The paper aims at assessing the cost competitiveness of Slovenian livestock production on single European market after its EU accession in 2004. For empirical analysis a sector model of Slovenian agriculture APAS-PAM has been applied. In the paper three accession scenarios are considered (optimistic EUo, pessimistic EUp and realistic EUr) that describe the whole range of possible accession effects. Accession under the scenario of complete acceptance of the CAP mechanisms and quasi equal treatment by the EU (EUo) will improve aggregate income level with moderate changes on commodity basis. Discrimination of the acceding countries in the field of direct payments and non-competitive down-stream sector assumed by the EUp scenario will deteriorate the income situation of domestic producers. The most likely outcome will be somewhere between top and bottom levels, projected with EUo and EUp scenarios. For many commodities, the competitiveness of the food processing industry assuming different price levels for raw materialscould have much greater impact on the economic situation of livestock production than agricultural policy environment itself.

Common Agricultural Polisy (CAP); EU enlargement; income effects; costcompetitiveness

Published by University of Zagreb, Faculty of Agriculture, Zagreb, CROATIA
Sponsored by Ministry Science and Education of the Republic of Croatia