The handle of the Dairy enterprise tab allows to automatically calculate the expected milk price based on the current components by considering bonus or penalties with respect to the base price.
In this simulation we will use the data that you can see in the previous screenshot.
When data is correctly set in the Farm Structure, the opening of a recipe within the Farm will perform the calculations about the expected milk price, based on current Butterfat and Milk Protein set in Animal Inputs.
From the Milk Price tab within the main recipe screen, you can see all factors involved in the calculations and the resulting expected milk price.
In this section you will see the Estimated Mailbox Price (expected milk price) as a result of the sum of Base price plus the Butterfat and Protein bonuses (or penalties)
Under the Estimated mailbox price, you will see:
− Base price: this is the value taken directly from the Farm settings (Dairy enterprise section)
− Butterfat bonus/penalties and Protein bonus/penalties: you will see the calculated values applying the bonus to the difference between current and reference components.
− For the Butterfat and Protein, the right section (bordered in blue) will show actual Reference and Bonus values of the Farm.
In this example, the Recipe’s components are 3.70% of butterfat and 3.19% of total protein: the bonus value will be calculated as the difference between current butterfat and protein level milk components and reference range (or single value), multiplied by the corresponding bonus values currently set for the farm.
As an example of calculation, supposed to have 3.70% of Butterfat with a reference range of 3.75%-3.85%, the Butterfat in recipe is lower than the low level of the range: the difference is -0.05% that multiplied by the 0.021 (butterfat bonus) results in a penalty of -0.0011 €/liter. In this case we have a range level, so the calculation will be made for values lower than the low level (3.75%) and greater than the high level (3.85%), while the level between those two values will not be considered for bonus/penalty calculation.
Following the same pathway for protein, if current value is 3.19% and the reference value is 3.25%, the difference is -0.06% that multiplied by the 0.0323 (protein bonus) results -0.0019 €/liter. In this case the reference value is a single value and not a range, so the difference is calculated on this value.
So, in this specific case, the expected milk price will be: 0.3720 - 0.0011 - 0.0019 = 0.3690 €/liter.