Calculating economic values for milk components in a pasture-based-dairy-system: the case of Argentina

Abstract

Economic values (EV) of milk components (P: protein, F: fat and V: volume ) were obtained for a dairy system based on pasture, where a large proportion of milk is sold to industry. The EV’s were calculated using a profit function with a restriction in total feed supply. Economic value of protein (EVP) had the largest absolute and relative standardized values. Economic value of volume (EVV) was always small and negative. Multiple regression analyses of EV’s showed all EV’ s to be affected (P<.01) by the ratio of price of protein to price of fat ($P:$F) and level of production. The effects of $P:$F were linear and quadratic, whereas those of level of production were linear. Prediction equations obtained in the study can be used to calculate EV’s for different pricing systems and levels of milk production under grazing systems in Argentina.