The paper is an attempt to assess the level of competitiveness of Polish dairy sector in the European Union market. Special attention has been paid to the state of the Polish producers price advantage relative to the EU’s main competitors, ie. the largest producers and exporters of milk and dairy products in the European Union. The study covered the years 2012-2015. In creating competitive advantage in the Polish dairy sector prices play vital role. This is indicated by both the analysis of market prices of basic products, of dairy sector. Which are lower in Poland than in the EU-15 countries, as well as analysis of prices in the following long of the food chain. In the future, it is expected that Polish dairy producers manage to maintain a price advantage in the EU market, however their level will be systematically reduced.