This thesis examines current state of the Serbian dairy sector and impact agricultural
trade liberalization has on the sector. Therefore, thesis investigates Serbia’s current
competitiveness and potential for further development, especially pertaining to the
process of integration into global markets and enrollment into the EU affairs.
Serbian government established protectionist price policies (import tariffs and export
subsidies) in order to support domestic production and to increase self-sufficiency,
which gave positive results. It resulted in change from being a net importer of the dairy
products to the state of being net exporter from 2006 onwards (BOZIC et al., 2009: pp.
14). However, current trends in international market go towards trade liberalization,
which means that distorting policies should be eliminated, or at least decreased at
reasonable levels. That is way this thesis investigates impact of reduction of
protectionist price policies on the Serbian dairy sector. Furthermore, to be able to
conclude on the perspectives of the Serbian dairy sector in the process of integration
into global affairs, situation in the sector has been confronted to the situation in world
dairy sector.