Milk Payment System Research Articles

Milk payment systems in the United States

Payment for milk in the United States is primarily controlled by the federal government. Federal Milk Marketing Orders have been in place for a century, and continue to dominate the payment for milk in the United States. The last major revision of the process was implemented in January 2000, and this system still controls payment in 60% of the milk in the United States. Milk is so essential to health that it was controlled to ensure an adequate supply of fresh milk. Essential to ensuring an adequate supply of fresh milk, producer milk pricing processes were developed to help producers survive financially. The paper describes the history and current role of milk marketing orders in the US.

Short communication: Effect of stocking rate on the economics of pasture-based dairy farms

Data from a multiyear farm systems study evaluating the effect of stocking rate (SR) on pasture production and utilization, milk production per cow and per hectare, reproduction, and cow health were used to determine the economic implications of altering SR. The effect of SR was also evaluated relative to cow size and total feed available (comparative stocking rate; CSR), to account for differences in cow size and feed supplement availability. Milk production, gross revenue, operating expenses, and operating profit per cow all declined with increasing SR and CSR. In comparison, milk production, gross revenue, and operating expenses per hectare increased with increasing SR and CSR. These effects were irrespective of milk price. The effect of SR on operating profit and return on assets, however, was dependent on milk payment system. When payment was based on the economic value of milk fat and protein, operating profit and return on assets were quadratically associated with both SR and CSR, declining at an SR greater or less than 3.3 cows/ha and a CSR greater or less than 77kg of body weight/t of feed dry matter available. In comparison, when milk payment was based on a fluid milk pricing system, profit per hectare increased linearly with increasing SR and CSR, but return on assets was not affected by SR or CSR.

Mid-infrared prediction of bovine milk fatty acids across multiple breeds, production systems, and countries

Increasing consumer concern exists over the relationship between food composition and human health. Because of the known effects of fatty acids on human health, the development of a quick, inexpensive, and accurate method to directly quantify the fatty acid (FA) composition in milk would be valuable for milk processors to develop a payment system for milk pertinent to their customer requirements and for farmers to adapt their feeding systems and breeding strategies accordingly. The aim of this study was (1) to confirm the ability of mid-infrared spectrometry (MIR) to quantify individual FA content in milk by using an innovative procedure of sampling (i.e., samples were collected from cows belonging to different breeds, different countries, and in different production systems); (2) to compare 6 mathematical methods to develop robust calibration equations for predicting the contents of individual FA in milk; and (3) to test interest in using the FA equations developed in milk as basis to predict FA content in fat without corrections for the slope and the bias of the developed equations. In total, 517 samples selected based on their spectral variability in 3 countries (Belgium, Ireland, and United Kingdom) from various breeds, cows, and production systems were analyzed by gas chromatography (GC). The samples presenting the largest spectral variability were used to calibrate the prediction of FA by MIR. The remaining samples were used to externally validate the 28 FA equations developed. The 6 methods were (1) partial least squares regression (PLS); (2) PLS+repeatability file (REP); (3) first derivative of spectral data+PLS; (4) first derivative+REP+PLS; (5) second derivative of spectral data+PLS; and (6) second derivative+REP+PLS. Methods were compared on the basis of the cross-validation coefficient of determination (R2cv), the ratio of standard deviation of GC values to the standard error of cross-validation (RPD), and the validation coefficient of determination (R2v). The third and fourth methods had, on average, the highest R2cv, RPD, and R2v. The final equations were built using all GC and the best accuracy was observed for the infrared predictions of C4:0, C6:0, C8:0, C10:0, C12:0, C14:0, C16:0, C18:0, C18:1 trans, C18:1 cis-9, C18:1 cis, and for some groups of FA studied in milk (saturated, monounsaturated, unsaturated, short-chain, medium-chain, and long-chain FA). These equations showed R2cv greater than 0.95. With R2cv equal to 0.85, the MIR prediction of polyunsaturated FA could be used to screen the cow population. As previously published, infrared predictions of FA in fat are less accurate than those developed from FA content in milk (g/dL of milk) and no better results were obtained by using milk FA predictions if no corrections for bias and slope based on reference milk samples with known contents of FA were used. These results indicate the usefulness of equations with R2cv greater than 95% in milk payment systems and the usefulness of equations with R2cv greater than 75% for animal breeding purposes.

Economic values for dairy production traits under different milk payment systems in South Africa

Economic values of milk volume (VOL), fat yield (FYLD), protein yield (PYLD), live weight (LWT), longevity (LON), calving interval (CIV) and somatic cell score (SCS) were derived for Holstein and Jersey cattle, based on milk payment systems of four major milk buyers in South Africa. The economic value of somatic cell score was calculated for only two of the payment systems. A bio-economic model was used to calculate economic values by determining changes in profit arising from an independent unit increase in each trait. Economic values for VOL, FYLD and PYLD varied substantially among the payment systems; particularly PYLD which ranged from ZAR 7.62/kg to ZAR 21.88/kg. Payment systems that do not pay for milk volume resulted in a negative economic value (-ZAR 0.49/l) for VOL. Live weight and CIV had constant economic values across payment systems (-ZAR 6.62/kg and –ZAR 5.75/day for Holstein and –ZAR 7.49/kg and –ZAR 4.19/day for Jersey, respectively, for LWT and CIV). Economic value of LON varied slightly with payment system (ZAR 1.09/day to ZAR 1.23/day in the Jersey and ZAR 3.59/day to ZAR 3.68/day in the Holstein). The economic value of SCS differed substantially between the two payment systems and was higher in the Holstein (-ZAR 949.26/score and –ZAR 1795.57/score) than in the Jersey (-ZAR 433.87/score and –ZAR 912.90/score). Relative emphasis of traits in the breeding objectives for South African dairy cattle should take due cognisance of the diversity in milk payment systems.

Prediction of coagulation properties, titratable acidity, and pH of bovine milk using mid-infrared spectroscopy

This study investigated the potential application of mid-infrared spectroscopy (MIR 4,000–900cm−1) for the determination of milk coagulation properties (MCP), titratable acidity (TA), and pH in Brown Swiss milk samples (n=1,064). Because MCP directly influence the efficiency of the cheese-making process, there is strong industrial interest in developing a rapid method for their assessment. Currently, the determination of MCP involves time-consuming laboratory-based measurements, and it is not feasible to carry out these measurements on the large numbers of milk samples associated with milk recording programs. Mid-infrared spectroscopy is an objective and nondestructive technique providing rapid real-time analysis of food compositional and quality parameters. Analysis of milk rennet coagulation time (RCT, min), curd firmness (a30, mm), TA (SH°/50mL; SH°=Soxhlet-Henkel degree), and pH was carried out, and MIR data were recorded over the spectral range of 4,000 to 900cm−1. Models were developed by partial least squares regression using untreated and pretreated spectra. The MCP, TA, and pH prediction models were improved by using the combined spectral ranges of 1,600 to 900cm−1, 3,040 to 1,700cm−1, and 4,000 to 3,470cm−1. The root mean square errors of cross-validation for the developed models were 2.36min (RCT, range 24.9min), 6.86mm (a30, range 58mm), 0.25 SH°/50mL (TA, range 3.58 SH°/50mL), and 0.07 (pH, range 1.15). The most successfully predicted attributes were TA, RCT, and pH. The model for the prediction of TA provided approximate prediction (R2=0.66), whereas the predictive models developed for RCT and pH could discriminate between high and low values (R2=0.59 to 0.62). It was concluded that, although the models require further development to improve their accuracy before their application in industry, MIR spectroscopy has potential application for the assessment of RCT, TA, and pH during routine milk analysis in the dairy industry. The implementation of such models could be a means of improving MCP through phenotypic-based selection programs and to amend milk payment systems to incorporate MCP into their payment criteria.

Future outlook for the Irish dairy industry: a study of international competitiveness, influence of international trade reform and requirement for change

European Union (EU) trade liberalisation policies will continue to push EU milk price downwards and necessitate increased efficiency and scale at farm and processing level to maintain profitability. In Ireland pasture‐based dairying, based on the efficient conversion of grazed grass into milk can be competitive within the EU. Continued technical innovation increasing animal performance from grazed grass, increasing herd genetic potential and developing labour efficient lower fixed cost systems will be essential. At processing level, increased efficiency in commodity processing, higher margin product development and the evolution of milk payment systems to reflect the true product value of supplies received will be required.

A Comparison of Three Strains of Holstein-Friesian Cows Grazed on Pasture: Growth, Development, and Puberty

With the introduction of a protein milk payment system in New Zealand in 1988, there was an influx of North American (NA) Holstein-Friesian (HF) genetics into New Zealand (NZ) dairy herds, leading to an increase in the average percentage of NA genetics in NZ HF cows—from 2% in 1980 to 38% in 1999. Of interest has been the effect this change has had on farm profitability and on the management required for these animals, as well as the phenotypic changes that have occurred within the national herd under the breeding programs operated in NZ from 1970 to 1990. The objective of this study was to quantify differences in body dimensions, body weights, and puberty-related parameters among 3 strains of HF, representing animals of NZ origin representative of the genetics present in 1970 and 1990 and of NA origin with 1990s genetics. A total of 172 animals born in 1999 were compared. The strains were 1) NZ70, a strain of NZ Friesian (average 7% NA genetics) equivalent to high-genetic-merit (high Breeding Worth) cows farmed in the 1970s; 2) NZ90, a strain of HF of NZ origin (average 24% NA genetics) typical of the animals present in the 1990s; and 3) NA90, a strain of HF of NA origin (average of 91% NA genetics) typical of animals present in the 1990s. The differences in BW among all strains were significant at 6 and 12 mo of age. At 15 and 24 mo, the 2 NZ strains were significantly lighter than the NA90 animals. At 24 mo of age (i.e., prior to first calving), the NA90 strain animals (BW=515kg) were 22 and 34kg heavier than the NZ90 and NZ70 strains. The body length of the NA90 strain was greater than either of the 2 NZ strains; the differences among the NA90 strain and the 2 NZ strains varied from 2 to 6cm, with the differences generally being greater at older ages. The trend in heart girth difference among strains was similar to that observed for body length. The wither height of the NA90 animals was greater than that of the NZ strains by 1 to 7cm, although there was no significant difference between the NA90 and NZ90 strains at birth. At puberty the NA90 heifers were 20 d older and 20kg heavier than the NZ90 heifers, which in turn were 25kg and 25 d older than the NZ70 heifers. The NA90 strain had a heavier mature body weight, and their older age at puberty suggested either that they mature later or that, under pastoral conditions, their growth rate is limited by their inability to consume sufficient metabolizable energy as grazed pasture, with a consequent delay in puberty. Results from this study will be useful in revising target BW in growing heifers of different germplasm.

Dispositifs de coordination entre industriel éleveurs et périmètre irrigué dans un bassin de collecte laitier au Maroc

The supply chain concept is used for analyzing the management of a dairy plant supply area located in a large Moroccan irrigation scheme. Four main stakeholders are identified, i.e. the scheme manager, the dairy company, milk collection co-operatives and dairy farmers using irrigation water. The tools and processes implemented in order to co-ordinate their decisions are analyzed considering objectives such as saving irrigation water and increasing the water productivity on the water supplier side, and improving the milk quality, the seasonality and the productivity as far as the dairy supply chain is concerned. It includes: i) planning and operating both the water and milk flows; ii) implementing adapted economic tools, i.e. water pricing and milk payment system; and iii) providing services to farmers such as technical advice and input/credit supply. Nevertheless, the system performances could be improved. Various research and intervention topics are suggested in the conclusion, mainly: i) the design of a decision support system dedicated to the cows' feeding system; ii) the milk quality management along the supply chain; and iii) the co-operatives' management system.

Herd factors affecting somatic cell count in Irish dairy herds

The Irish milk payment system penalises against high milk somatic cell count (SCC). Previous studies have related farm management practices to herd SCC (Barkema et al., 1998); however similar study has never been undertaken in Ireland. Furthermore, these previous studies have generally been conducted in confined systems. The objective of this study was to investigate potential management factors affecting herd SCC in Irish, spring calving, grass based dairy herds.

Indicadores do ambiente ruminal e suas relações com a composição do leite e células somáticas em diferentes períodos da primeira fase da lactação em vacas de alta produção

No atual sistema internacional de pagamento do leite por qualidade, têm-se valorizado dois aspectos fundamentais: a contagem de células somáticas (CCS) e o conteúdo de sólidos totais. O primeiro fator depende da saúde da glândula mamária e o segundo, de maior importância econômica para os laticínios, está relacionado com o manejo alimentar e a raça dos animais. O ambiente ruminal pode modificar a composição do leite, em especial o teor de gordura. A fonte principal de proteína nos ruminantes depende da síntese de proteína no rúmen. Os atuais sistemas de alimentação, usados em vacas de alta produção, predispõem os animais à apresentação de síndromes metabólicas o que direta ou indiretamente afeta a produção de leite. Objetivou-se, com o presente trabalho, relacionar indicadores do ambiente ruminal (tempo de redução com azul de metileno e pH) e o pH da urina com a composição do leite (sólidos totais) e a CCS. Não foi encontrada associação estatística entre os parâmetros avaliados. Os valores médios dos sólidos não-gordurosos analisados no estudo foram inferiores ao limite estabelecido pela norma oficial do Brasil.

Customized selection indices for dairy bulls in Australia

AbstractCustomized sire selection indices were developed for Australian dairy bulls in order to promote more objective use of estimated breeding values in commercial breeding programmes. It was assumed that the breeding goal for commercial dairy farmers is the profitability of a bull's progeny. Seven characteristics of the progeny were identified as having a major impact on profitability and were included in the breeding objective: milk, fat and protein yield, survival, body weight, milking speed and temperament. Traits in the selection indices used to predict profit were milk, fat and protein yield, survival, milking speed, temperament, size, overall type and fore teat placement. Size was included because of its correlation with body weight, and overall type and front teat placement because of their correlation with survival. To avoid double counting the benefits of milk production traits, temperament and milking speed, the survival trait in the objective was defined as survival independent of voluntary culling for these traits. Customization of the breeding objective was achieved by adjusting the economic weights for traits in the objective to take account of important characteristics of farmers' herds, the milk payment system under which they operate and make allowance for their own value judgements. An assessment of the impact of customization suggested that, even though there is a wide range in the economic weights that are applicable in different areas of Australia, there would be little loss of efficiency in using a single national index. However, customization is still believed to be desirable given that it is likely that a substantial proportion offarmers will be reluctant to use a national index, especially in those states which have quotas and focus on the liquid milk market. The algorithms described in the paper have been incorporated into a user-friendly microcomputer program called $electabull which is now commercially available to farmers.