In a press release issued today, IFA National Dairy Committee Chairman Sean O’Leary has said that recent reports from France Agrimer and Germany’s ZMB suggest that milk supplies for the January to mid-May period were significantly below last year’s level, by 2.45% for France and 2% for Germany.
 
He further stated that these two countries alone account for over 40% of all milk produced in Europe and that this is an important indication that the expected ‘wall of milk’ in post-quota Europe had yet to materialise. 

O'Leary said, "Milk supplies are under some pressure in many EU member states because with 17% average milk price cuts from peak, profitability has fallen dramatically. In France, the implementation of A/B/C contracts by co-operative milk purchasers in which milk over and above current domestic market demand is paid at lower prices (B) or downright dissuasive prices (C) has curtailed growth appetite.

In Germany also, profitability has been a problem, with some of the milk purchasers in the South cutting milk prices further for April."

Source: www.businessworld.ie