Management Theory and Studies for Rural Business and Infrastructure Development, Volume 36, Number 4

Factors influencing the development of milk production in Lithuania after milk quota abolition

Deiva Mikelionytė, Ingrida Lukošiutė, Laura Petrauskaitė-Senkevič


Following the decision to abolish the EU milk quotas in 2015, it is relevant to predict how it will influence the milk production, what changes need to be prepared for. For this purpose, there are plenty of scientific studies done, which evaluated the impact of milk quota abolition on EU. Scientists admit that for more accurate predictions, it is necessary to evaluate the changes in each country separately. Such studies haven’t been carried out in case of Lithuania. The purpose of the study is to identify the factors that will have the greatest impact on the development of the milk production in Lithuania after the removal of milk quotas, considering Lithuanian milk production specifics. In order to achieve the target of study, the analysis of other authors’ studies about the impact of milk quota abolition in EU milk sector were analysed. The study was based on logical, systematic analysis and synthesis, induction and deduction, correlation analysis. In this paper the factors that have the greatest influence on the future development of Lithuanian milk production after milk quota abolition are identified. They are demand and supply, amount of milk production quotas limiting, size of dairy herd, cow productivity, self-sufficiency in feed, profitability, size of dairy farm, state support, self-sufficiency in capabilities of processing and foreign trade, changes in neighbouring countries dairy sectors.

JEL codes: F59, O52, Q13, Q18, R13.

Keyword(s): milk quota, factors, political decisions

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.