Canadian Dairy Commission
Symbol of the Government of Canada

New Incentive for Innovation in Dairy and Food Products

Ottawa, June 9, 2009 – The Canadian Dairy Commission (CDC) launched today its new Matching Investment Fund (MIF). This fund provides contributions to Canadian companies for product development projects on a matching investment basis.

The CDC has committed $6 million over 3 years for this program. Through the MIF, dairy processors, food manufacturers and food technology centres and institutes can access up to $50,000 per project for consultations and $250,000 per project for product development. Projects which 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 and may be eligible for an increased level of funding.

The MIF replaces the former Innovation Support Fund and Direct Access Fund. In addition to offering more funding, some of the major differences between the previous programs and the MIF are that money provided by the CDC will have to be matched by the participating companies, either in cash or in kind; that innovators will have the opportunity to use their own research and development facilities or external facilities; that there are more eligible activities, including consultations with experts, product analysis, trials and technology transfer, industrial scale tests, retrofitting of facilities, sample preparation and packaging techniques; and that a more streamlined application process will be used.

“The creation of the fund is the result of comments received last year when we evaluated the CDC’s Dairy Marketing Program as well as during consultations by CDC staff with industry partners. I think this new fund addresses many of the concerns expressed by dairy processors and food manufacturers” said John Core, CEO of the Canadian Dairy Commission as he launched the program. “The MIF will benefit the whole supply chain, from producers to consumers. Demand for milk should increase, dairy and food product manufacturers get help with their innovation project and consumers get new and innovative products.”

The CDC will begin accepting proposals for projects on August 1, 2009.Information on the application process and the necessary forms are available at www.MILKingredients.ca.

- 30 -

For more information:

Shana Allen                                                       
Communications Officer                                             
(613) 792-2041                                                
shanaallen@agr.gc.ca