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The CDC

The Canadian Dairy Commission

As national facilitator and chief administrator for the dairy industry, the CDC undertakes a number of activities and programs:

• Through its chairmanship and work for the Canadian Milk Supply Management Committee (CMSMC), the CDC provides ongoing support to the Canadian dairy industry while operating in close co-operation with national and provincial stakeholders and governments;
  
  
• It acts as a facilitator and provides secretariat services to the revenue pooling and market sharing systems.  Provisions for these functions are set out in the All Milk Pooling Agreement, the Western Milk Pooling Agreement, and the Comprehensive Agreement on Pooling of Milk Revenues. The CDC also administers the financial mechanisms required by these agreements;
  
  
• It calculates and recommends to the CMSMC the target national milk production for industrial milk, or Market Sharing Quota;
  
  
• It has the authority to purchase, store, process, or sell dairy products on the domestic or export market, within World Trade Organization (WTO) commitments. The CDC also imports and redistributes tariff rate quota butter on behalf of the industry;
  
  
• The Commission establishes support prices at which it will purchase butter and skim milk powder. These support prices are used as references by provinces to establish prices for milk used to manufacture products such as butter, cheese, and ice cream;
  
  
• It administers the Special Milk Class Permit Program  and issues permits allowing further processors to have access to competitively-priced dairy ingredients, and allowing exporters to export dairy products within Canada’s WTO commitment levels;
  
  
• It develops and implements marketing programs and services aimed at encouraging food manufacturers to maintain or increase their use of dairy ingredients in their various products. These activities are guided by the objectives set out in the Dairy Marketing Program.
  
  
• The CDC carries out internal audits of its systems and practices as well as external audits, which are in large part performed on companies participating in the Special Milk Class Permit Program; and
  
  
• It acts as a facilitator in advancing the harmonization of audit procedures for dairy plants.