Taking a Closer Look at Value-Added Dairy Opportunities Workshop

The Center for Profitable Agriculture has teamed up with UT specialists and others to create some educational resources that are intended to help Tennessee farmers evaluate the profit potential for dairies and value-added milk processing enterprises. These resources include an Extension publication, powerpoint slides presented at Extension workshops that include farm milk processing plant and equipment layout designs, and spreadsheets that calculate milk production costs per CWT of milk produced. Also included is a master’s thesis that was developed as part of a research effort designed to study the Tennessee dairy industry and the feasibility for on-farm milk processing, packaging and marketing of dairy products. Excel spreadsheets developed as part of this research effort include a production budget for a 100 cow dairy, 100 goat dairy and budgets for processing milk into fluid milk, cheese and yogurt products. For more information about these value-added spreadsheets, email hal.pepper@utk.edu.
These resources should not be considered as recommendations for adding a value-added milk processing enterprise nor should they be considered as favoring one value-added product over another. They are intended as a guide to be used by producers who are evaluating costs and returns and it is expected that each producer’s expected costs and returns will be different.

Program Resources


Taking A Closer Look At Value-Added Dairy Opportunities Workshop – December 2019







Introduction to Value-Added Dairy Processing-Pepper

Overview of the workshop.

Potential for Value-Added Dairy Enterprises in Tennessee-Eckelkamp

Understanding consumer perceptions, expenditures and purchase preferences.

Calculating Milk Production Costs and Assessing Strengths and Weaknesses-Bilderback

Using financial statements to calculate efficiency ratios.

On-Farm Milk Processing Costs-Pepper

Costs associated with on-farm milk processing.

Dairy Processing Considerations-Goan

Some things to know about starting a dairy processing plant.

Sanitation and Food Safety-Miller

Cleaning and sanitation in a dairy processing plant.

Marketing Dairy Products-Leffew

Developing marketing strategies for value-added dairy products.

Value-Added Dairy Budgets

Budgets for value-added dairy products (100 cows; 100 goats)

Questions to Answer Before You Begin a Goat Dairy​-adapted from a presentation by Jim Tanner


Milk Processing Feasibility: Impact Potential for Tennessee Dairy Farmers (Phase I, September 2015 to August 2016)

The Tennessee Dairy Industry and Its Value-Added Opportunities, UT Extension Publication W284

 Powerpoint Presentations
Excel Spreadsheets

Program Contact 

Hal Pepper, Financial Analyst