Економски ефекти органске производње у пољоприведи Републике Србије / Economic Effects of Organic Production in Agriculture of the Republic of Serbia

The doctoral dissertation titled „Economic Effects of Organic Production in Agriculture of the Republic of Serbia“ was done as part of doctoral studies at the Faculty of Agriculture in Novi Sad, studies of Agroeconomics. The need for research came from the fact that agriculture represents a significant branch of the economy in the Republic of Serbia. In addition to its role as a strategic branch, agriculture records a constant surplus in international trade and employs a significant part of the population of the Republic of Serbia. Bearing this in mind, the dissertation provides an overview of the current situation in the agriculture of the Republic of Serbia, with an emphasis on its connection with scientific and technological development, highlighting the trends that currently exist in it. The fact is that in developed countries, the development of agriculture is strongly emphasized in terms of sustainability and the unification of the economic, ecological and social sphere of this production. In the Republic of Serbia, this development concept is largely neglected (primarily in practice but also in theory), and therefore there is a need to pay particular attention to it. Observing the current situation in conventional agricultural production is important because it provides frameworks for analyzing organic systems within that agriculture. A brief overview of the situation in conventional agricultural production suggests that it continues to play a significant role in global economic flows. Trends in agricultural production in the world and in the European Union are somewhat overlapping. In the dissertation, the research was focused primarily on the consideration of the development of organic production in the Republic of Serbia and the possible economic effects it can have on the future development of agricultural production. In order to place organic production in the desired context of current trends, the present problems of agricultural production are analyzed, in terms of (inadequate) allocation and use of resources, the role of human capital in agricultural production, the importance of the information sector for modern production, etc. In addition to the international level, the analysis with the same or similar factors was carried out at the national level. Bearing in mind the problems of the environment and the relation of conventional agriculture towards it, in the dissertation a further emphasis was placed on sustainable agricultural production systems that integrate economic, environmental and social sustainability. In this regard, the organic production system is considered as a holistic approach against the reductionist system, which defines conventional production. Also, the research was focused on economic policy in agriculture and its relationship to science and technological progress, with emphasis on organic agriculture. The models of financing of organic production and their influence on the development of this production system were also considered. Organic farming is seen as a „new-old“ production system and the economic value of such system is presented within the overall agricultural sector. The beginning of development of the organic system in the world and in the Republic of Serbia, its basic characteristics, the model of organic farm in Serbia is presented (based on semistructured interviews) and the economic sustainability of this production system is determined. In conclusion, it is stated that the organic production system is an agricultural system that fits into the concept of sustainable development and that the observed organic agriculture contribute to the sustainable development of the economy of a particular country as a whole. It has been confirmed that organic agriculture is economically viable and that the Republic of Serbia has competitive advantages for the development of organic production. Regarding the economic policy measures in the agrarian sector and their incentive to develop organic production, it can be said that the answer to the question of whether the organic sector will develop proactively depends not only on the payment per hectare (direct incentives), but also on the combinations of different public policies, including support for the conversion process and for already certified farms, marketing support and training and education. Consequently, organic production support policies built on a one-dimensional focus on unit payments will not lead to the expected results in terms of further progress and development of the organic sector. When concluding and putting organic agriculture into the context of growth and development theory we can state that organic agriculture in the Republic of Serbia has the necessary conditions for its further development. Natural factors (natural capital) that affect organic production are positive and do not hinder the further development of this sector. The research has shown that human capital in this sector shows positive characteristics and that it is not an obstacle to the further improvement of organic production. State support, as the third factor that should contribute to the further development of this sector, must be further harmonized with the ZAP and reach the level of support that will be foreseeable and continuous.