Free Milk Protein Price Differential Calculator

Value the protein premium or discount between actual and reference protein, priced against the live SMP market. Enter your prices for an instant differential.

Free, no login SMP-equivalent method EU industry yields

Contract terms

42.00 €/100kg
€25 €70 €/100kg
3.40 %
2.8% 4.0% %
3.50 %
2.8% 4.2% %

SMP market price

Sets the value of each protein point.

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Each protein point yields about 2.99 kg SMP per 100 kg milk (protein / 0.335).

How the calculation works

How does the protein price differential work?

Milk contracts that pay for protein adjust the price up or down from a reference protein level. Each percentage point of protein above the reference adds the value of the extra protein (priced from the SMP market); protein below the reference subtracts it.

How is the protein value derived?

One percentage point of protein yields about 2.99 kg of SMP per 100 kg of milk (SMP is roughly 33.5% protein recovery). The calculator values that powder at the SMP market price, so a higher SMP market raises the worth of every protein point.

Why value protein against SMP?

Protein is the component that drives skim milk powder and cheese yield. SMP is the cleanest traded proxy for the value of milk protein, which is why processors reference it when pricing the protein fraction.

How does this relate to the butterfat adjustment?

They are the two halves of component pricing: butterfat is valued against butter, protein against SMP. Together they explain most of the variation between a base milk price and what is actually paid.