Yellow Wood Associates, Inc. worked with the Agricultural Development Council of Chenango County, New York to assess the feasibility of establishing a milk-based, value-added manufacturing enterprise to support the local dairy industry. Phase 1 of the research identified all possible uses for bovine and alternative dairy animal milk in food and beverages, pharmaceuticals, nutriceuticals, cosmetics, and nonfood industrial applications. Phase 1 also provided in-depth analyses of several product lines compliant with local human and natural resources, market structure and barriers, capital requirements, potential profitability, and availability of learning resources. Phase 2 explored alternative approaches to assembly, production, and marketing of specialty cheeses, fluid beverages, and organic dairy products. We defined the regulatory framework for a value-adding dairy enterprise, and reviewed potential organizational models.