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.

The study was conducted with the objective of analyzing the economic effects provoked by the change in farm size, depending on the degree of production specialization (questionnaires encompassing 30 farms of different size were used) using comparative analysis, regression analysis, correlation analysis and production function analysis. Research comprised essential parameters of business conditions on the farms and results of their business. The farms analyzed were classified according to the size of used cultivable land and degree of production specialization.