Mr Bellamy, who is based in the Netherlands, has been in New Zealand as part of the bank's visiting experts programme.
The staged lifting of quotas, which had historically capped dairy production in European countries, was unlikely to have an adverse effect, he told New Zealand dairy producers and exporters.
"While there will be some increase in European dairy production ... it is unlikely to be the tidal wave that some people are fearing, and continued strong medium-term growth in world demand for dairy is set to absorb the additional supply."
Of that estimated additional production, it was estimated 3.6 billion litres would be absorbed by additional demand out of the European Union.
While the remainder would probably find its way on to export markets, it would be to destinations such as the Middle East and Russia, not into New Zealand's main export markets of Southeast Asia and China, he said.
" The role of quotas in suppressing EU milk production had been "somewhat overstated".
Quotas were not a constraint in most EU regions, and many areas produced below the quota amounts anyway because of other limiting factors.
They included limited availability of agricultural land, high cost of finance, environmental restrictions, and retail price wars (shrinking farmer margins) which had lowered the price of milk.
"There's no reason this will change as a result of quotas being lifted," Mr Bellamy said.
