The Relative Profitability of Jersey Versus Holstein Farms Under Alternative Milk Pricing Systems

Abstract

The impacts on dairy farm economic performance and profitability of shifting from the current volume and milk fat differential pricing to component milk pricing was compared between Pennsylvania Jersey and Holstein farms using farm simulation analysis of the entire farm. Results show that Jersey farms would benefit substantially from component milk pricing, but Holstein farms would experience little impact. © 1994, American Dairy Science Association. All rights reserved.