The 60/40 formula
Fat carries 60 parts, SNF carries 40 — and the SNF standard drops to 8.5.
- Formula
- base × (fat×60÷6.5 + SNF×40÷8.5) ÷ 100
- Standard fat
- 6.5
- Standard SNF
- 8.5
Dairywala works it out as: rate = base rate × ( fat × 60 ÷ 6.5 + SNF × 40 ÷ 8.5 ) ÷ 100.
Two things change from 52/48: fat carries more of the price, and the SNF standard is 8.5 rather than 9.0. Both are what the formula is defined as — Dairywala does not average them or round them.
As with every formula, the base rate and both standards can be set for the dairy and overridden for one member.
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