Economic effects of vegetable production and processing on the agricultural holding

Abstract

As an agricultural holding in the form of legal entity, cooperatives have a significant role in the production, processing and trade of vegetables in the Republic of Serbia. In order to obtain safe and competitive agricultural prod- ucts, cooperatives strive to provide greater flexibility to market changes and faster adaptation to occurred changes. Operating in this way has been im- posed the need to achieve a higher degree of technological capacities uti- lization, to fine tune the optimal structure of production and obtain highly valorised products. In other words, cooperatives should invest in products obtained by processing, which will be valorised the most and which will achieve the highest prices (i.e. the maximum economic effect per invested financial unit). Along to previously mentioned, research is focused to the eco- nomic effects of a cooperative business operation which intends to organize environmentally friendly production of tomatoes and cucumbers, partly in the open field (on area of 3 ha) and partly in a protected area (greenhouses with total size of 3 ha and 60 are), while it applies modern agro-technic’s and food safety production measures. Besides, wanting to approach to safe and continuous market realisation of tomatoes and cucumbers, cooperative will establish processing and sale of processed vegetables.