Dairy Processor Modernization Grant

Dairy Processor Modernization Grant 2560 1920 Morris County Economic Development Corporation (MCEDC)


The Northeast Dairy Business Innovation Center (NE-DBIC) announces the availability of funds through the Dairy Processor Modernization Grant program to address the significant need for investment in processing infrastructure in the Northeast. Funds will support dairy processors in modernizing their processing facility to allow for long- term business viability.

Projects funded through this grant will focus primarily on upgrading or adding specialized dairy processing or packaging equipment that is necessary for business growth and viability. Funded projects will address one or more of the following areas:

  • Expanded processing capacity: Replacement or addition of equipment that is appropriately scaled for processors’ growth projections. Projects that will significantly expand production capacity, increase utilization of regionally sourced milk, dairy components, or dairy mix, increase production capacity, and meet a market demand.
  • Increased facility efficiencies: Replacing outdated equipment with scale-appropriate specialized equipment that will significantly address efficiencies in labor hours, cost of production, resource/energy usage, and food safety hazards.
  • Implementation of packaging improvements: Replacement or addition of equipment that will demonstrably reduce packaging waste and/or the use of virgin plastics, reduce supply chain waste, or reduce waste through extended/improved product shelf life.

Projects funded through this grant will focus primarily on acquiring specialized equipment. Additional activities that may be incorporated include: training, business planning services, professional consultants, marketing, or supply chain logistics that directly support the project. Evidence of technical assistance from a service provider or business planner involved in the project will make applications more competitive.

The Northeast region, for the purposes of NE-DBIC programs, includes the following states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Grants will range from $15,000 to $350,000 with a 25% (cash or in-kind) match commitment required. At least 75% of grant funds must be used for eligible specialized equipment purchases.

Total funds available: $1,200,000.


This application is open to applicants from all Northeast states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Applicant must be a licensed dairy processor that currently meets each of the following requirements:

  1. Transforms raw milk or dairy components into an edible product meant for human consumption
  2. Licensed in a way that their dairy products can be sold across state lines
  3. Headquartered or based in the Northeast
  4. Sources or produces milk or dairy components from within the Northeast
  5. Manufactures products within the Northeast

Applicants will qualify into tiers outlined below based on milk utilized on an average production day, regardless of the number of days per week they process. Volume may differ based on the product made and processors should reference the volume measurement for their specific product. Volume is a measurement of inputs and not finished products.

Tier Volume of Milk/Components/Dairy Mix Utilized on an Average Production Day Award Range Total Funds Available for Tier
Tier 1 10,000+ units of volume $75,000 – 350,000 Approximately $700,000
Tier 2 1 – 9,999 units of volume $15,000 – 150,000 Approximately $500,000

How to Apply

  1. Review the full 2024 Dairy Processor Modernization Grant RFA (request for applications) for the complete details on eligible projects/applicants and the application process.
  2. Register in WebGrants (may take up to two business days).
  3. Complete your application in WebGrants using our Application Guide.  The application period is June 27, 2024 – August 8, 2024 at 2:00 pm ET.
  4. 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.

Any Questions?

Contact Ben Eldredge

** article courtesy of Northeast Dairy Business Innovation Center