HOME HELP FEEDBACK SUBSCRIPTIONS ARCHIVE SEARCH TABLE OF CONTENTS		QUICK SEARCH:   [advanced] Author: Keyword(s): Year:  Vol:  Page:

This Article Full Text (PDF) Alert me when this article is cited Alert me if a correction is posted Services Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Schmidt, G. H. Articles by Pritchard, D. E. Search for Related Content PubMed Articles by Schmidt, G. H. Articles by Pritchard, D. E.

Effect of Milk Pricing Systems on Income over Feed and Variable Costs of Dairy Cattle Breeds¹

Department of Dairy Science, The Ohio State University, Columbus 43210

ABSTRACT

An electronic spreadsheet program using a budgeting procedure was used to compare the effect of protein pricing differentials and cheese yield pricing systems on income over feed and variable costs of the six major dairy breeds. Increasing the protein differentials from $ .03 to .22/45.4 kg milk per .1 unit increase in protein percent above 3.2% decreased the difference in income over feed and variable costs between non-Holstein and Holstein breeds. With the prices and assumptions used, the income over feed and variable costs of non-Holstein breeds never equaled or surpassed that of Holsteins. With current milk, feed, and cheese prices, using a cheese pricing system caused a substantial decrease in income over feed costs for Holsteins and decreased the differences between Holsteins and non-Holsteins. Increased cheese prices, increased feed prices, and lowered milk prices also narrowed the differences in income over feed and variable costs between Holstein and non-Holstein breeds. Although changes in the milk pricing system make the non-Holstein breeds more competitive with Holsteins, non-Holstein breeds must produce between 224 and 1539 kg more milk with the various milk and feed price scenarios used for the income over feed and variable costs to equal that of Holsteins.

¹ Salaries and research support provided by State and Federal Funds appropriated to The Ohio Agricultural Research and Development Center, The Ohio State University. Journal Article Number 179-87.

This article has been cited by other articles:

				K. W. Bailey, C. M. Jones, and A. J. Heinrichs Economic Returns to Holstein and Jersey Herds Under Multiple Component Pricing J Dairy Sci, June 1, 2005; 88(6): 2269 - 2280. [Abstract] [Full Text] [PDF]