The aim of this research was to determine a sustainable economic model of a milk farm in Bosnia and Herzegovina through the possibility of reorientation of raw milk production into cheese on-farm processing. All investment costs, annual production costs, production quantities, prices and annual income were collected through an unstructured questionnaire. The case study farm, originally engaged in milk production, reoriented itself to processing milk into several products. A cost–benefit analysis was applied for the 14-year project lifetime, as well as the Black–Scholes and binomial models of real options evaluation for shifting to cheese production in the fourth year of the project. The milk production farm is economically inefficient, and the investment project is unacceptable, resulting in negative net present value under assumed typical production parameters, and the payback period is longer than the project lifetime. The cheese production option value is positive according to the Black–Scholes and binominal models. Both real options models confirmed that processing milk into cheese is sustainable long-term and economically.

The aim of this article is to observe the trade exchange by calculating Relative Trade Advantage index with the wine products (HS 2204) of Bosnia and Herzegovina and the most common destinations concerning export and import. The data is used from the trade map data and wine institute data. The trade is based on the former Yugoslavia countries (Serbia, Croatia, North Macedonia, Slovenia, and Montenegro). Export market share and Import market share with these countries ranges from 60% to 95% of overall trade. The most important import partner is Serbia with a stake of 28.2%. The largest export partner is Croatia with 52.3% of all BiH’s export. The calculated RTA index had values from (-0.674) in 2012 to (-0.567) in 2019. Negative values of RTA index represent relative trade disadvantages in Bosnia and Herzegovina’s wine foreign exchange.

The aim of this study was to investigate the economic impact of an investment in an apple orchard in the Republic of Srpska, using the cost-benefit analysis method. All investment costs, annual production costs, production volumes and annual revenues were collected through an unstructured survey of the leading fruit production company in the Republic of Srpska "Agroimpex Nova" and based on similar studies from the region on this topic. Investments in fixed assets, materials, services, salaries, loans and depreciation costs were structured and calculated for a period of 15 years. In addition, all quantities produced and other revenues were totaled. Payback period, net present value (NPV) and internal rate of return (IRR) were calculated as the main economic indicators for this production. The total expenditure of the project is €2,836,316 and the net income for 15 years of the project is €5,054,705, so the net cash flow is €2,218,389. The net present value for the assumed discount rate of 6% is €927,691. The net present value per hectare is €46,385. The undiscounted payback period is 7.973 years. At a discount rate of 6%, the payback period is 9.313 years. The internal rate of return is 16.13%. The calculated results suggest that the investment in an apple orchard in the Republic of Srpska is economically feasible and represents an opportunity for future investment in agricultural production.