THE DAIRY SECTOR OF AN ENLARGED EU: AGENDA 2000 AND IMPACTS OF TECHNICAL AND INSTITUTIONAL CHANGES

Regarding the developments in the dairy sector of the old and new members of the EU two future options were analyzed: The first one is the reform package Agenda 2000, which forms the political platform for the next years, a period including the beginning of the EU Eastern enlargement. The second scenario is a technological and institutional change in new member countries after their accession into the EU. For the analysis two different models were used, the partial equilibrium model MIPsi and the general equilibrium model GTAP. The main features of both models are presented in the theoretical part of the paper. The results show the usefulness as well as the restrictions of this approach in regard to the analysis of the milk and dairy sector.