Ireland is already overshooting its milk quota and could face a fine of more than €25m.

Irish milk production was 1.63% over quota at the end of December, after adjusting for butterfat.

If the milk year ended in December that would lead to a €25m superlevy fine, according to the Irish Creamery Milk Supplier Association.

Good spring production could threaten a superlevy of €30-40m by the end of March, the ICMSA estimated.

“With the continued monthly increases in production it is almost certain Ireland will now exceed its milk quota allocation at the end of the milk quota year and that some suppliers will incur a superlevy fine,” said Irish agriculture minister Simon Coveney.

“I would again remind farmers to have regard to their quota production during the remaining 13 months of the quota system.”

Ireland avoided a superlevy fine last year, but was hit by a €16m fine for being 1.05% over quota at the end of the 2011-12 milk year.

The country is aiming for a 50% or 2.75bn-litre increase in milk production by 2020 as part of its Food Harvest Plan, and this year’s higher production anticipates quotas being lifted in April 2015.

The UK’s milk production in December was the highest in 18 years, but consultants have said the chance of British dairies hitting quota by March was extremely low.

(More on UK milk production)