The study presents the comparative analysis of competitiveness’ level of dairy cooperatives, which exports their products to the UE market and cooperatives from Świętokrzyskie province, which are not entitled to the export to the UE market. Cooperatives exporting their products to the UE market (group A) in the years 1998-2001 showed the increase of milk processing while in cooperatives from Świętokrzyskie province the decrease ensued. The cooperatives from group A were also characterized by three times higher level of average delivery of milk as well as the share in the purchase of extra class milk. In 2001 cooperatives Świętokrzyskie province incurred loss while group A cooperatives achieved increasing significant profit. The competitive strength of milk deliverers is larger in a group of cooperatives in Świętokrzyskie province because those cooperatives do not achieve the cost advantage for the sake of the low concentration of the production. The biggest threat to dairy cooperatives is in the buyers’ strong influence on the volume of sale and in buyers’ possibility to change a cooperative delivering them dairy products. The level of competition’s intensity in the scope of products offered by cooperatives was similar, highest in the case of milk, cheese, sour and sour cream and lowest in case of powder milk and butter. The necessity of covering large capital needs as well as difficulties in access to distribution channels were described as largest barriers to entry and considerable small barrier is the competitive activity of already existing enterprises. In the opinion of cooperatives’ managers the possibility of appearing new substitutes of dairy products, except for butter, is low