Dairy processing innovation program participation grows

Tuesday, April 9, 2013

by SUSAN MANN

The program dairy processors use to source milk for innovative new products continues to grow.

From November 2012 to January, there were 50 active domestic dairy product innovation program projects in Ontario that used more than 14 million litres of milk. That’s an increase of four projects and 2.7 million litres of milk over the November 2011 to January 2012 period when there were 46 active projects using 11.3 million litres of milk, according to a report released at Dairy Farmers of Ontario’s spring policy conference in March.

The program gives processors wanting to make innovative new products a supply of milk that isn’t part of their existing plant supply quota. It has been in place since 1989 and has been renewed several times. It is set to expire July 31 unless it’s renewed.

Peter Gould, Dairy Farmers of Ontario general manager and CEO, says there’s a committee working on renewing it.

Changes in allocation policies being developed now may have an effect on the innovation program. Once the new policy to supply milk on demand for yogurt and specialty cheese is implemented, possibly later this year, the innovation program may appear to be stagnant “even though there will be new products constantly introduced in the marketplace,” the report says.

Gould says the innovation program will be modified to exclude milk for yogurt and specialty cheese products “but my expectation is there will continue to be a domestic dairy product innovation program.”

The proposed new policy will make milk readily available for some products that currently require processors to tap into the national innovation program or in Ontario to the artisan dairy program. The Ontario program has been in place since 2006 to encourage new small-scale products primarily made in small batches. Dairy Farmers says on its website it provides up to three million litres of milk annually through the program but applicants must first apply to the Canadian Dairy Commission to get milk through the innovation program and if their application is turned down there they can apply to buy milk through the artisan program. Successful artisan program applicants are eligible to get up to 300,000 litres of milk annually for three years. BF