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How to calculate profit per cow on a Kenyan dairy farm

Updated 3 August 2026 · 5 min read

Profit per cow = (her milk income, plus any other income from her, like a calf sold) minus (her share of feed, vet, labour and other costs) for the month. Do this for every cow, and you'll usually find two or three in a herd of twenty are barely breaking even — or losing money.

Why the herd average lies to you

Most farmers know their total milk income and total costs for the month. Subtract one from the other, and you get overall profit. That number is real, but it hides something important: it treats every cow as identical.

In practice, a 50-cow herd has stars, average performers, and a few cows quietly costing more in feed and vet care than they bring in. The only way to find them is to break the same maths down cow by cow.

The formula, step by step

  1. Her income — litres she produced in the month × the price your buyer pays per litre. Add anything else tied to her directly, like a calf sale.
  2. Her share of feed cost — what she personally ate, or (if you feed as a group) total feed cost split across the herd, weighted by how much a high producer typically eats more.
  3. Her share of other costs — vet treatment she received that month, plus a fair share of labour, water and housing spread across the whole herd.
  4. Profit per cow — step 1 minus (step 2 + step 3).

A worked example

The Kenya Dairy Board puts the cost of producing a litre of milk in Kenya at roughly KSH 30–37, depending on your system and scale — feed being the biggest driver. Farmers who are managing costs well are seeing profit of around KSH 10–14 per litre once everything is accounted for.

Say a cow produces 15 litres a day, 30 days a month — 450 litres. At a rough KSH 12/litre profit margin, that cow contributes about KSH 5,400 for the month. A lower producer at 6 litres a day, 180 litres a month, contributes roughly KSH 2,160 — but if she also needed a KSH 1,500 vet treatment that month, her real contribution drops sharply. These are illustrative numbers; your buyer's price and your actual feed cost will move the real figures up or down, which is exactly why you need to run this with your own records, not someone else's example.

What this tells you to actually do

Once you can see profit per cow, three decisions get much easier: which cows to prioritise for breeding (the profitable ones), which to consider culling (chronic low or negative earners with no improvement plan), and where feed is being wasted (a cow eating a full ration but producing little).

Doing this by hand vs. letting an app do it

By hand, this means: a daily milk log per cow, a monthly feed cost record, a vet-cost record tagged to individual animals, and the arithmetic above repeated for every cow, every month. It's doable on paper — many Kenyan farmers do exactly this — but it's slow, and errors creep in.

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Questions farmers ask

Is profit per cow the same as milk yield?

No. Yield is just litres produced. A high-yielding cow that eats a lot of expensive feed can earn less profit than a moderate producer with low costs — you only see this once you look at money, not litres.

How often should I check profit per cow?

Monthly is enough for most decisions. Daily milk totals are useful, but profit needs a full month of costs (feed, vet, labour) to be meaningful.

What if I don't know my exact feed cost per cow?

Start with an estimate: total monthly feed cost divided by number of lactating cows, adjusted if some clearly eat more. It won't be perfect, but it's far more useful than no number at all.

Source: Kenya Dairy Board production-cost and margin figures as reported in The Star, 26 May 2026.

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