Milk quotas from the EU have been dropped after more than three decades.
This will free dairy companies in the 28 EU countries to compete with international rivals to supply countries in Asia and Africa.
The quotas, introduced in 1984, were designed to prevent overproduction but expectations now are that Ireland, the Netherlands and Germany will step up their production.
The stockpiles of butter and powdered milk peaked shortly after the quotas came in but dropped just as sharply by the late ‘80s.
The European Commission does not anticipate the return of butter mountains or milk lakes because of growing demand for farm produce from Europe. In the 1980s, production always was higher than consumer demand.
The National Farmers’ Union said the result could be falling prices for English and Welsh farmers which could stall recovery in the dairy markets. It urged all countries to “act responsibly and collectively”.
Fear that small dairy farms will be driven out of business prompted Belgian and other EU farmers to protest in Brussels. They believe the end of the quota system will help only big food companies and large producers which can operate with slim margins.
For many, wholesale prices are already below what they need to cover costs.
