Tough Times Ahead for Dairy Industry

A milk price war is set to break out following a landmark decision by the EU to scrap quotas restricting production.

The quota system was abolished today after 30 years - allowing dairy farmers to produce as much milk as they like without suffering a financial penalty.

The move is expected to drive a spike in production, particularly in countries like Ireland, Germany and the Netherlands, who plan to boost exports of milk and other dairy products to the UK.