Introduction:

Given that milk price fluctuations have an impact on local milk production, which affects a vital sector for the economy due to its contribution to GDP and the generation of direct and indirect jobs, this study seeks to establish what has been the effect of monetary incentives on the quality of milk from 164 dairy farms in the Ubaté and Chiquinquirá valley between March 2012 and March 2018.

Methodology:

To answer this question, it is hypothesized that the implementation of the quality payment scheme described in Resolution 0017 of 2012 positively affected the values with which the hygienic quality of milk is measured. To test this hypothesis, a mixed approach methodology was used (qualitative and quantitative), descriptive, correlational and explanatory, non-experimental, using a longitudinal model of panel data for the sample of milk producing farms.

Results:

The study allowed establishing that the current quality payment scheme (QPP), the lagged QPP and the price paid to the producer (PPP) have significant effect on decreasing milk microbiological counts, the price per gram of solids and the amount of solids per liter are significant increase milk microbiological counts.

Conclusions:

It was possible to conclude that it is advisable to increase the participation of bonuses per CFU on the total price, this would incentivize a faster improvement of hygienic quality.