The Marketing Concept of Agricultural Holdings: The Case of Serbian Cheese

Abstract

Summary The production of cheese as a value-added product occupies a prominent place in the food system of economically developed countries and is an important revenue generator for all participants in the production chain. The absence or insufficient application of the marketing concept reduces the possibility of efficient and effective utilization of available resources and hinders obtaining a competitive position of cheese producers in the market. The extent of marketing concept implementation in the business of cheese-producing agricultural holdings is a significant factor for their differentiation, development and growth. Empirical research was carried out using the survey method by creating a questionnaire for 78 holdings engaged in cheese production in the territory of the Republic of Serbia. The Serbian cheese producers considered were surveyed about their business structure, production operations and strategic plans for the future. The objective of the research was to identify the place and role of the marketing concept in the business practice of registered agricultural holdings for cheese production in the Republic of Serbia. A lack of their awareness of the importance of marketing in business was found to be associated with a lack of their knowledge about the basic elements, essence and purpose of the marketing concept. Therefore, a major challenge for the agricultural sector is to encourage farmers to develop marketing skills. To be successful in the market, farmers need to have a better understanding of markets. It is necessary to educate small cheese producers about the importance of marketing in order to obtain a better market position and increase their profitability.