FINANCING THE DAIRY SECTOR IN RURAL AREAS OF THE REPUBLIC OF SERBIA: PEŠTER REGION EXAMPLE

Milk shortage is a major problem of the dairy industry, both in Serbia and in neighbouring countries. Although there was an evidence of a growing demand for these products, there are still a number of limitations that make these resources largely untapped in Serbia. The lack of processing facilities of companies further reduces the economic effect, which could be realized with a greater degree of product finalization. This situation as a result has inefficiency in operations and weak competitiveness in exports. This article analyses the problems of financing the dairy sector in rural areas of the Republic of Serbia in Pester region and respectively three administrative units belonging to Raska and Zlatibor district. Most enterprises in dairy sector of Pester are small and family ones, which are often classified as micro-enterprises. Survival, growth and development of micro, small and medium enterprises and entrepreneurs, that are the most effective segment of the economy in all world countries, primarily is determined by funding opportunities from favourable sources.