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Abstract

The aim of the paper was to determine the diversity of dairy farms in macro-regions of the European Union in terms of economic determinants of milk production in 2011. The focus was to investigate whether and how the factors of differentiation of the milk production in 2011 diversify production results of farms. To achieve that there was factor analysis used, which distinguished the factors that influence milk production in FADN dairy farms in macro-regions of the European Union, ie. market relations (price-cost), resources of production factors and the financial and assets situation of dairy farms FADN macro-regions in the European Union. Then there was a hierarchical cluster analysis using Ward method conducted to find farms from EU regions with similar economic conditions for milk production. It also specifies if the Polish macro-regions are competitive in milk production in the European Union.

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