If you are a Canadian dairy processor planning a new or improved product, getting the milk you need can be difficult. The Dairy Innovation Program (DIP) helps by allowing approved processors to use milk for innovative products—without changing their existing provincial milk supply allotment. The program is run by the Canadian Dairy Commission and is currently open.
The Dairy Innovation Program is not a traditional cash grant. Instead, it provides the ability to use milk supply outside the regular quota system so you can produce and test new dairy products.
Here is what the program offers:
Since DIP does not give cash, it is handled differently for accounting and taxes. Always check with your accountant or advisor for details.
To apply for the Dairy Innovation Program, your business must meet certain criteria set by the Canadian Dairy Commission.
You may be eligible if:
Eligible products include butter and butter oil, along with other innovative dairy products approved by the program.
If your application involves butter or butter oil, you must apply at the national level. Provincial applications are not accepted for these products.
Applying to the Dairy Innovation Program is more technical than applying for a standard grant. Careful planning helps your application succeed.
You need a clear explanation of:
Choosing the wrong stream can delay or invalidate your application.
While requirements vary by product, expect to provide:
Applications are submitted through the Canadian Dairy Commission or the relevant provincial milk marketing board, depending on your product and application type.
Tools like GrantHub’s eligibility matcher can help you quickly check whether DIP—and other agri-food programs—fit your business before you spend time on paperwork.
Knowing what DIP does not cover helps you plan better.
The program strictly provides the ability to use milk for innovation.
Treating DIP like a cash grant
DIP provides the use of milk, not funding. Budget planning should cover your production and commercialization costs separately.
Applying provincially for butter products
Butter and butter oil applications must be national. Provincial submissions will not be accepted.
Weak innovation rationale
Applications that do not clearly explain what makes the product innovative are often delayed or declined.
Ignoring timelines and volumes
Overestimating milk needs or providing vague timelines can raise red flags during review.
Q: Does the Dairy Innovation Program provide funding?
No. The Dairy Innovation Program does not offer direct financial support. It provides the ability to use milk supply outside your existing allotment.
Q: Will DIP affect my current provincial milk quota?
No. Participation in DIP does not impact your existing provincial milk supply allotment.
Q: Who can apply for the Dairy Innovation Program?
Only Canadian dairy processors producing eligible innovative dairy products can apply.
Q: Can I apply provincially or nationally?
Both options exist. However, applications for butter and butter oil must be submitted at the national level.
Q: Is the Dairy Innovation Program taxable?
Since DIP does not provide cash funding, it is handled differently than grants. You should confirm accounting treatment with your advisor.
If you are planning a larger innovation project, these guides may also help:
The Dairy Innovation Program can help you get the milk you need for new dairy product development. First, confirm your eligibility. Then, consider combining DIP with other federal or provincial funding to cover your full project costs.
GrantHub lists hundreds of active grant and support programs across Canada. Check which ones match your dairy business and innovation plans before you apply.
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