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Eligibility Criteria

To qualify for funding assistance under the CDC MIF, an applicant must meet eligibility criteria defined in sections A, B and C below.

A) Demonstrate, to the satisfaction of the CDC, that the project meets at least one of the following criteria:
  • Incorporates a Canadian dairy ingredient in a product formulation where no dairy ingredient(s) had been previously used.
  • Replaces a substitute ingredient in a product formulation with a Canadian dairy ingredient, or significantly increases the dairy content of an existing product formulation.
  • Develops and markets a new dairy product or a product pursuant to the Domestic Dairy Product Innovation Program (DDPIP).
  • Develop and markets a new or innovative further processed product containing Canadian dairy ingredients.
  • Includes technology/knowledge transfer activities having a demonstrated benefit for a company or for the Canadian dairy industry as a whole.
B) Demonstrate that the new/innovative dairy product formulation or further processed product satisfies all of the following criteria:
  • The product has the potential to increase the use of raw milk components (in the case of a dairy product manufacturer) or Canadian dairy ingredients.
  • The project involves a technical challenge associated with incorporating a Canadian dairy ingredient or developing an innovative dairy product.
  • It uses dairy ingredient(s) which is/are made wholly or mainly from milk.
C) Demonstrate that the dairy product formulation or further processed product will not risk displacing existing Canadian dairy product(s) and/or further processed product(s) made with Canadian dairy ingredients.

In order to meet criteria C, an applicant must demonstrate that:
  • The project involves reformulating a product with dairy (rather than developing a new/innovative product); OR
  • The product is not currently manufactured in Canada; OR
  • Similar Canadian product(s) are not currently manufactured and sold in the province(s) where the organization intends to market the product; OR
  • Similar Canadian product(s) are not currently manufactured and sold to the same clientele under the same distribution channel.

Eligible Dairy Products and Ingredients


Dairy products and ingredients deemed eligible under the terms and conditions of the CDC MIF are defined as follows:

Canadian dairy products and ingredients made wholly or mainly from milk such as: butter, cheese, milk powders, milk protein concentrate/isolate, evaporated milk, sweetened & condensed milk, whole milk, liquid milks, cream, and yogurt.


Eligible activities


Under the CDC MIF, eligible companies and FTCs can access financial support for:
  • Consultation: access to advice from specialists/experts in areas of product development, management and marketing, dairy and food science, and food processing.
  • Product development: product analysis, trials and technology transfer, which includes, but is not limited to, adoption of new or existing technologies, industrial scale tests, retrofitting of facilities, sample preparation costs, and packaging techniques.
If a project application is deemed eligible, 50% of the eligible costs of the project will be funded by the CDC, up to a maximum of $150,000 (before taxes). Of this amount, a maximum of $25,000 (before taxes) can be allocated to consultation activities. Remaining funds must be allocated to product development activities.

Small businesses (less than 25 employees) are eligible for a reimbursement of up to 100% of eligible costs (before taxes) for the first $10,000 spent on a project (this includes up to $5,000 for consultation activities and up to $5,000 for product development activities). In the case of a project involving only one activity (consultation or product development), the amount eligible for 100% reimbursement is set at $5,000. Additional eligible costs (before taxes) will be reimbursed on a matching investment basis (50%).

Projects that emphasize the use of solids non-fat (SNF) ingredients such as skim milk powder (SMP) milk protein concentrate (MPC) or liquid skim milk will be given priority attention under the CDC MIF and may be eligible for an increased level of funding.

The CDC reserves the right to determine the amount of funding to be allocated to a project on the basis of its ability to contribute to growth and innovation in the manufacture/use of Canadian dairy products and ingredients and/or in the use of milk solids non-fat.

The summary table below outlines the eligible activities and available funding under the CDC MIF for consultation services and support to product development projects.

ACTIVITES AND FUNDING LIMITS
FOR CONSULTATION AND PRODUCT DEVELOPMENT ACTIVITIES


 
CONSULTATION
Access to advice from specialists/experts, including knowledge transfer
PRODUCT DEVELOPMENT
Support for product analysis, trials and
technology transfer
AUTHORIZED
ACTIVITIES:

Consultation services in management/marketing research:
► Company start-up /Business Plan

► Identification of opportunitie
s

► Commercial/financial feasibility study


► Marketing research

  • Access to market data  and reports
  • Survey/consultation of target groups
  • Focus groups

Dairy/food sciences experts:
► Problem-solving related to product formulation
► Integration of dairy ingredients
► Literature and search review
► Legislation

Engineering services consultant:
► Technical feasibility study
► Technologies and equipment

► Adoption of new or existing technologies

► Lab/Kitchen scale trials

► Pilot tests

► Industrial scale tests

► Product and nutritional analysis

► Clinical trials

► Sensory/organoleptic analysis

► Sample preparation

► Focus group testing directly
related to the sensory attributes of the product

► Packaging methods/techniques
Retrofitting of equipment needed to conduct the product development phase
  • Design, fabrication and machining of equipment (including parts and labour)
  • Authorized only when technologies readily available in the marketplace are not applicable due to the innovative nature of the product.
  • The maximum amount of funding authorized for retrofitting of equipment is at the CDC’s discretion, based on the nature of other product development activities involved and potential benefits and risks associated with the Project.
ELIGIBLE COSTS CATEGORIES:
(See Appendix 2 in the Program Guide for details on specific costs eligible in
each category)
► Consultant and sub-contractor costs

In order to qualify, knowledge transfer expertise must come from outside the company/organization.
► Consultant and sub-contractor costs
► Direct labour costs
► Direct material costs
AVAILABLE
FUNDING:

Total of $150,000 per project, sharing of investment costs (50%) including a maximum of $25,000 for consultation activities.
SMALL BUSINESS INCENTIVE: Small businesses with less than 25 employees are eligible for a full refund on services valued at $10,000 dollars or less in the case of projects involving consultation AND product development activities ($5,000 per type of activity). When only one activity is involved, the amount eligible to a full refund is set at $5,000.


Definitions of Eligible Costs

The CDC has established three categories of costs eligible under the Consultation and/or Product Development features of the CDC MIF.

Category Definition Examples
Consultants and Sub-contractors Costs Professional fees for consultants and sub-contractors for work which can be specifically
identified and measured as being directly related to the Project funded under the CDC
MIF.

Travel costs for consultants and sub-contractors include economy airfare and hotel (as per published government rates) only. 
  • Cost of feasibility studies done by a specialized consultant prior to product development
  • Cost of focus group testing done by a consulting firm
  • Cost of pilot trials done by a FTC
Direct Labour Costs Gross wages or salaries (excluding benefits, incentives and bonuses) incurred for work which can be specifically identified and measured as being directly related to the Project funded under the CDC MIF.

Only wages or salaries of staff directly involved in product testing or contract personnel hired to work on the Project areconsidered as direct labour costs.
  • Salaries of staff working on the production line
  • Salaries of staff working on machinery/equipment retrofit
  • Salary of the supervisor of the product testing team
  • Salary of an intern/ summer student hired to work specifically on the project
Direct Material Costs Material costs which can be specifically identified and measured as being directly related to the Project funded under the CDC
MIF.
  • Cost of Canadian dairy ingredients used in product testing activities
  • Cost of other raw material used for the project