LIVESTOCK SECTOR IN SERBIA: CHALLENGES, POLICY GAPS, AND STRATEGIC OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT

The livestock sector in Serbia is facing a prolonged decline, characterized by falling animal numbers, stagnant productivity, and reduced competitiveness in both domestic and European Union (EU) markets. This study aimed to analyze the key structural, technological, and policy factors underlying these trends to identify strategic opportunities for sustainable development. The methodology integrated macroeconomic analysis, agricultural economic ccounts, and international trade data, applying a regression model to examine relationships between food prices, exchange rate fluctuations, and agri-food import volumes. Results showed a persistent decrease in the share of livestock production in agricultural gross value added, weak utilization of export quotas, and a negative trade balance for animal products. Rising domestic food prices were found to increase imports, while real appreciation of the dinar reduced competitiveness, highlighting macroeconomic vulnerability. The analysis suggests that modernization of production systems, improvement of support measures, and strengthening of rural development policies – as envisaged in national strategies – could contribute to enhancing the competitiveness and sustainability of Serbia’s livestock sector. These measures are in line with the priorities of national strategies for agricultural development, economic reforms, and digitalization, supporting Serbia’s integration into EU markets and achieving the objectives of sustainable development.