Consequences of differences in pricing systems between regions on economic values and revenues of a national dairy cattle breeding scheme in Italy

Profit equations were used to determine the relative importance of different mil yield traits, with and without product limitations. Economic value were calculated for three different Italian payment systems: the “average” payment system emplyed by Unalat [Unalat, 1995. Accordo interprofessionale per la determinazione del prezzo del latte per il periodo dal 174/1994 al 31/3/1995. Roma, Italy. P.10 (personal correspondence).], payment system in areas of Parmesan cheeseproduction, and the payment system that is used in deriving the current economic weights. The Parmesan payment system resulted in the highest marginal value of milk with average composition in situations without herd output limitation. With aherd output limitation considering milk yield and fat content, marginal value decreased by 47 to 52%. The economic value of fat relative to that of protein ranged from -0.031 to 0.135 without herd output limitation and -0.432 to -0.020 with herd output limitation. The relative economic value of carries ranged from -0.012 to 0.07 without and -0.020 to 0.042 with herd output resctriction. The sensitivity analysis revealed taht the average herd yield levels for fat, and especially protein, are the main factors influencing the relative economic values. Losses, which occured from and economic repsonse of a breeding scheme due to changes in pricing systems ranged from 4.2 to 16.7%, whereas with the herd output limitation losses up tp 57.0% were found. Losses in economic response to selection indicated that there is potential for diversification of the breeding goal. The benefits of diversification at the population level have to be balanced against the costs of running a larger selection programme in deciding on a longer-term selection policy.