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 aspects and communication to farmers.