European Union scraps milk quotas

European Union milk quotas have been scrapped after more than three decades of efforts to prevent overproduction. The system, set up in 1984, is ending so EU dairy businesses can compete with international rivals in supplying fast-growing markets in Asia and Africa. The Irish Republic, the Netherlands and Germany are all expected to increase production sharply. But British farmers say it could lead to further falls in the price they receive for their milk. The European Commission believes the changes will not bring back butter mountains and milk lakes and says China and other international markets are hungry for European farmers' produce.