Program Description

Background

The Canadian Milk Supply Management Committee (CMSMC) first approved the Domestic Dairy Product Innovation Program (DDPIP) in February 1989.

It was subsequently renewed by CMSMC in 1995, in 2000 and in July 2004 for its continuation until July 31, 2010. In July 2010, the CMSMC extended the program by an additional year to July 31, 2011. In October 2011, the CMSMC extended the program from August 1, 2011 to July 31, 2013. The DDPIP contract is valid for three years from signature by all parties and the processor applicant can receive milk under this program until the end of the third year regardless of the expiry date approved by CMSMC.

Purpose

The DDPIP was designed to grant flexibility to the National Milk Marketing Plan by providing a mechanism whereby those who wish to produce new and innovative dairy products (as defined in the CDC Act) can access the milk they need outside of existing provincial plant supply allocations. By encouraging such new development, the overall demand for milk is expected to increase.

Milk volume provided under the program is limited at 3% of Market Share Quota (MSQ) and is in addition to the provincial shares of the national MSQ which is set at a level aimed at meeting Canada's market demands for manufactured dairy products. The DDPIP is not intended to affect any existing provincial plant supply allocation systems for milk or existing product markets.

DDPIP Milk Supply

For each approved project under the DDPIP, a specific quantity of milk is authorized for a limited period of three years starting from the first month of milk delivery. At the company's request, the volume specified in the contract can be increased subject to approval by the DDPIP Selection Committee. At the end of that three-year period, or earlier if the project is abandoned, the DDPIP milk supply is terminated and regular provincial plant supply allocation procedures apply. Projects for which milk has not been delivered and is not utilized for a period of two (2) years after the approval of the project will be considered abandoned and will lose the DDPIP milk supply associated with the project. Successful DDPIP products are not eligible to the Special Milk Class Permit Program.

At the expiration of the DDPIP contract, applicants should review, with their provincial milk marketing board or agency, how milk will be supplied for products developed under this program.