Quality based payment program and milk quality in dairy cooperatives of Southern Brazil: an econometric analysis

Programs designed to enhance milk quality have been used to motivate dairy farmers to improve the quality of the raw milk they produce. The objective of this study was to evaluate the association between a milk quality payment program and four indicative variables of milk quality, by testing bulk tank somatic cell count (SCC), bulk tank total bacterial count (TBC), fat (FAT) and protein (PROT) percentages over three years in four dairy cooperatives in Southern Brazil. We used a multiple regression econometric model estimated from market data of milk delivered by farmers to the cooperatives. Bulk tank milk samples (n = 19,644) were monthly collected. The data set was analyzed for the effects of seasonality, average daily volume of milk, the award/penalty, producer, and cooperatives on SCC, TBC, FAT and PROT. Results suggested an association between the adoption of a payment program based on milk quality and the reduction of SCC and TBC. Nevertheless, the program seems to have not contributed to increase fat and protein milk percentages. This information may help the dairy industry in developing countries to conceive strategies to enhance overall milk quality.