
Special Milk Class Permit Program
grant_single|update January 24, 2025
Canada
Reduced price for Canadian manufactured dairy ingredients
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDate March 1, 2023
- grant_single|closingDate September 30, 2023
grant_single|financingType
Other Support
grant_single|eligibleIndustries
- Manufacturing
- Wholesale trade
- Retail trade
grant_single|grantors
- Government of Canada
- Canadian Dairy Commission (CDC)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Milk components at a discounted price for Canadian food processors who use dairy ingredients in their products.
grant_single_labels|terms_and_conditions
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).
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 350,000
Launch a protein shake product line with Canadian dairy ingredients
$ 340,000
Expand a dairy-based baby food line with Canadian dairy
$ 250,000
Develop a new line of dairy-based desserts using Canadian ingredients
$ 275,000
Develop a new lactose-free dairy drink product line
$ 225,000
Create a plant-based ice cream alternative using Canadian lactose-free dairy
$ 300,000
Introduce a new gourmet cheese line using Canadian dairy
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|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
grant_eligibility_criteria|zone
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
grant_single_labels|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
grant_single_labels|apply
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grant_single_labels|otherInfo
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.
grant_single_labels|contact
applications.demandes@cdc-ccl.gc.ca
1-866-366-0676
Apply to this program
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