[Actualization of milk comodity regime and justification of our negotiation position]

The years 2000 - 2006 will be for the Slovak agriculture and food industry important period of preparation for the accession into EU. In this period the determination will be done if domestic products get along with European market in the conditions of free competition of EU countries. The market with 370 million of consumers will open for home food producers, but on the others side they must get along with competition of products from whole EU. The present efforts to improve competition of dairy industry are not sufficient. From the balance of milk supply and demand follows the need to place a part of surplus on foreign market even by export subsidy support. The hard competition is and will be not only on foreign markets but also on home market. The restructuralization of prime - production and processing enterprises has not finished yet. It is in our interest that the milk in future will belong between commodities which can enforce on foreign markets. The basic condition of price competition is significant decrease of milk production costs considering milk as a row - material. The second basic condition is high quality of milk products. In the next period of preparation for accession into EU it is necessary to conform milk products assortment to the structure of foreign and home demand which will be significantly carried trough by international trade networks. The legislation on milk in EU needs to meet veterinary and sanitary measures in milk industry to join into market system. The SR dairy industry is under restructuralization with aim to meet these measures and so to secure sufficient competition. To get this goal it is necessary to accept measure on the level of Ministry agriculture SR. The goal should be to provide necessary means from budget for support the dairy industry restructuralization and modernization. It is necessary to continue with tariff approximation concerning the conditions of placing the milk and milk products on market. It is also necessary to active works with establishment of interventional agency and system of private storage. These are not all measures but they are most important. Also it is important to revaluate fixed granted price. The system of fixed price linked to quota with possibility of qualitative bonus accomplished its task. The change of bonus system on recalculated number of cows with milk yield of 4 thousand litters is good temporary period to establish minimal price which guarantees significant shift of restructuralization of whole verticale of producers as well as processors. However we recommend regularly update this yield limit. The complex transformation can not be successful in short time period without supporting the research and development. Milk processing into products with high utility value needs to master complex biological and technological systems. The success of agricultural production depends on trade success of milk processors