Applications Open for Dairy Modernization Grant Program

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, the 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. 

Applications will be open 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, including Maine.

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