Poland could face fine by above-quota production

Poland has exceeded its annual milk production quota by almost 300,000 tons, or 4 percent, the state PAP news agency reported on Tuesday.

Under the Accession Treaty, Poland, as a new member of the European Union, had an annual quota of 8.642 million tons, but it actually produced some 8.930 million tons of milk in the 2005/2006 quota year, the Agricultural Market Agency's spokesman Radoslaw Iwanski was quoted as saying.

According to the Agriculture Minister Krzysztof Jurgiel, Poland had applied for a increased quota and was waiting for a decision from the European Commission. If approved, the quota could be lifted by some 416,000 tons. However, the country could face a fine for excessive production. Roman Wenerski, head of The Agricultural Market Agency, said earlier that the fine for each kg of milk produced above the limit was 51 groszes (about 17 U.S. cents).