Lebnara

How to Calculate Monthly Profit per Dairy Cow

By Saleh Kamal Al-Saleh, dairy farm and cheese factory owner, founder of Lebnara · Last updated:

Many farm owners know the herd total but not which cow earns and which loses. A cow that produces a lot and eats even more can be less profitable than an average cow on less feed. Here is a simple method you can apply on paper or in software.

The formula

Monthly cow profit = milk revenue - feed cost - veterinary and medicines - labour share - overhead share - cow depreciation (if you count it).

  • Milk revenue = monthly milk volume x the actual price per litre you sell at.
  • Feed = what the cow actually eats of concentrate and forage, usually the largest item on a dairy farm.
  • Veterinary = insemination, vaccination, treatment and tests.
  • Labour and overhead = a fair split across the number of cows.

Hypothetical example

Illustrative numbers only. A cow producing 22 litres a day (660 litres a month) with milk at 0.45 JOD per litre.

ItemMonthly value (JOD)
Milk revenue297
Feed120
Veterinary12
Labour and overhead55
Profit before depreciation110

What to do with the result

  • Compare your cows with each other: a consistently low-profit cow is a candidate for a nutrition or health review, or culling.
  • Compare feed cost per litre of milk: a high figure signals an uneconomic ration. Try the feed ration calculator.
  • Watch cows whose output drops suddenly; they may have mastitis or heat stress.

How Lebnara calculates it

The farm module records daily milk, expenses, feed and health, and shows a profitability report combining costs and revenue so you can compare the whole herd instead of relying on memory.

Frequently asked questions

Should I include cow depreciation?
Ideally yes for a full picture, but you can start with profit before depreciation and add it later once you set the purchase value and productive life.
How do I allocate labour to cows?
Divide total monthly labour by the number of lactating cows, or use a fixed share agreed with your accountant.

Find a cheaper ration for your cows

Feed is the biggest item in cow profit. Try the calculator.

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