ECONOMIC DETERMINANTS OF MILK PRODUCTION IN REGIONS OF THE EUROPEAN UNION WITH MEDIUM SMALL MILK FARMS IN 2009 COMPARED WITH THE SITUATION IN 2004

The aim of the paper was to determine the diversity and factors that decided on the variation of milk production in the EU macro-regions with medium small milk farms in 2009 compared with the situation in 2004. The typology of the regions was based on the results of a cluster analysis. The research whether milk production is determined mostly by pricing, institutional, or resource factors will enable to recognise the reasons for the diversity of the EU milk market and determine the implications of this diversity for the dairy sector in Poland. Basing on the results of factor analysis, the author has identified the factors that have a decisive influence on the economic adjustments in medium small dairy farms in 2009 compared with the situation in 2004. The explanation of the research problem will also show which European macro-regions have developed most, and which worsened their competitive position in 2009 compared with 2004.