Dairy Innovation and Investment Fund


September 29, 2023 – Saint-Hyacinthe, Quebec – Agriculture and Agri-Food Canada

The new Dairy Innovation and Investment Fund, announced in Budget 2023, will provide Canadian dairy processors with non-repayable contributions to help the dairy sector better manage the structural surplus of solids non-fat in Canada. This Fund will be delivered by the Canadian Dairy Commission on behalf of Agriculture and Agri-Food Canada.


Eligible applicants are for-profit organizations, including corporations, cooperatives and partnerships, and are Canadian dairy product manufacturers who process milk. Only projects involving milk from cows are eligible.

Eligible activities

To be eligible, projects must:

  • result in a net increase in solids non-fat processing capacity of at least 50 million litres of skim milk per year, organization-wide in Canada (in the case of building of new facilities), or
  • result in a net increase in solids non-fat processing capacity of at least 25% and 30 million litres of skim milk per year compared to the current facility and organization-wide in Canada (in the case of projects involving the replacement of existing equipment coupled with an increase in capacity or in the case of an expansion of an existing facility)

The program will support eligible costs of capital assets and contracted services, including:

  • removing and disposing of existing equipment
  • purchasing, shipping, installing, and commissioning of new equipment, software and production lines
  • installation of new, or expansion of existing, milk reception and milk storage area as required to meet the objectives of the project
  • retrofits/renovations of existing facilities related to the installation and operation of eligible equipment
  • construction of a new facility
  • training necessary to operate eligible equipment
  • translation of materials related to training on the new equipment

Costs related to the purchase of land or research and development are not eligible.


Funding for projects will be allocated across Canada by region. Unused funding may be reallocated from one region to another.

Region Funding allocation (approximate)
West (British Columbia, Alberta, Manitoba, Saskatchewan) $74 million
Ontario $127 million
Quebec $109 million
Atlantic (New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland and Labrador) $18 million


The Dairy Innovation and Investment Fund contribution for construction costs will be up to 25% whereas the contribution for other eligible costs will be up to 33%.

Contributions under the program are non-repayable. The maximum contribution is $75 million per project or the funds available in the region of the project, whichever is lower.

The program will consider costs eligible for reimbursement as of November 17, 2022, if the Project Summary Form is received on or before November 3, 2023.

Application process

The program will use a two-stage application process.

A Project Summary Form will be used to screen the applicant’s and project’s eligibility, fit and readiness to apply for funding. Proposals that meet the program’s priorities and eligibility criteria may be invited to submit a full project application.

Visit the Dairy Innovation and Investment Fund website to apply. Applicants have until November 3, 2023 to submit a Project Summary Form. Should there be funds remaining, additional application dates may be announced in the future.

Related products

News release: Minister MacAulay launches new program to support the Canadian dairy sector


For media:
Annie Cullinan
Director of Communications
Office of the Minister of Agriculture and Agri-Food

Media Relations
Agriculture and Agri-Food Canada
Ottawa (Ontario)
aafc.mediarelations relationsmedias.aac@agr.gc.ca
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