The Atlantic Dairy and Forage Institute in New Brunswick, Canada wants to build an $8.5 million (€6.33m) expansion in order to improve the quality of milk.
The privately owned, non-profit working farm with more than 50 cows is the province's only research station for the dairy industry.
Executive director Wiebe Dykstra said its work includes improving the quality of the feed in order to increase the quality of the milk produced by the cows.
"Enhance it by maybe making it so there's more omega-3 in it and less saturated fat," he said
Omega-3 fatty acids are generally accepted to be beneficial to humans, lowering triglycerides and improving heart health.
The centre located in Fredericton Junction is now almost 15 years old and needs to be upgraded with new equipment and stalls for the cows, institute project officer Josh Lamont said.
"A new facility will bring wealth to rural New Brunswick by highly skilled and highly paid jobs," Lamont said. "We will have to hire a ruminant nutritionist, lab technicians and also farm hands. The construction will also bring stimulus into the economy."
Dykstra said the new facility would not only be an economic boost for the Fredericton Junction area, but it would also enhance the dairy industry in New Brunswick and worldwide.
"We have done work in Japan, we have done work in California. I mean, the world is open to us," he said.
A $30,000 (€22,350) grant from the Atlantic Canada Opportunities Agency (ACOA) will be used to prepare a business report to persuade investors the expansion is worthwhile, Lamont said.
The Institute is hoping work could begin in the 4th quarter of 2010.