Agricultural cooperatives are excellent tool for strengthening the competitiveness of overall agriculture and individual farms. In previous period there are significant state support allocated to affirmation and development of reasonable entrepreneurial initiatives related to agricultural cooperatives. Even more are valued the sustainable business ideas that have initiated organization of processing at the cooperative level. The main goal of paper is to present the part of mechanism for assessing the economic effectiveness of planed investment in medicinal plants production and processing at selected agricultural cooperative that will be granted from public fund. Investment project suppose the modernization and purchase of missing production elements that will boost the production results of observed cooperative active in sector of medicinal plants. To perceive if or how much the investment is internally/externally economically welcomed, it will be conducted the investment analysis based on use of common static methods. Besides the strengthening of cooperative economic sustainability, both sides, i.e. policy maker and agricultural cooperative, are expecting that realization of investment will surely has certain ecological and social impact to cooperative and local community. Gained results of investment analysis show that supporting the investment in medicinal plant production and processing could be a win-win combination for observed cooperative and local community it belongs.
Creation of value-added at the farms could play great role in strengthening of their economic sustainability. Serbia has long tradition in pig farming. This subsector of agriculture in last few decades is facing the negative trend in production capacities (decrease in active farms and number of pigs) and it is mainly based on economically weak family farms characterized by small number of pigs. On the other hand it is obvious the strengthening of their specialization to pig farming. This line of agricultural production is specifically under the higher production risks mainly influenced by pork cycle and some market risks. Thus, the often and expressed price oscillation affects primarily the sustainability of small farms, disabling the proper planning of production and endangering their survival. Processing of pork meat at small family farms could be a good solution for income stabilization, where created value added could induce better competitiveness of the farms. The main goal of the paper is to present the economic potential of the conduction of pork meat processing at small family farms, in scenarios with or without of employment of external labour. In this context, it was used the analytical calculations based on variable costs (contribution margin). Gained results show that comparing to pig growing, organization of mentioned activity will significantly increase the farm incomes in both cases, impacting the many positive effects on farm sustainability.
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