INVESTMENTS IN SERBIAN PIG PRODUCTION – INFLUENCE OF REGIONAL DISPARITIES

Sanjin  Ivanović; Lana  Nastić; Radomir  Savić

doi:10.59267/ekoPolj2302597I

Authors

Sanjin Ivanović Faculty of Agriculture, Belgrade University, Nemanjina Street no. 6, 11080 Zemun – Belgrade, Serbia https://orcid.org/0000-0002-2005-9910
Lana Nastić Institute of Agricultural Economics, Volgina Street no. 15, 11060 Belgrade, Serbia https://orcid.org/0000-0003-1939-0718
Radomir Savić Faculty of Agriculture, Belgrade University, Nemanjina Street no. 6, 11080 Zemun – Belgrade, Serbia https://orcid.org/0000-0003-2131-5303

DOI:

https://doi.org/10.59267/ekoPolj2302597I

Keywords:

Pig production, present value, sensitivity analysis, scenario analysis, coefficient of variation

Abstract

Pig production is one of the most important elements of Serbian livestock breeding sector. Although it faces numerous challenges, there is not enough research focused on its economic effectiveness. The goal of this research is to analyze influence of regional disparities on economic efficiency of investments in Serbian pig production. The main methodological approach was to determine the present value of investments in pig production (for Mačva and Šumadija regions). Authors applied sensitivity and scenario analysis, as well. Riskiness of investments is compared using standard deviation and coefficient of variation of the expected present value. The results indicated significant influence of labor costs on net cash flows (especially in Šumadija region). Analysis revealed that (in usual circumstances) investments in pig production in Mačva region are more economically efficient. Nevertheless, rather small increase in pig price could lead to equal present values in both regions. It was determined that investments are riskier in Šumadija region.

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Author Biographies

Sanjin Ivanović, Faculty of Agriculture, Belgrade University, Nemanjina Street no. 6, 11080 Zemun – Belgrade, Serbia

Lana Nastić, Institute of Agricultural Economics, Volgina Street no. 15, 11060 Belgrade, Serbia

Radomir Savić, Faculty of Agriculture, Belgrade University, Nemanjina Street no. 6, 11080 Zemun – Belgrade, Serbia

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