Learn how the system calculates farmer payment – fixed per litre, fat-based, SNF-based, or combined fat + SNF – with real examples.
Overview
Each farmer has a Rate Type that controls how their milk payment is calculated. The type is set on the farmer record and applies automatically to every milk collection.
Four modes are available: Fixed Rate, Fat % Based, SNF % Based, and Fat + SNF Based. Most cooperatives use fat-based or fat+SNF pricing.
How It Works
When you enter quantity and quality readings on a milk collection, the system calculates Total Amount automatically. You do not need a calculator.
Fixed Rate
Formula: Total = Litres × Rate per litre
Example: 12 litres × ₹42/L = ₹504
Fat % Based
Formula: Total = (Litres × Fat% ÷ 100) × Fat Rate per kg
Example: 12 L at 4.2% fat, fat rate ₹650/kg fat → Fat kg = 12 × 0.042 = 0.504 kg → 0.504 × 650 = ₹327.60
SNF % Based
Formula: Total = (Litres × SNF% ÷ 100) × SNF Rate per kg
Example: 12 L at 8.5% SNF, SNF rate ₹320/kg → SNF kg = 1.02 kg → 1.02 × 320 = ₹326.40
Fat + SNF Based
Formula: Total = Fat payment + SNF payment (both calculated as above)
Example: 12 L, 4.2% fat, 8.5% SNF, fat rate ₹650, SNF rate ₹320 → ₹327.60 + ₹326.40 = ₹654.00
Step-by-Step Guide
- Open the Farmer record and confirm Rate Type is correct.
- Set Milk Rate (for fixed) or ensure fat/SNF rates are entered on each collection (for fat/SNF types).
- On milk collection, enter Quantity, Fat %, and SNF % from the analyser.
- Check the auto-calculated Total Amount before confirming.
- If the amount looks wrong, verify rate type and that fat/SNF readings are entered.
Fields Table
| Field Name | Description | Example |
|---|---|---|
Rate Type |
Fixed, Fat Based, SNF Based, or Fat + SNF Based. |
Fat + SNF Based |
Milk Rate (₹/L) |
Used for Fixed Rate type only. |
₹42/L |
Fat Rate (₹/Kg Fat) |
Price per kg of milk fat. Used on collection entry. |
₹650 |
SNF Rate (₹/Kg SNF) |
Price per kg of SNF solids. |
₹320 |
Fat % |
Required for fat-based pricing. From milk analyser. |
4.2 |
SNF % |
Required for SNF-based pricing. |
8.5 |
Total Amount (₹) |
Auto-calculated based on rate type. |
₹654.00 |
Field Explanations
Below is a detailed explanation of each field listed in the table above.
Rate Type
Fixed, Fat Based, SNF Based, or Fat + SNF Based. For example: Fat + SNF Based.
Milk Rate (₹/L)
Used for Fixed Rate type only. For example: ₹42/L.
Fat Rate (₹/Kg Fat)
Price per kg of milk fat. Used on collection entry. For example: ₹650.
SNF Rate (₹/Kg SNF)
Price per kg of SNF solids. For example: ₹320.
Fat %
Required for fat-based pricing. From milk analyser. For example: 4.2.
SNF %
Required for SNF-based pricing. For example: 8.5.
Total Amount (₹)
Auto-calculated based on rate type. For example: ₹654.00.
Tips
- Enter fat and SNF even for fixed-rate farmers: Quality tracking still needs readings even if payment is per litre only.
- Missing fat/SNF = zero payment: For fat-based farmers, if you leave Fat % empty, the calculated amount will be ₹0.
Common Mistakes
- Wrong rate type on farmer – Most common cause of payment disputes. Double-check when registering new farmers.
- Forgetting fat/SNF on collection – Payment calculates as zero for fat/SNF types without readings.
- Mixing up fat rate and milk rate – Fat rate is per kg of fat, not per litre of milk.
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