Dairy farming is the most significant part of cattle raising. During the previous several years the volume of milk production has been maintained at a stable level, while there came to fall in number of dairy cows and number of farms engaged in dairy farming. Although the farms that own just a few heads of dairy cows usually step out the milk production, there are still a small number of farms specialized in dairy farming. The main paper objective is to present the economic effects of investment in the construction and equipping of dairy farm adequate for raising of 12 dairy cows. Economic analysis was based on the use of static and dynamic methods for investment assessment. Besides, there is also conducted the analysis of investment under the risk conditions (use of the break-even analysis). According to gained results (e.g. Internal rate of return, 11.98%, positive value of the Net present value, Payback period shorter than 5 years) the investment implementation is economically justified.

Various types of extensive livestock production are present worldwide, primarily in regions where natural resources such as pastures and meadows could be used. Extensive livestock production is common in the EU, as well. Therefore the goal of this research was to establish economic efficiency of extensive livestock production types and to compare their efficiency with some intensive livestock production types. In order to achieve that goal FADN (Farm Accountancy Data Network) methodology was used. Source of information was FADN database as well as appropriate sector analysis and publications of European commission. It has been determined that sheep and goat production is competitive with intensive production types (dairy and granivores - pigs and poultry). Cattle production (other than dairy production) proved to be economically inefficient due to low output level.

In the case of some agricultural investments, often net cash flow changes its sign from positive to negative, many times during the project. It causes the problem of internal rate of return calculation, which is an important indicator of economic effectiveness of investments. That is, in such situations, internal rate of return cannot be used. To solve this problem, modified rate of return is applied. This paper aimed to describe this method in detail, and to show its calculation for investments in pigs fattening. By application of modified internal rate of return it is determined that pigs fattening, under assumed conditions, is economically justified. Also, authors calculated the upper limit of discount rate (cost of capital), to which investment in pigs fattening is economically justified. It is concluded that, in the case of specific agricultural investments (such as pigs fattening), the use of traditional internal rate of return could give the wrong image on actual rate of return on investments.

Tsigai is an indigenous sheep breed present in entire Central and South-East Europe. Due to its low meat and milk production number of Tsigai sheep is in a sharp decline. But, there is a strong need to preserve valuable genetic resources of this breed. Therefore, the goal of this research is to evaluate economic performance of Tsigai breeding and to define strategies for its future use. In the paper profitability of Tsigai breeding is determined as well as economic efficiency of investments in Tsigai farms (using Net Present Value and Internal Rate of Return). To perform the analysis in risky circumstances authors applied sensitivity and decision tree approach. The results indicated that breeding of Tsigai sheep requires state subsidies to be profitable and economically efficient. Decision tree approach resulted in calculation of expected NPV. Investments in Tsigai farms proved to be economically efficient, but associated with high level of risk.

According to applied TOPSIS multi-criteria decision-making method (Technique for Order of Preference by Similarity to Ideal Solution), in paper was selected adequate sales distribution channel in one enterprise active within the agro-food sector at the territory of Semberija (BiH). Decision makers, in this case represented by employed management in enterprise, have been evaluated five sales distribution channels in enterprise in line to previously defined criteria, i.e. products' characteristics, company's financial situation, consumer habits, production costs, geographic concentration, and products' assortment. The main goal of research was to create a model for optimal selection of sales channels, while derived results have been showed that the model "producer - seller (retailer) - consumer" is the most adequate towards the predefined selection criteria. In addition to the justified role of used method in selection of offered alternatives, article also represents a base that will serve in further research, whose focus would be on modernizing of existing and searching for new distribution channels in agricultural enterprises.

Investments are precondition for profitable, efficient and sustainable agricultural production. As a consequence of market liberalization Serbian farmers are competing with EU and neighbouring farmers, therefore it is important to compare investments in Serbian farms with investments in farms in neighbouring countries which have already became EU members (Croatia, Hungary, Romania and Bulgaria). The goal of this research was to analyse investments in the most important farm types in Serbia (mixed type of farms and farms specialized in crop production) and to compare it with appropriate investments in above mentioned countries. To achieve this goal authors used FADN methodology and relevant EU and Serbian databases and publications. The research results revealed that investments in Serbian farms are similar or even higher comparing to investments in observed countries, although level of investment's subsidies in Serbia is modest. Net investments are especially high for mixed Serbian farms, allowing development of even less present livestock production types. Future research should be directed towards evidence and comparison of subsidies on investments according to FADN methodology in Serbia and EU countries.