Dairy products such as cheese, butter and skim milk powder purchased/sold under the SMCPP provide eligible distributors and dairy ingredient users with the means to compete on a level playing field in the marketplace.

The Canadian Dairy Commission (CDC) administers the SMCPP on behalf of the Canadian dairy industry and issues Special Class Permits to eligible companies. The CDC monitors and controls the activities and performance requirements of dairy ingredient distributors and further processors participating in the Program.

To be eligible under this Program, further processors must prove that the finished products which they manufacture are not protected by Tariff Rate Quota controls. The finished product must be intended for sale to retailers, wholesalers and/or to restaurants. The use and/or resale of Special Milk Class priced dairy ingredients for any other purpose is strictly prohibited. A product formulation which has the potential to displace the sale of an existing dairy product in the marketplace shall not be deemed to qualify under the Program.