POSSIBILITIES OF IMPROVEMENT OF ECONOMIC RESULTS BY CHANGING THE TYPE OF PRODUCTION IN AGRICULTURAL ENTERPRISES

Abstract

Serbia is characterized by a very low consumption of meat and meat products, and constantly depends on import of agricultural and food products. One of the reasons for low consumption of meat in Serbia, in addition to a low standard of living, are the lack of production and supply of meat, resulting in occasional shortages and considerable fluctuation in prices of meat during the year. The goal of this paper is to explore the possibilities for improvement of economic results by changing the type of production in agricultural enterprises. Observed agricultural enterprise is focused solely on intensive crop production, with all the necessary machinery for its organization, and includes large functional objects for fattening pigs. The method of linear programming is used to optimize the production of this agricultural enterprise in function of maximizing gross margin. Obtained solution and post-optimal analysis showed that the change of the type of production is cost-effective in economic terms, as in the terms of rational use of available capacity. This model represents one of the specified ways to improve and increase livestock production in Serbia, as well as the possibility to increase employment and income of labor in rural areas.