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THE DAIRY BUSINESS INNOVATION CENTER:
A CATALYST FOR INNOVATION
Kate Arding and Norman E. Monsen
Dairy Business Innovation Center, Wisconsin Department of Agriculture Trade and
Consumer Protection
Madison, Wisconsin, USA
Introduction and Overview of the Dairy Business Innovation Center and the Wisconsin
Value Added Dairy Initiative Program
The Wisconsin Value Added Dairy Initiative Program traces it’s origin to the mid and late
1990’s. This period was the culmination of a 15 to 20 year down cycle in the state dairy
economy. During these years the number of active dairy farms in Wisconsin decreased by
15,000+ families along with a corresponding decrease in dairy manufacturing plants. Many
factors can be listed as causes including; depressed milk prices, high interest rates, over
expansion due to easy credit and government programs, and declining market share for cheese
and other dairy products. Shortly after this period, Wisconsin lost its place as the nation’s dairy
leader.
During this time frame many Wisconsin dairy farmers approached the Wisconsin Department
of Agriculture, Trade, and Consumer Protection to request assistance with looking at options so
that they might continue to farm. Many of these farmers recognized that the milk they were
producing was unique and that there should be potential to capture higher profits.
To respond to the requests for assistance, a number of agencies organized a value added dairy
conference for late 1999. Two motives for the conference were identified: 1) to provide a means
to distribute information, and 2) to measure interest. Conference organizers anticipated that
approximately 40 to 50 would attend. All involved were shocked when registration totaled over
270.
As a result, state agencies began to assist Wisconsin farmers with activities that might help
them with their efforts to capture more value/profits for their milk. Agency efforts were limited
as staff and budget time hadn’t been allocated. Included in activities/projects were field days,
regulatory review and advocacy, grass root marketing efforts, and the development of a network
of partners and resources.
In 2001/2002, the Federal Government began to recognize the strength of the
artisan/specialty dairy movement in Wisconsin. Limited funding was allocated to Wisconsin
projects as the USDA recognized that this area of work offered the potential of developing ways
that farmers might stay on their farms as well as strengthening rural communities.
In late 2002, the Wisconsin congressional staff to Washington became aware of the grass
roots artisan dairy movement. After review of current projects and evaluation of potential
benefits, Congress allocated 2 million dollars to help the Wisconsin dairy industry build milk
supply, develop new markets and products, and to improve efficiencies in the value chain.
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