Paper Title
Efficiency of Polish Dairy Sector

Abstract
Efficiency is one of the basic categories in the evaluation of economic activity. Restructuring and modernisation processes in the Polish dairy sector led to positive changes. Investment resulted in the improvement in the efficiency of use of production factors and positive changes to the production structure and export. However, not all the problems of the sector have been solved. Dairy farming is still characterised by fragmented structure and low labour efficiency, which limits its opportunities to improve its efficiency. Statistical analysis has demonstrated that capital expenditure is characterised by higher efficiency than labour input. Further restructuring should result in further reduction in employment and increase in labour efficiency. Keywords� Dairy Industry, Efficiency, Production Function, Added Value, Standard Gross Margin.