Valuation of Milk Composition and Genotype in Cheddar Cheese Production Using an Optimization Model of Cheese and Whey Production

A mass balance optimization model was developed to determine the value of the κ-casein genotype and milk composition in Cheddar cheese and whey production. Inputs were milk, nonfat dry milk, cream, condensed skim milk, and starter and salt. The products produced were Cheddar cheese, fat-reduced whey, cream, whey cream, casein fines, demineralized whey, 34% dried whey protein, 80% dried whey protein, lactose powder, and cow feed. The costs and prices used were based on market data from March 2004 and affected the results. Inputs were separated into components consisting of whey protein, ash, casein, fat, water, and lactose and were then distributed to products through specific constraints and retention equations. A unique 2-step optimization procedure was developed to ensure that the final composition of fat-reduced whey was correct. The model was evaluated for milk compositions ranging from 1.62 to 3.59% casein, 0.41 to 1.14% whey protein, 1.89 to 5.97% fat, and 4.06 to 5.64% lactose. The κ casein genotype was represented by different retentions of milk components in Cheddar cheese and ranged from 0.715 to 0.7411kg of casein in cheese/kg of casein in milk and from 0.7795 to 0.9210kg of fat in cheese/kg of fat in milk. Milk composition had a greater effect on Cheddar cheese production and profit than did genotype. Cheese production was significantly different and ranged from 9,846kg with a high-casein milk composition to 6,834kg with a high-fat milk composition per 100,000kg of milk. Profit (per 100,000kg of milk) was significantly different, ranging from $70,586 for a high-fat milk composition to $16,490 for a low-fat milk composition. However, cheese production was not significantly different, and profit was significant only for the lowest profit ($40,602) with the κ-casein genotype. Results from this model analysis showed that the optimization model is useful for determining costs and prices for cheese plant inputs and products, and that it can be used to evaluate the economic value of milk components to optimize cheese plant profits.