Despite export subsidy cuts, EU dairy exporters are breaking records in their shipments to third countries.
Under the World Trade Organisation trading agreement, or GATT, the EU limits the quantity of subsidised dairy exports.
In the current year, for cheese in particular, the volume of exports is rapidly approaching its ceiling.
In the period up to the end of April, which represents 85% of the year to the end of June, subsidised cheese exports reached 289,000 tonnes or 85% of the maximum permitted level. This is one reason why the EU Commission cut the export subsidy earlier this month in an effort to curb booming export levels.