Agricultural production is very diverse and gives the great opportunities for various activities of small and medium enterprises. There is a great competition for placement of agricultural and food products, on both, domestic and international food markets. In a situation where there is a hyper production of agricultural products in the European market, the export of agricultural and food products is possible only if it offers organic products, for which there is a great demand. Organic production in Serbia is more popular and economically more important. Thanks to potentials that are reflected primarily in the fragmented property and land that is not contaminated with harmful substances, this type of agriculture can contribute significantly to development of rural areas and agriculture in general. Therefore, organic farming is set as one of the priorities for development of agriculture, and an integral part of the strategy for rural and agricultural development in the Republic of Serbia. Development level of organic production in Serbia is low, and the reasons are as follows: a low level of environmental awareness, lack of state support to the agricultural sector, the decline in living standards of the population, and therefore the reduced purchasing power. Organic products are becoming increasingly important goods in world terms, and there is a growing participation of these products in global trade flows. It is evident that the presence of organic food in the growing number of consumers around the world is not just a fashion fad, but the constant striving to eat better quality products, and 165 thus contribute to the preservation of the environment and our health. These products represent a great opportunity for the promotion of small and medium enterprises in domestic and especially in foreign markets.