**1. Introduction**

In the Republic of Serbia, there is a growing interest in and increasing consumer demand for high-quality and healthy products. The intensification of local food products' (LFPs) production would contribute to halting biodiversity loss and improving ecosystems, and on the other hand, would help towards improving the economic positions of farmers, who form the basis of sustainable local development, and are directly related to the achievement of UNESCO's (United Nations Educational, Scientific and Cultural Organization) second, 12th, and 15th sustainable development goals [1]. The leading activity of the population in the Republic of Serbia, especially in rural areas, relies on agriculture and support for local development, which also represents the fight against poverty and hunger. However, the integration of agricultural production with the secondary and tertiary sectors is needed, which will ensure a higher degree of marketability of agri-food products. The role of agriculture in the development of society is significant [2], whether in terms of local development or sustainability of resources. The ultimate goal of enhancing LFPs' production should be the greater utilization of available natural resources [3], processing capacity increase, and improvement of the social position of the population. It is well known that every country has its own path and strategy for local development and that not every strategy is a guarantee for success, and therefore countries exhibit different degrees of economic development.

Unlike economically-developed countries where scientific research on local produce has been present for a relatively long time, in less developed countries or countries in transition, this concept is only beginning. In the Strategy of Agriculture and Rural Development of the Republic of Serbia for the period 2014–2024 [4], it is stated that the share of agriculture in total employment in the Republic of Serbia is very high and amounts to over 20%, with a high number of family farms using up to 2 ha of agricultural land (48.8% of the total). These farms account for about 8% of agricultural land. By moving the boundary of utilized land to a higher group (up to 5 ha), it appears that agricultural holdings of this size, although they make up 78% of the total, represent only 25.3% of the area. As Cvijanovi´c and Ignjatijevi´c [5] point out, the transition process has led to the creation of a monopoly on the agricultural market on one hand, and on the other, direct producers have not adapted to the new market order and have remained unorganized and unprotected. For significant improvements in production, small producers lack necessary capital, expertise, and modern equipment (since the value exceeds the financial capabilities of individual producers). It is for this reason that local food producers tend to produce the same products for years, in the same way, although they are not satisfied with the selling prices and earnings.

In recent years, consumers in the Republic of Serbia have shown an increased interest in value-added food products; the findings on the Serbian WTP (willingness to pay) for organic products show that consumers are willing to pay a premium price for organic products, up to 20% [6]. In light of the future development of the local food system in Serbia, it is important to identify and understand the determinants of consumer and producer behaviors in Serbia's local food system in relation to the general patterns identified already in the literature. This process requires detailed information on consumer and producer attitudes and their decision-making processes connected to the purchase and production of local food products. The perceptions and beliefs towards local food products from the point of view of consumers and producers in the Republic of Serbia have not been investigated so far. The inclusion of local food producers in the study is important, especially for countries in the early stages of local food system development. There are no previous surveys on local food systems relating consumers' and producers' data simultaneously. Therefore, the specific objectives of the current study were to: (1) Investigate the current perceptions of local food products in the Republic of Serbia; (2) determine if the perceptions of consumers and producers of local food products differ; and (3) analyze the perceived impact of local food product attributes on sustainable regional development. After the introduction, the conclusions of a number of authors, who have analyzed the various aspects of LFPs, have been presented. This segment of the paper represents a special contribution because it highlights the views and recommendations of authors of different economic, political, and cultural beliefs. As there is no previous research on local food systems in Serbia, the results obtained in this research may be of special interest to authors and researchers, members of the SME (Small and medium-sized enterprises) sector, educators and representatives of advisory services, and government bodies. In the following section, the authors present the methodology and the research results. Finally, the concluding observations summarize the research findings. In particular, we emphasize that our findings can serve as a starting point for the creation of further strategies for the development of the LFPs sector.
