Possible Supply Chain Models for Small Agricultural Producers in Serbia

Agricultural production in Serbia is one the most important segments of the national economy. Serbia is exporting more agricultural product than importing. Food processors who are responding to the wholesale and retail demand are looking for commodities with specific attributes. Industrialised agriculture grows and makes the rules on the market. In contrast, it has been recognised for some time that small agricultural producers in Serbia have been under huge economic pressure. As a result of impressive changes in market demand and in agricultural policy small agricultural produces in Serbia need to adjust their production structure. Market developments provide niche opportunities for small producers that are able to differentiate production and respond promptly. To capture these opportunity small farmers could use appropriate supply chains and supply chain strategies as well as decision making strategies for the development of partnership, especially planning for successful marketing. The aim of this paper is to analyse the supply chain models for the small Serbian farmers. The results show that small producers in Serbia face increased competition by big player in the market. The wholesale and retail permanently increase criteria for suppliers. Small producers have possibility to use niche opportunities in approaching consumers.