Agriculture, EU – Baltic States, Legislation, Markets and Companies

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.

Meanwhile, British farmers have said it could lead to further falls in the price they receive for their milk.

EU Commissioner for Agriculture and Rural Development Phil Hogan said the ending of quotas was both a challenge and an opportunity for the EU.

"It is a challenge because an entire generation of dairy farmers will have to live under completely new circumstances and volatility will surely accompany them along the road," he said.

Belgian and other EU dairy farmers staged a protest in Brussels on Tuesday, fearing the lifting of quotas will drive small farms out of business.

They have argued the lifting of quotas helps only big food companies and the largest milk producers, whose efficiency allows them to operate with slim margins.