Economic weights and index selection of milk production traits when multiple production quotas apply

Abstract

ABSTRACTThe generation of profit in dairy production can be approximated by a generalized profit equation, which is a function of the genotype of the animals used. In the absence of legislated quotas on production, the economic weights for traits contributing to profit, for use in a selection index, have been shown to be simple functions of the partial derivatives of profit with respect to output of the traits. These functions reflect the fact that output in most agricultural industries will already be maximized, either because of saturated markets or limitations on total inputs. When a single quota applies, different functions result, which reflect the downward rescaling of enterprise size as output per animal of a trait under quota is increased. Difficulties arise when multiple non-independent quotas apply, such as in the United Kingdom (UK) milk market where quotas are triggered by both milk volume and fat concentration. The functions describing the economic weights are then dependent on the form of the dependency between the quota criteria and on the genetic change resulting from the applied selection index. Economic weights for milk volume, fat, protein and lactose yield applicable to Holstein'Friesian cattle in the UK were found to be –1·6 p/1, 76·6 p/kg, 170·0 p/kg and 7·0 p/kg, scaled to 1986 prices. These weights would not change much if the quota were changed to fat yield only. Use of appropriate selection indexes should result in genetic increases of milk volume, fat, protein and lactose yield, with gradual increases in fat and protein concentrations and the fat to protein ratio. In most situations, selecting on the combined evaluation for fat plus protein yield would be a simple procedure with high efficiency (0·995 of maximum efficiency).