The introduction of a quota system has a large impact on the development of the agricultural sector, the agro-business and individual farms. In April 2004, the Central and Eastern European (CEE) Countries entering the EU had to implement a quota system for milk. It requires institution building, setting up administrative procedures, choices of the system, choice of priority groups, handling of butterfat reference, dealing with a national reserve, control aspects, quota transfer, farm management a..spects and communication to farmers. All early attention at national levels has been given to the administrative aspects of milk quota systems. Communication to farmers about the system and the effects on farm management is often neglected. This publication hopes to fill this gap and wants to stimulate attention on farm management and extension efforts. It presents an overview of papers from "old" countries and country reports from new EU countries. They all contain information about expected structural changes due to the quota system, effects on farm management, extension needs in this area and challenges in years ahead. Impressions from 7 other CEE non EU countries are also included. This book gives an extensive and unique overview of the dairy situation in the Central and Eastern European countries in the year of the enlargement of the EU and a view into the future in this regard.