The aim of the conducted research was the simulation of the possible effects of the liquidation of milk quotas for the producers of milk in the European Union. The object of analysis was the comparison of simulated situations on the milk market in 2020 in the case of continuation and liquidation of the system of quotas. For the purpose of research the CAPRI (Common Agricultural Policy Regionalised Impact) model was used. The analysis of the obtained simulation results showed that in the effect of the liquidation of the system of quotas the production of milk would be moved to the regions of Europe where the climatic conditions and relatively low costs are conducive to the development of production. Also, territorial reorganization of milk production would probably take place in many countries. Thus, the liquidation of milk quotas would facilitate the rationalisation of spatial distribution of milk production from the point of view of its effectiveness and would improve the European Union's competitive position on the global market.