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Milk Price From Fat Calculator

Work out milk price from fat instantly with clear inputs, formula shown and shareable results.

About Milk Price From Fat Calculator

Two-axis pricing pays separately for fat and for solids-not-fat, with the SNF rate typically around 40% of the fat rate. Converting volume to mass at 1.03 kg/L and applying the percentages gives payable kilograms of each, and the total divided by litres gives the effective per-litre price.

Formula

Two-axis milk pricing

Mass = volume x 1.03; value = fat kg x fat rate + SNF kg x SNF rate (about 0.4 x fat rate)

Worked example

With the default values below, Milk Price From Fat Calculator returns Value Of The Consignment of $5,479.60. Change any input above and every figure here is recalculated in your browser.

Inputs used

Milk Volumeminimum 0 L
100 L
Fat Percentageaccepts 0.1–15 %
4.2 %
SNF Percentageaccepts 0.1–15 %
8.5 %
Rate Per Kg Fatminimum 0
700

Results

Value Of The Consignment
$5,479.60
Effective Price Per Litre
$54.796
Value Of Fat
$3,028.20
Value Of SNF
$2,451.40

Step by step

  1. 1Values used
  2. 2Two-axis milk pricing
  3. 3Value Of The Consignment= 5,479.60
  4. 4Effective Price Per Litre= 54.796
  5. 5Value Of Fat= 3,028.20
  6. 6Value Of SNF= 2,451.40

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is milk paid on fat and SNF rather than volume?

Processing yield of butter, ghee, cheese and milk powder depends on solids, not water. Solids-based pricing rewards genuine quality and discourages watering.

Does the fat-to-SNF rate ratio vary?

Yes, with the dairy's product mix and with market prices for butter and skimmed milk powder. Ratios between 0.3 and 0.6 are all seen in practice.

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