Applications open for Dairy Co-Packing Grant Program (US)

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.

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.

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.