The Special Milk Class Permit Program administers financing through special pricing for eligible dairy products to support further processors in Canada. The program sets specific pricing terms for different classes of dairy products.

Special Milk Class pricing based on monthly U.S. market rates for Class 3 (cheese) and Class 4 (butter/skim milk powder) for Classes 5(a) and 5(b).
Class 5(c) pricing includes butterfat priced using the average of the two lowest global market prices from Oceania, Western Europe, and the US; solids-not-fat priced using the lowest of these.
Further Processors negotiate directly with Dairy Processors or Distributors to determine the purchase price of Dairy Products.
Monthly announcement of Special Milk Class Prices accessible through the Canadian Dairy Commission’s website.
Special terms apply for different dairy products categorized under Classes 5(a), 5(b), and 5(c) based on usage and market (domestic or export).

Activities funded

Manufacturing cheese for use as an ingredient in further processed products for both domestic and export markets.
Utilizing all other dairy products as ingredients in further processed products for domestic and export markets.
Producing dairy products used as ingredients in the confectionery sector for domestic and export markets.

Examples of admissible projects:

$ 340,000

Expand a dairy-based baby food line with Canadian dairy

$ 225,000

Create a plant-based ice cream alternative using Canadian lactose-free dairy

$ 350,000

Launch a protein shake product line with Canadian dairy ingredients

$ 250,000

Develop a new line of dairy-based desserts using Canadian ingredients

$ 275,000

Develop a new lactose-free dairy drink product line

$ 300,000

Introduce a new gourmet cheese line using Canadian dairy

Eligibility

The eligibility criteria for further processors to participate in the Special Milk Class Permit Program (SMCPP) are defined as follows:

The further processor must show that the further processed product it manufactures is a finished food product made with a Dairy Product and is intended for sale to retailers and/or to food service/restaurants.
The Further Processor must demonstrate that the further processed product it manufactures is not subject to Tariff Rate Quota controls, unless approved by the CMSMC.
A Permit issued by the CDC can only provide access to Special Milk Class Pricing for Dairy Products as defined herein and which also conform to the product standards dictated by the Dairy Products Regulations, SOR/79-840.

Who is eligible?

This program specifically targets Canadian further processors looking to utilize special milk class pricing for the creation of further processed products. Eligible applicants must meet defined operational and product-related criteria.

Canadian further processors using dairy products as ingredients in the manufacturing of further processed products.
Processors whose products are finished food items intended for sale to retailers or food services/restaurants.
Products must not be subject to Tariff Rate Quota controls, unless approved by the CMSMC.

Eligible expenses

There are eligible expenses for this grant, including:

Purchase of Canadian manufactured dairy ingredients
Costs associated with manufacturing finished food products in Canada

Eligible geographic areas

This grant is available to further processors located in Canada. The eligibility is specific to Canadian processors who use Canadian dairy products for manufacturing further processed products.

Canada

Selection criteria

There are evaluation and selection criteria for this grant. The evaluation and selection criteria include:

Eligibility as a further processor or animal feed manufacturer
Business uses Canadian dairy ingredients to manufacture a finished food product in Canada
Product is not subject to Tariff Rate Quota (import controls)
Product meets the eligibility criteria of the SMCPP

How to apply

Obtain Necessary Forms

Visit the Canadian Dairy Commission website at www.cdc-ccl.ca/en to download necessary forms.
Alternatively, contact the CDC Marketing Program Officer for forms.

Gather Required Documentation

Prepare a copy of your certificate of incorporation or business registration.
Complete the Section A Form - Company Information Form.
Complete the Further Processed Product Application Form, including recipe information and product labels.
Fill out the Section C Form – Accounting, Credit Check & Attestation.
Answer the Company Questionnaire.
Fill out the Consent Form to allow CDC to access customs information if necessary.

Sign the Special Milk Class Permit Agreement

Once your application is approved, sign the Special Milk Class Permit Agreement that you receive from the CDC.
Return the signed Agreement and Appendix A to the CDC by email in PDF format.
Optionally, send a signed paper copy by regular mail.

Permit Issuance

Receive the permit from the CDC, enabling participation in the program.
Communicate your Permit number to your Dairy Processor or Distributor when purchasing.

Additional information

Here are additional relevant details for this grant:

The CDC requires further processors to sign the Special Milk Class Permit Agreement before a permit is issued.
The CDC can audit further processors to ensure compliance with the program requirements.
Special Milk Class prices are based on comparable classes in the U.S. and international markets.
Permits are non-transferable and have no commercial value; they cannot be sold.
If discrepancies in reporting are found, further processors may be required to pay the difference in price to the CDC.
Further processors must register for the Milk Ingredient Reporting System (MIRS) for reporting activities.

Documents and links

Special Milk Class Permit Program

Contacts

applications.demandes@cdc-ccl.gc.ca

1-866-366-0676

Canada

Apply to this program

Frequently Asked Questions about the Special Milk Class Permit Program Program

Here are answers to the most common questions about the Special Milk Class Permit Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Special Milk Class Permit Program?

How much funding can be received?

What expenses are eligible under Special Milk Class Permit Program?

The Special Milk Class Permit Program facilitates further processors in utilizing special milk class pricing for dairy products as ingredients in their manufacturing processes. The eligible projects focus on producing various types of dairy-based products for the domestic and export markets. Manufacturing cheese for use as an ingredient in further processed products for both domestic and export markets. Utilizing all other dairy products as ingredients in further processed products for domestic and export markets. Producing dairy products used as ingredients in the confectionery sector for domestic and export markets.

What is the deadline to apply?

Is the Special Milk Class Permit Program a grant, loan, or tax credit?

Who are the financial supporters of the Special Milk Class Permit Program?

Who is eligible for the Special Milk Class Permit Program program?

To be eligible for the Special Milk Class Permit Program program, you must: The further processor must manufacture a finished food product made with a Dairy Product and intended for sale to retailers or food service/restaurants. The further processed product must not be subject to Tariff Rate Quota controls unless approved by the CMSMC. A Permit from the CDC provides access to Special Milk Class Pricing for only those Dairy Products that conform to the product standards dictated by the Dairy Products Regulations.