Dairy Co-Packing Grant

The Northeast Dairy Business Innovation Center (NE-DBIC) is offering the Dairy Co-Packing Grant, a funding opportunity aimed at supporting licensed dairy processors and dairy brands in the Northeast that are engaged in or planning to use co-packing arrangements. This initiative is designed to help dairy processors initiate new co-packing arrangements, scale up production, expand product lines, or establish new partnerships. Additionally, dairy brands currently using co-packing services or those planning to start are eligible to apply, provided the project focuses on scaling or initiating production of existing products through co-packing.

The grant application period opens on February 11, 2025, and closes on April 10, 2025, at 2:00 PM ET. Grant recipients must allocate at least 10% of their awarded funds toward obtaining technical assistance or training relevant to value-added co-packing production. Funding can also be used for purchasing specialized dairy processing equipment and supplies, hiring professional marketing and branding services, improving food safety, and covering contract fees related to establishing a new co-packing relationship. However, routine operational expenses for either the applicant or co-packing partner are not eligible for funding.

Grant awards range from $15,000 to $150,000, with a total funding pool of approximately $1,100,000. A 25% cash and/or in-kind match contribution is required from all applicants. The funding is available to businesses located in the 11 Northeast states served by NE-DBIC, which include Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Eligible applicants must be either licensed dairy processors or dairy brands utilizing or planning to utilize co-packing services. Licensed dairy processors must be headquartered in the Northeast, hold a license permitting the sale of their products across state lines, and source or produce milk or dairy components within the region. Dairy brands that currently use or intend to use co-packing services must provide Letters of Commitment (LOCs) from a licensed farm or dairy processor confirming the milk source and from a partnering co-packer confirming their commitment to process the product. Proof of market readiness is also required, which may include market research, sales data, prior sales documentation, or letters from potential distributors or retailers.

The application process requires applicants to register in WebGrants, which may take up to two business days. Once the application is open, applicants must complete their submission through WebGrants using the provided Application Guide. Those who do not already have a Unique Entity Identifier (UEI) through SAM.gov are strongly encouraged to begin this process during the application period to ensure timely grant initiation if awarded.

For inquiries, applicants can contact Ali Boochever at ali.boochever@vermont.gov or (802) 261-5740. Additionally, appointments can be scheduled for discussions regarding the grant. This grant opportunity is made possible by funding from the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service through multiple grant agreements.