10.5937/industrija42-5704 = Product support estimate (PSE) for the beef meat production in Montenegro

Estimate of support to producers (PSE indicator), according to the OECD methodology, is the annual monetary value of gross transfers from consumers and taxpayers to agricultural producers, resulting from agricultural policy measures. It is very useful indicator for estimation of effectiveness of overall state support to specific agricultural sector or product. This paper presents the first quantification of this indicator for the agricultural primary production sector, beef in particular, given the significant share of livestock in generation of GDP in agriculture (30% and with dairy sector, about 60%; at the same time, beef production is almost 50% of the total value of meat production in Montenegro). The results of this study suggest that % PSE for beef sector is at 15.63, owing to higher subsidies and broader funding from other budgetary and credit lines. Comparative analysis shows that this value is higher than in China or Canada but also significantly smaller compared to the EU average (28,3), Switzerland (33,6) or Turkey (42,2).