Teagasc says Irish dairy farmers face fines of more than £25 million for overproducing milk and more than one farmer eight has already produced allowed amount under the EU quota system.
Teagasc, the agriculture and food development authority, warns milk production has already gone 18 million gallons over the quota at the end of 1995 and the problem is more severe this year.
Most co operatives, said a statement, have already filled the quota allowed nearly seven weeks before the end of the production year which runs from April 1st to March 31st.
Teagasc warns that farmers will be fined £1.38 a gallon for every surplus gallon they deliver to creameries.