The Serbian animal feed industry confronted with insufficiently used capacities and considerable price oscillations of raw materials and final products has gone through a substantially long period of dynamic development. The objective was to analyze production capacities, spatial distribution, changes in feed manufacture output and raw materials used, import and export, changes in the number of employees, etc. Major attention was focused on indices of the financial and economic structure in order to define the position of feed mills in relation to the sector and the economy as a whole. In addition, the aim was to analyze the possibility of improving feed mill management. Mathematical and statistical models were developed with special reference to the needs of some types and categories of animals, raw materials at disposal, capacities and requirements with regard to feeding stuffs. The linear programming model was used in order to contribute to the successful management of all the phases in the production chain.