Matching Investment Fund Eligibility Criteria

Eligibility Criteria

Table of Contents

• 1.0 To qualify an applicant must meet the following criteria
• 2.0 Eligible dairy products and ingredients
• 30. Eligible activities
• 4.0 Activities and funding limits for consultation and product development activities
• 5.0 Definitions of eligible costs

1.0 To qualify an applicant must meet the following criteria

To qualify for funding assistance under the CDC MIF, an applicant must meet eligibility criteria defined in sections 1, 2 and 3 below.

1. Demonstrate to the satisfaction of the CDC, that the project meets at least one of the following criteria:
   • Incorporates a Canadian dairy ingredient in a product formulation where no dairy ingredient(s) had been previously used.
   • Replaces a substitute ingredient in a product formulation with a Canadian dairy ingredient, or significantly increases the dairy content of an existing product formulation.
   • Develops and markets a new dairy product or a product pursuant to the Dairy Innovation Program (DIP).  Develop and markets a new or innovative further processed product containing Canadian dairy ingredients.
   • Includes technology/knowledge transfer activities having a demonstrated benefit for a company or for the Canadian dairy industry as a whole.
2. Demonstrates that the new/innovative dairy product formulation or further processed product satisfies all of the following criteria:
   • The product has the potential to increase the use of raw milk components (in the case of a dairy product manufacturer) or Canadian dairy ingredients.
   • The project involves a technical challenge associated with incorporating a Canadian dairy ingredient or developing an innovative dairy product.
   • It uses dairy ingredient(s) which is/are made wholly or mainly from milk.
3. Demonstrate that the dairy product formulation or further processed product will not risk displacing existing Canadian dairy product(S) and/or further processed product(s) made with Canadian dairy ingredients:
   • The project involves reformulating a product with dairy (rather than developing a new/innovative product); 
   • OR the product is not currently manufactured in Canada;
   • OR similar Canadian product(s) are not currently manufactured and sold in the province(s) where the organization intends to market the product;
   • OR similar Canadian product(s) are not currently manufactured and sold to the same clientele under the same distribution channel.

2.0 Eligible dairy products and ingredients

Dairy products and ingredients deemed eligible under the terms and conditions of the CDC MIF are defined as follows:

Canadian dairy products and ingredients made wholly or mainly from milk such as: butter, cheese, milk powders, milk protein concentrate/isolate, evaporated milk, sweetened & condensed milk, whole milk, liquid milks, cream, and yogurt.

3.0 Eligible activities

Under the CDC MIF, eligible companies and FTCs can access financial support for:

• Consultation: access to advice from specialists/experts in areas of product development, management and marketing, dairy and food science, and food processing.
• Product development: product analysis, trials and technology transfer, which includes, but is not limited to, adoption of new or existing technologies, industrial scale tests, retrofitting of facilities, sample preparation costs, and packaging techniques.

If a project application is deemed eligible, 50% of the eligible costs of the project will be funded by the CDC, up to a maximum of $150,000 (before taxes). Of this amount, a maximum of $25,000 (before taxes) can be allocated to consultation activities. Remaining funds must be allocated to product development activities.

Small businesses (less than 25 employees) are eligible for a reimbursement of up to 100% of eligible costs (before taxes) for the first $10,000 spent on a project (this includes up to $5,000 for consultation activities and up to $5,000 for product development activities). In the case of a project involving only one activity (consultation or product development), the amount eligible for 100% reimbursement is set at $5,000. Additional eligible costs (before taxes) will be reimbursed on a matching investment basis (50%).

Projects that emphasize the use of solids non-fat (SNF) ingredients such as skim milk powder (SMP) milk protein concentrate (MPC) or liquid skim milk will be given priority attention under the CDC MIF and may be eligible for an increased level of funding.

The CDC reserves the right to determine the amount of funding to be allocated to a project on the basis of its ability to contribute to growth and innovation in the manufacture/use of Canadian dairy products and ingredients and/or in the use of milk solids non-fat.

The summary table below outlines the eligible activities and available funding under the CDC MIF for consultation services and support to product development projects.

4.0 Activities and funding limits for consultation and product development activities
 

5.0 Definitions of eligible costs

The CDC has established three categories of costs eligible under the Consultation and/or Product Development features of the CDC Matching Investment Fund.

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