Implications of on-farm segregation for valuable milk characteristics

The model suggested that “white” milkfat would need to earn 38.4% more at the farm gate than conventional milkfat for the two systems to break even. “White” milk cows produced less than their status quo counterparts due to the reduced selection pressure on production milk traits and this had a considerable impact on the premium, as did the low initial volumes of white milkfat. The difference in production between the B β-lactoglobulin cows and their status quo counterparts was less than for selection on white milkfat only. The high risk to farmers of discontinuing a differentiated milk policy could be moderated by changing the structure of premium payments over time. Hence, processing companies and farmers will need to work together to facilitate the uptake of milk segregation. This research model could be applied by dairy companies and farmers considering milk segregation policies.