Dairy Processor Modernization Grant is sponsored by Northeast Dairy Business Innovation Center (NE-DBIC). This program funds purchases of specialized equipment and other approaches to modernizing existing dairy processing facilities in the Northeast.

Dairy Processor Modernization Grant - Northeast Dairy Business Innovation Center Dairy Processor Modernization Grant 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 and dairy brands in modernizing their production to allow for increased processing of regional dairy, long-term business viability, and ability to meet consumer demands.

Projects funded through this grant will focus primarily on acquiring specialized equipment for dairy processing that offers benefits such as increased capacity, higher efficiency, reduced energy usage, increased quality, or ability to produce new or higher-value products. Projects that benefit more than one dairy business and those that incorporate technical assistance may be more competitive.

Grants are available to dairy processors and dairy brands working with co-packing processors in all Northeast states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Applicants will qualify into one of two award tiers based on their processing volume. Grants will range from $15,000 to $250,000 with a 25% (cash or in-kind) match commitment required.

Applicants will qualify in tiers based on how much milk or dairy mix they use on an average production day, regardless of the number of days per week they process. Tier descriptions will be released at the same time as the Request for Application (RFA). At least 75% of grant funds must be used for eligible specialized equipment purchases.

Please note that this year, this program will have a two-stage application. Total funds available: $1,000,000. These grants are for projects that will directly benefit dairy processing in the Northeast region (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 groups: Transform raw fluid milk, dairy components, or dairy mix into an edible product meant for human consumption; and Are headquartered or based in the Northeast; and Source or produce milk or dairy components from within the Northeast; and Manufacture products within the Northeast; and Hold a license as a dairy processor that permits the sale of their dairy products across state lines, even if they are not currently selling interstate.

Dairy brands that market Northeast dairy products produced by a licensed dairy processor under a co-packing or other arrangement. For the purposes of this grant, a dairy brand is a business that develops and markets dairy products but may not operate its own processing facilities.

Dairy brands own the rights to their products’ recipes, branding, and distribution, but work with licensed dairy processors, such as co-packers, to produce their products. White-label retailers, who rebrand products developed and produced by another company but do not own exclusive rights to the product, are not eligible.

Dairy brands are eligible if: The project primarily benefits at least one dairy product meant for human consumption that is produced by a Northeast processor that meets all eligibility requirements as defined above; and A Letter of Commitment from the partner processor is included in the application.

Special note for co-packing, processing partnerships, and dairy brands: If a grant project involves both a dairy brand and a processing partner, the primary applicant should be whichever entity will own the equipment or supplies purchased under the grant.

For instance, if a dairy brand needs a specialized filler but their processing partner will own the equipment, the processing partner should be the grant applicant and the dairy brand would be listed as a project partner. Please contact the Grant Program Manager if you have questions about who the applicant should be.

Prior to award, we may confirm your compliance (or that of your processing partner, in the case of dairy brands) with applicable licensing standards. Review the Request for Pre-Applications (RFA) once it is available. This will contain the complete details on eligible projects/applicants and the full application process.

The RFA will be released on June 9, 2026. Register in WebGrants (may take up to two business days). Complete your application in WebGrants , once it opens, using our Application Guide .

The pre-application period will be June 25 – August 13, 2026 at 2:00 PM ET. A subset of applicants will be invited to submit a full application in the fall. The full application period is expected to be September – November 2026.

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?

You may refer to the 2025 Dairy Processor Modernization Request for Applications (RFA) but please note changes may be made to this program for 2026. Have a question? Contact Kathryn Donovan: kathryn.

donovan@vermont. gov | (802) 585-4571.