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Section II – Analysis of Program Activities by Strategic Outcome

Strategic Outcome 1 - Security of the Food System

Through the Security of the Food System Strategic Outcome in 2008-09, AAFC aimed to ensure Canada’s agriculture and agri-food sector would continue to produce, process and distribute safe and reliable food. In this regard, the department regularly works in collaboration and co-ordination with the Canadian Food Inspection Agency and other federal partners.

AAFC’s approach to Security of the Food System was based on ensuring farmers and food producers had the tools they needed to manage business risks. In addition, the department helped maintain and enhance consumer confidence in the safety and quality of Canada’s agricultural and food products by assisting the sector to develop and implement food safety systems. It also sustained and developed global markets by identifying opportunities and maintaining and expanding access in those markets.

Program Activity by Strategic Outcome



Program Activity 1.1 - Business Risk Management
Enhancing producers' capacity to manage risk, and increasing the sector’s viability and profitability
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
2,080.3 1,411.2 1,362.2 1,295 1,114 (181)

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Increased producer capacity to manage business risks Producers have the tools, knowledge and opportunity to manage business risk 70% of producers representing 80% of farm receipts participate in BRM programs by March 31, 2009 Mostly Met 52% of Canadian producers participated in Canadian Agricultural Income Stabilization program in 2006, represented 66% of market revenues.

65% to 70% of crop acres grown are insured; 50% to 55% of Canadian farmers are insured.

A new suite of BRM programs was introduced.


Benefits for Canadians

Canada’s farmers are the underpinning of the agri-food and agri-products industry that, in 2008, employed 12.6 per cent of Canada’s workforce and provided eight per cent of the Gross Domestic Product (GDP). BRM programs help ensure the long-term stability and competitive position of the industry by enhancing farmers’ capacity to manage financial risks. This was achieved by:

  • stabilizing producer incomes derived from their operations;
  • improving preparedness to respond to, mitigate and recover from production risks;
  • reducing the economic impact of disasters and providing for adjustments and recovery after such disasters;
  • enhancing profitability; and
  • putting in place a new suite of BRM programs that are bankable, predictable and responsive.
Performance Analysis

Canadian Agricultural Income Stabilization (CAIS) and Production Insurance were the two core BRM programs under the Agricultural Policy Framework.

For CAIS, the performance information provided here relates to the 2006 tax year, the latest year for which figures are available. Participation in the program decreased from 136,000 participants in 2003 to about 120,000 in 2006. However, the program still covered a significant portion of the agricultural industry with 52 per cent of Canadian producers participating, representing 66 per cent of total market revenues for all farms in Canada.

The Production Insurance program continued to be a key BRM component as it covered most commercially produced crops in all provinces (approximately 95 per cent of the value of all crops grown in Canada are insurable). More specifically, in 2008-09, 60 to 68 per cent of the value of crops grown and 50 to 55 per cent of Canadian farmers were insured.

To address producer concerns with BRM programs under the Agricultural Policy Framework, a new suite of BRM programs, namely AgriStability, AgriInsurance, AgriInvest, and AgriRecovery, were made available to producers under the Growing Forward policy framework, beginning in the 2008-09 fiscal year.

AgriStability, the new margin-based income stabilization program, includes several improvements over CAIS, such as expanded criteria for negative margin coverage, targeted advance payments to get funds out quickly when disasters occur, and a better method of valuing inventories, as well as simplified forms and improved service delivery. AgriInvest allows producers to self-manage, through producer-government savings accounts, the first 15 per cent of their margin losses for a production year and make investments to reduce on-farm risks or increase farm revenues. AgriRecovery is a framework that allows governments to jointly respond to disasters (e.g., disease, weather) with quick, targeted assistance. The purpose of AgriRecovery is to help affected producers resume business operations and take actions to mitigate the impacts of a disaster as quickly as possible; it provides a process for governments to quickly determine whether further assistance is required in addition to existing programming. These programs were designed to be more responsive, predictable and bankable, while also providing greater flexibility. This is expected to result in higher participation of producers in the BRM programs and a better capacity to mitigate business risks.

More information on the new BRM suite of programs

Lessons Learned

A key component of a quality-service-improvement culture is client-satisfaction measurement. AAFC’s national Client Satisfaction Survey, completed in March of 2009, displayed results that will be used to guide its service agenda.

Reflecting its commitment to service improvement, AAFC now tracks, and makes public, the percentage of applications processed according to service standards for the AgriStabity program.



Program Activity 1.2 - Food Safety and Food Quality
Minimizing the risk and impact of food-borne hazards on human health, increasing consumer confidence and improving the sector’s ability to meet or exceed market requirements for food products, and provide value-added opportunities through the adoption of food safety, food quality and traceability systems
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
97.2 106.2 75.9 585 503 (82)

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Protecting the health of Canadians by improved farming practices and processes that lead to increased food safety % of producers adopting improved food safety practices 65% by March 31, 2010 Mostly Met Producers are implementing and adopting food safety practices as evident through on-farm safety system development and implementation projects funded by AAFC. The exact results will be known when the Statistics Canada Survey results are available in 2010.
Increased availability to consumers of high-quality, health-enhancing food products Increase in dollars in sales / revenues for functional foods and nutraceuticals by March 31, 2014

(% increase for target has yet to be determined. It will be identified by March 31, 2010.)

Mostly Met

While no data is available for this past fiscal year to measure performance at the Program Activity level, AAFC is meeting or exceeding its targets at the Program Sub-Activity (PSA) and Progam Sub-Sub-Activity (PSSA) levels. Please see the Performance Analysis for a description of progress at these lower levels.

According to the most recent information available, firms with functional or nutraceutical-related activities reported about $2.9B in sales in 2004. This represents about 10% of revenues from all sources (Data source: Innovation Analysis Bulletin Vol. 8, no. 3, Dec. 2006)

Benefits for Canadians

Government-recognized and science-based food safety and food quality practices, tools and systems, at all links in the value chain, helped prevent the spread of animal and plant disease. This not only reduced economic losses to Canada associated with responding to disease outbreaks, but provided consumer confidence, at home and abroad, resulting in enhanced market access and industry growth.

Performance Analysis

Implementation of on-farm safety practices was included in the 2009 Farm Financial Survey. Results of the survey are expected in early 2010. The target of 65 per cent has been reduced to 55 per cent in AAFC’s 2009-10 Performance Measurement Framework. This adjustment reflects the general intent of the grain sector not to proceed with implementing on-farm food safety practices on a comprehensive basis unless markets demand such requirements.

Only the first year of work has been completed toward the five-year target, as noted in the proceeding table for this Program Activity, as it relates to Innovation. While, at this point in time, there are no firm performance measures available for the Program Activity itself, progress is reflected in achievements at the lower levels of the overall Performance Framework. A few examples follow to highlight this progress.

Science-based food safety practices are crucial to preventing the spread of animal and plant diseases. In 2008-09, AAFC provided $16.3 million to non-profit national industry associations and provinces to develop government-recognized on-farm and post-farm food safety practices in the complex integrated production, processing, packaging and distribution systems. These food safety practices limit the spread of food-borne illnesses and contaminations, which reduce the associated economic, environmental and social impacts as well as supporting the confidence in Canadian food, at home and abroad, resulting in maintaining and enhancing market access and industry growth.

During 2008-09, 21 non-profit producer and agri-food associations received $8.2 million to develop and implement national food safety systems. Also AAFC provided seven participating provinces with $8.1 million to implement food safety practices in more than 330 non-federally registered food processing plants and conduct over 400 food safety seminars.

From a science standpoint, AAFC continued its work in the area of food safety and food quality. The department’s scientists contributed to the body of knowledge in this area through publishing 400 scientific articles in peer reviewed journals. In addition, results from AAFC research in the area of food safety and quality and human health and wellness resulted in the filing of eight commercialization licences or patents (up from four licences in 2007-08), demonstrating successful uptake of technologies and varieties resulting from the department’s science.

In addition, AAFC scientists have discovered bacteria living in chicken guts and soils that can neutralize the toxic effects caused by a common grain fungus. The discovery opens the door to innovative mitigation strategies to lower the risk of toxin contamination of food and feed. As well, a collaborative project with Health Canada, the Canadian Food Inspection Agency and the Public Health Agency of Canada has yielded important information about how lettuce and other vegetables become contaminated by E. coli O157:H7 during production and post-harvest handling. Understanding these contamination mechanisms is a key step toward improved food safety procedures.

Lessons Learned

The development of Growing Forward provided the opportunity to put in place the foundation for program integration of Food Safety, Biosecurity and Traceability initiatives. Consultations with provinces, territories and industry stakeholders and wide ranging discussions within AAFC were key to developing the new set of programs. One of the goals for integration was to streamline and simplify programs to ensure flexibility needed by clients. The newly designed programs will provide industry with assistance and flexibility in developing coordinated and comprehensive systems to better respond to market conditions and consumer demands in future years.



Program Activity 1.3 - Markets and International
Expanding international opportunities for the Canadian agriculture and food sector
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
127.7 122.8 111.1 671 624 (47)

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
A competitive sector that has the necessary attributes to position itself strategically to take advantage of new market opportunities, and to reposition itself to protect against changing market risks Increase in value of domestic shipments in the agriculture, agri-food (including seafood) and beverage sectors Increase of $5 billion by March 31, 2013 Mostly Met Food and beverage manufacturing domestic shipments grew by $4 billion (current dollars) in 2008-09, up 4.8% from 2007-08 to a total of $87.3 billion. However, in real dollars (1997 was established as the baseline year for comparing performances), shipments grew by $333 million.
Access to export markets is maintained and expanded Increase in number of markets where Canada exports over $50 million in agri-food and seafood products 5% by March 31, 2013 Exceeded Canada increased the number of countries to which it annually exports $50 million of agriculture, agri-food and seafood products. The number of countries increased from 48 in 2007 to 51 in 2008, representing a 6.3% increase.
Number of markets maintained at an export level of $100 million or more 32 by March 31, 2013 Exceeded Canada exported more than $100 million in agriculture, agri-food and seafood products to 44 countries in 2008, an increase of 10% from 2007.

Benefits for Canadians

With substantial consumer sales of Canadian agriculture and agri-food products and record exports of agriculture, agri-food and seafood products, valued at $147.6 billion and $42.8 billion respectively in 2008, Canada has a clear and fundamental interest in leveraging a strong Canada Brand, and in securing market access for this critical industry. In fact, Canada is the fourth largest exporter of agri-food and seafood products in the world.

Exports create jobs in Canada, increase revenues from farm cash receipts, contribute to strengthening competitiveness of Canada’s agri-food sector, and foster innovation.

Performance Analysis

In 2008-09, the value of Canadian agriculture, agri-food and seafood exports increased by 21.2 per cent over 2007. The large spike in exports was due to extremely high wheat and barley prices for the first half of 2008 and the significant increase in exports of canola, barley and oats which increased both in volume and value. The high prices fell to a much lower plateau early in 2009 due to the global economic crisis and other events.

In 2008, the number of countries to which Canada exported over $100 million of agriculture, agri-food and seafood products was 44. This represents an increase of 10 per cent from the 40 markets reported in 2007. The number of countries to which Canada exported over $50 million to each country was 51 in 2008. This represents an increase of 6.3 per cent from the 48 markets reported in the previous year. These trends are expected to continue as Canada further diversifies these exports.

Food and beverage manufacturing shipments (i.e., total manufacturers' sales of products made in Canada) were valued at $87.3 billion in 2008, up 4.8 per cent from 2007. This represents a $4 billion-dollar increase. Significant growth in sales of grain and oilseed milling products, up 30 per cent largely due to higher prices, accounted for almost half of the overall food and beverage industry growth. In real terms, removing the impact of price fluctuations, the value of shipments grew by $333 million (in 1997 dollars – established as the baseline for comparing performance). The real output of food and beverage manufacturers remained relatively flat in 2008, due to several factors, including the higher Canadian dollar, higher input costs, growing competition from low-cost producing countries (such as China), and the global economic recession.

In 2008-09, the Canadian Agriculture and Food International (CAFI) program continued to fund industry activities to improve international market development and gain recognition for Canada as a leader in supplying high-quality, safe and innovative agriculture, agri-food, beverage and seafood products. The CAFI program provided over $22.8 million in support of industry activities, including $17.5 million for long-term international strategies and $5.3 million for projects to 47 industry associations.

Lessons Learned

Efforts to diversify and to expand international markets greatly benefit Canadians, as shown by the increase in exports over the last few years. Initiatives and programs such as the negotiation of bilateral and regional free trade agreements, market access, advocacy, resolution of trade disputes, and export promotion should continue to be pursued.



Program Activity 1.4 - National Farm Products Council
Oversee the national supply management agencies for poultry and eggs and national promotion research agencies to ensure an efficient system that works in the balanced interest of stakeholders, from producers to consumers
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
5.3 6.2 6.1 30 37 7

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
The supply management system for poultry and eggs, as well as the check-off system for beef, work in the balanced interests of stakeholders, from producers to consumers Percentage of market share: producers maintain their relative share of the Canadian market for chicken, eggs, hatching eggs and chicks, and turkey 80% by March 31, 2009 Exceeded Chicken: 81.4%
Eggs: 95.4%
Hatching Eggs: 82.6%
Turkey: 95.2%
Variations in consumer prices for regulated products are consistent with those of other unregulated agricultural products The Consumer Price Index (CPI) for regulated products are consistent with those of other unregulated agricultural products as well as relevant historical trends. Met All The CPI for All Foods increased by 3.9% in 2008. The CPI for Chicken increased by 5.1%, the CPI for Turkey decreased by 1.3% and the CPI for Eggs increased by 4.9%.

Because hatching eggs are not purchased by consumers, the CPI indicator does not apply.


Benefits for Canadians

National supply management systems were established in response to the price volatility and revenue uncertainty faced by agricultural producers of certain commodities. In 2008-09, the National Farm Products Council (NFPC) continued to assist and supervise the activities of the national marketing and promotion research agencies, which are not subject to the Competition Act, to ensure that the supply management system for poultry and eggs as well as the national check-off system for beef work in the balanced interest of stakeholders, from producers to consumers.

Performance Analysis

CPI variations for chicken and eggs were very similar to that of all foods and followed an upward trend while the CPI for turkey decreased slightly, making turkey products relatively more affordable than food items in general. This is consistent with patterns observed over the past five years where the turkey CPI tended to remain below that of chicken and eggs, as well as that of all foods. Also, the market share of Canadian chicken, egg, hatching egg, and turkey producers remains above the 80 per cent target.

Lessons Learned

In the summer and fall of 2008, NFPC consulted with its partners and industry stakeholders to obtain their views on its performance as well as future directions. From these consultations, two messages emerged: the need for more communication, cooperation, collaboration and coordination; and the need for NFPC to be more proactive and involved in order to better support the work of national agencies in the management of the system, as well as to act as a neutral and impartial expert organization in providing the appropriate information necessary to resolve disputes before positions become entrenched.

With this in mind, NFPC established six strategic priorities for the next three years: improving governance and decision making within NFPC; improving NFPC’s knowledge base and its capacity to provide expertise and influence solutions; improving interactions with stakeholders and provincial governments; improving dispute resolution mechanisms and efficiency; developing and circulating information on promotion research agencies; and improving communications.

Strategic Outcome 2 - Health of the Environment

Farmers and the entire agri-food sector, governments, environmental organizations and all Canadians share the goals of sustainable resource development to ensure both an economically vibrant industry and a healthy environment.

In 2008-09, AAFC worked with its partners to: improve conservation of air, water, soils, and biodiversity by the agriculture and agri-food sector through stewardship practices; improve ecosystems by increasing scientific knowledge; and provide advice and recommendations to Canadian and international decision-makers on the design of agri-environmental programs and policies.

Program Activity by Strategic Outcome



Program Activity 2.1 - Environment
An agriculture and agri-food sector that uses environmental resources in a manner that ensures their sustainability for present and future generations
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
389.2 382.4 331.6 1,940 1,845 (95)

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Reduced environmental risk from agriculture and agri-food sector, ensuring environmental sustainability of the sector in support of Canada’s environmental policies Improvement in the four agri-environmental indices:
1) Soil Quality
2) Water Quality
3) Air Quality
4) Biodiversity

Note: Scale for these indices

0-20=Unacceptable
21-40=Poor
41-60=Average
61-80=Good
81-100=Desired
Each of the four indices showing an improving trend by March 31, 2014 Somewhat Met Soil Quality, Water Quality and Air Quality indices were within the Good range. Soil Quality showed an improving trend, while Air Quality was stable and Water Quality showed a deteriorating trend.

The Biodiversity index was within the Average range on the Agri-Environmental Index, showing a deteriorating trend.

Note: based on 2001 data, published in 2005 in: Environmental Sustainability of Canadian Agriculture: Agri-Environmental Indicator Series - Report #2


Benefits for Canadians

In the November 2008 Speech from the Throne, the federal government noted that Canada’s economic prosperity cannot be sustained without a healthy environment, just as environmental progress cannot be sustained without a healthy economy. The government again declared its commitment to address climate change, protect water resources and foster overall environmental well-being. Work on the Environment Program Activity helped the government deliver on this commitment by contributing to a cleaner and healthier environment for Canadians.

AAFC helped address key agri-environmental challenges in Canada, focusing on agriculture's impact on water quality and use, the health of soils, and the mitigation and adaptation to climate change. More specifically, it contributed to Canada’s capacity to improve air quality and conserve water and soil resources through scientific verification of environmental stewardship practices and by increasing knowledge of sustainable practices. By providing new scientific advice and recommendations for the design of agri-environmental programs and policies, the department helped better position the sector to implement sustainable practices.

The department also helped industry to explore new economic opportunities that will contribute to a cleaner environment and healthier living conditions for Canadians, while enabling the sector to maintain or enhance profitability. For example, AAFC has undertaken research exploring Ecological Goods and Services (EG&S) market-based policy options, such as reverse auctions and tradeable permits, which could potentially provide farmers with benefits in exchange for implementation of beneficial management practices.

Performance Analysis

An analysis of the sector's environmental performance in the major agricultural regions of Canada reveals some positive and deteriorating trends. While trends in agri-environmental performance varied across the major agricultural regions of the country, all four agri-environmental indices are ranked as either average or good at the national level. These indices are: (1) Soil Quality; (2) Water Quality; (3) Air Quality; and (4) Biodiversity.

Improvements have indeed occurred. For example, soil degradation was identified as a major concern in the early 1980s. Research into this issue was conducted by AAFC and the resulting knowledge was promoted to farmers to apply stewardship practices on the agricultural landscape. These stewardship practices were widely adopted by producers, resulting in measurable improvements to soil quality over a 25-year period. The national Agri-Environmental Soil Quality Index improved from Average condition in the early 1980s to Good in 2001.*

Another example of success in achieving environmental goals is in the area of Air Quality. Estimates indicate a four-per-cent reduction in net Greenhouse Gas (GHG) emissions between 1981 and 2001.* This trend is largely attributable to an increase in soil carbon sequestration related to agronomic practices such as reduced summer fallow and conservation tillage.

Although considered in the Good range for environmental performance, the deteriorating trend associated with Water Quality is due to an increase in the risk of water contamination from higher amounts of nitrogen being added to crops in the form of fertilizer and manure. At the same time, the deteriorating trend associated with Biodiversity, although considered in the Average range for environmental performance, is due to a shift in land use to more intense production and away from pastures and natural land.

To mitigate the deteriorating trends associated with Water Quality and Biodiversity, AAFC has provided technical and financial assistance to support adoption of beneficial management practices by agricultural producers and land managers. These include practices such as nutrient management planning, improved manure storage and handling, farmyard runoff control, water well management, enhancing riparian and agro-ecosystem health, and shelterbelt establishment.

To achieve further progress in addressing environmental issues, in 2008-09, AAFC provided programs to farmers that helped them identify environmental risks and opportunities and promoted the continuous growth of the stewardship ethic within the sector. The department supported farmers through agri-environmental risk assessment and planning. It gave farmers access to expertise, information and incentives to increase the adoption of sustainable agriculture practices at the farm and landscape levels. AAFC investigated and developed new approaches that encourage and support sustainable agriculture practices. These programs also raised farmer and sector awareness of the economic value of sustainable agriculture practices.

(* The next National Agri-Environmental Health Analysis and Reporting Program is due in the fall of 2009; it will report on the period up to 2006.)

Lessons Learned

In response to the increasing public and market focus on environmental issues, AAFC will build on its agri-environmental achievements by continuing to work with other federal departments and provincial and territorial governments. Together, governments will help the sector move from a reactive, issue-based approach, to a proactive approach that will strive for higher environmental performance.

The Government of Canada and Canadians have two key environmental priorities: (1) clean, accessible water and (2) mitigation of GHG emissions and adaptation to climate change. Past successes in helping the sector make better land- and water-management decisions will inform AAFC’s environmental activities and programs, and provide clearer links between profitability of the sector and environmental performance.

In the future, AAFC will build on these links by continuing to promote and foster beneficial management practices aimed at enhancing environmental stewardship and improving the trends associated with Water, Air, Soil, and Biodiversity indices. AAFC will strengthen its ability to measure the national and regional impact of its policies and programs on environmental performance. The department will also continue to direct research towards understanding the interaction between agriculture and the environment. AAFC’s programs will focus on improving the ability of the sector to make informed decisions on new and emerging priorities. Departmental resources will be focused on the continual improvement of program delivery efficiency and effectiveness, with particular attention to regional flexibility.

Strategic Outcome 3 - Innovation for Growth

Success in the marketplace requires advanced technology and the latest knowledge to address the rapidly changing environment in which the sector competes. While a good foundation and capacity for innovation does exist in Canada, there is an ongoing need to improve the transformation of this scientific and technical knowledge into commercial and other practical applications that enhance the profitability and competitiveness of the sector.

As farming operations become more knowledge-intensive, producers need to continually enhance their skills and knowledge in areas ranging from managing financial and human resources to mastering innovative technologies, products and practices. By acquiring new skills, adopting new technologies, and maximizing efficiencies in operations, those who earn their livelihood from Canadian agriculture and agri-food will have a greater likelihood of profitability.

Program Activity by Strategic Outcome



Program Activity 3.1 - Innovation and Renewal
Equipping the industry with new business and management skills, bioproducts, knowledge-based production systems and strategies to capture opportunities and manage change
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
465.2 708.2 677.0 2,013 2,091 78

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Participating farmers and farm families meet their financial goals Percentage of participating farmers and farm families who are meeting their financial goals 50% by March 31, 2014 Exceeded 57% of Farm Business Assessment participants indicated the program helped them reach their financial goals.

80% of Canadian Agricultural Skills Service participants indicated the program helped them reach their most important goal (for 60% of participants surveyed, their most important goal was financial).

Agriculture and agri-food sector develops innovative, market-focused strategies that utilize science to transform commodities into new value-added opportunities for processors, producers and rural communities and new life-sciences products for consumers % increase in venture capital investment in agriculture-related enterprises (biotechnology and further food processing) 10% by March 31, 2014 Mostly Met In 2006 bioproduct firms raised $219 million, primarily for research and development, production and manufacturing capability, and marketing and commercialization. Contributions mainly originated from private placements, government grants and Canadian venture capital. (Data source: Study: Bioproducts Industry by Statistics Canada)

In making progress toward the 5-year goal for this Program Activity, AAFC is meeting or exceeding its targets at the PSA and PSSA levels. Please see the Performance Analysis for a description of progress at these lower levels.


Benefits for Canadians

In the 2008 Throne Speech, the government stated that advances in science and technology are essential to strengthen the competitiveness of Canada’s economy. It also noted the importance of working with industry to apply the best Canadian scientific and technological know-how to create innovative business solutions.

Under the Innovation and Renewal Program Activity, AAFC encouraged private-sector investment in the new bio-economy, generating increased employment and providing enhanced market opportunities for Canadian agri-food and non-food products.

Renewal programs under this Program Activity assisted both new and established farmers in assessing their business circumstances, reviewing options, acquiring skills and resources, and adopting beneficial business management practices.

Canadians benefited from Renewal programs under this Program Activity as they helped reduce the demand for taxpayer support to the sector. Producers made more intensive use of business information to become more profitable and to invest in value-added opportunities, helping generate new sources of export income for Canada. On-farm safety awareness, a component of the Renewal programs, has the potential to contribute to reduced health care costs as increased awareness translates into reduced farm accidents.

Performance Analysis

As one of the most significant contributors to science and technology in Canada, AAFC worked to ensure its investments and efforts in science and innovation continued to be relevant to the sector and all Canadians. The department supported industry-led innovation by strengthening the industry's innovation capacity across the agricultural value chains.

The Broker and Agri-Innovation Program had many accomplishments in its final year. Highlights included:

  • development of a sector-wide plan to align current and future innovation investments for Alternative Renewable Fuels;
  • a Flax Sustainability Plan for 2008-2011 to develop opportunities that flax offers in the areas of health and wellness, livestock production and environmental sustainability; and
  • advancement of Canada’s functional food and natural health product sector by fostering strategic clusters, investment and market development.

Science and Innovation programming continued to support research in areas important to the industry and Canadians. Through its external and internal evaluation of research proposals, the department helped ensure excellence in conducting and managing science and research efforts, and alignment with the sector's and Canadians' priorities, as outlined in AAFC's Science and Innovation Strategy. AAFC’s evaluation processes supported the Government of Canada's commitment to transparent decision-making, value for money and accountability for results in the delivery of its activities and services to Canadians.

Inventory of AAFC research projects.

As noted in the preceding table, only the first year of work has been completed toward the five-year target for this Program Activity, as it relates to Innovation. At this point in time, progress is reflected in achievements at the lower levels of the overall Performance Framework.

The department has a long and proud history of developing wheat germplasm and cultivars for the benefit of Canada and Canadians. For example, the impact of the AAFC wheat breeding program has been significant. In 2008, varieties developed by AAFC comprised over 65 per cent of production of Canadian Western Red Spring wheat, a premiere bread-making wheat. AAFC-developed varieties occupied over 95 per cent of the Canadian Western Amber Durum acreage that produced wheat for pasta and cous-cous. (http://www.cwb.ca/public/en/newsroom/releases/2008/100908.jsp).

A malting barley variety, AC Metcalfe, developed by AAFC researchers, was grown on 56 per cent of the farm acreage in Canada last year.

In 2008-09, AAFC signed 518 new agreements with research partners, of which 383 were with Canadian partners and 135 were with international partners. This represents a slight increase from 496 agreements in 2007-08, indicating growing industry interest in the research undertaken by AAFC. The department’s research in bioproducts and bioprocesses resulted in 49 commercialization licences (up from 29 licences in 2007-08), demonstrating successful uptake of technologies and varieties resulting from the department’s science.

AAFC encouraged greater participation in the emerging biofuels industry, helping to diversify the economic base through the ecoAgriculture Biofuels Capital initiative and programs, which included the multi-year Agriculture Bioproducts Innovation Program (ABIP), Agri-Opportunities, and the Biofuels Opportunities for Producers Initiative.

With regards to the Renewal component of this Program Activity, the National Renewal Survey in 2007 indicated that positive change had occurred in farm management since 2004. The survey suggested producers have increased their use of training, particularly in the areas of environment and marketing. Training in all topics related to business management is also showing an increase. Producers adopted new technology and incorporated new business management activities, including a significant increase in the use of mentors. Those producers who made changes to their operations did so, by and large, on the basis of research and analysis.

Renewal programs under the now-concluded Agricultural Policy Framework fell under two main streams: (1) business management and (2) skills development. Drawing an example from programming under the business management stream, 57 per cent of Farm Business Assessment participants surveyed indicated the program helped them reach their financial goals. Many participants attributed these results to better farm management. Under skills development, 80 per cent of Canadian Agricultural Skills Service participants surveyed indicated that the program helped them reach their most important business goal (for 60 per cent of participants surveyed, their most important goal was financial, which included nine per cent looking for off-farm income).

Lessons Learned

The continuing collaboration at the federal, provincial and territorial level in terms of feedback instruments and sharing tools and information has been essential to achieving successful results. This practice is being continued in Growing Forward.

While national programming ensured producers across Canada had access to the same services, it was considered too rigid and not responsive enough to specific regional needs and priorities. Under Growing Forward, the federal government has agreed to fund provincial programming which will provide the necessary flexibility to address regional priorities, and to fund certain national organization activities that meet the business development objectives which will give clients across the country access to resources and support at a national level.

New programs that utilize novel structures for delivery of science, such as the Agricultural Bioproducts Innovation Program (ABIP), require appropriate lead time to develop necessary communication and administration tools and access resources. This will help ensure that internal and external stakeholders are provided clear, consistent, timely, and accurate messages on all aspects of the program requirements.


Program Activity 3.2 - Rural and Co-operatives Secretariats
Helping rural Canada develop and maintain strong, adaptable and vibrant communities, and encouraging the economic growth and social development of Canadian society through co-operative enterprises
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
29.5 25.9 22.7 114 114 -

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Innovative Canadian communities benefiting from economic opportunity Number of new partnerships bringing together community, industry and stakeholders 6 by March 31, 2009 Met All 6 new partnership initiatives were undertaken in 2008-09.

Benefits for Canadians

Initiatives under the Rural and Co-operatives Secretariats Program Activity helped increase access by Canada’s rural communities to information, tools and services aimed at fostering economic and social development. Canadians were also provided with support to help launch or expand co operatives, thus generating further economic activity and creating jobs. During 2008-09, 80 co-op projects were supported.

Performance Analysis

AAFC’s Rural Secretariat continued work to ensure the rural dimension was taken into consideration in formulating federal policies and programs; this was in large part due to enhancement to existing partnerships, including the Rural Development Network and the Community Information Database. It was also instrumental in developing partnership projects, such as the Nunavut Economic Forum, bringing together communities, industry and other stakeholders, to advance Rural Canada’s social and economic agendas.

The Co-operative Development Initiative was enhanced by broadening services delivered by the sector to include the provision of financial support for testing innovative applications of the co-op form of enterprise. In addition, work began to involve the co-operatives sector and academics in a national research agenda on co-operatives. This work is aiming at building synergy among stakeholders, as well as leveraging funding, to increase knowledge of best practises, issues and opportunities, related to co-operatives. Increased knowledge will help enhance co-operatives’ contributions to innovation and growth in Canada’s economy.

Lessons Learned

As a result of lessons learned, AAFC began to make increased use of third-party agents to deliver more effectively the Co-operative Development Initiative, and to strengthen even further partnerships with regional and community organizations to stimulate new economic activities in rural Canada.


Program Activity 3.3 - Canadian Pari-Mutuel Agency
Enhancing CPMA’s capacity to manage risk in pari-mutuel betting, thereby helping to protect the betting public against fraudulent activities
2008-09 Financial Resources
($ millions) - Net
2008-09 Human Resources
(FTEs*)
Planned
Spending
Total
Authorities
Actual
Spending
Planned Actual Difference
- 3.6 (0.8) 57 57 -

* Full-time Equivalents


Expected
Results
Performance
Indicators
Targets Performance
Status
Performance
Summary
Pari-mutuel betting is conducted in a way that is fair to the Canadian betting public Compliance with pari-mutuel betting regulations for Canadian-hosted pools audited by CPMA officers 95% by March 31, 2009

(% of compliant pools of those audited)

Exceeded All Canadian-hosted pari-mutuel pools were calculated and distributed in accordance with Pari-Mutuel Betting Supervision Regulations.
Compliance with betting theatre regulations 95% by March 31, 2009

(% of compliant betting theatres per those inspected)

Exceeded All betting theatres inspected were in compliance with regulations.

Benefits for Canadians

Work on this Program Activity helped ensure that pari-mutuel betting is consistent with federal regulations and policies. Canadians can be assured that all reasonable steps were taken so that betting on horse racing was conducted fairly.

Performance Analysis

The Canadian Pari-Mutuel Agency is a special operating agency within AAFC that regulates and supervises pari-mutuel betting at horse tracks across Canada. Its objective is to ensure that such betting is done in a fair manner and to safeguard against fraudulent activities. In 2008-09, the Agency measured compliance with federal regulations by hosted pools and betting theatres. The compliance rate for both measures was 100 per cent, exceeding targets of 95 per cent.

Lessons Learned

While performance measures confirmed ongoing regulatory compliance targets were surpassed, a review of operational reports indicated areas where performance could be enhanced. The review indicated regional discrepancies concerning the frequency of licenced betting theatre inspections. CPMA will implement procedures to ensure that a more representational mix of licenced betting outlets in each region in Canada is inspected each fiscal year. The agency is also looking to improve its oversight operations to provide further assurance that Canadians continue to benefit from correctly calculated pay-out prices.