NE-DBIC Dairy Co-Packing Grant 2025

The Northeast Dairy Business Innovation Center (NE-DBIC) announces the availability of funds through the Dairy Co-packing Grant program.

Donor Name: Northeast Dairy Business Innovation Center (NE-DBIC)

State: Selected States

County: All Counties

Type of Grant: Grant | In-Kind

Deadline: 04/10/2025

Size of the Grant: $100,000 to $500,000

Grant Duration: 1 Year

Details:

The Dairy Co-Packing Grant supports existing licensed dairy processors and dairy brands in the Northeast engaged in or planning to use co-packing arrangements. The program supports dairy processors who wish to initiate new co-packing arrangements as well as those with existing co-packing capabilities looking to scale up production, expand product lines, or establish new co-packing partnerships. Additionally, dairy brands currently using co-packing services or planning to initiate co-packing arrangements are eligible to apply, provided the project focuses on scaling or initiating production of existing products through co-packing.

Co-packing, for the purpose of this program, is a business arrangement in which a licensed dairy processor provides specialized production, processing, and/or specialty aging, cutting, and packing services for another business. In this arrangement, the business contracting with the co-packer retains ownership of the product rights, branding, and marketing.

Funded projects will fall into two categories:

• Co-packing start-up: These projects focus on existing dairy processors that will establish new copacking services with contracting businesses to address gaps in regional dairy processing infrastructure. The goal is to provide small and medium-sized dairy businesses, such as farms or other value-added dairy brands, with access to co-packing services that help scale their product lines, enter new markets, or diversify offerings. Start-up projects may target underserved regions or producers, fostering innovation and supporting the growth of local dairy businesses.
• Co-packing expansion: These projects aim to enhance existing co-packing dairy processing facilities to increase production volume, support new product lines, establish new co-packing partnerships, or integrate advanced processing technologies. Expansion efforts should also prioritize operational efficiency and environmental sustainability, such as reducing energy consumption or adopting recyclable or biodegradable packaging. Expansion efforts are expected to strengthen partnerships with dairy farms and value-added businesses to meet growing demand while maintaining quality, consistency, and alignment with the Northeast dairy supply chain.

Funding Information

Grants will range from $15,000 to $150,000 with a 25% cash and/or in-kind match contribution. Approximately $1,100,000 in total funds are available.

Grant Period

Grant periods will be approximately 12 months.

Eligibility Criteria 

Grants are available to applicants in all 11 Northeast states served by NE-DBIC: Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Applicants eligible for these funds must currently be one of the following:

• Licensed Dairy Processors: The applicant must be a licensed dairy processor that:
  • Transforms raw fluid milk, dairy components, or dairy mix into an edible product meant for human consumption.
  • Holds a license that permits the sale of their dairy products across state lines, even if they are not currently doing interstate sales.
  • Is headquartered or based in the Northeast.
  • Sources or produces milk or dairy components from within the Northeast.
  • Manufactures products within the Northeast.
• Dairy Brands Currently Utilizing Co-Packing Services: If the applicant is a private dairy brand seeking to expand co-packing services, they must:
  • Provide two Letters of Commitment (LOC):
    • One LOC from a licensed farm or licensed dairy processor confirming the source of milk or dairy component needed to expand.
    • One LOC from the partnering co-packer confirming their commitment to process the product for the brand.
      • The co-packing partner needs to meet the eligibility requirements of a licensed dairy processor above.
  • Provide proof of market readiness. Acceptable forms of proof of market readiness may include:
    • Market research that shows consumer demand or trends for similar products in the target market.
    • Sales data or projections that demonstrate consumer interest.
    • Documentation of prior sales or established distribution channels.
    • Letters of Commitment or interest from potential distributors, retailers, or customers confirming their willingness to purchase the product.
  • Demonstrate ownership of the product, which may include:
    • Trademark registration or intellectual property documentation.
    • An agreement or attestation confirming their exclusive right to the product’s recipe, branding, and distribution.
    • Evidence of prior sales or established marketing for the product.
• Dairy Brands That Will Start to Utilize Co-Packing Services Through This Grant: If the applicant is a private dairy brand initiating a new relationship with a co-packer, they must:
  • Provide two Letters of Commitment (LOC):
    • One LOC from a licensed farm or licensed dairy processor confirming the source of milk or dairy component.
    • One LOC from the partnering co-packer confirming their commitment to start processing the product for the brand.
  • Provide proof of market readiness. Acceptable forms of proof of market readiness are listed above.
  • Demonstrate that the relationship will result in a new co-packing arrangement for the brand.

For more information, visit NE-DBIC.