Economic Efficiency of Investment in Facilities and Equipment for Grains Storing

Author:

Subić Jonel1,Jeločnik Marko2

Affiliation:

1. 1 Institute of Agricultural Economic , Belgrade , Serbia

2. 2 MInstitute of Agricultural Economics , Belgrade , Serbia

Abstract

Abstract Serbia disposes with strong tradition in crop production, followed by significant natural resources and favorable climate conditions. Despite the good results in grain production, farms are in general economically so weak to possess and use the storing facilities, while they sell the products immediately after the harvest. After reconsidering the lack of storing facilities and consequences it affects, strategic strivings in strengthening of farm competitiveness initiate in previous period public support turned to building of storage capacities and purchase of necessary equipment. In paper was presented the assessment (by the use of dynamic and static methods) of economic effectiveness of investment in storing capacities, i.e. silos, showing that this investment (supported by public incentives) could represent the economically justified business decision for certain farms turned to crop, specifically grains production.

Publisher

Walter de Gruyter GmbH

Subject

General Earth and Planetary Sciences,General Environmental Science

Reference30 articles.

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2. Birovljev, J., Ćetković, B., Vukmirović, G. (2013). Prospects of improving the competitiveness of Serbian agriculture in (re) industrialization process. Ekonomika preduzeća, 61(5-6):364-372.

3. Bogdanov, N., Meredith, D., Efstratoglou, S. (2008). A typology of rural areas in Serbia. Ekonomski anali, 53(177):7-29.

4. Djuric, I. (2014). Impact of policy measures on wheat-to-bread supply chain during the global commodity price peaks: The case of Serbia. In: Studies on the Agricultural and Food Sector in Transition Economies, no. 76, IAMO, Halle. Germany.

5. Dragovic, S. (2012). Effect of irrigation on field crops yield under the variable agro-climatic conditions of Serbia. Agriculture & Forestry, 54(1-4):25-40.

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