Economics of sunflower production in Serbia

Abstract

Sunflower seed is mostly processed into oil and meal. However, more than 80% of sunflower's value comes from oil, as the level of sunflower price and production are determined by the level of demand and the price of sunflower oil. Even despite the high cost of sunflower oil, demand for this crop is still increasing worldwide. In the last few years, sunflower production was unstable in Serbia. It was caused by unfavourable climate condition for few years and varying areas planted with this crop. According to average yields in sunflower production, Serbia is the seventh in the world. This paper considers the economic aspects of sunflower production, using the method of enterprise budget on three sampled farms of different sizes. Taking into account increasing bio-diesel production, increasing food demands and consumers' nutritional preferences, the production of sunflower could be an important opportunity for agricultural producers in Serbia.

Keywords

• enterprise budget
• market
• profitability
• sunflower