Program Description
Background
The Canadian Dairy Commission (CDC) created the Dairy Innovation Program (DIP) on August 1, 2013 to replace the Domestic Dairy Product Innovation Program (DDPIP), which expired on July 31, 2013. On July 23, 2015, the DIP was amended to include the eligibility of butter and butter oil.
Purpose
Like the previous innovation program, the DIP is designed to grant dairy processors with continued access to the milk they require to produce innovative dairy products without affecting their existing provincial milk plant supply allocation. By encouraging such new development, the overall demand for milk is expected to increase. The CDC will provide an allocation credit (deducted from the Canadian requirement) to each province Footnote 1 ;that supplies milk for the new DIP contracts. These credits will be allocated to the province on end-use butterfat basis with no conversion of credits into quota (crystallization).