Use a worked example to separate feed purchases, feed consumption and total milk production costs.
A feed invoice is not the same as the cost of feed consumed that day. You may buy a month's supply at once. To compare feed use with milk production, match consumption to the same group and period.
Match the group, period and units
If milk is recorded for one milking group, use that group's feed consumption. Separate calves, dry animals and other groups. For a weekly calculation, use the same seven days for both feed and milk.
Record quantity, unit and unit cost for each feed. Do not multiply a price per tonne by a quantity in kilograms without converting the price. Divide a tonne price by 1,000 to get a kilogram price.
A worked daily example
These figures illustrate the arithmetic only. They are neither a feeding recommendation nor current market prices. Replace them with your own recorded quantities and costs.
| Feed record | Quantity | Unit cost | Cost |
|---|---|---|---|
| Feed A | 300 kg | TRY 8/kg | TRY 2,400 |
| Feed B | 100 kg | TRY 12/kg | TRY 1,200 |
| Total | TRY 3,600 |
Daily feed cost is the sum of quantity × unit cost. With 600 litres recorded that day: TRY 3,600 ÷ 600 litres = TRY 6 per litre in feed costs.
Feed cost is not total production cost
This example excludes labour, electricity, veterinary services, maintenance, depreciation and other costs. Subtracting feed costs alone from milk revenue does not give net profit.
For a full production cost calculation, specify the included expenses and how shared costs are allocated between groups. Keep that method consistent when comparing periods.
Avoid counting the same feed twice
A purchase adds feed to stock; feeding animals records consumption. Adding both the purchase value and the consumption value to the same cost total counts the same feed twice. A cash-flow report and a consumption-cost report answer different questions.
Distinguish a missing record from zero production
If milk records are missing, leave the per-litre result unavailable and investigate the gap. A genuine zero-production day should be recorded explicitly; division by zero does not produce a valid unit cost.
For the weekly figure, divide total feed cost by total milk output. A simple average of daily unit costs will differ when daily output varies, and can give a small-output day too much weight.
