​​​​​​​$1 Million Grant Program to Modernize Northeast Dairy Processing Now Open

Grant to support and expand dairy processing capacity and use of regionally sourced milk 

June 26, 2025 – Dairy processors can now apply for the Dairy Processor Modernization Grant. This $1 million investment aims to strengthen Northeast processing capabilities and respond to consumer demand for regional dairy products.  Offered through the Northeast Dairy Business Innovation Center (NE-DBIC), this funding will allow dairy processors to purchase specialized equipment to expand capacity, boost efficiency, lower energy consumption, improve existing products, and create new, high-value dairy products for the region. 

As key contributors to the local and regional food supply, dairy processors handle everything from pasteurizing milk for sale to producing cheese, yogurt, butter, and other dairy products. By modernizing their processing capabilities, they help build a more resilient dairy sector. 

NE-DBIC is funded through the USDA and services dairy processors and farmers across the 11-state Northeast region. On the importance of this funding, Pennsylvania Agriculture Secretary Russell Redding said: 

“Pennsylvania is investing in positioning our dairy industry not only to roll with changes in the marketplace, climate, and technology, but to thrive amid change. Innovations in technology, efficiency, and increased production capacity are significant investments that come with hefty price tags, but also with big payoffs for dairy producers and the consumers who rely on their products. We hope Pennsylvania dairy producers will take advantage of this federal funding opportunity as well as significant state funding to build their future success.” 

Past grantees have seen marked improvements from the funding: 

“We have been running at maximum capacity seven days a week for the past three years using inefficient and outdated equipment.  With the grant funding we received from NE-DBIC, we were able to purchase new energy efficient and labor efficient equipment with larger volume processing capacity which has already proved indispensable and critical for keeping up with the demand and growing our business in a viable and sustainable way into the future," Said Diane Wyatt of Sweet Cow Yogurt in Vermont. 

Applications for the Dairy Processor Modernization Grant will be open from June 26, 2025 through August 14, 2025.  

Awards will range from $15,000 to $250,000 with a 25% match commitment required. In order to serve a wide range of business sizes, applicants will qualify into one of two award tiers based on their processing volume. 

Grants are available to dairy processors and to dairy brands working with co-packing processors in 11 Northeast states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. 

Learn more at nedairyinnovation.com/grants/dairy-processor-modernization-grant

The NE-DBIC's investment and project strategy promotes innovation and resiliency for regional production of dairy products across an 11-state Northeast region.  Hosted by the Vermont Agency of Agriculture, Food and Markets, the NE-DBIC is funded through the USDA-AMS.    

For more information on NE-DBIC, visit:  https://nedairyinnovation.com 

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For questions, please contact:

Laura Ginsburg | NE-DBIC Lead and Dairy Strategy & Innovation Manager at the Vermont Agency of Agriculture, Food & Markets.
802-522-2252 | Laura.Ginsburg@vermont.gov