Dairy Innovation Program - Types of Applications

The applicant has the option of making a national or provincial application, except in the case of butter and butter oil, where the application must be national. 

National DIP Application

  1. The product must introduce to the Canadian marketplace one or a combination of innovative factors not currently available in a product made in Canada.
  2. The applicant must demonstrate that the product will be distributed in two or more provinces or across Canada within 24 months of receiving milk under this program.  Once a national DIP contract is awarded, no other DIP will be awarded for the same product across Canada.
  3. The processor must be federally licensed by the Canadian Food Inspection Agency (CFIA) in order to be considered for a national DIP application.
  4. There is 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.  The successful applicant will have access to an unlimited volume of milk to manufacture the dairy product for as long as the product is commercialized.
  5. Projects for which no milk has been ordered for a period of two (2) years after the date of written notice of CDC approval will be considered abandoned with no access to the DIP milk supply associated with the project.
  6. The introduction of the product must lead to an increase in the net demand for Canadian milk over what would have otherwise occurred without the introduction of the product.  Unless the Selection Committee decides that a report is not necessary from the companies requesting only a small and limited amount of milk, the increase in milk demand will have to be confirmed in a report from an independent concept test firm.
  7. The applicant must already be a licensed processor or have submitted a licensing application to the federal authorities before a project can be approved.  In any event, no milk will be delivered until the licence is issued to the company.

Provincial DIP Application

  1. The product must introduce to the province one or a combination of innovative factors not currently available in a Canadian product marketed in the province or manufactured in Canada by federally licensed processor. This type of contract is best suited for dairy products usually sold locally not outside of the province where it is manufactured. A similar product will have the possibility of being accepted for a provincial DIP contract in another province. The processor cannot be federally licensed in order to be considered for a provincial DIP application. A processor that would become federally licensed during the contract period will have his provincial DIP contract automatically cancelled.
  2. There is 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. The successful applicant will have access to an unlimited volume of milk to manufacture the dairy product for as long as the product is commercialized.
  3. If at any time, the company stops manufacturing the approved product, the DIP milk supply will be terminated, and regular provincial plant supply allocation procedures will apply.
  4. Projects for which no milk has been ordered for a period of two (2) years after the date of written notice of CDC approval will be considered abandoned with no access to the DIP milk supply associated with the project.
  5. The introduction of the product must lead to an increase in the net demand for Canadian milk over what would have otherwise occurred without the introduction of the product. Unless the Selection Committee decides that a report is not necessary from the companies requesting only a small and limited amount of milk, the increase in milk demand will have to be confirmed in a report from an independent concept test firm.

  6. The applicant must already be a licensed processor or have submitted a licensing application to the provincial authorities before a project can be approved.  In any event, no milk will be delivered until the licence is issued to the company. 

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