MilkPay

MilkPay Calculator

Milkpay is a calculator for use with the six United States Federal Milk Marketing Orders (FMMOs) that pay for milk produced, based on the weight of components in the milk. Milk from these Federal Milk Marketing Orders represents 54% of the milk produced in the U.S. The payment is based on the quantity of Milk Protein, Butterfat, and Other Solids multiplied by the values set by the Federal Milk Marketing Orders Board for each component. These prices are updated every month, at the end of the month, and are the same for all six of the FMMOs that pay on components. In four of the FMMOs, there is also a premium for having a somatic cell count that is below 350,000 cells per milliliter.

The producers also receive an adjustment, which is calculated every month by each of the Federal Milk Marketing Orders, called the producer price differential. This differential is updated monthly by the middle of the following month. Each of the six FMMOs has a different value for their producer price differential.

The Milkpay calculator can be updated automatically for the latest component prices, somatic cell count premium, and producer price differentials. With these current values, the financial value of the milk components can be quantified to determine milk revenue. Changes in components and feed costs can be incrementally evaluated. The cost of the feed changes can also be included in the calculations to quantify Income Over Feed Cost (IOFC) and Return on Investment (ROI) from these changes.

The current production and adjusted production can also be compared based on Fat Corrected Milk, Energy Corrected Milk, and Revenue Corrected Milk calculations. The values for each are also calculated. The calculations are based on USDA energy and financial values and standardized at 3.5% Milk Fat, 3.0% Milk True Protein, and 5.7% Other Solids.

The results can be viewed on screen and can be sent by email and saved for future reference.

The calculator provided by Adisseo is for use by those in the dairy industry. Adisseo is the manufacturer of Smartamine® M and MetaSmart® methionine for ruminants. The calculations are estimates based on the data entered. Neither Adisseo, its agents, salesmen nor its employees make any warranty about the accuracy or results of numbers used in the calculations.