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Economic Sustainability of the Milk and Dairy Supply Chain: Evidence from Serbia

Author

Listed:
  • Dragan Milić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Tihomir Novaković

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Dragana Tekić

    (Faculty of Agriculture, University of Novi Sad, 21000 Novi Sad, Serbia)

  • Bojan Matkovski

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Danilo Đokić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

  • Stanislav Zekić

    (Faculty of Economics in Subotica, University of Novi Sad, 24000 Subotica, Serbia)

Abstract

The sector of milk and dairy products in Serbia along the entire supply chain has been under significant challenges in recent years, especially in current crises. In this direction, this research looked at the supply chain of milk and dairy products by analyzing the primary production, the situation in the processing industry, and the international market’s competitiveness. Indicators of technical efficiency were used to analyze the situation on agricultural farms, while for the processing industry, the impact of various variables on profitability was evaluated using panel models. Furthermore, an examination of these products’ standings in the global market was conducted by assessing their revealed comparative advantages and integration index. The results of the research determined the level of technical efficiency of the producer, while the statistically significant influence of certain variables on profitability was determined within the processing industry. Additionally, the analysis showed modestly revealed comparative advantages in the international market but good integration with the international market. Finally, the sustainability of the milk and dairy products supply chain is highly questionable in crises, which will be a challenge for producers and policymakers.

Suggested Citation

  • Dragan Milić & Tihomir Novaković & Dragana Tekić & Bojan Matkovski & Danilo Đokić & Stanislav Zekić, 2023. "Economic Sustainability of the Milk and Dairy Supply Chain: Evidence from Serbia," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15234-:d:1266504
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