Agriculture and Agri-Food Canada have dished out 10 million dollars in Dairy Technology funding.
Vitalus Nutrition Inc. receives the money to continue work producing a prebiotic from milk permeate, which is a milk by-product.
The nutritionists says the prebiotic can be used in infant formulas and other foods to boost their nutritional makeup.
Vitalus adds the ingredient will help the dairy industry take what is currently an unused by-product and turn it into a functional food product.
AAFC Minister Lawrence MacAulay made the announcement last week as part of the Growing Forward 2 initiative.