Agric. Econ. - Czech, 2020, 66(1):19-26 | DOI: 10.17221/178/2019-AGRICECON

Milk price changes in Poland in the context of the Common Agricultural PolicyOriginal Paper

Piotr Borawski*,1, Marta Guth2, Wojciech Truszkowski1, Dagmara Zuzek3, Aneta Beldycka-Borawska1, Bartosz Mickiewicz4, Elzbieta Szymanska5, Jayson Kennedy Harper6, James William Dunn6
1 Department of Agrotechnology, Agricultural Production Management and Agribusiness, Faculty of Environmental Management and Agriculture, University of Warmia and Mazury in Olsztyn, Poland
2 Department of Macroeconomics and Agricultural Economics, Institute of Economics, Poznan University of Economics and Business, Poland
3 Department of Economics and Agricultural Economics, Faculty of Agriculture and Economics, University of Agriculture in Krakow, Poland
4 Department of Regional and European Studies, Faculty of Economics, West Pomeranian University of Technology Szczecin, Poland
5 Department of Logistics, Faculty of Economic Sciences, Warsaw University of Life Science - SGGW, Poland
6 Fruit Research and Extension Center, State College, Pennsylvania State University, USA

Changes in the retail prices of pasteurised milk, purchase prices, and the price relationship between retail prices for pasteurised milk and other food products are analysed for Poland during the period from 2004-2018. In addition, the paper presents factors affecting changes in milk prices in Poland and characterises the Common Agricultural Policy (CAP) on the milk market. The adoption of a long period of analysis allows for the study of periods of both high and low variability. The data analysis uses various methods including the Augmented Dickey-Fuller (ADF) test and the Autoregressive-Moving-Average Model (ARMA). The milk market showed significant response because it was one of the few that was strongly administered by the European Union. These policies led to a significant increase in milk prices in the analysed period. The average price of pasteurised food milk increased by 63% in 2003-2015, and the purchase farm price of milk increased by 91.74%. The situation changed when the production limits were eliminated after 2015. In the initial period after quotas ended, the price of milk decreased and then increased. Similar changes were observed in other EU countries. Even short-term fluctuations associated with economic crises did not significantly affect the milk market.

Keywords: Common Agricultural Policy; milk market; price volatility; purchase prices

Published: January 31, 2020  Show citation

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Borawski P, Guth M, Truszkowski W, Zuzek D, Beldycka-Borawska A, Mickiewicz B, et al.. Milk price changes in Poland in the context of the Common Agricultural Policy. Agric. Econ. - Czech. 2020;66(1):19-26. doi: 10.17221/178/2019-AGRICECON.
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