ECONOMIC EFFECTS OF PUBLIC SUPPORT IN PROMOTION OF COOPERATIVES IN SERBIA

Agricultural cooperatives are excellent tool for strengthening the competitiveness of overall agriculture and individual farms. In previous period there are significant state support allocated to affirmation and development of reasonable entrepreneurial initiatives related to agricultural cooperatives. Even more are valued the sustainable business ideas that have initiated organization of processing at the cooperative level. The main goal of paper is to present the part of mechanism for assessing the economic effectiveness of planed investment in medicinal plants production and processing at selected agricultural cooperative that will be granted from public fund. Investment project suppose the modernization and purchase of missing production elements that will boost the production results of observed cooperative active in sector of medicinal plants. To perceive if or how much the investment is internally/externally economically welcomed, it will be conducted the investment analysis based on use of common static methods. Besides the strengthening of cooperative economic sustainability, both sides, i.e. policy maker and agricultural cooperative, are expecting that realization of investment will surely has certain ecological and social impact to cooperative and local community. Gained results of investment analysis show that supporting the investment in medicinal plant production and processing could be a win-win combination for observed cooperative and local community it belongs.