Monopoly, government policy and milk shortage in Serbia

  • Božo Drašković, PhD The Institute of Economic Sciences, Belgrade
  • Zoran Rajković, MSc The Institute of Economic Sciences, Belgrade


The ownership concentration in the processing of fresh milk sector in Serbia, together with a considerable dispersion and fragmentation of the primary production of raw cow’s milk has led to insufficient supply and lack of basic dairy products on the market. The shortage phenomena is manifested in the circumstances of depressed and economically unsustainable low prices of production inputs – raw milk, and quantity decrease, accompanied by changes in the structure of the milk products final production.

Over the past five years, the Serbian government has led the wrong economic policy of the milk primary production incentives, and thus, the breeding of milk cows. Additionally, the poor economic policy was conducted in the area of ownership structure changes and incentives for the development of new production facilities for the processing of fresh milk for the Serbian market necessities.


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1. Joseph Schumpeter, History od Economic Analysis, Vol. 1 and 2, Informator Zagreb 1975.
2. Statistical Annual, RSA 2009.
3. Own empirical researches of the primary agricultural milk production and processing on the sample of 18 dairies and 95 farmers in Serbia..
4. Regulations of the Government of the Republic of Serbia on premiums for milk in the period 2005-2009, corresponding Official Gazettes.
How to Cite
DRAŠKOVIĆ, Božo; RAJKOVIĆ, Zoran. Monopoly, government policy and milk shortage in Serbia. Economics of Agriculture, [S.l.], v. 57, n. Spec.num.2, p. 478-485, dec. 2010. ISSN 2334-8453. Available at: <>. Date accessed: 28 sep. 2020.