First introduced in 1984 at a time when the EU's milk production far outstripped demand, the milk quota regime was fully implemented in Slovenia in 2005/2006.

As the quota system ends, milk producers will be able to sign contracts directly with foreign dairies, while dairies will be free to purchase milk directly from producers outside Slovenia.

So far, Slovenian milk producers could only sell milk to a company registered in the country.

The Ministry of Agriculture, Forestry and Food has said it is aware that the elimination of quotas could cause instability in the milk sector, but expects no mayor crisis.

Minister Dejan Židan believes the change should encourage dairies to look for new markets such as the Chinese, and promote locally produced food.

Farmers meanwhile believe that in order to survive, stakeholders in the milk chain will have to cooperate more closely, while the Chamber of Agriculture and Forestry of Slovenia (KGZS) expects farmers to look for specific niches and focus on for example organic milk, GMO-free milk, or milk processing.

Milk production is one of the key sectors of the Slovenian agriculture. The country annually produces some 500 million litres of milk. About a third is transported to Italy, Austria and in recent years also to Croatia, data from the KGZS shows.