Milk costs reported within the media might be complicated and deceptive data for farmers, the dairy industry, and the general public. The premise of measurement and reporting varies extensively inside many international locations, not to mention when forex is taken under consideration.
Mostly milk value is reported as a price per quantity or weight of milk. For instance: cents per litre (cpl); {dollars} per hundredweight ($/cwt); or euro per 100 kilograms. The key downside with these value bases is that precise funds for milk are sometimes for the elements of fats, protein and different solids – only a few dairy processors pay for water! It is advisable know the composition of the milk and this composition adjustments from farm to farm and from nation to nation. There isn’t any one commonplace composition relating to evaluating native and worldwide costs. Introduced listed below are a number of the components that should be taken under consideration when making comparisons.
Forex: That is an apparent challenge however consideration must be given to a alternative between: the present every day fee; the annual common conversion fee; the weighted common conversion fee. Within the latter case the forex alternate fee ought to to be weighted to the timing of funds to farmers.
Fats and Protein Composition: It’s regular for farmers to be paid on the idea of the milk fats and protein composition. This may have a dramatic have an effect on on the milk value when expressed in cpl. So for instance the cpl milk value for a jersey cow with excessive milk elements might be greater than 50% increased than a fresian / holstein cow.
Typical composition of cows milk within the main world dairy exporters are: Europe – 4.2% fats, 3.4% protein; USA 3.7% fats, 3.0% protein; New Zealand – 4.7% fats, 3.7% protein; Australia 4.1% fats, 3.3% protein.
So as to add to the confusion, reported USDA milk costs in $/cwt are primarily based on a fats composition of three.5% and the Eurostat milk costs are primarily based on 3.7% fats.
There isn’t any commonplace for Australian and New Zealand milk value and the most secure measure of native value is when expressed as $ / kilogram of milk solids ($ / kg MS). Milk solids is outlined because the sum of fats and protein measurement in milk.
Mass or Quantity Measurement: In addition to the fats and protein composition of milk you additionally must know whether or not the check measurement is expressed as mass / mass (eg. kg / kg) or mass / quantity (eg. kg / litre). The standard density of milk is near 1.03 grams / litre so an error right here can have an effect on the milk value calculation by 3%.
True or Crude Protein: Crude protein is an estimate of milk protein composition primarily based on nitrogen measurements (sometimes by Kjeldahl nitrogen testing). The milk protein content material is calculated from a world commonplace issue of Nitrogen x 6.38.
True protein is an estimate of the particular milk protein primarily based on calibrated close to infrared measurement. The distinction between crude and true protein equates to what’s termed “non protein nitrogen” (NPN).
It’s estimated that true protein measurement will give a outcome 0.1 – 0.2% decrease than crude protein. This may have an effect on the calculation of milk value by as a lot as 5% นมรสกาแฟ.
Within the US and Australia milk protein content material is usually reported as true protein whereas within the EU and NZ, extra typically crude protein is used.
Instance Calculation: Right here is an instance of the way you may convert a reported milk value from one nation to a different taking account of the components above:
A US farmer will get paid $US 11.50 / cwt for milk with a composition of three.7% fats and three.0% true protein on a mass / mass foundation.
A New Zealand farmer desires to know what this equates to in $NZ / kg MS with the milk solids being equal to fats + crude protein. Assuming an alternate fee of $NZ 1.00 = $US 0.70, and that crude protein = true protein + 0.15%, the calculation is as follows:
$US 11.50 / cwt = $NZ 16.43 / cwt
Milk composition = 3.7% fats + (3.0 + 0.15) % crude protein = 6.85% milk solids mass / mass
1 cwt milk / 220.4 = 45.4 kilograms
$NZ $16.43 / cwt / 45.4 / .0685 = $NZ 5.28 / kg MS CP (crude protein)
For an Australian Farmer there isn’t a want to regulate for crude protein – milk solids = %3.7 + 3.0% = 6.7%. Assuming an alternate fee of $AU 1.00 = $US 0.87:
$US 11.50 / cwt = $AU 13.22 / cwt
$AU 13.22 / cwt / 45.4 / .065 = $AU 4.35 / kg MS TP (true protein)
A UK farmer desires to know what that is in pence cents per litre at their typical milk composition of 4.2% fats and three.4% crude protein (~ 3.25% true protein). This query is a bit more durable as a result of we do not know the worth of the person fats and protein elements. The very best we will do is assume that the worth of milk solids is similar. That can give a fairly shut approximation if the ratio of fats to protein is analogous in each circumstances. So assuming: $US 1.00 = 63 English pence
$US 11.50 / cwt = 724.5 pence / cwt (7.25 English kilos / cwt)
724.5 pence / cwt / 45.4 = 16.0 pence / kilogram
16.0 pence / kilogram x 1.03 = 16.4 pence / litre
That is nevertheless the value at a composition of three.7% fats and three.0% true protein. To get an estimate on the element pricing of the eu farmer apply the relative ratio of whole milk solids:
16.4 pence / litre x (4.2 + 3.25) / (3.7 + 3.0) = 18.2 pence per litre.
Over on the European continent they assume in euros / 100 kg of milk. We’ll take a shortcut right here and convert from pence per litre to Euros / 100 kg assuming the identical milk composition because the UK farmer. With an alternate fee of 1.00 euro = 92 English pence:
18.2 pence per litre = 19.8 euro / 100 litres
19.8 euro / 100 litres / 1.03 = 19.2 euro / 100 kg