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Thinking of Starting a Value-Added Dairy Foods Business?

By Kerry E. Kaylegian
“Value-added” is an extra characteristic that offers greater value to the consumer and generates a higher dollar return for the dairy foods processor. Reasons for starting a value-added business: to maintain a small family farm; for financial sustainability of your dairy; if you have a passion for dairy products; or to provide a business opportunity for future.
Successful and Sustainable business
There is a wide range of value-added dairy products such as fluid products, frozen desserts, cultured products, a variety of cheeses, and butter. Dairy consumption is increasing but product trends are moving away from fluid milk to value-added dairy products.
Consumers are interested in local products as well as niche or specialty products, so you may be able to capitalize on an opportunity to market your milk such as grass-fed cattle, organic, goat or sheep products, A2 milk, breed-specific such as Guernsey or Jersey.
Before you start, knowing the characteristics, science, and manufacturing technology of your product is critical to making a consistent, high-quality product. This will help you determine your equipment and facility needs, manufacturing processes, and regulatory requirements.
The dairy industry is highly regulated. You need to know the federal and state regulations that apply to your enterprise. It is also important to identify potential barriers to the success of your enterprise.
A Successful and Sustainable business is the result of a solid understanding of your markets and the technology needed to make your products, and a commitment to the highest quality farming, manufacturing, and business practices.
This program was developed by Food Safety CTS, LLC, for Penn State University.
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