To date, DBI invested over $64 million across 600 dairy projects in supporting supply chain resiliency, establishing new markets and expanding economic growth in rural economies, Tom Vilsack, USDA secretary, said in a statement released last week.
“USDA is committed to helping America’s dairy industry remain competitive as they work hard to provide necessary, nutritious dairy products to communities nationwide. Through [DBI], we aim to help the dairy industry access new and better markets, spur innovation and create economic growth," Vilsack said.
This year’s allocation will be awarded noncompetitively to DBI’s four current initiatives at California State University, Fresno, the University of Tennessee, Vermont Agency of Agriculture, Food & Markets, and the University of Wisconsin.
The initiatives will use the funding to offer technical assistance and subaward grants to dairy farmers and businesses in their regions. This support will help with business plan development, marketing and branding efforts, while also expanding access to new production and processing techniques to advance the development of value-added products.
Across California, Oregon and Washington, the Pacific Coast Coalition will use $690,000 in new funding to support farmers exploring higher value uses for milk (e.g. artisanal cheeses and organic dairy products). To stay competitive, the Coalition will also provide business training for farmers to expand and diversify their income and markets.
The University of Tennessee’s $3.45 million fund will support farmers across 12 states to adopt practices that improve financial outcomes and diversify the dairy supply chain. Key areas of focus include product safety, farm sustainability and workplace development – aimed at improving productivity and competitiveness in the Southeastern dairy sector.
In the Northeast, Vermont’s Dairy Business innovation Center will leverage $3.45 million to expand its impact across the region. Since August 2024, the initiative has provided $31 million to 333 projects, ranging from farm modernization to energy efficiency upgrades, all designed to strengthen the resilience and operational efficiency in the region’s dairy industry. The funds will further bolster the region’s sustainability and output efforts.
Across the Midwest, Wisconsin's Dairy Business Innovation Alliance will use its $3.45 million funding to provide grants and technical assistance for dairy farmers and processors to expand their market presence and strengthen value-added product development.
Emerging technologies bolster dairy innovation
As demand for sustainable dairy options grow, technologies like precision fermentation and cellular agriculture offer potential to drive profitability and efficiency while still using dairy proteins.
Animal-free casein as seen by New Culture and NewMoo, as well as Arla Foods’ whey protein hydrolysates to reduce risk of allergens in infants, are tapping into precision fermentation to develop comparable texture, nutrition and taste as conventional dairy products, in addition to enabling the creation of blended dairy products that contain a mix of animal- and plant-based proteins.
For milk alternatives, functional ingredients like probiotics and prebiotics or nootropics may drive diversification in the category, giving consumers more options around fortified milk, as previously reported by FoodNavigator-USA.
