Product Diversification: Mountain Dairy Cheese Production

Existing dairy farms often do what they can to survive. Experimenting and investing in new product ventures frequently does not factor into the survival equation. Babson College, Worcester Polytechnic Institute, and Worcester State University have proposed partnering with Mountain Dairy to help them do just that: expand their operation into cheese production. In return, the participating institutions will commit to certain purchase volumes to ensure a stable market for delivery of its new product.

The participating institutions use approximately 50,000 pounds of shredded mozzarella cheese each year. To fully supply this demand, Mountain Dairy would require an additional 500 pounds of milk, 20 dairy cows, 30 acres of land, and 380 tons of feed. This project has identified sourcing to fulfill this need, including 100% locally sourced feed. In addition, this plan would utilize as many as 60,000 pounds of skim milk annually that currently lacks a market. As production increases, it is conceivable that market demand may even eclipse that of the three participating institutions, allowing more institutions to purchase local cheese and milk from the initial investment made through the New England Food Vision Prize.

With the award, Mountain Dairy can expand into the cheese business and offer a more competitive pricing structure that will not only be appealing to Babson, WPI and WSU but also the broader market of New England institutions. This award would give Mountain Diary a competitive advantage against national distributors to offer a similar cost for a New England produced product.