Institutional conditions for development of dairy farms in Poland

The main objective of this paper was to test if institutional conditions are crucial for the development of dairy farms in the macro-regions in Poland. Following the presentation of the institutional and differential rent, as well as assumptions and logit analysis method procedure, the authors specified the conditions under which developmental farms division was built. The division differentiated between farms realizing full amount of ground rent and those non-developmental which did not realize it. Afterwards, both quantitative and qualitative factors, affecting dairy cattle husbandry farms economic performance, were selected. It was carried out in order to define relationships allowing to draw further conclusions. Logit analysis enabled to determine which of the above factors decisively influenced dairy farms developmental processes. It finally resulted in a determination of the developmental type of the examined farms. The outputs of the analysis were compared to the EU milk market situation taking into consideration the future process of the milk quota system liquidation.