Profitability Index
Profitability Indexes
Milk Profit Index (MPI)
Measures your income over feed cost (IOFC) against a standard index. Useful for benchmarking and continuous improvement monitoring. A 10 unit change is equivalent to approximately $255 IOFC / cow / year. Therefore, a 5 unit change for a 200 cow herd represents a $25,000 change in income over feed cost on an annual basis. Calculate your dairy's MPI with the
Milk Profit Index Calculator
Financial Profit Index (FPI)
Measures current gross margin over feed costs for the herd against the projected cash flow minimums needed for continued operation. Values greater than 100% are needed to maintain cash flow goals.
Goal Profit Index (GPI)
Similar to FPI, this index compares current herd Income Over Feed Cost (IOFC) with the projected management goal. This may be based on industry benchmarks or internal goals for continuous improvement. Therefore, a dairy's GPI may be less than 100%, but still meeting minimum cash flow needs if the FPI is greater than 100%.