**AWARDS ISSUED PRIOR TO JANUARY 20, 2025, WERE FUNDED UNDER PREVIOUS ADMINISTRATIONS AND MAY NOT REFLECT THE PRIORITIES AND POLICIES OF THE CURRENT ADMINISTRATION.** IN 2018 THE US PRODUCED OVER 13 BILLION LBS. OF CHEESE, 690 MILLION LBS. OF COTTAGE CHEESE, AND 1.5 BILLION LBS. OF GREEK YOGURT.THE MANUFACTURING OF THESE DAIRY PRODUCTS ALSO RESULTS IN THE PRODUCTION OF LACTOSE-RICH BY-PRODUCTS.SOME OF THESE BY-PRODUCTS ARE USED FOR HUMAN AND ANIMAL FOOD INGREDIENTS, BUT CALCULATIONS SUGGEST THAT THERE IS AN EXCESS OF NEARLY 5 BILLION LBS OF THESE LACTOSE-RICH BY-PRODUCTS. CURRENT UTILIZATION SCHEMES FOR THESE BY-PRODUCTS INCLUDE SOIL APPLICATION, WASTEWATER TREATMENT, AND AEROBIC DIGESTERS, ALL OF WHICH ARE CAPACITY LIMITED AND THUS CHALLENGED AS MEANINGFUL DIVERSIONS TO PREVENT DAIRY WASTE.NEW TECHNOLOGIES ARE NEEDED TO RECYCLE AND VALORIZE THESE BY-PRODUCT STREAMS, HOWEVER, THE PRESENCE OF LACTOSE IS A CHALLENGE. NEARLY 70% OF THE GLOBAL POPULATION IS THOUGHT TO BE LACTOSE INTOLERANT, INCLUDING 30-50 MILLION AMERICANS, WITH INTOLERANCE RATES ABOVE 75% AMONG US MINORITIES. THIS INABILITY TO DIGEST LACTOSE, RESULTS IN GASTROINTESTINAL SYMPTOMS, SUCH AS DIARRHEA, ABDOMINAL CRAMPING, AND BLOATING, MAKING SUCCESSFUL UTILIZATION OF EXCESS LACTOSE-RICH BY-PRODUCTS IN FOODS AND FOOD INGREDIENTS PROBLEMATIC.FERMENTATION IS A TRADITIONAL PROCESS THAT CONVERTS SUGARS TO OTHER PRODUCTS, LIKE ETHANOL OR ORGANIC ACIDS, THUS MODIFYING THE QUALITY AND NUTRITIONAL COMPOSITION OF THE FOOD.WE PROPOSE A NOVEL BIOMANUFACTURING PROCESS, THAT LEVERAGES A UNIQUE LACTOSE-FERMENTING YEAST WHICH CAN CONVERT LACTOSE INTO MULTIPLE FOOD INGREDIENTS LIKE ACETIC ACID, ETHANOL, OR THE DIGESTIBLE SUGAR GALACTOSE.OUR PROJECT WILL DESCRIBE AND OPTIMIZE THE FERMENTATION CONDITIONS TO PRODUCE THESE FOOD INGREDIENTS, AS WELL AS EVALUATE CONSUMER ACCEPTANCE OF THEIR USE TO CREATE NOVEL LOW AND NON-ALCOHOLIC BEVERAGES THAT ARE SIMILAR TO OTHER NON-DAIRY-BASED BEVERAGES CURRENTLY FINDING POPULARITY IN THE US MARKET. THE OUTCOMES OF THIS PROJECT ARE EXPECTED TO HAVE A POSITIVE IMPACT BY PROVIDING AN INNOVATIVE MANUFACTURING TECHNOLOGY THAT WILL ENABLE US FOOD COMPANIES TO CONVERT LACTOSE CONTAINING BY-PRODUCTS INTO NOVEL FOODS AND INGREDIENTS CONSUMABLE BY A WIDER POPULATION, WHILE ALSO REDUCING FOOD WASTE AND INCREASING THE EFFICIENCY AND SUSTAINABILITY OF THE US DAIRY SUPPLY CHAIN.