The paper examines the development of the Czech transition agriculture through profitability without supports (R-S) and profitability with supports (R+S) of the dairy breeding, resp. milk production on the period 2002 – 2011. For this particular branch of agriculture the accession of the CR to the EU has meant an important change of the agrarian policy, which transformed from the pure national (Czech) agrarian policy into the European CAP. There was proved that profitability R+S in the pre-accession period (period I = 2002-2003) was slightly positive for dairy sector. In connection with the membership of CR in EU agricultural supports significantly increased for dairy sector as the consequence of applying of CAP on the Czech agriculture. Therefore there were monitored in the period II (2004-2008) important positive changes of the indicator R+S for milk commodity. In the connection with the volatility of producer prices and costs increasing in the period III (2009-2001) there was found important downgrade of this indicator.