Dairy Innovation Program

Overview of the Dairy Innovation Program program:

Like the previous innovation program, the DIP is designed to grant dairy processors with continued access to the milk they require to produce innovative dairy products without affecting their existing provincial milk plant supply allocation. By encouraging such new development, the overall demand for milk is expected to increase. The CDC will provide an allocation credit (deducted from the Canadian requirement) to each province ;that supplies milk for the new DIP contracts. These credits will be allocated to the province on end-use butterfat basis with no conversion of credits into quota (crystallization).

Benefits of the Dairy Innovation Program program:

• Successful national applicants have 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. In the case of a provincial application, there is a maximum annual volume of 300,000 litres of milk supplied under an approved contract, for no more than 3 years.

Eligibility criteria of the Dairy Innovation Program program:

• For dairy products (excluding butter and butter oil):
  • 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.
• For butter and butter oil:
  • The butter or butter oil must be wholly or essentially made with milk. It can not contain any imported dairy ingredients.
  • A butter or butter oil which receives approval under the DIP and which is intended for use in a further processing activity may be entitled to Special Milk Class Permit Program pricing (Class (b), (c)).
  • The application for butter or butter oil must be made on a National basis.
  • The butter or butter oil must satisfy at least one of the eligibility requirements referred to in Section 2 for butter and butter oil.