Value-Added Agriculture: Dairy Products
"Value-added" is the incremental value that is realized by a producer from an agricultural commodity or product as the result of a change in physical state, differentiated production, or marketing, as demonstrated in a business plan; product segregation. Applied to milk, a change in physical state means fluid milk is being made into products like cheese, yogurt, ice cream, or other processed dairy products.
While cows are the most commonly recognized dairy animal, goats and sheep are also dairy animals that offer their own advantages to someone considering a new dairy and value-added product business. Goats and sheep are smaller, and though they produce less milk, their milk is higher in fat and protein - valuable components in the production of some dairy products.
Starting a Value-Added Dairy Foods Business is an online course offered through Penn State's College of Agricultural Sciences, covering the detailed aspects of producing value-added dairy products. This course will provide you with an overview of the key aspects of starting a farmstead dairy processing enterprise, including business planning, marketing, and regulatory requirements. The Penn State Extension site provides information about the local, state, and federal regulations that a dairy producer must adhere to when operating a dairy products enterprise.
If your dairy isn't already well-managed and producing high-quality milk, launching a value-added enterprise may not be the solution. It's important that you correct any issues with a poorly performing dairy before starting a processing venture. Sanitation for a dairy processing facility is of utmost concern and can be addressed by following a thorough routine.
It is also vital that you have a solid understanding of the production of the dairy product(s) you plan to process. Numerous resources are available to learn the art and science of dairy product production.
Raw Milk
For thosewishing to sell raw milk in Pennsylvania, you must obtain a permit from the PA Department of Agriculture by completing and submitting the Application Packet for permit to sell milk and/or milk products. This document also contains regulatory information.
Cheese
Cheese is by far the most popular value-added dairy product for farmstead dairy processors. This is due to both the popularity of cheese among consumers and the ability to age and store cheese for long periods of time.
Numerous workshops and publications abound for those wishing to learn how to make cheese. Workshops range from introductory level one-day workshops to multi-day intensive courses.
Ice Cream
The origins of dairy product short courses can be traced back to Penn State University's Ice Cream Short Course. An intensive, week-long course that covers all aspects of ice cream production, it may seem overwhelming to a novice. However, Penn State also offers anIce Cream 101 two-day course, especially designed for small-scale operators and those new to frozen dairy product processing.
Cultured Dairy Products
The Penn State Food Science Department also offers an annual Cultured Dairy Products short course for anyone processing yogurt, cream cheese, cheese, buttermilk, or sour cream. As with most dairy products, a great number of publications and articles exist that provide basic directions for making the dairy product, sometimes along with recipes, such as this publication on yogurt from the University of Missouri, Making Yogurt at Home: Country Living Series.
Equipment, Services, and Trade Organizations
Developing and maintaining trusted and reliable relationships with input suppliers and testing laboratories will be essential to successful operations. The people in these businesses often become a crucial component of product development and processing. In addition, by becoming an active member of professional associations and subscribing to relevant industry publications, producers can access a wealth of information and resources to support the operation of a successful business.
