Agriculture & Food, Volume 4, 2016

Abstract: Common Agricultural Policy (CAP) in European Union changes dynamically. Modifications are often connected with environmental aspects, e.g. environmental externalities, and involve some influence on economic results and production organization. Therefore, research was conducted to determine that impact at the example of animal welfare in milk production. Optimization model was constructed using Positive Mathematical Programming method. It was found, that possible changes in revenues, costs and results are both positive and negative and depend on basic production method and production scale.