Special Milk Class Permit Program (SMCPP) Eligibility Criteria

A further processor must submit an application and meet the following eligibility requirements in order for its further processed products to qualify under the SMCPP.

  • The further processed product must be a finished food product intended for sale to retailers and/or to food service/restaurants.
  • The dairy products/ingredients purchased under a SMCPP permit may only be used in the manufacture of an approved further processed product and may not be re-sold.
  • A further processed product or a dairy based blend which according to the CDC has the potential to displace the sale of an existing Canadian dairy product in the marketplace may be considered ineligible under the Program. This condition also applies to further processed products with a dairy content exceeding 50%.
  • To be eligible under the SCMPP, Further Processors must demonstrate that the further processed product which they manufacture is not subject to tariff rate quota controls, unless approved by the Canadian Milk Supply Management Committee (CMSMC).

Further Processed Product Eligibility

  • Fresh products (with limited shelf life) are not deemed eligible under the SMCPP with the exception of the following products:
    • Butter/butter oil used in the manufacture of fresh bakery products
      • Where the Further Processor makes an application regarding fresh bakery products containing butter/butter oil and other dairy products/ingredients, only the butter/butter oil shall be deemed eligible to receive SMCPP Pricing.
  • The further processor is required to supply the CDC with the brand names of the competing products along with copies of actual packaging and/or label samples (when requested by CDC).
  • The further processed product must be manufactured/packaged in such a way as to promote extended shelf life. This requires that the product be:
    • sealed frozen prior to shipment or sale from the manufacturer's facility or;
    • packaged using methods/materials that promote extended shelf life e.g.: vacuum sealed, gas flushed, canned, dried, etc.
  • Product labels must be submitted to the CDC and must bear the name of the further processed product manufactured by the Further Processor and its list of ingredients.
  • The following are examples of further processed products which may qualify under the SMCPP:
    • Frozen products/other products
    • Frozen pastry mix/dry baking mix
    • Dry and frozen sauce/salad dressing in bottles
    • Frozen cake/pastry/dry and canned soup
    • Frozen pizza/confectionery Products
    • Frozen dinners/entrées/milk bread (skim milk powder only)
    • Ghee/clarified butter*/snack foods (dry, frozen)
    • Frozen dairy novelties
    • *Ghee/clarified butter must be packaged/sold for retail in containers of 3kg or less.

Frozen Dairy Novelties

  • For the purpose of the SMCPP, frozen dairy novelties are defined as follows: single serving (not to exceed 300 ml) individually packaged/sealed ice cream, ice milk and frozen dairy dessert products destined for retail sale including bars, sandwiches, sundaes and stick products e.g.: fudgesicles. Single serving frozen dairy novelties may be multi-packed (example, 8-12 single serve units per box).