The Canadian Dairy Commission is a Crown corporation which was established in 1966 with the mandate of coordinating federal and provincial dairy policies and creating a control mechanism for milk production which would help stabilize revenues and avoid costly surpluses. The CDC plays a key role as facilitator and stakeholder in the various forums that influence dairy policy in Canada  and offers a framework for the management of the industry as a whole, which is a jurisdiction shared by the federal government and the provinces.

Since supply management was first applied to the dairy sector, the CDC has been in charge of two of the three pillars of the system: support prices and market sharing quota. Once a year, the CDC sets the support price of butter and skim milk powder following consultations with industry stakeholders. These prices are used as a reference by the provincial milk marketing boards  to establish the price of industrial milk in each province. The CDC also monitors national production and demand and recommends the necessary adjustments to the national production target for industrial milk.