By Anson Tebbetts
As we head into late fall and early winter, milk prices for farmers remain volatile. Record prices this summer were offset by record costs for feed, fuel, and fertilizer. It was a dry summer for many as well. Lack of rain meant smaller yields for some crops and grazing was a challenge for many farmers. All these factors mean the farm economy remains challenging.
While we can do little to control the price of milk because of a federal pricing system, we are trying to get dairy farmers more resources to make it more affordable. I would encourage all to learn more about the Northeast Dairy Business Innovation Center. This center is managed by the Vermont Agency of Agriculture, Food & Markets. This regional center provides support to dairy businesses through projects that promote the development, production, marketing, and distribution of dairy products. One program is helping to improve infrastructure on the farm. The On-Farm Milk Storage Program was launched this fall. Applications will be taken until October 6th but we believe we will have to have a second round of grants because the program is so popular and needed. The program supports dairy farmers wanting to buy equipment and other materials that will improve milk storage, handling, and energy efficiencies. The grants (not loans) range from $15,000 to $50,000.
The Center also awarded a series of grants to help dairy co-ops and those making products from milk improve their packaging. Staying in-step with consumers is critical to the future of dairy. As consumer demand grows for sustainable packaging solutions, the center has prioritized investments in projects that will reduce the use of virgin plastics and the environmental impacts of dairy product and supply chain packaging. For example, Cabot received $323,000 to collaborate with a packaging manufacturer to produce a study on a shelf-life and feasibility that compares sustainable cheese packaging options. The $1.1 million in funds will support dairy processors at a variety of scales and product types to conduct research, packaging development, and to analyze consumer receptiveness.
Vermont is fortunate to have this center funded by the United States Department of Agriculture. To date, $31.72 million has been awarded to the center for projects extending through 2026. The Northeast Dairy Business Innovation Center is one of four in the nation. The others are in California, Tennessee, and Wisconsin. I would encourage all to sign up for the Center’s newsletter (https://tinyurl.com/DairyInnovation) so dairy farmers and processors are aware of current and future funding opportunities.
If you have suggestions to help the center better serve dairy farmers, please contact us. We are open to new ideas to improve the dairy economy. Wishing you a safe and productive fall.
Anson Tebbetts
Secretary