INVESTING IN FRUIT COOLERS AS A FORM OF ENTERPRISE DEVELOPMENTAL POLICY

Lana Ivanovic, Dusan Milic and Sanjin Ivanovic

Economics of Agriculture, 2009, vol. 56, issue 4

Abstract: In contemporary business environment when Serbian joining to European Union is expected, enterprises competitiveness significantly depends on determination and application of appropriate developmental policy. To apply developmental policy it is very important to provide appropriate financing sources. Therefore, in this paper is analyzed situation that face most of Serbian fruit producers. The producers (within their developmental policy) put on first place construction of appropriate coolers. In such a way it is possible to facilitate expansion to European market and to achieve higher fruit prices. Cooler construction requires significant financial resources, thus in the paper have been analyzed economic profitability and financial feasibility of such investment. In that sense an example of container cooler for apple storage has been used as a variant which is the most common in practice. It is determined that cooler construction is economically profitable and financially feasible, while most of the investment could be financed by commercial bank loans. Construction of such coolers would significantly contribute to development of rural areas in Serbia.

Keywords: Community/Rural/Urban Development; Financial Economics; International Relations/Trade (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iepeoa:245216

DOI: 10.22004/ag.econ.245216

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