Dairy Innovation Program (DIP)

For Canadian dairy processors, one of the biggest barriers to launching new products isn’t creativity—it’s securing enough milk without disrupting existing supply arrangements. The Dairy Innovation Program (DIP) was created to remove that bottleneck, giving processors the flexibility to experiment, develop, and scale innovative dairy products while maintaining their current provincial milk supply positions.

Delivered nationally by the Canadian Dairy Commission, the program supports food and beverage businesses working on new or improved dairy offerings, including value‑added products that may require additional butterfat. Rather than providing direct cash funding, DIP offers non-repayable support in the form of access to additional milk specifically tied to approved innovation projects. This allows processors to move forward with product development without triggering changes to their established supply allocations, making it easier to test new ideas and respond to evolving consumer demand.

The program is particularly relevant for established SMEs and larger dairy processors looking to differentiate their product lines, enter new market segments, or invest in innovation without taking on additional supply risk. Support varies by project and is structured to align with provincial supply systems while encouraging long-term growth in milk demand. For dairy businesses considering their next innovation step, understanding how the Dairy Innovation Program works in practice can help determine whether it’s the right fit for your plans.