Irish dairy expansion levels are unsustainable, warns Hogan, telling farmers to 'heed market signals'
'There is now a very clear risk of oversupply in the EU milk market'
Dairy farmers have been warned that the current increase in milk production is 'unsustainable' and they should heed market warnings.
Agriculture and Rural Development Commissioner Phil Hogan has warned that there is a real risk of oversupply in the European milk market as a result of high prices this year.
Commissioner Hogan was speaking following a meeting of European Agriculture Ministers this week and said while last year was an excellent one with a significant increase in milk these same higher prices have encouraged higher production.
But he warned supplies of milk has ‘unsustainably increased’ in some Member States and singled out Ireland, Poland and Netherlands.
The Commissioner also said he had noticed increased production in the largest Member States in recent times particularly France and Germany.
Hogan also warned dairy farmers that they have a “responsibility to look at the market signals and to heed them and to plan accordingly”.
“There is now a very clear risk of oversupply in the market in the EU in milk," he said.
It comes at a time when Europe already have 350,000t of skimmed milk powder in storage - the EU's method to remove excess milk supplies from the market and help keep a floor on milk prices.