The Canadian Milk Supply Management Committee (CMSMC), chaired by the Canadian Dairy Comission (CDC), is a permanent body created by the provincial signatories to the National Milk Marketing Plan (NMMP) and is responsible for policy determination and supervision of the provisions of the NMMP. The CDC acts as the national facilitator and mediator in helping build consensus between all parties.

This CMSMC serves as the key national body for policy development and discussions respecting the dairy production and processing sectors. Representatives of national processor,  consumer and producer organizations also participate as non-voting members.

It meets four times a year to review and consider the major production, economic and marketing factors affecting the dairy sector. These include trends in domestic consumption and production of milk and dairy products, the level of skim milk powder and butter stocks held by the CDC and private companies, and export activities. The CMSMC also reviews and monitors the CDC's marketing operations and promotional activities, the pooling of market returns, and provincial quota allocation and utilization.

Each year, the CMSMC sets the national industrial milk production target. This target is constantly monitored and adjusted when necessary to reflect changes in demand for industrial milk products such as butter and cheese, as measured in terms of butterfat. The CMSMC applies the terms of the NMMP to establish the provincial shares of the quota. Each province allocates its share to its respective producers according to its own policies and in accordance with pooling agreements.

The supply management system is an effective tool to bring forward sufficient milk production to meet anticipated domestic demand and export requirements. While surplus production can occasionally occur, it is dealt with through quota management and exports monitored by the CMSMC.