Milk Rate Calculator
Market Rates (Component Pricing)
Calculation Summary
How to Calculate Milk Rate: A Guide for Dairy Farmers
Understanding how milk rate is calculated is essential for dairy farmers and collection centers to ensure fair payments. Unlike simple volume-based pricing, modern dairy economics relies on the quality of the milk, specifically its Fat and SNF (Solids-Not-Fat) content.
The Component Pricing Formula
Most dairy cooperatives and private dairies use a formula that pays separately for the mass of Fat and the mass of SNF delivered. This method encourages farmers to improve the quality of their milk rather than just the volume.
Total Payment = (Total Kg of Fat × Price per Kg Fat) + (Total Kg of SNF × Price per Kg SNF)
Key Metrics Explained
- Fat %: The percentage of butterfat in the milk. Buffalo milk typically has higher fat (6-9%) compared to cow milk (3-5%).
- SNF (Solids-Not-Fat): This includes proteins (casein), lactose, minerals, and vitamins. It is a critical indicator of milk purity and nutritional value.
- CLR (Corrected Lactometer Reading): A specific gravity measurement taken using a lactometer. It is often used to calculate SNF if laboratory testing is not available.
Calculating SNF from CLR
If you do not have a digital milk analyzer, you can calculate SNF using the Richmond Formula, which is widely accepted in the industry:
SNF = (CLR / 4) + (0.21 × Fat %) + 0.36
This calculator automatically applies this formula if you choose to input the CLR value instead of the direct SNF percentage.
Why Milk Rate Fluctuates
The rate per liter changes daily based on the quality of the specific batch. Even if the market price for Fat and SNF remains constant, a drop in your milk's fat content (due to feed changes, weather, or lactation cycle) will immediately lower the rate per liter.