This contribution contains calculations of single farm marginal utilit
ies for milk and breeding traits under economic frame conditions to be
expected for the future as well as a discussion of the macro economic
effects of a continued increase of milk production. The results show
that the utility of a continued increase of the milk traits depends mo
st strongly upon the tradibility of milk quota amongst farms. If milk
and fat quota are strictly fixed to a farm, an increase of milk and fa
t yield is no more economic. An improvement of the breeding performanc
e (functional life, stillbirth rate, calving performance, calving inte
rval, age at first calving) and dry matter intake, however, results in
a distinct improvement of the economic situation, even if quota trade
is handled most restrictively Should milk prices be reduced In future
, the marginal utility far productive traits (milk, fat, protein) will
drop more pronouncedly than the one for breeding traits. The improvem
ents of productivity in cattle breeding result in price effects which
tend to diminish single farm marginal utility. This again concerns mil
k traits much more than breeding traits.