New Dairy Processor Start-up Grant

Grant Overview

*This grant opportunity is currently closed*

The Northeast Dairy Business Innovation Center (NE-DBIC) announces the availability of funds through the New Dairy Processor Start-up Grant program to support new dairy processing projects throughout the Northeast. The goal of this program is to help develop competitive dairy processing businesses with long-term viability, supporting operations of all sizes in successfully launching and sustaining their products in the marketplace.

Funds are intended to support start-up operations, focusing on tangible implementation rather than research and development, concept development, or initial planning. By the end of the grant period, projects should show their products being sold in stores or show a Letter of Commitment from a buyer, distributor, or retailer indicating plans to sell the products. Additionally, licenses must be obtained to sell dairy products across state lines. Therefore, applications should be at a stage where they are nearly ready for implementation and can provide Proof of Concept.

Applicants are required to allocate at least 15% of their funding towards obtaining technical assistance or training relevant to starting up value-added production. This may include business planning, recipe formulation, one-on-one training, workshops or mentorship programs on dairy safety, business acceleration, food handling, and more. Funding from this grant program can also cover the purchase of specialized dairy processing equipment and supplies, enhancement of food safety measures, professional marketing and branding efforts, market access strategies, and product development. Construction costs cannot be covered by grant funds, but can be included as match. 

Applicants are strongly encouraged to engage in technical assistance such as business planning, market research, or other relevant pre-work ahead of applying.   

Awards 

Grants will range from $15,000 -$75,000 with a 25% (cash or in-kind) match commitment required.   

Total funds available: $500,000 

Eligibility 

Grants are available to applicants in all Northeast states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.  

To be eligible for this grant, applicants must fall into at least one of the following categories: 

  1. Dairy farmer (producer) that: 
    • produces milk within the Northeast; and  
    • is a licensed dairy operation in compliance with all required state and/federal standards  
  2. Value-added business entrepreneur that meets the following requirements:
    • Sources milk or dairy components from within the Northeast and has evidence of a committed partnership with a farm or processor for sourcing these components
    • Has a business entity prior to applying
    • Can demonstrate experience in dairy processing and/or related value-added business startup, including any relevant work experience, business ventures, products developed, and products brought to market
  3. Dairy processor established after January 1, 2023 that:
    • Has a business entity and milk processing license prior to applying
    • Sources milk or dairy components from within the Northeast and has evidence of a committed partnership with a farm or processor for sourcing these components
    • Is in the start-up phase of business operations

All applicants must also:

  • Be headquartered or based in the Northeast
  • Provide a Proof of Concept demonstrating the viability of the business idea and product
  • Have a plan for new value-added dairy processing that includes market research, financial projections, a branding and marketing strategy, and a facility location

How to Apply 

  • Review the full 2024 New Dairy Processor Start-up Grant RFA (request for applications) for the complete details on eligible projects/applicants and the application process.
  • Register in WebGrants (may take up to two business days).  
  • Once it is open, complete your application in WebGrants using our Application Guide. This grant opportunity is currently closed.
  • Applicants who do not already have a Unique Entity Identifier (UEI) through SAM.gov are strongly encouraged to start this process during the application period to ensure a timely start to their grant, if awarded.  

Have a Question about this Grant? 

Have a question? Contact Ali Boochever: ali.boochever@vermont.gov | (802) 261-5740

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