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Canadian Dairy Commission

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Eligibility Criteria

Dairy Innovation Program (DIP)

An application must meet all of the following criteria in order to be considered eligible under the DIP:

The product must be wholly or essentially made with milk. It can not contain any imported dairy ingredients.
Projects which receive approval under the DIP are not entitled to Special Milk Class Permit Program pricing (Class 5(a),(b),(c), Class 3(d) for the duration of period of eligibility mentioned in the eventual agreement.

1. The applicant has the option of making a national or provincial application:
a) National DIP Application
  • The product must introduce to the Canadian marketplace one or a combination of innovative factors not currently available in a product made in Canada.
  • The applicant must demonstrate that the product will be distributed in two or more provinces or across Canada within 24 months of receiving milk under this program. Once a national DIP contract is awarded, no other DIP will be awarded for the same product across Canada.
  • The processor must be federally licensed by the Canadian Food Inspection Agency (CFIA) in order to be considered for a national DIP application.
  • In the case of a national application, there is no limit on the volume of milk to be supplied for the approved product on a butterfat end-use basis or on the duration of the contract. The successful applicant will have access to an unlimited volume of milk to manufacture the dairy product for as long as the product is commercialized.
  • Projects for which no milk has been ordered for a period of two (2) years after the date of written notice of CDC approval will be considered abandoned with no access to the DIP milk supply associated with the project.
b) Provincial DIP Application
  • The product must introduce to the province one or a combination of innovative factors not currently available in a Canadian product marketed in the province or manufactured in Canada by federally licensed processor. This type of contract is best suited for dairy products usually sold locally not outside of the province where it is manufactured. A similar product will have the possibility of being accepted for a provincial DIP contract in another province. The processor cannot be federally licensed in order to be considered for a provincial DIP application. A processor that would become federally licensed during the contract period will have his provincial DIP contract automatically cancelled.
  • In the case of a Provincial application, there is a maximum annual volume of 300,000 litres of milk which can be supplied under an approved DIP contract and for a term of no more than 3 years.
  • A specific amount of milk will be authorized for each of the three years beginning on the first month in which milk is delivered by the board for the DIP approved project.
  • If a project is abandoned during the three-year period established in the contact, the DIP milk supply will be terminated and regular provincial plant supply allocation procedures will apply.
  • Projects for which no milk has been ordered for a period of two (2) years after the date of written notice of CDC approval will be considered abandoned with no access to the DIP milk supply associated with the project.
  • At the expiration of the DIP contract, applicants should review, with their provincial milk marketing board or agency, how milk will be supplied for products developed under this program.
2. The introduction of the product must lead to an increase in the net demand for Canadian milk over what would have otherwise occurred without the introduction of the product. Unless the Selection Committee decides that a report is not necessary from the companies requesting only a small and limited amount of milk, the increase in milk demand will have to be confirmed in a report from an independent concept test firm.

3. The applicant must already be a licensed processor or have submitted a licensing application to the provincial authorities before a project can be approved. In any event, no milk will be delivered until the licence is issued to the company.

4. The following characteristics do not constitute, by themselves, innovation recognized under the program.
  • organic
  • contains omega fatty acids
  • milk obtained from a particular breed of cow
  • made of raw milk
  • intended for certain ethnic groups ("kosher" or "halal", for example)
  • contains added ingredients or flavours (such as fruit, herbs or spices)
  • packaged differently, innovative packaging
5. For the purpose of the DIP, butter is not considered an eligible dairy product.

6. A product that has not been produced in Canada for a period of two years could be considered under the DIP if it respects the above criteria.