Abstract:

This paper aims to present, by means of a comparative and a descriptive approach, the effect of limitations on production that had been used for many years in the European Union on the competitiveness of the milk market and to verify the accuracy of forecasts regarding changes in the EU milk market after the abolition of milk quotas. Based on statistical data concerning the dairy industry in the European Union and in the world in 2014, which was the last year when milk quotas were applicable, and 3 years after their abolition (2015-2017), changes in the area of production and sales of milk and dairy products as well as their prices were analyzed. As forecasted, the competitiveness of the EU dairy sector increased, resulting in a more than 4% increase in milk production and expansion of dairy products in the global market. The European Union became the largest exporter of such products, after a more than 80% increase in the amount of exported butter, 42% increase in the export of skimmed milk powder and 5% increase in the export of cheeses and quarks. Thanks to increased sales of products from the European Union’s market, producers were guaranteed an adequate level of income despite the decrease in prices. It should foster further improvement in the competitiveness of the EU dairy industry in the global market with regard to the continuously increasing requirement of dairy products.