Over-supply adds to superlevy problems
With Irish farmers facing a fine of up to €8m for producing too much milk in the 2004-05 season, and German dairy farmers also having exceeded their national milk quota, there is some nervousness in dairy product markets over the effect of extra product supply from the over-quota milk.
Already, the dairy industry in the EU is bracing itself for reduced export refunds for butter and skimmed milk powder, as the European Commission prepares for the next round of intervention price cuts in July.
