A family farm model was used in order to study the economic importance of pasture utilization in sheep breeding and cattle fattening during the summer period. The model was based on real technological, organizational and economic conditions of a farm in the hill and mountain regions of eastern Serbia. The economic competitiveness of different ways of pasture utilization was studied based on the processing price of green feed obtained from pastures. Under the given economic conditions, a higher processing price of feed may be expected in cattle fattening.