Dairy Innovation Program (DIP)

This grant offers flexible financing modalities tailored to the needs of recipients while ensuring optimal resource utilization. The modalities vary based on the project type and targeted objectives.

• Allocation credits provided to each province based on end-use butterfat without conversion into quotas.
• Provinces have the flexibility to share their allocation credits within the pool.

• The product must be wholly or essentially made with milk and must not contain any imported dairy ingredients.
• For dairy products excluding butter and butter oil, the product must have not been produced in Canada for a period of two years and must not entail characteristics like organic certification, omega fatty acids, or specific breed milk, among others listed.
• The introduction of the product must lead to an increase in the net demand for Canadian milk and satisfy at least one innovative factor.
• The applicant must demonstrate the product will be distributed in two or more provinces or across Canada (in the case of a national application), or one province (for a provincial application).
• The applicant must be a licensed processor or have submitted a licensing application to the respective authorities.
• For butter and butter oil, the application must be made on a national basis.
• A market impact study must be submitted for butter or butter oil projects demonstrating unique features and expected market growth.
• Projects must confirm the increase in milk demand through an independent concept test firm report.
• Licensed processors can choose to apply either nationally or provincially, except for butter and butter oil which must be national.

Who is eligible?

• Dairy processors
• Companies planning to introduce a dairy product that meets the innovation criteria, such as unique product composition or new end-use applications
• Processors who will increase the net demand for Canadian milk by introducing innovative dairy products

Who is not eligible

Some types of companies are not eligible for this grant. Eligibility is limited to dairy processors in Canada.

• Dairy processors outside of Canada
• Companies not involved in dairy processing
• Individuals or non-corporate entities

Eligible expenses

Eligible expenses for this grant may include costs related to research and development, innovation, and production of dairy products. Examples of eligible expenses could be equipment purchases, ingredient costs, and marketing expenses.

• Research and development
• Innovation costs
• Production expenses
• Equipment purchases
• Ingredient costs
• Marketing expenses

Eligible geographic areas

This grant is administered by the Canadian Dairy Commission and is applicable to areas within Canada where dairy processors operate. However, no specific geographical restrictions are defined in the provided text.

• All provinces supplying milk under the DIP contracts in Canada.

There are evaluation and selection criteria for this grant. The evaluation and selection criteria for the Dairy Innovation Program include:

• Ability to increase the utilization of the allocated milk
• Demonstrated commitment to producing innovative dairy products
• Potential for market success and increased demand for milk
• Compliance with program regulations and guidelines

• Applications are accepted quarterly, with deadlines on March 31st, June 30th, September 30th, and December 31st.
• The Selection Committee's decision process includes three stages: initial review and clarification, product sample presentation, and final evaluation.
• The Selection Committee ensures confidentiality, with product names and descriptions remaining confidential for 24 months post-contract.
• Successful applicants must adhere to a confidentiality agreement, with details of milk deliveries and product specifics kept private.
• Approved products must lead to increased demand for Canadian milk, verified by an independent report.
• Projects showing no milk order for two years post-approval will be deemed abandoned.
• Applicants may appeal rejections within 90 days, but no new information can be introduced during appeals.
• On approval, a legal contract specifying milk supply terms is signed by the applicant, CDC, and provincial board.
• The CDC offers secretariat support and guidance throughout the application and selection process.