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Abstract
Two dairy production systems with biggest share in total milk production in Central Serbia
are small farms with tie stall barn and small farms with grazing period. In the article are
examined their main system characteristics, sustainability and integration in dairy supply
chain. Three dimension of sustainability were explored by chosen indicators on farms sample
in Kolubara district. Economic sustainability is low since average entrepreneur’s profit is
negative for both production systems, although small dairy farms with grazing period
encountered less negative profit because advantages in feeding costs. Rate of dairy
production systems viability is 25%. Social sustainability declined over last decade. Small
dairy systems are discriminated by ability to get dairy subsidies. Demographic viability is
low, especially for small farming system with grazing period, where it is 25%. Small farming
systems are dispersed over all territory and don’t make big pressure on ecology and natural
resources.