; (C) cooperatives; (D) dairy businesses that establish contracting mechanisms that return profits to farmers who supply their milk; (E) dairy businesses that, in addition to salary and wage compensation, return profits to employees; and (F) dairy businesses that seek to create dairy products that add substantial value in processing or marketing, such as specialty cheeses. (5) Requirement In the case of direct assistance under subsection (e)(1) or a grant under subsection (e)(2) that is provided to a specific dairy business and does not benefit the general public, as determined by the Secretary, the assistance or grant shall exclusively be available to dairy businesses owned in the United States. (6) Supplementation To the extent practicable, the Secretary shall ensure that funds provided to an initiative supplement, and do not duplicate or replace, existing dairy product research, development, and promotion activities. (g) Matching funding (1) In general The Secretary shall encourage, but not require, an eligible entity described in subsection (d)(1) to provide matching funding to carry out this section. (2) Additional funding After an initial term of funding provided to an eligible entity described in subsection (d)(1) under this section, the Secretary is encouraged to work with the eligible entity to develop additional funding streams to supplement the Federal investment, including from funds of a generic program to promote and provide research and information for a specific agricultural commodity, if the provision of funds is approved by the members of the generic program. (h) Reporting (1) In general Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the implementation of this section. (2) Innovation reports The Secretary, in coordination with the Chief Economist, shall publish an annual report on the status of— (A) innovation in dairy products; (B) product development under the program under this section