NC State Dairy Farm Has Reported Annual Profit
The university's dairy enterprise recorded a $105,000 profit in the most recent fiscal year.
Updated on Sept. 23, 2026 in Financial Aid
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NC State University saw its dairy enterprise reach a $105,000 profit during the latest fiscal year. The operation, which produces the Howling Cow brand, generated $4.3 million in revenue against $4.2 million in expenses.
Why it matters
The enterprise prioritizes agricultural education and student job opportunities over maximizing profit. Management avoids broader grocery store distribution to prevent competing directly with the state dairy industry.
The dairy enterprise generated $17.885 million in total revenue over the last five years, while expenses totaled approximately $17.905 million. The farm employs 16 full-time staff and 80 student workers.
The players
NC State University
The institution is a leading research university in Raleigh known for its agricultural programs and farm operations.
Howling Cow
This university-owned brand produces dairy products and serves as a practical laboratory for students in the dairy science program.
Harris Teeter
This major regional supermarket chain previously held a five-year licensing agreement to distribute university dairy products.
The details
The university sells ice cream to its own dining department to fund operations, student wages, and equipment. The farm on Lake Wheeler Road faces significant overhead, including a $5,000 monthly electric bill, and manages a workforce that balances staff oversight with student labor.
Timeline
1892: The university dairy farm began operations.
1918: The university began processing its own dairy products.
2008: The Howling Cow brand was launched.
2018-2023: The university maintained a licensing agreement with Harris Teeter.
2024-2025: The dairy enterprise operated at a financial loss.
Culture Shift
The program represents a shift toward institutional sustainability, where academic departments leverage commercial branding to offset operational costs. This model reflects a broader trend of public universities adopting entrepreneurial strategies to support student-focused agricultural education.
The dairy operation directly supports 80 student positions, providing essential hands-on agricultural experience and wages for the student body. Residents in the Raleigh area can continue to access products through university channels rather than commercial grocery aisles.
The takeaway
University-led enterprises often operate on narrow margins to balance educational goals with fiscal responsibility. These programs demonstrate that commercial output can serve as a viable funding mechanism for student wages and equipment when managed to support academic outcomes.
Further reading
Learn more about how institutional programs are funded through Financial Aid.
Source note: This article includes information reported by The News&Observer.
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