The research topicis theanalysis of the foodindustryin theRepublicofSrpska. The analysis includedthe sectorsof milk and meatprocessing, grain processing, fruit andvegetables, productionof wine, spirits and softdrinksin the periodfrom2007 to 2012 year.The researchin this paperaims topoint outsome problemsthat existbecausethere is a highdegreeof unusedcapacity, obsoletetechnology, inadequateinvestmentin production capacity, and the lack ofdomestic raw materials which makes producersintheRSdependent onimported raw materials. Based on the results of the research can be defined follows directions for the development of the industry: production and boosting economic efficiency and changing production structure in accordance with the requirements of domestic and international markets, the application of international standards and technologies and production of high-quality and competitive products; production of healthy food and create brands based on traditional production and geographical origin of the product.The research is based on the available data, with applied method "research desk" ("desk researsh").