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Section II – Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome - Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected.

The Canadian Grain Commission’s mandate as set out in the Canada Grain Act is to, “in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets.” The Canadian Grain Commission has one strategic outcome: Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected. The Canadian Grain Commission has identified four program activities to reflect how the resources under its control are allocated and managed to achieve the intended results associated with its strategic outcome. These are: the quality assurance program, the quantity assurance program, the grain quality research program, and the producer protection program. A fifth program activity, internal services, consists of enabling activities. These services are integral to achieving results associated with the strategic outcome and the four program activities identified above. During the 2008-09 reporting period, the Canadian Grain Commission successfully delivered upon its strategic outcome and all of its program activities.

Strategic Outcome: Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected

Performance Indicator	Target	Performance Summary
The number of instances where buyers are dissatisfied with the Canadian Grain Commission standards, methods and/or procedures used to ensure a dependable commodity for domestic and export markets	Zero instances where buyers are dissatisfied with Canadian Grain Commission standards, methods and/or procedures	Successfully met target The Canadian Grain Commission responded to all known instances where buyers were dissatisfied with Canadian Grain Commission standards, methods or procedures used to ensure a dependable commodity for domestic and export markets. The Canada Grain Act establishes both an Eastern and Western Standards Committee that meet several times annually to recommend specifications for grades of grain, and select and recommend standard samples. Widespread representation on the Committees ensures that the views of all principals are considered, that any changes to the grading system are grounded in thorough research and investigation, implications for the handling system are understood, and that the grading system is responsive to the needs of producers, the Canadian industry, and domestic and overseas buyers. 2008-09 recommendations from the Western and Eastern Standards Committees are available at:  http://www.grainscanada.gc.ca/gscommittee-comiteng/egsc-cnge-eng.htm http://www.grainscanada.gc.ca/gscommittee-comiteng/wgsc-cngo-eng.htm
Producer satisfaction with Canadian Grain Commission producer protection services	Zero unaddressed or unresolved complaints	Successfully Met Target The Canadian Grain Commission responded to all producer inquiries and complaints during 2008-09. The Canadian Grain Commission offers key protections to producers, namely the ability to receive fair payment for the quality and quantity of grain they produce and deliver.

There continues to be challenges facing the Canadian Grain Commission and the GQAS including increased international emphasis on end-use functionality, growing global competition, and shifting domestic crop production and volume fluctuations. In light of increasingly stringent international food safety regulations, the demand for cargo specific grain safety testing continues to increase. Buyers of Canadian grain are increasingly demanding more rigorous, timely testing for chemical residues and trace elements on cargoes. Addressing these challenges is necessary to successfully deliver upon the Canadian Grain Commission’s strategic outcome. The Canadian Grain Commission remains committed to providing a GQAS that meets the needs of the grain industry today and over the long term in a cost effective manner. This section provides detailed information on the Canadian Grain Commission’s achievements as well as challenges associated with each program activity. It is important to note that there are several external factors that affect the demand for Canadian Grain Commission services from year to year. The volume of work performed on an annual basis is dependent on grain production and export volumes which in turn is dependent on factors such as weather, crop quality, price, and production choices. Therefore, Canadian Grain Commission performance is not better when the demand for services increases or worse when the demand for services decreases. For this reason, comparative analysis information over years is not provided.

2.1.1 Program Activity 1:  Quality Assurance Program

Program Activity: Quality Assurance Program

2008-09 Financial Resources ($ thousands)			2008-09 Human Resources (FTEs)
Planned Spending¹	Total Authorities¹	Actual Spending¹	Planned²	Actual	Difference²
¹ The difference between planned spending, total authorities, and actual spending is due to the Canadian Grain Commission’s revolving fund surplus as well as 23 fewer FTEs than planned. The revolving fund surplus is a result of higher grain volumes handled than originally forecasted when appropriation amounts were approved.
² There was an error in the allocation of planned FTEs between the program activities when the planned FTE numbers were reported in the 2008-09 RPP. Planned FTEs for this program activity should have been 414. Therefore, the actual difference between planned FTEs (414) and actual FTE (391) is 23. This is due to departures and delays in the hiring process.
53,306	54,686	44,165¹	445²	391	54²

Expected Results	Performance Indicators	Target	Performance Status	Performance Summary
Consistent and reliable grain quality and grain safety assurance to meet the needs of domestic and international markets	Number of justified cargo complaints due to a breakdown in Canadian Grain Commission quality and/or safety assurance	Zero justifiable cargo complaints	Successfully met the target	There were zero justified cargo complaints due to a breakdown in Canadian Grain Commission assessment of grain quality and safety during 2008-09.

Additional information on the Quality Assurance Program is available at: http://grainscanada.gc.ca/quality-qualite/iaqm-mrsq-eng.htm

Program Activity Summary and Performance Highlights

The Canadian Grain Commission’s quality assurance program assures consistent and reliable grain quality and grain safety to meet the needs of international and domestic markets. Daily provision of grain inspection and grading services as mandated by the Canada Grain Act, as well as strong scientific and technical support programs and services, are integral components to this program activity and the delivery of an effective GQAS. During 2008-09, the Canadian Grain Commission successfully delivered an effective Quality Management System as per ISO 9001:2000 Standards. During this timeframe, the Canadian Grain Commission met its performance target as there were zero justified cargo complaints due to a breakdown in Canadian Grain Commission assessment of quality and safety. To remain relevant and maintain Canada’s reputation as a consistent supplier of quality grain, the Canadian Grain Commission continued efforts to adapt the GQAS to the end-use needs of domestic and international buyers of Canadian grain and to the ongoing structural changes within the grain industry.

Benefits for Canadians

The Canadian Grain Commission’s quality assurance program supports not only the delivery of the Canadian Grain Commission mandate, but positions Canada with a sustainable competitive advantage in global grain markets. The quality assurance program supports the enhanced marketability of Canadian grain and is a key factor in permitting Canadian exporters to operate successfully in competitive international grain markets and is essential for producers in order to realize maximum value from their grain. Daily provision of grain inspection and grading services form a major part of the quality assurance program. Grades allow buyers to identify end-use performance and therefore value without the need for end-use tests or direct examination of individual lots of grain. This improves the efficiency of grain handling and helps to ensure that sellers receive payment that reflects the value of their grain. Buyers and consumers of Canadian grain increasingly demand more rigorous, timely testing for chemical residues and trace elements. The Canadian Grain Commission is the only government agency that provides grain safety assurances on pesticides, trace elements, mycotoxins, and fungi. This program activity contributes directly to the Canadian Grain Commission’s strategic outcome of ensuring Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected.

Performance Analysis

During 2008-09, the Canadian Grain Commission was successful in meeting the expected results and target associated with this program activity. The Canadian Grain Commission continued to deliver consistent and reliable grain quality and grain safety assurance to meet the needs of domestic and international grain markets and continued the ongoing monitoring of domestic and export cargoes to ensure Canadian grain is meeting domestic and international grain safety tolerances and end-use quality. The Canadian Grain Commission certified the quality of 5,950 cargoes and investigated complaints from buyers regarding 27 of those cargoes. Upon thorough investigation of the loading process, including analysis of cargo samples and vessel loading documentation, the Canadian Grain Commission’s Chief Grain Inspector concluded that all complaints were unsubstantiated.

During 2008-09, the Canadian Grain Commission provided the following inspection services in accordance with the legislative mandate of the Canada Grain Act:

• inspected 239,832 railcars upon receipt at licensed terminal and transfer elevators,
• inspected 23,503 railcars loaded from licensed primary elevators prior to receipt at licensed terminal and transfer elevators,
• inspected 24,481,535 tonnes of grain for export from licensed terminal and transfer elevators,
• provided 5,267 Certificate Finals stipulating the grade and weight of grain loaded on a vessel,
• provided 646 official Probe Certificates for bulk grain in trucks and containers, and
• certified 2,199 samples submitted for grading by producers and 16,989 samples submitted by grain companies.

There were 3,201 grade changes on official re-inspection representing an inspection accuracy rate of 98.7%. This compares to an accuracy rate of 99.0% in 2007-08.

Effective August 1, 2008, KVD was eliminated as a registration criterion for all western Canadian wheat classes. Historically, Canada’s KVD requirement allowed segregation of wheat into quality classes based on visual distinguishability. The Canadian Grain Commission is a member of the “Industry Committee on the Removal of KVD”. The Committee is composed of a producer representative from each of the prairie provinces, the Canadian Grain Commission, CWB, the Western Grain Elevator Association, the Inland Terminal Association, and Agriculture and Agri-food Canada. The Committee determined that a combination of an industry system of declarations, grain company quality management systems and protocols, and monitoring and sampling protocols would be relied upon to ensure the quality of Canadian wheat. As part of an agreed upon handling and liability protocol, and the overall wheat quality management system, a declaration system was finalized for the 2008-09 crop year (August 1, 2008-July 31, 2009). The Canadian Grain Commission implemented redefined sampling, monitoring, testing and notification procedures and protocols at all points in the grain handling system (from delivery at primary to load out at port), for all wheat shipments. To prepare producers and grain sector stakeholders for the system changes, the Canadian Grain Commission undertook extensive communication efforts. Comprehensive, integrated communication/media plans and educational packages were developed in collaboration with the Industry Committee on the Removal of KVD.

The Canadian Grain Commission continued efforts to develop protocols for accrediting or designating third party agencies, with Canadian Grain Commission oversight, to perform sampling in order to address inconsistencies with respect to container, rail, and bulk handling shipments. This work will continue in 2009-10. These efforts will contribute to maintaining the Canadian Grain Commission’s international reputation for consistent and reliable Canadian grain shipments.

During 2008-09, Canadian Grain Commission scientists and technical experts continued to play an important market support role by liaising with buyers, marketers, industry and producers and providing technical advice and information on grain quality, grain safety, and end-uses. Customer feedback is used to continuously improve the GQAS. Canadian Grain Commission staff went on nine overseas market support missions to investigate, train, or convey the quality of Canadian grain to customers. Additionally, there were 17 international delegations that visited the Canadian Grain Commission to learn about the Canadian Grain Commission and Canada’s GQAS. Domestic and overseas buyers have stated that they are satisfied with the overall quality of Canadian grain and Canada’s GQAS.

Lessons Learned

The 2008-09 crop year is a transition phase for the removal of KVD. Effective August 1, 2008 producers are required to complete a declaration form confirming that their wheat only contains varieties that are eligible for the specific class of western Canadian wheat for which payment is being requested. An eligible variety refers to a registered variety and/or a variety that is designated by the Canadian Grain Commission to be eligible for a particular wheat class. Any wheat variety can be delivered into the handling system, but only varieties on the Canadian Grain Commission’s “Variety Designation Lists” are eligible to be graded as one of the eight classes of milling wheat. If a producer grows a variety that is not on one of the designation lists (de-registered or unregistered), that wheat is only eligible for the Canada Western Feed class or the lowest grade of amber durum. Since the declaration system has been implemented, it has become apparent that some producers were unaware that they were growing varieties which have been de-registered. The Canadian Grain Commission has increased monitoring of railcar and vessel shipments for the presence and source of non-registered wheat varieties to support the Canadian Grain Commission certification processes and ultimately maintain end-use processing quality and customer perceptions of Canadian grain. The Canadian Grain Commission and the CFIA will continue working collaboratively with grain handlers, farm groups, the seed sector and the CWB to develop both short and long-term policies and communication protocols to address de-registration of wheat varieties.

The full extent of the issues associated with ineligible varieties, the amount of de-registered varieties in farm storage, and operating in a non-KVD environment are yet to be determined. In collaboration with the Industry Committee on the Removal of KVD, evaluation and process adjustments during and after this crop year will be essential to maintain the integrity of the wheat quality assurance system. Communications remain key in order to:

• ensure all stakeholders are fully cognizant of their obligations and the consequences associated with not complying with agreed upon protocols,
• minimize the risk of ineligible varieties being delivered into the handling system and negatively impacting Canada’s international reputation, and
• maintain both domestic and international customer confidence

Canadian Grain Commission inspection services are delivered as per ISO 9001:2000 Standards. During 2008-09, there were nine inspection related minor non-conformances identified through internal and external audits. Non-conformances occur when Quality Management System procedures or work instructions are not followed. The Canadian Grain Commission has reviewed summary reports that were completed during 2008-09 from both the internal and external audits. In order to take appropriate actions, an Improvement Request(s) form is submitted to the procedure owner and an appropriate corrective action is identified. A timeframe is included to ensure completion. This allows the Canadian Grain Commission to adjust service procedures as necessary and identify or adjust training requirements to maintain and/or enhance the effective and consistent delivery of the quality assurance program.

2.1.2 Program Activity 2 : Quantity Assurance Program

Program Activity: Quantity Assurance Program

2008-09 Financial Resources ($ thousands)			2008-09 Human Resources (FTEs)
Planned Spending¹	Total Authorities¹	Actual Spending¹	Planned²	Actual	Difference²
¹ The difference between planned spending, total authorities, and actual spending is due to the Canadian Grain Commission’s revolving fund surplus. This is a result of higher grain volumes handled than originally forecasted when appropriation amounts were approved.
² There was an error in the allocation of planned FTEs between the program activities when the planned numbers were reported in the 2008-09 RPP. Planned FTEs for this program activity should have been 126. Therefore, the actual difference between planned FTEs (126) and actual FTEs (126) is zero.
17,659	18,040	13,260	133	126	7

Expected Results	Performance Indicators	Targets	Performance Status	Performance Summary
Consistent and reliable quantity assurance of Canadian grain shipments	Number of justified cargo complaints due to a breakdown in Canadian Grain Commission assessment of quantity	Zero justifiable cargo complaints	Successfully met the target	There were zero justified cargo complaints due to a breakdown in Canadian Grain Commission assessment of quantity during 2008-09.

Additional information on the Quantity Assurance Program is available at: http://grainscanada.gc.ca/quantity-quantite/iaqnm-mrsqn-eng.htm

Program Activity Summary and Performance Highlights

The Canadian Grain Commission’s grain quantity assurance program assures the weight of grain loaded into or discharged from conveyances. In addition, the quantity assurance program assures the weight of grain in store at licensed terminal and transfer elevators. Daily provision of grain weighing services as mandated by the Canada Grain Act forms a major part of the quantity assurance program. To maintain relevancy and address constantly changing industry demands, technical assistance is provided in support of the grain quantity assurance system. During 2008-09, the Canadian Grain Commission successfully delivered all weighing services as per ISO 9001:2000 Standards to ensure consistent and reliable quantity assurance of Canadian grain shipments. During this timeframe, there were zero justified cargo complaints due to a breakdown in Canadian Grain Commission assessment of quantity.

Benefits for Canadians

The Canadian Grain Commission provides ongoing technical advice, training, and information on grain quantity assurance to meet specific industry and buyer needs. The Canadian Grain Commission establishes and maintains Canadian grain quantity assurance services to continuously evolve with industry grain weighing procedures and equipment standards. The quantity assurance program is integral to the functioning of Canada’s grain industry and the Canadian Grain Commission’s strategic outcome of ensuring Canada’s grain is reliable and marketable and Canadian grain producers are protected. The Canadian Grain Commission’s grain receival service and outward weighing programs provide essential quantity data used by the grain industry, railways, Canada Ports Clearance, and the Canadian Grain Commission in managing grain inventories and for statistical publications.

Performance Analysis

During 2008-09, the Canadian Grain Commission was successful in meeting the expected results and target associated with this program activity. The Canadian Grain Commission logged and investigated nine weight-related export cargo complaints at the customer’s request. Upon thorough review and analysis of the information documented at the time of loading, the Canadian Grain Commission’s Chief of Weighing concluded that the original statement of quantity for all the shipments was correct.

During 2008-09, the Canadian Grain Commission delivered the following weighing services to meet the legislative mandate of the Canada Grain Act and the requirements of the grain industry from producers to customers:

• officially weighed and certified 263,031 railcar unloads upon receipt at licensed terminal and transfer elevators,
• monitored and certified 24,481,535 tonnes of grain prior to export from licensed terminal and transfer elevators,
• officially weighed 3,204 railcars destined for Mexico at licensed primary elevators,
• officially weighed 2,793 railcars destined for the U.S. at licensed primary elevators, and
• conducted seven official weigh-overs of all stocks in store at licensed terminal and transfer elevators to verify the overage or shortage of grain, grain products, or screenings in an elevator pursuant to the tolerances stipulated in the Canada Grain Regulations.

During 2008-09, the Canadian Grain Commission continued to provide ongoing technical support for the Canadian quantity assurance system. For example, to verify the accuracy and reliability of licensed terminal and transfer elevator weighing equipment, Canadian Grain Commission Weighing Systems Inspectors conducted 571 weighing system device inspections. In 207 instances (36%), the device under inspection required an adjustment or servicing. Of these 207 inspections, 86 (42%) were found to be operating with measurement errors of 0.10 percent or greater.

The Canadian Grain Commission’s Dispute Resolution System (DRS) assists grain producers and the grain industry in recovering for grain lost during transport by railcar or during the discharge process. The DRS utilizes official unload reports documented by Canadian Grain Commission staff at licensed terminal and transfer elevators to authenticate received weights. During 2008-09, the Canadian Grain Commission conducted 592 weight-related investigations on railcars. In addition, 828 railcars required their weights officially apportioned due to the mixing of grain from two or more railcars in a common grain reception area as the cars were unloaded. Due to incidents around un-recovered spills, 70 cars required their origin weight to be verified and assigned as the official unload weight. The Canadian Grain Commission completed 2,844 exception reports for railcars that arrived at unloading facilities with low or empty compartments. Client satisfaction was measured by the instances where disputes with respect to weight were not addressed and feedback was not provided (zero instances during 2008-09). Although the Canadian Grain Commission does not provide binding arbitration for weight shortages, a Canadian Grain Commission railcar investigation provides key information to support shippers’ entitlement to adjustment for excessive grain shortages at unload and transport charges. While client claim success rates are confidential, clients maintain that the information supplied by the Canadian Grain Commission’s DRS is a very significant part of their claim and is the most reliable information for processing a successful claim.

Lessons Learned

Canadian Grain Commission weighing policies and procedures are monitored and evaluated on an ongoing basis through a series of reporting policies and national discussion and review forums. During 2008-2009, there were six minor and zero major weighing/registration related non-conformances identified through internal and external audits. Non-conformances occur when Quality Management System (QMS) procedures or work instructions are not followed. The Canadian Grain Commission has reviewed the summary reports that were completed from both the internal and external audits. In order to take the appropriate actions, an Improvement Request(s) form is submitted to the procedure owner, and an appropriate corrective action is identified. A timeframe is attached to ensure completion. A total of 25 formal Improvement Request forms were submitted associated with weighing/registration procedures during 2008-09. This allows the Canadian Grain Commission to adjust service procedures as necessary and identify or adjust training requirements to maintain and/or enhance the effective and consistent delivery of weighing services and programs.

2.1.3 Program Activity 3 : Grain Quality Research Program

Program Activity: Grain Quality Research Program

2008-09 Financial Resources ($ thousands)			2008-09 Human Resources (FTEs)
Planned Spending¹	Total Authorities	Actual Spending	Planned	Actual	Difference¹
¹ There was an error in the allocation of planned FTEs between the program activities when the planned numbers were reported in the 2008-09 RPP. Planned FTEs for this program activity should have been 83. Therefore, the actual variance between planned FTEs (83) and actual FTEs (85) is two.
11,350	11,801	11,484	60¹	85	-25¹

Expected Results	Performance Indicators	Targets	Performance Status	Performance Summary
Research and development on grain quality and grain safety to support and improve Canada’s GQAS	Assessment of grain quality and grain safety research undertaken, sponsored, and/or promoted by the Canadian Grain Commission	"Excellent" on a scale of excellent, good, fair or poor	Mostly met the expected level of performance Grain quality and grain safety research undertaken, sponsored and/or promoted by the Canadian Grain Commission was assessed as “good” during 2008-09.	The majority of project milestones/outcomes were delivered on time and on budget.

Additional information on the Grain Quality Research Program is available at: http://www.grainscanada.gc.ca/research-recherche/iarm-mrsr-eng.htm

Program Activity Summary and Performance Highlights

The Canada Grain Act requires the Canadian Grain Commission to undertake, sponsor and promote research related to grains. The Canadian Grain Commission’s Grain Research Laboratory (GRL) conducts research in support of the GQAS to address emerging issues and permit the effective marketing of Canadian grain in the interests of producers and the Canadian grain industry. The GRL researches methods to measure grain quality and safety, new quality and safety factors, and new grain standards. In addition, the GRL carries out the Canadian Grain Commission’s annual Harvest Sample program. Grain quality and safety research supports the continual improvement of the GQAS. The majority of GRL project milestones and outcomes were delivered on time and on budget during fiscal year 2008-09.

Benefits for Canadians

This program activity is integral to the continued relevancy of Canada’s GQAS and contributes directly to the overall success of the Canadian Grain Commission in ensuring Canada’s grain is safe, reliable and marketable. The grain quality research program contributes to the Government of Canada’s objective of a diverse and technologically advanced economy. Research undertaken and sponsored under this program activity leads to the development of recognized methods for quality and safety evaluation of all grains and objective testing protocols and specifications to support the Canadian grading system and facilitate the end-use diversification of Canadian grains. This allows Canada’s GQAS to be continually adapted to assure grain quality and grain safety to meet the end-use needs and processing expectations of domestic and international buyers of Canadian grain.

Performance Analysis

During 2008-2009, the GRL successfully conducted research and development on grain quality and grain safety to support and improve Canada’s GQAS. The GRL completed several research projects within cost and timelines and successfully met the milestones of numerous ongoing research projects. The GRL’s performance results were rated as “good” due to cost and timeline variances associated with some projects. These projects have been reassessed and while some have been finalized others are still ongoing. Variances are considered normal within a research environment.

The GRL continued to assess the use of objective tests to measure grain quality and grain safety to increase efficiency, reduce costs and enhance the testing capabilities of the Canadian Grain Commission. Developing new and improved methods for evaluating and measuring end-use quality and safety factors for all grains (e.g. Near Infrared (NIR), digital imaging, rapid viscosity analysis (RVA), variety identification (VID) technology, pulse cooking quality, and deoxynivalenol (DON) assessment methods) is a major focus of this program activity.

The GRL continued research that supports emerging issues in the GQAS to meet changing producer, industry, and customer demands for specific end-use quality, variety identification, and safety factors (e.g. testing for mycotoxins, environmental impact on end-use quality of wheat and malting barley, food use of flax, alternate uses of wheat, sprout damage in wheat, dehulling in lentils, cooking time in pulses). The Canadian Grain Commission continued research efforts on wheat and barley DNA and protein fingerprinting. The aim is to develop tests for identifying and quantifying varieties of grains in shipments in order to develop the capacity for identifying multiple variety composition and enable segregation of variety specific shipments. This technology may also enable determination of genetically modified (GM) status of grain shipments.

The GRL participates in several external proficiency tests on an annual basis to receive unbiased evaluations with respect to accuracy and precision. For example, the American Association of Cereal Chemists check sample service is used by numerous laboratories around the world to evaluate techniques and ensure quality control. The GRL uses this service and several others to test equipment and to monitor the use of proper methods among laboratory personnel. During 2008-09, the GRL participated in nine different external proficiency test programs and was compliant in all.

The Canadian Grain Commission’s 2008-09 annual Harvest Sample program (includes the Harvest Survey program) was completed on time and on budget. The Canadian Grain Commission received and analysed 6,292 producer samples to determine the year’s crop quality. The Canadian Grain Commission shared the results of the survey with marketers, buyers and processors around the world. The results provide millers, bakers, maltsters and brewers, and food manufacturers’ information on how the year's crop will perform in processing. Quality reports were published on wheat, malting barley, canola, flax seed, peas, chick peas, lentils, mustard, pea beans, and soybeans. http://grainscanada.gc.ca/quality-qualite/hsp-per/hspm-mper-eng.htm

Staff from the GRL continued to liaise with breeders, clients, and professional associations regarding critical quality requirements for specific end-uses. They interpret quality data in light of their intimate knowledge of changes in world processing technology and market needs to ensure that new varieties do not present a threat to the GQAS. They also recommend changes in quality targets to breeders, as appropriate, on the basis of their discussions with grain processors and buyers in North America and overseas. This quality works assists farmers in being able to grow varieties that buyers are interested in.

The GRL conducts quality evaluation of new breeders’ lines annually to determine the lines that meet the quality guidelines and needs of the class for wheat, barley, and canola. This third party unbiased information is a key component of the CFIA registration process for new varieties. During 2008-09, approximately 150 wheat and 120 barley breeders’ lines were assessed and reported on in a timely basis. In addition, the Canadian Grain Commission assessed 1,831 canola breeders’ line samples for NIR oil, protein and glucosinolate content, and complete fatty acid composition.

The GRL continued efforts to develop specifications and measurement protocols to support new standards, develop objective testing protocols and specifications to support the Canadian grading system, and facilitate the end-use diversification of Canadian grains with new end-use traits. The GRL conducted research as recommended by the Western and Eastern Standards Committees in support of grade specifications and the grading system and provided information to these Committees to facilitate recommendations.

Lessons Learned

The changing needs of the Canadian grain industry present new opportunities for the Canadian Grain Commission’s research activities and the GQAS. There is a shift in the type of crops grown and their end-uses. There is increasing emphasis on end-use functionality, especially new end-uses in the domestic industry. Grain is increasingly being sold based on specifications requiring objective non-visual testing of quality or safety factors and the provision of grain quality and safety assurances. Continually evolving uses of grain requires that the Canadian Grain Commission have the ability to anticipate, identify, and measure new grain quality and safety specifications in order to meet changing industry needs. Research that supports emerging issues in the GQAS continues to be of critical importance to all segments of the Canadian grain industry.

2.1.4 Program Activity 4 : Producer Protection Program

Program Activity: Producer Protection Program

2008-09 Financial Resources ($ thousands)			2008-09 Human Resources (FTEs)
Planned Spending¹	Total Authorities	Actual Spending	Planned	Actual	Difference¹
¹ There was an error in the allocation of planned FTEs between the program activities when the planned numbers were reported in the 2008-09 RPP. Planned FTEs for this program activity should have been 41. Therefore, the actual difference between planned FTEs (41) and actual FTEs (38) is three.
4,863	4,651	4,755	27¹	38	-11¹

Expected Results	Performance Indicators	Targets	Performance Status	Performance Summary
Producer satisfaction with the grain handling system	Canadian Grain Commission response to producer complaints	Zero unresolved or unaddressed complaints	Successfully met the target	During 2008-2009 there were zero unaddressed complaints with respect to the producer protection programs administered by the Canadian Grain Commission. While the majority of complaints were resolved, there are some ongoing investigations.

Additional information on the Producer Protection Program is available at: http://grainscanada.gc.ca/protection-protection/iappm-mrspp-eng.htm

Program Activity Summary and Performance Highlights

The Canadian Grain Commission is mandated to serve producer interests by upholding the Canada Grain Act and as such has implemented a number of programs and safeguards to ensure the fair treatment of Canadian grain producers. These include the licensing and security program, allocation of producer cars for producers and producer groups that wish to ship their own grain, and producer liaison measures including a grain grade appeal system. In addition, the Canadian Grain Commission collects and updates grain quality data and grain handling information to facilitate producer sales and marketing decisions. The Canadian Grain Commission successfully met the expected level of performance for this program activity during the 2008-09 fiscal year. Highlights included the implementation of a risk management system to determine licensing and security requirements.

Benefits for Canadians

This program activity aligns with and directly contributes to the pursuit of the Government of Canada outcome area: A fair and secure marketplace. This program contributes to the Government of Canada’s objective in this outcome area of a secure, fair marketplace that maintains and enhances consumer confidence and gives businesses an optimal environment for competitiveness. The licensing program, producer car allocation program, and the producer protection programs directly contribute to ensuring Canadian grain producers are properly compensated for the quality and quantity of grain delivered and shipped.

Performance Analysis

During 2008-09, the Canadian Grain Commission responded to numerous inquiries and complaints from producers. Topics included contract disputes between producers and licensees, grading disputes, non-payment/slow payment to producers, inquiries related to shrinkage and tariff deductions and complaints regarding proper issuance of documents. The Canadian Grain Commission was successful in meeting the program activity target of zero unaddressed complaints with respect to the producer protection programs administered by the Canadian Grain Commission. While the majority of complaints were resolved, there are some ongoing investigations. Producer inquiries related to moisture shrinkage (currently prescribed by Canadian Grain Commission order) and comprehensive shrinkage (currently prescribed in the Canada Grain Regulations) resulted in internal policy reviews. The Canadian Grain Commission plans to consult externally during fiscal year 2009-10.

As of March 31, 2009 the Canadian Grain Commission had issued licences for 321 primary elevators, 46 process elevators, 15 terminal elevators, 12 transfer elevators, and 97 grain dealers. There are currently 45 known unlicensed companies that require licensing under the Canada Grain Act. Of these, all have initiated the licensing process. During 2008-09, 53 licensees were audited by the Canadian Grain Commission and Audit Services Canada to ensure appropriate security coverage. Financial statements from all licensees were reviewed. The Canadian Grain Commission implemented a risk assessment process to regularly review and assign a financial risk rating and an overall risk rating (high, medium, low) for all licensees. Staffing took place for a Head, Audits, two term field auditors, and a financial statement reviewer to free up audit times for Canadian Grain Commission compliance auditors.

The Canadian Grain Commission cancelled one licence in February, 2008 as a result of the company advising the Canadian Grain Commission that they were in ‘voluntary receivership’. Security posted by the company as part of its licensing agreement was used to compensate all eligible producers who were not paid for delivered grain during the 90 days prior to the company going out of business. Claims eligible for compensation totalled $129,215. In addition, the Canadian Grain Commission revoked one grain dealer licence in February, 2009 as a result of the licensee advising the Canadian Grain Commission that it could not meet its payment obligations. The Canadian Grain Commission has initiated the process of realizing on security and finalizing claims and compensation. Canadian Grain Commission staff responded to all known instances of licensing non-compliance and all producer concerns regarding fair payment.

The Canadian Grain Commission has sole responsibility for the allocation of producer cars for both Canadian Wheat Board (CWB) and non-CWB grains. During 2008-09, the Canadian Grain Commission worked closely and cooperatively with the CWB, grain companies, and the railways in an effort to ensure that producer car orders are filled in a timely manner. The Canadian Grain Commission received and processed approximately 12,500 applications from producers for producer cars and responded to all complaints with respect to administration of the allocation of producer cars.

Producer support programs include mediating and/or arbitrating producer complaints concerning transactions with licensed grain companies, re-inspection of samples on producer request and investigation of quality and dockage complaints. During 2008-09, the Canadian Grain Commission responded to all producer complaints related to compensation received for the quality and/or quantity of grain delivered within the licensed grain handling system. In addition, the Canadian Grain Commission collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties to facilitate producer sales and marketing decisions.

Lessons Learned

The Canadian Grain Commission continually strives to improve on the programs and activities that directly contribute to the Canadian Grain Commission’s mandate of facilitating fair treatment of producers within the licensed grain handling system. For example, the Canadian Grain Commission recently implemented a producer inquiry database system to more accurately track producer complaints and inquiries. The challenges associated with protecting producers’ rights are the time it takes to gather all the facts from parties and then to review and make decisions. In terms of producer cars, the challenge is to get enough cars to meet demand, and in a timely fashion.

The proposed amendments to the Canada Grain Act include clarification of the Canadian Grain Commission mandate by identifying that the Canadian Grain Commission shall specifically act in the interests of producers with respect to: deliveries to elevators and grain dealers, access to binding Canadian Grain Commission determination of grade and dockage and allocation of producer railway cars. In addition, the amendments include repealing the Canadian Grain Commission producer payment security program and extending “subject to inspector’s grade and dockage” provisions to include producer deliveries to licensed grain dealers and process elevators. During the reporting period, the Canadian Grain Commission worked closely with officials from Agriculture and Agri-Food and other departments and agencies, to advise the Minister with respect to Bill C-13 amendments. These efforts will continue in 2009-10.

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