The Selection Process
All applications made under the Program are reviewed by a Selection Committee composed of representatives from the following organizations:
- Dairy Farmers of Canada (1)
- New-Brunswick Farm Products Commission (1)
- Ontario Dairy Council (1)
- Conseil des industriels laitiers du Québec Inc. (1)
- Alberta Milk (1)
- Dairy Farmers of Manitoba (1)
The Selection Committee operates by way of unanimous decision for approving DIP applications. The CDC chairs the Selection Committee and provides secretariat services to the Committee.
The CDC is also available to provide support to processor applicants throughout the application process.
All Selection Committee members are required to sign a confidentiality agreement and cannot be employed by a dairy processor or further processor.
The provincial milk marketing board or agency in the province where the DIP product will be manufactured is consulted to ensure that milk supply will be made available should the application be approved.
The selection process involves three stages:
- The Selection Committee, with the assistance of its secretariat, reviews the application, seeks any necessary clarification or additional information and makes a preliminary evaluation on the merit of the project.
- The applicant is required to present a sample of the product to the Selection Committee. The review of the DIP applications will be done in a timely fashion. The onus is on the DIP applicant to provide all of the required information.
- The Selection Committee reviews all information, a final decision is made, and the applicant is notified. If approved, a formal legal contract is drawn up respecting the project. The contract describes the terms of the approved project and specifies the agreed DIP milk supply. The contract is signed by the provincial board or agency responsible for supplying the milk, the successful applicant and the CDC.
Appeal Procedure
Any rejected application may be appealed to the Commission Board or may be modified and resubmitted for consideration by the Selection Committee. Any applicant wishing to appeal a decision of the Selection Committee shall notify the Chief, Commercial Operations and Marketing of the CDC in writing no later than 90 days following the date of the letter of rejection communicated by the CDC. An appeal may involve a hearing before the Commission Board, if the applicant so desires.
The appeal procedure will only consider the information provided to the Selection Committee, and the applicant will not be permitted to introduce new information to the appeal. The appeal must utilize the eligibility criteria that have been approved by the CDC which is listed in this document.
Upon completion of the appeal, the Commission Board will provide the Selection Committee a written report of their decision and their rationale for the decision, if that decision reverses the Selection Committee’s original recommendation. The Appeal decision made by the Commission Board is final.
Reporting Requirements, Disclosure, Confidentiality and Audits
All applications are held in the strictest confidence by the Selection Committee and its
Secretariat. The names and product descriptions will remain confidential for a period of 24 months following the date on which the successful applicant receives milk pursuant to a DIP contract. After the expiry of this two-year period, the CDC may provide a report to the Canadian Milk Supply Management Committee (CMSMC) including a brief description of the product accepted under DIP, whether it received a provincial or national DIP contract as well as the name of the company and its location. This information will then also be published on the CDC web site. The volume processed and the exact specification of the product and distribution channels will always remain confidential.
Each provincial milk marketing board or agency provides the CDC Chief, Commercial Operations and Marketing with monthly reports on the DIP monthly milk deliveries (volume and kilograms of butterfat) based on the end-use butterfat requirements for all DIP contracts.
The CDC will provide the CMSMC periodically with a report summarizing the DIP milk deliveries for all provinces under the program.
The DIP program is subject to provincial milk utilization audits (as per the Milk Utilization Audit Standards) to validate the reported milk deliveries and is also subject to CDC audit/evaluation. In order to provide further assurance on the integrity of the reported data relating to all DIP contracts, the provincial Boards are required to have their milk utilization auditors provide their annual audit reports (volume and butterfat utilization based on the template) to the Chief, Commercial Operations and Marketing, on a timely basis.