WMP Payment Ratio Revenue Impact

Western Milk Pool (Alberta) — 85/10/5 vs 70/25/5 Policy Change

Policy shift: Revenue split 85/10/5 → 70/25/5 | Butterfat $-3.39 (-17.6%) | Protein +$4.45 (+150.0%)
Your Herd:
%
%
5.91%
Gain ≥ 2%
Modest gain
Modest loss
Loss ≥ 2%
Butterfat %Protein %
3.0%3.1%3.2%3.3%3.4%3.5%3.6%
4.0%
-0.54%
+0.28%
+1.10%
+1.93%
+2.75%
+3.57%
+4.39%
4.1%
-1.09%
-0.29%
+0.51%
+1.32%
+2.12%
+2.92%
+3.72%
4.2%
-1.61%
-0.83%
-0.05%
+0.74%
+1.52%
+2.30%
+3.09%
4.3%
-2.11%
-1.35%
-0.58%
+0.18%
+0.95%
+1.71%
+2.48%
4.4%
-2.59%
-1.84%
-1.09%
-0.35%
+0.40%
+1.15%
+1.90%
4.5%
-3.04%
-2.31%
-1.58%
-0.85%
-0.12%
+0.61%
+1.34%
4.6%
-3.48%
-2.76%
-2.05%
-1.33%
-0.62%
+0.10%
+0.81%
4.7%
-3.90%
-3.20%
-2.50%
-1.80%
-1.10%
-0.40%
+0.30%
4.8%
-4.30%
-3.61%
-2.92%
-2.24%
-1.55%
-0.87%
-0.18%

Current Policy (85/10/5)

Revenue split: 85% BF, 10% Protein, 5% Other Solids

  • Butterfat: $/kg
  • Protein: $/kg
  • Other Solids: $/kg
  • Avg milk price: $101.53/hl

New Policy (70/25/5)

Revenue split: 70% BF, 25% Protein, 5% Other Solids — Effective April 1, 2026

  • Butterfat: $/kg(-17.6%)
  • Protein: $/kg(+150.0%)
  • Other Solids: $/kg

Volume-Based Deductions (per hl, applied when volume changes due to BF test shift)

Standard Deductions: $/hl(admin + CQM + promo)
Transportation: $/hl
Total: $6.87/hl

Understanding the WMP Policy Change

The Western Milk Pool is shifting from an 85/10/5 revenue split (85% butterfat, 10% protein, 5% other solids) to a 70/25/5 split. This significantly increases the value of protein while reducing the butterfat premium.

Who benefits?

  • +Herds with higher protein relative to fat
  • +Holstein herds with naturally higher protein tests
  • +Herds focused on component-balanced genetics

Who is impacted?

  • -Herds with high fat and low protein (e.g., heavy palm fat supplementation)
  • -Jersey herds with very high BF% but average protein

Note: All percentage changes are relative to the current 85/10/5 pricing at the provincial average composition (4.5% BF, 3.4% Protein). Volume adjusts to maintain constant BF kg (quota-based). Deductions for standard and transportation costs are applied proportionally to volume change.

Special thanks to Alberta Milk for providing the Producer Payment Ratio Revenue Impact Calculator that made this tool possible.

Based on the WMP Payment Ratio Calculator. All percentage changes are relative to the current 85/10/5 pricing at provincial average composition.