A new mini-dairy from Israel makes it possible for small and mid-size dairy producers to process and package their own milk, butter, cheese and yogurt.

Pladot's "Mini-Dairy" is just being introduced in the U.S. It's been approved by the USDA and meets all standards of the Food and Drug Administration.

"We've got about 250 systems out in some 25 countries around the world including one farmer in Pennsylvania," says Bob Turner, the company's U.S. sales manager. "This system offers a lot of opportunity for profit."

Economically feasible for 40-cow herds and up, the mini-dairy equipment includes a pasteurizer, cream separator, butter churn, cooling and holding tanks (110 gals. and up) and a cup filling and sealing machine.

The equipment is small enough to fit in an 800 to 1,200 sq. ft. room, depending on capacity. The smallest set-up processes about 2,000 lbs. of milk a day. Payback for packages purchase is expected in two to three years for most farmers according to the company.

Price of the system includes installation and a week of training in Israel, Turner notes.