1. Short title This Act may be cited as the Dairy Business Innovation Act of 2018 . 2. Dairy product and business innovation initiatives (a) Definitions In this section: (1) Dairy business The term dairy business means a business that develops, produces, markets, or distributes dairy products. (2) Dairy product The term dairy product means a food that contains as a primary ingredient, or is derived from, the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more hooved mammals. (3) Initiative The term initiative means a dairy product and business innovation initiative established under subsection (b). (4) Secretary The term Secretary means the Secretary of Agriculture. (b) Establishment The Secretary shall establish not less than 3 regionally located dairy product and business innovation initiatives for the purposes of— (1) utilizing regional milk production; (2) creating higher-value uses for dairy products; (3) promoting business development that diversifies farmer income through processing and marketing innovation; and (4) diversifying dairy product markets to reduce risk. (c) Selection of initiatives An initiative— (1) shall be located in a region with a history of dairy farming; (2) shall be positioned in proximity to existing dairy industry resources, including research capacity, academic and industry expertise, a density of dairy farms or farmland suitable for dairying, and dairy businesses; (3) may serve a certain product niche, such as artisanal cheese, or serve dairy businesses with dairy products derived from a specific type of dairy animal