PROJECTED CHANGES IN POLISH DAIRY COOPERATIVES MANAGEMENT AFTER THE REMOVAL OF THE MILK QUOTA SYSTEM IN THE EUROPEAN UNION

Abstract

Stability of the EU milk market after elimination of milk quotas and production regulation is discussed. Repealing milk quotas without effective mechanisms for stabilizing the EU milk market will be unfavourable for European milk producers. It is likely that the dairy cooperatives in Poland, and other European Union countries, will need to improve management in such ways as to enrich competitive product range for domestic and foreign markets, outside the European Union as well. Competition necessitates production of dairy products with higher added value, better quality management and better processing. As a result, dairy co-operatives will be able to increase economic efficiency, therefore increasing net profits of the cooperatives i.e. milk producing farmers, in partnership with the cooperatives will be able to participate in the dividends as compensation for losses caused by lower raw milk wholesale prices. At the level of the European Union or Member States, the removal of the quota system may be partially offset by subsidies for milk producers arising from intensification of eco-
nomic policies in areas such as environment or social assistance, as well as research and innovation.