Work out milk price from fat instantly with clear inputs, formula shown and shareable results.
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.
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)
Processing yield of butter, ghee, cheese and milk powder depends on solids, not water. Solids-based pricing rewards genuine quality and discourages watering.
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.