NE-DBIC Dairy Processor Modernization Grant to Infuse $1 million into Northeast Dairy Sector

Grant will support and expand dairy processing capacity and use of regionally sourced milk

June 25, 2026 | Montpelier, VT - Pre-applications for the Dairy Processor Modernization Grant are now open. Offered by the Northeast Dairy Business Innovation Center (NE-DBIC), this grant helps fund equipment for dairy processing and packaging. A total of $1 million is available to increase business viability and ability to meet consumer demands.

Funding will support dairy processors and dairy brands in purchasing specialized equipment to expand processing capacity for local milk, boost efficiency, lower energy consumption, improve existing products, and create new, high-value dairy products for the region.

Projects may focus on improving product quality, increasing production, enhancing efficiency, upgrading existing products or launching new ones. Having technical assistance from a service provider or business planner will make applications more competitive.

This year's application process has two stages. The pre-application period is June 25 through August 13. Successful pre-applicants will be invited to submit full applications. Grants may range from $15,000 to $250,000, with a 25% match 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: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont.

Learn more at nedairyinnovation.com/grants/dairy-processor-modernization-grant/

The NE-DBIC's investment and project strategy promotes innovation and resiliency for regional production of dairy products across an 11-state Northeast region. Hosted by the Vermont Agency of Agriculture, Food and Markets, the NE-DBIC is funded through the USDA-AMS.

For more information on NE-DBIC, visit: https://nedairyinnovation.com

Katie Spring (she/her) | NE-DBIC Communications Manager | Northeast Dairy Business Innovation Center | [email protected] | 802-522-3186