C1 Micro agrifood sector study - Farm-level restructuring in Poland: Evidence from the dairy sector

By Dominika Milczarek-Andrzejewska, Agata Malak-Rawlikowska, Jan Fałkowski and Jerzy Wilkin

This report presents the results of research conducted within Component 1 of the Regoverning Markets 2 project. The key goal of Component 1 in Poland was to prepare evidence-based policy advice concerning the implications and opportunities for small dairy producers of agrifood market restructuring and to promote inclusiveness. The analysis was conducted on three levels: macro2 (the policy issues and the national business environment), meso3 (the different chain segments) and micro4 (household level). The first phase of the research concerned macro and meso levels, and these results have been published. (Wilkin et al., 2007).

This paper presents results of the second phase of the research - the micro-level survey. Based on research from the first phase (qualitative interviews with representatives of all segments of the dairy supply chain in Poland), specific research questions for the micro-level study were formulated(Wilkin et al., 2007) and will be addressed below. These are as follows:

· What determines the market-channel choices of dairy farms in Poland?

· What is the impact of these choices on the farms' financial situation and behaviour?

· Has assistance to farmers from dairy-processing companies been one of the main drivers of restructuring at the farm level?

· How important is the quota system in slowing down the restructuring process?

· Which types of institutional arrangements can help farmers to adjust to the new market conditions and to enter the dynamic market?