ENVIRONMENTAL PROTECTION COST AND MILK PROCUREMENT COST DIFFERENTIAL FOR POLAND’S DAIRY COOPERATIVES

Abstract

The objective was a description of environmental protection cost differentials for Poland’s dairy cooperatives taking into account costs of milk procurement. The authors have concluded that the average dairy cooperative in Poland is experiencing rising costs for environment protection inferring that the significance of these expenditures is also growing. The study includes the years 2004-2010 and material consists of information obtained from the questionnaire interview and secondary sources. Analyzing the relationship of these costs for the full period of the study, it was evident that environment protection expenditures in relation to milk procurement more than doubled for the cooperatives studied – from 0.67 to 1.51%. This suggests that expenditures pertaining to compliance with environmental regulations are important and undertaken projects serve to neutralize pollution or prevent its occurrence.