Dairy cattle breeding was an important area of the agricultural sector even before the Czech Republic joined the EU. In 1989, a total of 3.5 million cattle was bred in the Czech Republic, of which 1.2 million were cows and milk production amounted to almost 5 billion litres. By 2004, the number of dairy cows had fallen significantly (-65 %) and as a result total domestic milk production had also fallen (-47 %). The increase in average milk yield is positive. The accession of the Czech Republic to the EU has brought a number of changes to Czech agriculture. The dairy farming and milk production sector can be characterised by a decline in the number of dairy cows during the period of our membership, which was, however, offset by a significant increase in milk yield. As a consequence, total domestic milk production has increased and so has the level of self-sufficiency, which means an opportunity for economically viable exports. Given the volatile milk market, fluctuating farm gate milk prices and significant increases in input costs, subsidies have been necessary in most years to ensure adequate profitability for farmers.