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ARCHIVED - RPP 2006-2007
Canadian Grain Commission


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SECTION II - ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME

The CGC is organized around four strategic outcomes that reflect the planned direction of the CGC as well as the daily delivery of the CGC's program activities. The four strategic outcomes are:

1. A grain quality assurance system that addresses the changing requirements of domestic and international grain markets

2. A grain quantity assurance system that addresses the changing needs of the grain industry

3. Research and development on grain quality that enhances the marketability of Canadian grain

4. Producers' rights are supported to ensure fair treatment within the grain handling system

To illustrate the significance of each strategic outcome, the CGC has identified corresponding program activities and resources required. Each program activity has associated ongoing key programs or services with their own expected results.

Corporate infrastructure and government-wide initiatives are integral to achieving results and are factored into delivering the strategic outcomes using the CGC's costing model. The discussion and activities relevant to the CGC's plans and priorities on government-wide initiatives and corporate infrastructure can be found in Section IV.

Analysis by Program Activity

Strategic Outcome 1: A grain quality assurance system that addresses the changing requirements of domestic and international grain markets.

Program Activity: Deliver inspection and testing services

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
49 363 31 231 31 231
Human Resources
2006-2007 2007-2008 2008-2009
458 290 290

An effective grain quality assurance system ensures the enhanced marketability of Canadian grain which benefits producers and the grain industry. Daily provision of grain inspection services supported by a strong scientific and technical base, including testing of grain, milling, baking, cooking, or making various end-use products form a major part of the quality assurance system.

There are major challenges facing the CGC and the grain quality assurance system including: increased international emphasis on end-use functionality, growing global competition, and shifting domestic crop production and volume fluctuations. It is vital that the grading system and CGC services be continually adapted to the end-use needs of international and domestic buyers of Canadian grain, and to the ongoing structural changes within the grain industry.

The overall expected result of delivering inspection and testing services is increased buyer satisfaction through delivery of consistent Canadian grain quality and increased marketability of Canadian grain.

This program activity supports departmental Priority #1 and departmental Priority #2. Delivering inspection and testing services supports not only ongoing delivery of the CGC mandate, but also positions Canada with a sustainable competitive advantage in global grain markets. Addressing Priority #4 is critical in order for the CGC to continue fulfilling its statutory mandate and maintain service levels to producers and the grain industry.

Key Program or Service:

1. Deliver inspection and testing services for the quality assurance system

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
39 809 25 186 25 186

Provision of grain inspection and grading services forms a major part of the quality assurance system. The CGC delivers inspection services in accordance with the legislative mandate of the CGA in order to meet the requirements of the grain industry from producers to customers.

Grades allow buyers to identify end-use 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. A broad spectrum of producers and grain industry representatives meets several times annually, through the Western and Eastern Grain Standards Committees and commodity-specific subcommittees, to study and review grain standards, ensuring relevance and value of those standards in facilitating the movement of grain and transfer of ownership.

The following ongoing inspection activities and testing services are integral components of the overall delivery of an effective grain quality assurance system:

  • Developing, changing, and setting grain quality standards as well as generating and distributing grain quality data and information, in partnership with the grain industry, to meet specific industry and buyer needs through the Western and Eastern Grain Standards Committee meetings http://grainscanada.gc.ca/regulatory/standards/standards-e.htm
  • Maintain an effective Quality Management System as per ISO 9001:2000 Standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
  • Providing an unbiased process for appeal of inspections to producer car users, and primary, transfer, and terminal elevator operators who disagree with the grades assigned by CGC inspectors. There are three levels of appeal: The regional inspector, the Chief Grain Inspector, and the Grain Appeal Tribunal. http://grainscanada.gc.ca/regulatory/grainappeal/tribunal-e.htm
  • Administering a national grain sanitation program to ensure that grain in the domestic licensed elevator system and grain destined for export is infestation free.

These ongoing inspection activities and testing services enable the CGC to:

  • Inspect and grade grain utilizing regularly updated and approved standards prior to receipt at licensed terminal elevators and prior to export from primary, transfer, or terminal elevators to enhance marketing in the interests of producers and industry.
  • Provide certificates and documentation related to the inspection of grain exports to assure sellers and buyers of the quality of a shipment of Canadian grain and to facilitate its marketing.
  • Manage and update data in the grain inventory accounting system (GIAS) to ensure accuracy of terminal and transfer elevator transactions. http://www.grainscanada.gc.ca/prodser/gias/gias-e.htm
  • Manage a complaint resolution process for the quality of grain cargoes and conduct unload investigations upon shipper and producer request to ensure customer satisfaction.
  • Monitor the grading system and verification process to continually maintain and improve grading consistency. http://www.grainscanada.gc.ca/Pubs/GGG/ggg-e.htm
  • Effectively communicate relevant information on grain quality assurance issues (e.g., issue official memoranda to trade), offer technical training, and transfer technology in the form of validated methods to producers and industry stakeholders to support and improve the overall efficiency of grain grading, handling, segregation, and IP systems.

In addition, the CGC has contracted Meyers Norris Penny LLP to conduct an objective economic study to quantify the benefits and costs of mandatory inward inspection and weighing to producers and industry, and to assess what effects might result from changing or eliminating these services. The consultant will be soliciting input from a representative cross-section of producer and industry stakeholders. While these services have been reviewed in the past, the value of this economic study lies in its objectivity and focus on quantifying the financial, operational, and other impacts on producers and industry. This study will provide relevant information to facilitate future discussions and decisions.

The expected result of this key program is ongoing data collection and analysis that supports an effective grain quality assurance system to facilitate and maintain the marketability of Canadian grain and customer satisfaction. Daily provision of inspection and testing services for the quality assurance system is a key mandate supporting program that contributes to departmental Priority #1.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Tracking the number of samples inspected and the number of grade changes on official re-inspections (appeals of official inspection)
  • A monitoring and verification process for the inspection of grain (cargo quality monitoring program)
  • Ongoing monitoring and analysis of customer feedback received through the CGC's 1-800 line and directly from users of CGC services
  • Tracking customer feedback as part of the ISO 9001:2000 Quality Management System
  • Tracking buyer complaints on the accuracy of CGC certification (cargo complaints) on a weekly basis, through a comprehensive database of grain unloads

2. Provide scientific and technical support

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
4 927 3 117 3 117

The quality assurance system is supported by a strong scientific and technical base, including testing of grain, milling and baking, cooking and making various end-use products.

The CGC has been testing grain for toxic substances since 1966 to monitor grain entering the licensed elevator system and to provide grain safety assurances to help marketers meet international buyers' requirements. The CGC is the only government agency that provides grain safety assurances on pesticides, trace elements, mycotoxins, fungi and moulds. Buyers of Canadian grain increasingly demand more rigorous, timely testing for chemical residues and trace elements on cargoes which is increasing the importance of research aimed at developing new or adapting existing analytical methods. For example, Japan has introduced a Food Sanitation Law that lists agricultural chemicals and their maximum toxic or harmful levels for all grains. Europe has established the European Food Safety Authority to regulate food safety in Europe and members of the European Union have embraced labelling and traceability of GM crops and food. http://grainscanada.gc.ca/Grl/grain_safety/grain_safety-e.htm

The following scientific and technical services are integral components of the overall delivery of an effective grain quality assurance system:

  • Ongoing monitoring of domestic and export cargoes to ensure Canadian grain is meeting tolerances in terms of both domestic and international grain safety tolerances and end-use quality (e.g., toxic residues, bacterial contamination, weed seeds, insects, and malting quality for specific barley varieties). In light of increasingly stringent international food safety regulations, cargo specific grain safety testing is increasing (e.g., DON, ochratoxin A).
  • Annual Harvest Survey - Assessment of new crop quality specific to each grain type and relevant to the marketing of each crop to provide new and ongoing geographical and quality data. http://grainscanada.gc.ca/Quality/harvsur/hs-e.htm
  • Evaluation of new technology to measure end-use quality to improve the utilization and increase the marketability of Canadian grain.
  • Provision of technical advice, information, and complaint resolution on grain quality (including annual impact of disease and weather damage), grain safety, and end-uses to buyers, marketers, industry, and producers.
  • Liaising with both international and other Canadian agencies on trade implications, to meet international standards and legislation on grain safety (e.g., Japanese Food Sanitation Law and the European Union tolerances for pesticides).

The expected result of providing technical and scientific support is to increase and/or maintain current marketability levels for Canadian grains. In addition, provision of this type of information and support will enhance the optimal management of the grain quality assurance system and afford increased opportunities for various end-uses of Canadian grain (e.g., animal feed, ethanol, malting). Based on these expected results, this key program supports departmental Priorities #1 and #2.

To measure its success in delivering this program and achieving the expected results, the CGC uses the following tools:

  •  Tracking buyers' satisfaction with the consistency of Canadian grain through regular feedback garnered by CGC scientists and technical experts from overseas or domestic buyers and processors
  • A monitoring and verification process for the inspection of grain (cargo quality monitoring program)

3. Modify the system to meet changing requirements

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
4 627 2 928 2 928

Addressing the challenges facing Canada's grain quality assurance system is vital in making significant progress towards the realization of this program activity, but also contributes to all CGC strategic outcomes and those of the Government of Canada.

The following initiatives and programs are underway to address pressures on the grain quality assurance system and the visual based grading system:

  • Wheat Quality Assurance System (WQAS) - Continue to develop and modify the integrated three element WQAS program that was initiated in December 2003 to address the challenges facing the KVD system. http://grainscanada.gc.ca/pubs/committee_reports/ved/ved_report-e.htm
    • Continue increased monitoring of railcar and vessel shipments for the presence and source of nonregistered wheat varieties to support the CGC certification processes and ultimately maintain end-use processing quality and customer perceptions of Canadian grain.
    • Continue development of effective, timely, affordable variety identification technology to identify the variety composition of wheat shipments and enable segregation for variety specific shipments.
    • Conduct further consultations and analysis of feedback garnerned from the proposal to restructure western wheat classes. This proposal is aimed at enabling the development of non-milling wheats, such as high-yielding feed wheats, while continuing to protect the integrity of milling classes and grades.
  • Continue to develop rapid methods and systems that can assist in the identification of varieties of different quality types in grains other than wheat. For example, there are industry pressures to develop yellow seeded (high linolenic acid) flax for the rapidly growing flax food industry although the yellow seeded characteristic was reserved for low linolenic solin. In addition, the development of canola quality Brassica juncea lines has created a serious KVD issue between canola and condiment mustard types as the quality characteristic differences between the two are mutually exclusive.
  • Ineligible Varieties Working Group (IVWG) - Continue to participate in the development of protocols for sampling, testing, and process verification standards with the objective of addressing growing concerns with ineligible varieties in grain shipments and ultimately the issuance of incorrect certification.
    • Ineligible Varieties Technical Committee (IVTC) - Continue to develop a quality plan that applies to varietal testing and process controls throughout the grain supply chain for all cargo shipments of western wheat and durum that will receive a Certificate Final. The CGC is overseeing the design and plans to conduct a pilot study to determine if IVWG protocols are auditable and effective in managing the risks of ineligible varieties.
  • Canadian Identity Preserved Recognition System (CIPRS) - Continue to implement the CIPRS program to oversee and officially recognize industry's ability to deliver products with better quality assurance systems for maximum acceptance in global markets marked by demands for unique product specifications and traceability. http://www.grainscanada.gc.ca/pubs/brochures/ip_recognition/ip_recognition04-e.htm
    • CIPRS+ - Participate in soybean and mustard pilot studies to test the on-farm and post-farm impacts of implementing food safety and quality management models for specific identity preserved grains. The infrastructure supporting CIPRS is being adapted to provide verification of HACCP-based processes in order to provide safety assurances for grain
  • Border Notification System (BNS) - Continue to consider a BNS to address the perceived risk that there may be an influx of ineligible varieties and unapproved events which could weaken Canada's GQAS.
  • Contract Registration Technical Committee - Continue to develop a risk assessment framework to assign non-conforming wheat varieties proposed for contract registration into different risk categories; design a quality management system standard for closed-loop identity preserved programs to ensure the segregation of wheat lines with diverse risk; and establish monitoring requirements and costs according to risk categories.
    • Utilize the risk assessment framework to oversee and evaluate a pilot project designed to study the performance of a closed loop contract registration system for wheat (BW295).
  • Third-Party Accreditation - Develop protocols for accrediting or designating third party agencies, with CGC oversight, to perform sampling and testing in order to address inconsistencies with container, rail, and bulk handling shipments to enhance the marketability and handling of Canadian grain.

The overall expected result of modifying the system to meet changing requirements is to improve technology and objective methods for determining quality in order to facilitate grain movement and enhance the marketability of Canadian grains. Given these expected results, this key program supports departmental Priority #2.

To measure its success in delivering this program and achieving the expected results, the CGC uses the following tools:

  • Feedback from the annual meetings of the Eastern and Western Standards Committees with producers and the industry
  • Ongoing monitoring and analysis of customer feedback received through the CGC's 1-800 line and directly from users of CGC services
  • Tracking buyers' satisfaction with the consistency of Canadian grain through regular feedback garnered by CGC scientists and technical experts form overseas or domestic buyers and processors

Strategic Outcome 2: A grain quantity assurance system that addresses the changing needs of the grain industry

Program Activity: Deliver weighing services

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
15 996 9 297 9 297

Human Resources

2006-2007 2007-2008 2008-2009
148 86 86

The Canadian grain quantity assurance system assures the weight of grain loaded into or discharged from conveyances and in storage in the licensed terminal and transfer elevator system, which benefits producers and the grain industry. Daily provision of grain weighing services forms a major part of the quantity assurance system that is supported by a strong technical base.

The challenges for the grain quantity assurance system include increased requirements for quantity information to manage grain stocks and keeping up-to-date with increasingly sophisticated weighing and transfer technology in grain elevators.

The overall expected result of delivering weighing services is to implement an improved strategy to monitor client satisfaction with the CGC weighing and dispute resolution programs.

This program activity directly supports departmental Priority #1. Delivery of weighing services and programs is an integral component of the ongoing provision of the CGC mandate. In addition, the ongoing review and development of weighing programs, procedures, and equipment contributes to enhancing the Canadian GQAS and departmental Priority #2. Addressing Priority #4 is critical in order for the CGC to fulfill its statutory mandate and maintain weighing service levels to the grain industry.

Key Program or Service:

1. Deliver weighing services for the quantity assurance system

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
15 007 8 722 8 722

The CGC delivers weighing services to meet the legislative mandate of the CGA and requirements of the grain industry from producers to customers. Essential weighing procedures are defined within the CGC's Quality Management System (QMS) Procedure Manual, or outlined in a QMS Work Instruction Format, and are accessed by weigh staff to ensure consistent application of procedures. CGC weighing policies and procedures are monitored and evaluated through a series of reporting policies and national discussion and review forums. Regular review of quantity assurance processes allows the CGC to adjust the service procedures as necessary through Improvement Requests (IR), and identify or adjust training requirements.

The following ongoing weighing services and programs are integral components of the overall delivery of an effective grain quantity assurance system:

  • Delivery of weighing services to maintain an effective Quality Management System as per ISO 9001:2000 Standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
  • Establishing and maintaining grain quantity assurance standards to continuously evolve with industry grain weighing procedures and equipment standards.
  • Developing monitoring systems for both weighing and grain flow verification processes to increase the effectiveness of the quantity assurance system and ensure that the identity of grains shipped under IP systems is preserved.
  • Providing weighing services:
    • at primary elevators to increase grain quantity information and management of grain stocks in the primary elevator system;
    • prior to receipt at licensed terminal elevators and prior to export from terminal or transfer elevators to enhance grain marketing in the interests of producers and industry. http://grainscanada.gc.ca/Prodser/quantity_weig/weigmenu-e.htm
  • Collecting, interpreting and distributing railcar data and information, and generating reliable grain quantity data for use by the industry to support the quantity assurance system.
  • Management of the Grain Inventory Accounting System (GIAS) for the industry to provide accurate information of terminal and transfer grain inventory data. http://grainscanada.gc.ca/prodser/gias/gias-e.htm
  • Management of complaint resolution processes for quantity of export grain cargoes to maintain ongoing customer satisfaction.
  • Management of a Dispute Resolution Service (DRS) to assist 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 CGC staff at licensed terminal and transfer elevators to authenticate received weights. Although the CGC does not provide binding arbitration for weight shortages, a CGC railcar investigation provides key information to support shippers' entitlement to adjustment for excessive grain shortages at unload and transport charges. An extensive historical railcar deficiency database is maintained to further substantiate shippers' reported weight loss claims. This database provides information on railcar derailments, railcars missing at destination and commingling of contents at unload, and allows tracing of railcar location and placements.
  • Conducting official weigh-overs of all stocks in store at licensed terminal and transfer elevators at prescribed intervals, 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.

The expected result of delivering weighing services for the quantity assurance system is to maintain and increase the accuracy in reporting of official weights in grain transactions in order to enhance customer satisfaction and the marketability of Canadian grain. Given this expected result, this key program supports departmental Priorities #1 and #2.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Consistently monitoring the use, by all interested parties, of CGC-generated data such as track lists and railcar exception reports, certified weighing systems reports, and official weight statements
  • On-site monitoring of railcar unloads and provision of critical unload data to interested parties
  • Monitoring producer and industry usage of, and satisfaction with, the DRS
  • Tracking the number of weigh-overs performed within mandated timeframes and resolution of any discrepancies between physical stocks and officially registered grain stocks
  • Tracking the continued used of the GIAS and the number of adjustments to grain inventories

2. Provide technical support of the quantity assurance system

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
989 575 575

In order to maintain relevancy and to address constantly changing industry demands, the CGC provides ongoing technical support for the quantity assurance system.

The following services are integral components to this key program:

  • Delivery of the weighing system inspection program and grain accounting services (GIAS) to maintain an effective Quality Management System as per ISO 9001:2000 Standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
    • Maintaining a regular weighing system inspection program to verify the accuracy and reliability of terminal and transfer elevator weighing equipment.
  • Generating, collecting, and distributing grain quantity data and information on an ongoing basis to meet specific industry and buyer needs. http://grainscanada.gc.ca/Information/stats-e.htm
  • Providing ongoing technical advice to meet specific industry and buyer needs.

The expected result of this key program is to assist clients in accurate reporting of quantity information, through technological advancements, in order to maintain and increase the marketability of Canadian grain. Providing technical support of the quantity assurance system supports departmental Priority #1 and contributes to Priority #2.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Tracking the use of the GIAS and the number of adjustments to grain inventories
  • Tracking scale complaints attributed to CGC approved weighing systems and industry adherence to CGC proposed weighing system improvements
  • Consistently monitoring the use, by all interested parties, of CGC-generated data such as track lists and railcar exception reports, certified weighing systems reports, and official weight statements

Strategic Outcome 3: Research and development on grain quality that enhances the marketability of Canadian grain.

Program Activity: Conduct research to understand and measure grain quality

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
9 171 4 156 4 156

Human Resources

2006-2007 2007-2008 2008-2009
85 39 39

The CGA requires the CGC to undertake, sponsor and promote research related to grains. The CGC conducts research directly related to supporting the quality assurance system that permits the effective marketing of Canadian grain in the interests of producers. The GRL researches new methods for quality, new measurement factors to determine quality, end-use applications of Canadian grain, quality of new breeders' varieties, and carries out the annual Harvest Survey. The GRL, through its research, supports the continual improvement of the grain quality assurance system.

There are major challenges confronting the CGC's research activities and the grain quality assurance system due to the changing needs of the Canadian grain industry. There is a major shift in the type of crops grown and their end-uses, increased demand for variety identification by objective non-visual methods, and concerns with GM crops. Research focus has shifted to address these issues in pulses, new types of oilseeds, variety identification, and GM crops. Research related to traditional crops, such as wheat, barley, canola and flax, is still essential, as these crops make up a significant amount of the domestic and export markets. 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.

The expected results of conducting research to understand and measure grain quality are: adaptation of new objective methods for quality assessment and grain safety assurance; adoption and publication of new methods by current standard setting organizations; and provision of accurate quality assessment tools for new breeder lines.

This program activity directly supports departmental Priority #1 as undertaking, sponsoring and promoting grain related research upholds the mandate of the CGC and facilitates effective marketing of Canadian grain. In addition, ongoing research of new methods and measurement factors to determine quality, end-use applications of Canadian grain, and quality of new breeders' varieties supports improvement of the Canadian GQAS and departmental Priority #2.

Addressing Priority #4 is also critical in order for the CGC to fulfill its statutory mandate and continue ongoing research focused on understanding and measuring grain quality.

Key Program or Service:

1. Research methods to measure grain quality

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
4 127 1 870 1 870

Non-visual methods for the assessment of grain quality are required in order to maximize the return on investment to each segment of the Canadian grain handling system. New internationally accepted methods are necessary to capture and maintain the inherent value through all phases of the marketing system from producer to exporter.

The following ongoing research activities are integral components of this key program:

  • Developing new and improved methods for evaluating and measuring end-use quality factors for all grains and oilseeds, (e.g., Near Infra Red (NIR), digital imaging, rapid viscosity analysis (RVA), and pulse cooking quality) to meet international and domestic marketing requirements. http://www.grainscanada.gc.ca/quality/tests/tests-e.htm
  • Providing third party unbiased evaluation of quality characteristics of breeders' new varieties as part of the registration process.
  • Researching the suitability of Canadian grain varieties for various domestic and international end-uses to increase the marketability of Canadian grain in the interests of producers.
  • Developing internationally accepted methods for evaluation of grains, oilseeds and pulse quality.
  • Expanding research on computer-assisted image enhancement and measurement to assess grain quality and develop rapid accurate tests to measure visual quality factors.
  • Assessing the use of objective tests to increase efficiency, reduce costs and enhance the testing capabilities of the CGC.

The expected result of this key program is the development of internationally recognized methods for quality evaluation of all grains and oilseeds in collaboration with other national and international laboratories. Based on this expected result, researching methods to measure grain quality supports departmental Priority #2.

To measure its success in developing research methods that support the grain quality assurance system, the CGC tracks:

  • The number of objective testing methods adapted into the CGC's grading and inspection system
  • Industry integration of objective testing methods into segmentation and/or marketing systems
  • The quality and number of research papers published
  • Grain industry response (domestic and international) to the research, scientific and technical support provided by the CGC
  • Customer satisfaction with end-use quality as measured by client feedback during foreign missions or by client visits
  • End-user response to the quality assessment of new varieties and harvest survey information
  • Technology transfer to private sector users, other government agencies, universities and international organizations

2. Research new quality factors

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
4 127 1 870 1 870

In order to remain competitive in the international marketplace, it is imperative that future grain quality attributes be anticipated and captured. As such, research that supports emerging issues in the grain quality assurance system is crucial to all segments of the Canadian grain industry.

The following ongoing research activities are integral components of this key program:

  • Continuing collaborative and jointly funded research efforts (nationally and internationally) to develop measures for assessing grain quality.
  • Ongoing research of relevant factors and development of methods to provide grain safety assurances on new quality factors for domestic and international markets.
  • Validating research to address current major grain quality issues in order to improve quality evaluation of grains (e.g., sprout damage in wheat, chlorophyll in canola, dehulling characteristics in lentils, germination energy in barley, food use of flax, and noodle quality).
  • Ongoing research of wheat and barley DNA and protein fingerprinting methods 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.
  • Development of methods for identifying and quantifying GM grains and oilseeds to enable quantification of GM status of grain and meet the needs of the Biosafety Protocol.
  • Identifying specific areas of interest (as part of the strategic plan of scientific research within the portfolio) by establishing working groups on science infrastructure, human resources, longer-term science vision, GM issues, and disposal for animal and plant health emergencies.

The expected result of this key program is to develop new methodologies for identifying variety compositions and to enable variety specific marketing in order to meet changing producer, industry, and customer demands for specific end-use quality. Based on this expected result and the contributing programs and initiatives, researching new quality factors supports departmental Priority #2.

To measure its success in researching emerging quality factors to support the grain quality assurance system, the CGC tracks:

  • The application of newly developed objective measures of quality into the CGC's grading and inspection system.
  • Industry integration of objective testing methods into segmentation and/or marketing systems.
  • Technology transfer to private sector users, other government agencies, universities and international organizations.
  • Grain industry response (domestic and international) to the research, scientific and technical support provided by the CGC.
  • The quality and number of research papers published.

3. Research new grain standards

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
917 416 416

Continually evolving uses of grain require that the CGC have the ability to anticipate, identify, and measure new grain specifications in order to meet changing industry needs.

The following ongoing research activities are integral components of this key program:

  • Developing specifications and measurement protocols to support new standards to assist in diversification of end-uses of Canadian grains.
  • Increasing the amount of objective testing (e.g., digital image analysis, NIR, oil composition) in order to replace subjective quality assessment factors with numerical tolerances.
  • Developing testing protocols to support the segregation of grains with new end-use traits for non-food uses.

The expected result of this key program is to develop objective testing protocols and specifications to support the Canadian grading system and facilitate the marketing and end-use diversification of Canadian grains. Given this expected result, researching new grain standards supports departmental Priorities #1 and #2.

To measure its success in ensuring that this key program is on track the CGC monitors:

  • The application of newly developed objective measures of quality into the CGC's grading and inspection system
  • Customer satisfaction with end-use quality as measured by client feedback during foreign missions or by client visit
  • End-user response to the quality assessment of new varieties and harvest survey information
  • The quality and number of research papers published

Strategic Outcome 4: Producers' rights are supported to ensure fair treatment within the grain handling system.

Program Activity: Protect producers' rights

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
2 208 1 873 1 873

Human Resources

2006-2007 2007-2008 2008-2009
21 17 17

The CGC is an impartial third party that, in the interests of producers, establishes and maintains standards of quality for Canadian grain and regulates grain handling in Canada to ensure a dependable commodity for domestic and export markets. The CGC is mandated to serve producer interests by upholding the CGA and as a result, has implemented a number of programs and safeguards. These include the licensing and security program, producer liaison measures, producer car procedures, and a quality appeal system.

The expected result of this program activity is increased producer satisfaction with the grain handling system.

This program activity directly supports departmental Priorities #1 and #3 (Licensing Compliance), as the CGC is mandated to ensure the fair treatment of producers within the grain handling system. Addressing Priority #4 is also important to maintain producer satisfaction with the delivery of various procedures and systems related to their protection.

Key program or service:

1. Administer the licensing and financial security system

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
1 056 895 895

The CGC licenses and regulates primary, process, transfer, and terminal elevators as well as grain dealers. Licensed elevators and dealers are required to post security to cover their liabilities to producers in the event of a company default. This regulatory activity contributes to the fair treatment of western Canadian producers.

The following ongoing activities are integral components of an effective licensing and financial security program:

The expected result of this key program is to decrease the level of CGC licensing non-compliance, increase the number of new grain dealers or operators that are licensed, and mitigate financial risk to producers. This key program directly supports departmental Priorities #1 and #3.

The number of unlicensed facilities presents an ongoing challenge to the CGC, as producers delivering to these facilities are not protected in the case of a default. During the reporting period, the CGC will continue to broaden the licensee base at the producer delivery level and will increase licensing, audit and compliance operational unit resources to address the anticipated increase in the number of licensees. To facilitate compliance, the CGC will continue to work toward reducing the costs and administrative requirements of licensees.

In order to measure the success of its efforts in administering the licensing and financial security system, the CGC will utilize the following methods and processes:

  • Evaluation of producer claims under the licensing and security program. In the result of financial failure of a licensed elevator or grain dealer, the CGC tracks producer reimbursement from posted security.

2. Manage the allocation of railcars for individual producer requests

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
164 140 140

The CGC allocates producer cars for producers and producer groups that wish to ship their own grain. The CGC will continue to develop and implement strategies to address producer car issues, including the increasing demand from producers for railcar allocations. http://grainscanada.gc.ca/prodser/producercars/information/prodcars-e.htm

The expected results of this key program are, pursuant to the CGA and Canada Grain Regulations, to provide and make available an alternate grain delivery mechanism and respond to producer car allocation challenges. Managing the allocation of railcars for individual requests contributes to departmental Priority #1.

In order to measure the success of its efforts in managing the allocation of railcars for individual producer requests, the CGC will utilize the following methods and processes:

  • Monitoring producer concerns with accessing producer cars by tracking the percentage of cars allocated versus the eligible applications received.

3. Fair treatment of producers by grain companies and dealers

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
833 707 707

To safeguard fair and equitable grain transactions for producers, the CGC has set up an information and compliance network. Inspection, weighing, and arbitration services are essential to the efficient and fair operation of grain markets for producers and the grain industry. Grades allow buyers to identify end-use characteristics without the need for end-use tests or direct examination of individual grain lots. This helps to ensure that producers are properly compensated for the quality and quantity of grain delivered and shipped.

The following ongoing activities are integral components of this key service:

  • Mediating and/or arbitrating producer complaints concerning transactions with licensed grain companies to facilitate negotiated settlements acceptable to both parties.
    http://grainscanada.gc.ca/Regulatory/Licensees/for_producers-e.htm
  • Re-inspection of samples on producer request and investigation of quality complaints in order to mediate and resolve issues with grain transactions. This may include provision of "subject to inspector's grade and dockage" for deliveries to primary elevators, or re-inspection for producer car deliveries to port position pursuant to the CGA. The "inspector's grade and dockage" provision means that a grain producer, or the person delivering the grain on a producer's behalf, has the right to ask for a binding decision from the CGC if there is a disagreement with the grade or dockage received at a licensed primary elevator. The parties are bound by the results of the CGC inspection decision.
    http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-10-07b-e.htm
  • Ongoing review of regulations to amend or eliminate those that are no longer relevant, enforceable, or contributing to the effective operation of the Canadian grain industry.
  • Analysis of licensee weigh-over/audit data and conducting investigations when appropriate. http://grainscanada.gc.ca/forms/licencerep/info_wei-e.htm

The expected result of this key service is to successfully resolve complaints and facilitate settlements acceptable to those parties involved, while improving the ability of producers to manage their business risks. Based on this expected result, fair treatment of producers by grain companies and dealers directly supports both departmental Priority #1 and #3.

In order to measure the success of its efforts in facilitating fair treatment of producers by grain companies and dealers, the CGC will utilize the following methods and processes:

  • Tracking producer inquiries and complaints on unfair treatment by grain companies. Feedback, complaints and requests for information are received through: direct contact with Assistant Commissioners and CGC staff at Prairie service centres or Head Office; or the CGC 1-800 line.
  • Conducting periodic surveys of producers and producer groups to gain a producer perspective on the CGC, CGC services, or industry trends. Surveys provide the CGC with an understanding of producer requirements and expectations, benchmarks for setting service standards, and the impact of CGC services at the producer level.
  • Tracking the number of producer requests for grain sample analysis (e.g., "inspector's grade and dockage"). Satisfaction by producers in CGC-facilitated resolution of disputes involving grain transactions is measured by direct confirmation (part of the process) and by absence of recurrence.

4. Provision of grain quality information to producers

Financial resources ($ thousands)

2006-2007 2007-2008 2008-2009
155 131 131

The CGC continually collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties. This information and technical support facilitates producer sales and marketing decisions.

The following ongoing activities are integral components of this key service:

The expected result of this key service is the provision of accurate and relevant technical and statistical information to support producer sales and marketing decisions. As such, this key service supports departmental Priority #1.

In order to measure the success of its efforts in providing grain quality information to producers, the CGC will utilize the following methods and processes:

  • Tracking producer subscriptions to CGC publications.
  • Conducting periodic surveys of producers and producer groups to gain a producer perspective on the CGC, CGC services, or industry trends. Surveys provide the CGC with an understanding of producer requirements and expectations, benchmarks for setting service standards, and the impact of CGC services at the producer level.