The new classification, approved by the commission this week, will take effect June 1, CBC News reported.
The cost of mozzarella cheese in Canada is high when compared to the world market. However, the new classification is expected to lower the price of Canadian-made mozzarella.
"I've been in this business 17 years, and this is the first time cheese has ever gone down," Bob Abumeeiz, who owns Arcata Pizzeria in Windsor, Ontario, told CBC. "It's unheard of."
Abumeeiz said the price of a large slice of pizza may drop as much as 10 percent.
"Of course, it's going to affect the price," Abumeeiz said. "The more people that know about it, people are going to ask 'cheese prices went down -- how come the pizza price is the same?' The customers are aware of what's going on around them. It's going to affect the bottom-line of the pizza price."
Agriculture Minister Gerry Ritz said the move is good for everyone in the pizza-making process.
It is "good news for Canadian dairy farmers, processors and our restaurant industry," he said.