Business RegistersHow a fat-based milk rate works
Farmers are paid for the quality of the milk as well as the litres. The simplest way to do that is to pay for each point of fat.
Dairies and cooperatives use their own formulas and charts, and some pay by fat and SNF together or by weight. This page shows one simple method. Use the rate chart of your own dairy or cooperative, and check with it if you are unsure.
The simple method
Rate per litre = fat percentage x the price you pay for each 1 percent of fat. If you pay 8 for each point, milk with 4.5 percent fat is worth 4.5 x 8 = 36 a litre. SNF can be added the same way: fat x its price + SNF x its price.
A table (made-up price of 8 for each point of fat)
| Fat % | Rate per litre | 10 litres | 50 litres |
|---|---|---|---|
| 3.0 | ₹24.00 | ₹240.00 | ₹1200.00 |
| 3.5 | ₹28.00 | ₹280.00 | ₹1400.00 |
| 4.0 | ₹32.00 | ₹320.00 | ₹1600.00 |
| 4.5 | ₹36.00 | ₹360.00 | ₹1800.00 |
| 5.0 | ₹40.00 | ₹400.00 | ₹2000.00 |
| 5.5 | ₹44.00 | ₹440.00 | ₹2200.00 |
| 6.0 | ₹48.00 | ₹480.00 | ₹2400.00 |
| 6.5 | ₹52.00 | ₹520.00 | ₹2600.00 |
Why fat is checked at every collection
Fat varies by animal, feed, season and the time of milking. A farmer whose cows give richer milk should be paid more, and a test at each collection keeps it fair. Record the fat every time in the collection book so that the monthly bill follows the actual quality.
Keeping trust
- Weigh and test in front of the farmer.
- Keep the testing equipment clean and checked.
- Show the rate and the amount for each day, not only the month total.
Common questions
Can I change the price per fat point?
Yes. Open "Your rates" in the collection book and type your own price. It applies to every entry, so you can re-bill a month if the rate changes.
What about milk with low fat?
Many dairies set a minimum or a deduction. Decide yours and tell farmers beforehand.
Keep going
- Milk collection bookOpen the register
- All guidesMore for small businesses
- Data safetyWhere records are kept
The registers keep their data in your own browser and send nothing to us. Names, numbers and prices in the examples are made up. No law, tax or fee is stated here: check local rules where they matter. Checked 14 November 2026.