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Increasing efficiency during realization of procurements in the defence system imposes the requirement to analyze the market, in order to detect all of its characteristics and to make conclusions which would benefit during planning of budgetary assets by one comprehensive process. Procuring milk and milk products represents a significant part of defence system's procurements which represents that a significant segment of the consumer standard of the Serbian Army, which implies the interest of authors to point to the significance of the concentration of the supply branch on the realization of procurements on the example of this market. The aim of this paper is to display the state and actual trends on the market of production and processing of milk, define methodological framework and point to the intensity and terms of competition and their influence on procurement criteria, especially price in the defence system of the Republic of Serbia

Economic analysis of the influence of milk market concentration on procurement efficiency in the defense system