USA: Payout NDM + Butter

Nonfat Dry Milk (NDM) and Butter are among the most requested U.S. dairy products on the international market for the production of widely consumed products. NDM and Butter prices are used as reference to deduce, with a mathematical calculation, the theoretical value of the milk used for their production.

The variables used for the mathematical calculation are the following:

• Butter, Grade AA 82% Value - CME (Chicago) (current price)
• Nonfat Dry Milk (NDM) Value (current price)
• Processing costs for 1 lb of Butter produced
• Processing costs for 1 lb of Nonfat Dry Milk (NDM) produced
• Kg of Nonfat Dry Milk (NDM) obtained from 100 kg of Skimmed Milk

INITIAL VARIABLES: 100 lb (1 cwt) of Whole Milk with 3.7% p.p fat and 3.4% p.p. protein

TRANSFORMATION of Whole Milk with 3.7% p.p. fat: a. CREAM 40%: 9.25 lb      which produces:      BUTTER 82%: 4.51 lb b. SKIMMED MILK: 90.75 lb     which produces:     SKIMMED MILK POWDER (SMP) *: 9.41 lb     (10.37 lb of SMP are obtained from 100 lb of Skimmed Milk)      THEREFORE 1 lb of SMP is obtained from 9.65 lb of Skimmed Milk)

However, each User can calculate its personal indicative price by inserting different variables from the proposed ones corresponding to the current monthly average prices. The new values have to be inserted in the provided white field thus replacing the ones present at that moment. Click on Calculate to have the final value. Click on Reset to go back to the original values.

	Your values	Current prices and indicative values
Butter price	USD/lb	2.8500
NDM price	USD/lb	1.7350
NDM from 100lb of skim milk	lb	10.37
Cost transf. into Butter	USD/lb	0.1715
Cost transf. into NDM	USD/lb	0.1678
Theoretical price	26.83 USD/cwt 55.93 €/100kg	26.83 55.93
CALCULATE RESET