decisions related to directing state subsidies to improve agriculture and mitigate negative trends in livestock production, which are especially typical for the small and medium size farms.