A Quick Look at Milk Money

Wisconsin dairy producers continue to benefit from participation in Milk Money, the popular team-based milk quality improvement program offered through University of Wisconsin Extension in cooperation with the UW Department of Dairy Science, and the Wisconsin Milk Marketing Board.

Recent analysis of 113 herds completing the Milk Money program reveals an average added $1,033 per month increase per farm in quality incentive income from the time herds begin Milk Money until they complete the program. The 113 Wisconsin dairy herds completing Milk Money averaged 265 cows covering 29,835 cows. At $1,033 herd/month, Milk Money participation is returning a total average of $116,727 per month to the participants.

That means that if the improvements hold for a year, an average Milk Money herd of 265 cows sees another $12,396 in income related to milk quality incentives alone. Pooled together, the 113 herds can reel in an additional $1.3 million over the year if the improvements seen during the four-month program continue. At the start of the program, the 113 herds were getting an average of seven cents per hundredweight (CWT) in quality premium incentive. By the end of the program, the herds had increased their incentives to an average of 27 cents per CWT.

Income improvement from milk quality comes from three areas for Wisconsin dairy producers: increased milk production, improved ability to capture quality incentives from milk buyers, and reduced costs associated with mastitis.

Data from farms that enrolled in the program beginning in Fall 2001 and continuing through Spring of 2004 were included in this analysis. Most of the teams (78%) included an extension agent.

The formation of milk quality teams resulted in positive changes of herd performance. Most of the standard measurements of milk quality improved during the program. Overall, bulk milk somatic cell counts (BMSCC, an indicator of quality) and standard plate count were reduced by 20.2% and 28.4% compared to the first meeting. Individual cow indices of clinical and subclinical mastitis were significantly improved. Cull rates decreased by the end of the program.

Additionally, Milk Money participants adopted a significant number of best management practices and many report increased communications about milk quality issues with their dairy professionals. Many teams continue to meet after the program has formally ended.

County Success Stories

Mike Wildeck, Dairy Agent, Marathon County - UW-Extension, has placed on his county's web site an example of how Milk Money can benefit producers in the local economy.
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Milk Money Profits
Wisconsin Dairy Business Community

Richard Vine and Jeremy Heim are Wisconsin dairy producers living in different parts of the state with two completely different management styles and herd sizes. While Vine milks his cows in a traditional tie stall barn in central Wisconsin, Heim's eastern Wisconsin operation has grown to include the use of a milking parlor and a modern free stall barn.

What they do have in common are the substantial benefits of participating in Milk Money, the University of Wisconsin Extension program available to all Wisconsin dairy producers as a means of improving milk quality.

"The production of high quality milk has never been more important," says Dr. Pamela L. Ruegg, DVM, MVPM, Extension Milk Quality Specialist, UW Department of Dairy Science and the designer of the Milk Money program. "Consumers demand that their milk be produced under the most hygienic standards and they expect their milk to come from healthy cows.

"The production of high quality milk is essential to the continued profitability of the Wisconsin dairy business community," Ruegg adds. Several years ago, Ruegg used a pilot study to test her hypothesis that dairy producers would strive toward improved milk quality if they could work together more closely with their consultants in "teams." The results of the pilot study were highly encouraging and lead to the formal roll out of the "Milk Money" program, a team-based approach to managing for milk quality.

A recent look at before and after data supplied by 75 dairy herds completing the Milk Money program further emphasizes not only the value of the program itself, but the role of University Extension. Leadership provided by County Extension agents throughout Wisconsin contribute to the remarkable results dairy producers harvest from the Milk Money program.

On average, each of the 75 dairies improved monthly milk income by about$1,100.00. The total improvement in monthly milk income for these 75 herds was $82,500.00. That's $82,500.00 being returned to these 75 dairy families each month for use in paying bills and reinvesting in their operations, Ruegg notes. If carried out for a year, that's amost $1 million increased return for these 75 herds.

"Team leaders are very important to forming successful Milk Money teams. County Extension agents served as team leaders on 26 of these dairies and are a driving force in assisting Wisconsin dairy producers to use the program most effectively," Ruegg says.

Typical benefits Wisconsin dairy producers see when working in Milk Money teams include: reductions in bulk tank somatic cell counts (BTSCC), a key indicator of milk quality, a reduction in cases of clinical mastitis, a reduction in subclinical mastitis, a reduction in treatment costs, and an increase in quality milk production. Because milk plants pay bonuses for quality, producers often reap an increase in what they are paid for their milk.

The benefits Wisconsin dairy producers see usually result from the adoption of the best anagement practices (BMP) discussed and then implemented during Milk Money. Such BMPs include: more routine analysis of milking equipment, performing bulk tank cultures, culturing for clinical mastitis, keeping better treatment records, developing standard, written milking routines, wearing gloves during milking, more frequent consultation with dairy professionals, and adaptation of the team management style.

Additionally, the Milk Money program serves as an example of how Extension can work with the Wisconsin dairy business community to achieve mutual goals. Major financial support for the Milk Money program comes from the Wisconsin Milk Marketing Board (WMMB), a milk marketing and promotion organization that's funded by producer check-off money. The WMMB sees quality milk production as a cornerstone in promoting Wisconsin dairy products in national and global markets.

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