Running a milk business involves specific terminology that isn’t always explained clearly. This dairy business glossary covers the terms milkmen and small dairy owners hear most often.
Pricing and Quality Terms
Fat% — the percentage of milk fat, a major factor in pricing. SNF (Solids-Not-Fat) — everything solid in milk except fat (protein, lactose, minerals); also affects pricing. See our detailed fat/SNF calculation guide for how these translate into rates. Lactometer — a simple tool that measures milk density to check for water dilution.
Record-Keeping Terms
Khata — a traditional Hindi/Urdu term for a running ledger or account book, widely used for milk billing records. Hisab — Hindi for “calculation” or “accounts,” commonly used interchangeably with khata in the context of milk billing. See our digital khata guide for how this traditional concept translates to modern apps.
Business Structure Terms
Cooperative Society — a farmer-owned collective that pools milk for processing and sale, discussed in detail in our cooperative societies guide. Procurement — the process of collecting raw milk from farmers before processing or resale. SNF-based billing vs flat-rate billing — two different approaches to charging customers, with SNF-based billing rewarding higher-quality milk.
Delivery and Operations Terms
Route — the sequence of customer stops a milkman covers during a delivery round; see route management tips. Subscription — a recurring delivery arrangement, typically daily, weekly, or monthly; covered in our subscription models guide.
Understanding this vocabulary makes it easier to compare tools, negotiate with suppliers, and explain your business clearly to customers and partners.
Track this the easy way
The free Milk Diary app handles daily entries, automatic billing and payment tracking for you. Download Milk Diary free on Google Play.