Natural by Nature to secure upgraded dairy equipment

Natural by nature will soon see upgrades to their production thanks, in part, to a grant from the Council on Development Finance in Delaware. l PHOTO COURTESY OF JACK COLE/UNSPLASH

NEWARK — Natural Dairy Products Corporation is preparing for greener pastures as they seek out ways to modernize their dairy production with the help of funds from the Council on Development Finance (CDF).

During its meeting held at Buena Vista Conference Center on Monday, the CDF agreed to offer a Delaware Strategic Fund grant of $858,400 under the Facility Modernization and Investment Initiative (MISI) to assist the Newark-based company in securing new equipment that would improve the shelf-life for products that are packaged in the company’s facility.

In total, $4.3 million will be invested between Natural Dairy Products Corporation owned by Goldey Beacom graduate Stephanie McVaugh, financing and the grant made available to her through the CDF. Ultimately, she hopes to replace aging, inefficient filling machines – some dating from as far back as the 1960s.

The current machines used by Stephanie McVaugh’s Newark-based company Natural by nature are hindering growth. To solve the issue, she has reached out for financing and also secured a grant from Delaware’s Council on Development Finance (CDF) so the company can purchase more updated equipment. l PHOTO COURTESY OF DELAWARE PROSPERITY PARTNERSHIP

Staff members from the Delaware Prosperity Partnership (DPP) attended the meeting alongside McVaugh to share support for the proposition which they say will help the company grow back into its full capacity after losing some contracts and efficiencies due to antiquated equipment. 

The DPP similarly supported a Modernization Investment Support Initiative (MISI) application from Wilmington’s High-Tech Machine Co. last year.

“During my first visit. . ., Stephanie conveyed the challenges she’s facing,” DPP Director of Existing Business Engagement and Talent Charles Madden told members of the CDF. “They recently lost business because they weren’t able to maintain shelf life for customers on their dairy products. She also conveyed that she was having a difficult time securing new contracts because of the challenges in production.”

For McVaugh, the challenge of having to use out-of-date machinery meant the decades-old company saw an unwanted shift – from seven days of production to four days and three less staff members from 24 to 21 employees as a result of lost contracts and a lack of new business.

The machinery in question helps the Natural Dairy Products Corporation and its brand, Natural by Nature, sanitize its products prior to hitting the market.

Although McVaugh would like to go nationwide with her own organic dairy products, as well as those they help package for other companies, the option simply isn’t viable while they use the older equipment as it has to be adjusted manually from inside the machine. This process means a quicker shelf life for any products packaged in the facility she owns at 316 Markus Court in Newark.

The new equipment, she told CDF members, would come from a company in Italy and is a significant improvement to their process, allowing staff members to sanitize the products without having to make adjustments inside of the machinery which would, in turn, increase the shelf life for products that make its way through McVaugh’s business.

“In the past few years,” McVaugh said in a press release from DPP after the meeting, “our team became very aware that adding shelf life to our fluid products through modernizing our equipment would be the key to our future growth and success.”

She added that the improvements to their processes would grant them additional contracts, along with the ability to increase production and staff. With the understanding that McVaugh would seek out funding for the modernized equipment through CDF and other funding mechanisms, she said she’s already secured a contract starting in 2025 with a juice manufacturer that would generate $3 million in revenue for her company.

“Agriculture is Delaware’s number one industry. Natural Dairy will use this grant to upgrade their equipment and stay competitive,” Governor John Carney said in the press release. “This is what the Modernization Investment Support Initiative is designed to do – help companies like Natural Dairy stay and grow in the First State.”