The chart below shows the volume of extra milk produced by a number of EU member states since dairy quotas were abolished last April, in comparison to the amount of product (in milk equivalent) each country has in private storage (PSA) or intervention at the end of March 2016.

The figures, which account for milk production volumes from April 2015 to March 2016, show that the Netherlands, Germany and Ireland produced the greatest amount of extra milk during the 12-month period.

What’s surprising is that while these countries have produced the most extra milk, they’re not dependent on the EU’s support and storage schemes. The equivalent of just 13% of Ireland’s extra milk production is in storage, while 14% and 19% of the extra milk produced in Germany and the Netherlands is in storage.

In comparison with France and Belgium

Compare this to France and Belgium where the equivalent of 68% and 86% of their respective extra milk is in some form of storage. While the numbers for Belgium appear high, industry sources say that much of the product is actually French but intervened via Belgium’s storage quota.

France had not planned for increased milk production post quota, and there was no significant investments made in processing capacity or routes to market by its dairy industry.

Added to this, the traditional export markets for French milk powder is to oil economies in northern Africa, which have seen buying power reduced due to low oil prices and weakened local currencies.

In contrast, Ireland, the Netherlands and Germany have all prepared for increased supply and invested in opening new markets. This groundwork over recent years is clear to see in the chart, with less reliance on the EU support mechanisms.