ARCHIVED - RPP 2007-2008
Canadian Grain Commission

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

SECTION I - OVERVIEW

Minister's message

Welcome to the Canadian Grain Commission's Report on Plans and Priorities 2007-08. This report details how the Canadian Grain Commission (CGC) intends to use its resources to carry out its responsibilities to protect grain producers' interests and to ensure a dependable commodity for Canada's international and domestic markets.

As Minister of Agriculture and Agri-Food, I am proud of our efforts to work together with all stakeholders to secure a bright future for Canada's farm families and the sector. In fact, collaboration is the hallmark of this Portfolio. By our concerted action, we are making great strides in helping Canada's farmers overcome immediate pressures, while putting the sector on a solid foundation for the long term.

The Portfolio includes Agriculture and Agri-Food Canada (AAFC), the Canadian Food Inspection Agency, the National Farm Products Council, the Canadian Dairy Commission, the Canadian Grain Commission, and Farm Credit Canada. While the organizations within the Portfolio have different mandates, they share a common purpose: to make our agriculture and agri-food sector stronger, more competitive and sustainable into the future. Through portfolio collaboration, we are working efficiently and effectively in the interests of all Canadians.

Over the next years, the development and implementation of the Next Generation of Agriculture and Agri-Food Policy will be key to the sector's success. Our producers need continuously updated policies and programs from governments to help them thrive in the rapidly-evolving economy and manage the inherent risks of the business. I am counting on the energy and expertise of the Agriculture and Agri-Food Portfolio to translate these new policy directions into a prosperous reality in Canadian agriculture and agri-food.

Canada is known around the world for the quality, consistency, reliability and safety of its grain and grain products. This is a key factor in permitting Canadian exporters to market successfully in competitive international grain markets. In addition, an effective quality assurance system is essential for producers in order to realize maximum value from their grain in the face of the current challenging economic environment.

The CGC has a long-term commitment to building and maintaining a strong quality assurance system for the Canadian grain industry from producers to customers. In order to do this, the CGC must not only respond to historical challenges facing the grain quality assurance system, but also must anticipate and respond to significant technological advancements and other changes in the grain industry. Accordingly, CGC operations directly support Canada's efforts to brand Canadian agriculture as a leader in food safety and quality, science and innovation, and business risk management.

On September 18, 2006 an independent and comprehensive review of the CGC and the provisions and operations of the Canada Grain Act was tabled in Parliament. This legislative review was commissioned by AAFC and conducted by COMPAS Inc., a Toronto-based public opinion and customer research consulting firm. The report is available on AAFC's web site at www.agr.gc.ca/cgcreview. The COMPAS report was referred to the Standing Committee on Agriculture and Agri-Food (SCAAF) for consideration. SCAAF held meetings and called witnesses, before tabling its "Report on the Review of the Canada Grain Act and the Canadian Grain Commission Conducted by COMPAS Inc." in Parliament on December 5, 2006. A government response to the Standing Committee report is expected in April, 2007. The review of the CGC is part of an integrated strategic approach to the future of the Canadian grains sector and provides guidance as to how the CGC can effectively add more value to Canadian producers and the grain industry in general. http://cmte.parl.gc.ca/Content/HOC/committee/391/agri/reports/rp2564356/agrirp05/01-cov2-e.htm

This Report on Plans and Priorities highlights the CGC's plans to continue to provide an effective grain quality assurance system that enhances the marketing of Canadian grain in the interests of producers. The report also sets the standards by which the CGC's performance in meeting its objectives can be assessed.

The Honourable Chuck Strahl
Minister, Agriculture and Agri-Food and
Minister for the Canadian Wheat Board

Chief Commissioner's message

Welcome to the Canadian Grain Commission's (CGC) Report on Plans and Priorities for the fiscal year 2007-08. The CGC is the federal agency responsible for setting standards of quality and regulating Canada's grain handling system. Our vision is to be a leader in delivering excellence and innovation in grain quality and quantity assurance, research, and producer protection.

The quality assurance program delivered by the CGC assures consistent and reliable grain quality that meets the needs of international and domestic markets. The CGC is continually building on the grain quality assurance system (GQAS) to maintain market competitiveness and Canada's reputation as a consistent supplier of quality grain. The CGC is working alongside the Minister of Agriculture and Agri-Food's (AAF) portfolio partners and the grain industry to add value to Canadian producers and Canada's grain quality assurance system.

While the CGC operates in a climate of constant change stemming from shifting international and domestic markets, technological advancements, and evolving end-user needs, the Canada Grain Act has not been significantly changed since 1971. In addition, competitive markets and international standards and legislation are increasing demands for both grain quality and grain safety assurances. The CGC continues to deliver its mandated and regulatory responsibilities while re-allocating resources to new and emerging issues, but has faced significant funding pressures in recent years.

Over the past several years, reviews of the CGC have repeatedly recognized the value of the CGC to the grain sector, but have also identified the need for change. Most recently, on September 18, 2006, a report concerning the future of the CGC and the Canada Grain Act was tabled in Parliament ( www.agr.gc.ca/cgcreview). The independent report was commissioned by AAFC and conducted by COMPAS Inc. The COMPAS report was subsequently referred to the Standing Committee on Agriculture and Agri-Food (SCAAF) for consideration. SCAAF tabled its review of the COMPAS report in Parliament on December 5, 2006. http://cmte.parl.gc.ca/Content/HOC/committee/391/agri/reports/rp2564356/agrirp05/01-cov2-e.htm

The CGC is studying the COMPAS and SCAAF report recommendations and working collaboratively with AAFC on the next steps to move forward to ensure the long-term success of Canada's GQAS and add optimal value for Canadian grain producers and the grain sector, ultimately to enhance Canada's competitive advantage in global grain markets.

The CGC supports the goals of the current Agriculture Policy Framework (APF) by ensuring grain and grain products meet appropriate standards while assisting Canadian grain producers in receiving maximum value for their products. The CGC is working in close collaboration with the other organizations in the AAF portfolio, provincial and territorial counterparts, and with a wide range of stakeholders in the development of the Next Generation of Agriculture and Agri-Food Policy, particularly in the areas of Food Safety and Quality; Market Development and Trade; and Science and Innovation, to ensure that the new policies and programs effectively and efficiently meet the needs of all those working in the agriculture and agri-food sector.

This report outlines the CGC's plans and priorities for the fiscal year 2007-08. I am confident that our strategies will improve Canada's GQAS and help achieve maximum value for producers and Canadians overall.

Chris Hamblin
Chief Commissioner

Management Representation Statement

I submit for tabling in Parliament, the 2007-08 Report on Plans and Priorities (RPP) for the Canadian Grain Commission.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
• It is based on the department's Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board;
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved planned spending numbers from the Treasury Board Secretariat in the RPP.

Gordon Miles
Chief Operating Officer

Summary Information

Reason for existence:

Mandate

The CGC administers the provisions of the Canada Grain Act. The CGC's mandate as set out in this 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."

Vision

The CGC vision is to be "A leader in delivering excellence and innovation in grain quality and quantity assurance, research, and producer protection."

Department Description and Accountability

The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food is the Minister responsible for the CGC. The CGC is headed by a Chief Commissioner, an Assistant Chief Commissioner, and a Commissioner who are all appointed by the Governor in Council. The Commissioner position is currently vacant. The Chief Commissioner reports to the Minister. The Chief Operating Officer reports to the Chief Commissioner and co-ordinates the activities of the CGC's operating divisions.

The CGC is organized into the Executive, Corporate Services, Grain Research Laboratory (GRL), Industry Services, and Finance divisions. Its head office is located in Winnipeg, Manitoba. Industry Services comprises five regions: Bayport, Eastern, Pacific, Prairie and Thunder Bay. As of March 31, 2006, the CGC employed 635 full-time equivalents and operated 16 offices across Canada.

The CGC may have up to six Governor in Council appointed Assistant Commissioners for the main grain producing areas of Canada. At present, the CGC has three Assistant Commissioners. The Assistant Commissioners deal with producer and grain industry complaints and inquiries, and publicize the activities of the CGC at the farm level. Section III provides further details on the CGC's organizational structure.

The CGC enhances grain¹ marketing through inspection, weighing, research, and producer support programs and services identified in the strategic outcomes in Section II. The provision of these CGC programs and activities results in equitable grain transactions and consistent and reliable grain shipments.

Funding for CGC programs and activities is through a combination of revolving fund and appropriation sources.

¹Grain refers to any seed designated by regulation as a grain for the purposes of the Canada Grain Act. This includes barley, beans, buckwheat, canola, chick peas, corn, fababeans, flaxseed, lentils, mixed grain, mustard seed, oats, peas, rapeseed, rye, safflower seed, solin, soybeans, sunflower seed, triticale and wheat.

Financial resources ($ thousands)

2007-2008	2008-2009*	2009-2010*
$75,997	$46,272	$46,272

Human Resources (FTE's)

2007-2008	2008-2009*	2009-2010*
664	403	403

*Note: These resources are the currently approved funding levels based on the CGC’s Annual Reference Level Update (ARLU) report. The CGC has received additional appropriation revenue over the past several years to maintain its resource levels. In 2007-2008 the CGC received $30 million appropriation in addition to its annual appropriation of $5 million. Planned spending for 2008-2009 and 2009-2010 includes only the annual appropriation of $5 million resulting in a reporting variance between years. An additional $30 million in appropriation has been allocated for 2008-2009 but is not included in these resource levels as it was not approved at the time of the ARLU report.

Departmental Priorities

Priority Name	Type
1. Ongoing delivery of the CGC mandate under the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements, and evolving end-user needs and preferences.	Ongoing
2. Positioning the Canadian Grain Quality Assurance System (GQAS) to remain relevant and to support the continued competitiveness of Canadian grains in both domestic and international markets.	Ongoing
3. Regulatory compliance.	Ongoing
4. Sustainable CGC funding mechanism.	Ongoing
5. Certification to meet International Organization for Standardization (ISO) standards.	New

Program Activity by Strategic Outcome

Program Activity	Expected Results	Planned Spending ($ thousands)			Contributes to the Following Priorities
		2007-2008	2008-2009*	2009-2010*
Strategic Outcome 1: A grain quality assurance system that addresses the changing requirements of domestic and international grain markets
Deliver inspection and testing services	Increased buyer satisfaction through delivery of consistent Canadian grain quality and increased marketability of Canadian grain.	$50,279	$31,040	$31,040	Priority #1, #2, #4 and #5
Strategic Outcome 2: A grain quantity assurance system that addresses the changing needs of the grain industry
Deliver weighing services	Client satisfaction with CGC weighing and dispute resolution programs.	$14,969	$9,241	$9,241	Priority #1, #2, #4 and #5
Strategic Outcome 3: Research and development on grain quality that enhances the marketability of Canadian grain
Conduct research to understand and measure grain quality	Adaptation of new objective methods for quality assessment and grain safety assurance; adoption and publication of new methods by current standard setting organizations; provision of accurate quality assessment tools for new breeder lines.	$7,663	$4,130	$4,130	Priority #1, #2, #4 and #5
Strategic Outcome 4: Producers' rights are supported to ensure fair treatment within the grain handling industry
Protect producers' rights	Increased producer satisfaction with the grain handling system.	$3,086	$1,861	$1,861	Priority #1, #3 and #4

*Note: These resources are the currently approved funding levels based on the CGC’s Annual Reference Level Update (ARLU) report. The CGC has received additional appropriation revenue over the past several years to maintain its resource levels. In 2007-2008 the CGC received $30 million appropriation in addition to its annual appropriation of $5 million. Planned spending for 2008-2009 and 2009-2010 includes only the annual appropriation of $5 million resulting in a reporting variance between years. An additional $30 million in appropriation has been allocated for 2008-2009 but is not included in these resource levels as it was not approved at the time of the ARLU report.

Departmental Plans and Priorities

The Canadian grain industry operates in a climate of constant change stemming from shifting international and domestic markets, technological advancements, and evolving end-user needs and preferences. Canada's grain quality assurance system (GQAS) must be able to adapt to keep pace with the evolution of the global grain industry. This is particularly important considering Canada exported more than $26.6 billion worth of agriculture and agri-food products in 2005. Approximately 34% of these exports were grains, oilseeds, and related products with an estimated value of $9 billion.

Link of CGC Strategic Outcomes to the Government of Canada Outcome Areas

Canada's Performance 2006 is the sixth annual report to Parliament on the federal government's contribution to Canada's performance as a nation, highlighting both strengths and areas for improvement. Canada's Performance 2006 is structured around four main policy areas. These include: economic affairs, social affairs, international affairs, and government affairs. Within these policy areas are thirteen broad Government of Canada outcomes which form the framework used for the whole of government reporting. The whole of government reporting framework groups departmental strategic outcomes and program activities into the thirteen Government of Canada outcomes.

All four of the CGC's strategic outcomes and program activities align with the key federal policy area of 'economic affairs'. As illustrated below, three of the CGC strategic outcomes and program activities align with and directly contribute to the pursuit of the Government of Canada outcome area An Innovative and Knowledge-based Economy. The fourth CGC strategic outcome and program activity aligns with and contributes to the pursuit of the Government of Canada outcome area of A Fair and Secure Marketplace.

CGC Strategic Outcome	CGC Program Activity	Link to Government of Canada Outcome Area
1. A grain quality assurance system that addresses the changing requirements of domestic and international grain markets	Deliver inspection and testing services	An innovative and knowledge-based economy
2. A grain quantity assurance system that addresses the changing needs of the grain industry	Deliver weighing services	An innovative and knowledge-based economy
3. Research and development on grain quality that enhances the marketability of Canadian grain	Conduct research to understand and measure grain quality	An innovative and knowledge-based economy
4. Producers' rights are supported to ensure fair treatment within the grain handling system	Protect producers' rights	A fair and secure marketplace

Canada is known worldwide as a supplier of quality grain and our edge in the marketplace has always been quality and consistency. In order to maintain this advantage in a climate of constant domestic and global change, the CGC's strategic outcomes are directly focused on, and committed to, delivering excellence and innovation in grain quality and quantity assurance, innovative research, and producer protection.

The CGC's corporate infrastructure allows the organization to deliver the programs necessary to achieve its strategic outcomes and program activities and results in improved performance, increased employee productivity, and effective communication with industry and producers. Although the CGC is a small department, the organization is committed to fulfilling its responsibility for government wide initiatives such as the Management Accountability Framework, providing services in both official languages, the Government On Line (GOL) initiative, and effective partnering with other government organizations to provide service to Canadians in the most efficient and effective manner possible. The cost of implementing government wide initiatives and CGC corporate infrastructure are accounted for in the overall costs of delivering the CGC strategic outcomes and program activities. Section IV provides further information on the CGC's plans and priorities with respect to government-wide initiatives and corporate infrastructure.

The departmental plans and priorities of the CGC delineate its response to the continual changes in the grain industry and are directed at meeting the sector's current needs. The following section outlines the major priorities of the CGC during the planning period. While some of the priorities have very significant potential to impact the capacity of the CGC to carry out its mandate, the resource commitments are based on the maintenance of ongoing CGC operations.

The following departmental priorities are critical to making significant progress towards the realization of the CGC's strategic outcomes. The relationships between CGC priorities, strategic outcomes, and program activities are further detailed in Section II.

Priority #1 : Ongoing delivery of the CGC mandate under the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements, and evolving end-user needs and preferences.

The CGC will continue to fulfil its mandate through the operation of a national GQAS. This entails effective inspection, weighing, monitoring, and grain sanitation programs to ensure grain exports are uniform and consistent with regard to intrinsic quality and grain safety assurance, while at the same time ensuring fair grain transactions. In addition, the CGC's research and development on grain quality will continue in order to enhance the marketability of Canadian grain. http://grainscanada.gc.ca/ 

The first priority of the CGC is to continue consistent daily delivery of programs and services within each of its organizational divisions in support of the CGC mandate. Ongoing delivery of the CGC mandate contributes directly to the achievement of all of the CGC's strategic outcomes and program activities. The major programs and services performed within each organizational division in support of this priority and the on-going human resources management activities necessary for the successful delivery of this priority are outlined below:

a. Industry Services:

• Inspection services - outward and inward, reinspection and quality control, quality assurance standards, analytical services, dispute resolution services, certification and accreditation
• Weighing services - outward and inward, dispute resolution
• Registration and cancellation processes

b. Grain Research Laboratory (GRL):

• Cereals, oilseeds and pulse research
• Grain safety assurance - monitoring and research
• Developing and evaluating objective grading methods
• Variety identification - monitoring and research
• Quality monitoring and assurance
• Detection of genetically modified (GM) grains

c. Corporate Services:

• Communication services
• Information services
• Administration
• Policy, planning, and producer protection
• Statistical services
• Health and safety services

d. Finance Division:

• Reporting at the national and organizational level
• Accounting operations
• Budgeting and planning
• Costing and cost recovery
• Internal auditing
• Procurement

e. Management of Human Resources:

• Resourcing, retention and performance management
• Labour relations
• Compensation and benefits
• Learning and development

Priority #2: Positioning the Canadian GQAS to Remain Relevant and to Support the Continued Competitiveness of Canadian Grains in both Domestic and International Markets.

Canada's robust GQAS has permitted Canadian grain to be "branded" internationally for many years, providing Canada with a competitive advantage in the global grain market. However, the sensitivities of international grain buyers are increasing and generating more and more specific end-use and certification requirements. As such, the CGC has recognized the importance of continuing to evolve and refine the Canadian GQAS to remain relevant and competitive in both the domestic and international marketplaces.

The CGC is continually developing and implementing many programs, initiatives, and new research methods and processes aimed at strengthening the Canadian GQAS. Enhancing Canada's GQAS directly supports CGC strategic outcome #1 (a grain quality assurance system that addresses the changing requirements of domestic and international grain markets), strategic outcome #2 (a grain quantity assurance system that addresses the changing needs of the grain industry), and strategic outcome #3 (research and development on grain quality that enhances the marketability of Canadian grain).

Currently, Canada's kernel visual distinguishability (KVD) requirement for wheat allows quick and cost effective segregation of wheat into quality classes based on visual distinguishability. While KVD has provided Canadian wheat growers a competitive quality advantage, there are compelling reasons to move away from wheat segregation based solely on KVD. These include:

• Increasing demands for new varieties with different agronomic, disease resistance and end-use qualities to meet human (food), livestock (feed) and industrial (e.g. ethanol) needs. Presently, KVD is an additional criterion that plant breeders must incorporate into the development of new varieties.
• Nonregistered, visually indistinguishable varieties have the potential to compromise the quality of Canadian wheat shipments and the entire grain quality assurance system if they are misrepresented as a registered variety or accidentally enter the bulk handling system. They can cause significant financial losses for grain handling companies and marketers and pose a particular concern for western Canada's premier milling wheats: Canada Western Red Spring (CWRS) and Canada Western Amber Durum (CWAD).
• Buyers of Canadian grains are becoming more quality conscious and increasingly sophisticated. They are asking for a wider range of quality types. In order to enhance the traditional visual grading system, it is necessary to develop faster, more flexible and more precise instrumental methods to analyze intrinsic quality characteristics and to certify grain quality and safety.
• Visually indistinguishable grains developed for non-milling uses, such as animal feed, fuel and industrial purposes, will require effective instrumental tools to analyze quality parameters and certify quality and safety. Effective segregation of these grains from the food supply is essential to maintain the overall value of the quality assurance system.

There are also pressures to address KVD issues outside of cereal grains. There are industry pressures to develop yellow seeded (high linolenic) flax for the rapidly growing food flax industry even though the yellow seeded characteristic is currently the identifier 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 physical visual appearances are similar while the quality characteristic differences between the two are mutually exclusive.

The CGC will continue to develop and evaluate methods and systems to move away from KVD. The various CGC programs, initiatives, research methods and processes aimed at supporting this priority are described below:

Wheat Quality Assurance Strategy (WQAS)

To address the challenges of visually indistinguishable nonregistered wheat varieties and the constraints that KVD imposes on the development and handling of non-milling wheats, the CGC will continue to develop and implement the integrated WQAS program that was initiated in December 2003. For further information on this program refer to: http://grainscanada.gc.ca/newsroom/news_releases/2003/2003-12-19-e.htm.

The WQAS strategy is composed of three elements:

1. Increased monitoring of railcar and vessel shipments for nonregistered wheat varieties

To address growing sectoral concerns, the CGC has increased its monitoring of grain shipments throughout the licensed handling system. Currently, the CGC coordinates an extensive cargo monitoring program to support its certification processes, which includes the use of electrophoresis, high-performance liquid chromatography (HPLC) and DNA-based fingerprinting technology to monitor for nonregistered varieties and ineligible varieties. This monitoring program provides the industry with information to help them better manage the handling system and requires that elevator operators exercise their own due diligence.

During the planning period, the CGC will continue with its increased monitoring of railcar and vessel shipments for the presence and source of nonregistered wheat varieties to support CGC certification processes and ultimately maintain end-use processing quality and customer perceptions of Canadian grain.

2. Development of rapid affordable variety identification (VID) technology

Variety identification (VID), combined with objective testing, will underpin the future of the Canadian GQAS and sustain Canada's position as an international grain competitor. In order to support grain grading and inspection, to monitor the variety composition of export shipments, and to provide assurances for variety-specific shipments of wheat and barley, the CGC has developed and continues to develop non-visual methods for VID. Knowing the variety composition of a shipment is a practical alternative for classifying grains into end-use classes. Development of this technology will help meet the needs of marketers and producers.

Currently, the CGC performs protein electrophoresis and DNA fingerprinting on individual kernels of grain. Many kernels must be analysed to determine the variety composition of a sample. The long-term goal is to develop a DNA-based method that will determine the variety composition of a ground sample of grain rather than multiple individual kernels. The aim is to provide technology that accurately quantifies the variety composition of grain shipments in a timely manner in a commercial environment.

Through its VID work, the CGC will continue to be a leader in the development of VID technology, the establishment of comprehensive variety fingerprint databases for wheat and barley, and the implementation of these tools for the benefit of Canada's grain industry. The CGC is committed to working collaboratively with other organizations in an effort to transfer VID technology to the private sector for use in commercial VID testing.

3. The development of a proposal to restructure the western wheat classes to enable the development and integration of non-milling wheat varieties.

The CGC will continue the process regarding the proposal to restructure some western Canadian wheat classes. This proposal is aimed at reducing the constraints KVD imposes on the development and handling of non-milling wheat, such as high-yielding feed and industrial varieties, as well as concerns associated with the slow degradation of KVD between existing wheat classes.

The CGC released a discussion paper titled The Future of Western Canadian Wheat Quality Assurance in June 2005. After thorough evaluation of all stakeholder feedback and divergent viewpoints, the CGC intends to proceed with implementation of a wheat class restructuring plan that represents a balanced solution to stakeholder needs. The major wheat classes (CWRS and CWAD) will remain unchanged in terms of variety registration requirements, including KVD. Effective August 1, 2008, a Canada Western General Purpose (CWGP) wheat class will be introduced and KVD requirements for the six minor wheat classes will be removed. However, varieties within these minor classes cannot have KVD conflicts with CWRS or CWAD. For further information refer to: http://grainscanada.gc.ca/Pubs/discussions/wqas/update06_06_01contents-e.htm.

Implementation of this plan will provide producers, marketers and customers with access to a wider range of wheat varieties than the current system permits, while continuing to protect the integrity of the major milling classes and grades.

Process Verification

In a marketplace with increasing global demands for unique product specifications and traceability requirements, the CGC is developing and implementing process verification programs with the goal of enhancing global acceptance of Canadian grain by delivering specific quality attributes demanded by domestic and international buyers.

Ineligible Varieties Working Group (IVWG)

The CGC is part of a grain industry working group (IVWG) whose objective is to develop protocols for sampling, testing and process controls that will minimize the incidence of visually indistinguishable ineligible varieties being shipped to buyers under incorrect certification. The working group is investigating the potential for an industry Quality Management System that will have the CGC monitor and audit logistical processes within the Canadian grain handling system.

The IVWG is developing protocols that apply to varietal testing and process controls throughout the grain supply chain (originating at licensed primary elevators through to licensed terminal elevators and vessel loading) for all cargo shipments of western Canadian wheat and durum that will receive a Certificate Final.

Canadian Identity Preserved Recognition System (CIPRS)

CIPRS is a voluntary tool for process verification that the industry can use to provide third party assurance of the processes used throughout the supply chain, from producer to shipper, to deliver the specific quality attributes and traceability that some domestic and international buyers require. During the 2007-08 planning period the CGC will continue to implement CIPRS to recognize industry's ability to deliver products with improved quality assurance systems for maximum acceptance in global markets. In addition, the CGC will be addressing the need to develop further tools and standards for process verification to address the need to segregate varieties with unique quality attributes within closed-loop identity preservation programs.

The CGC is also in the process of developing its CIPRS+ program in partnership with Manitoba Agriculture, Food and Rural Initiatives and the Ontario Ministry of Agriculture, Food and Rural Affairs. The infrastructure supporting CIPRS is being adapted to provide verification of HACCP (Hazard Analysis Critical Control Points) based processes in order to provide safety assurances for grain. For further information on the status of the CIPRS and CIPRS+ programs refer to: http://grainscanada.gc.ca/prodser/ciprs/ciprs1-e.asp.

Coherent and Integrated Approach to Handling Imported Grain

The CGC will continue to support Canadian World Trade Organization (WTO) obligations regarding the treatment of imported grain, while at the same time maintaining the integrity and policy objectives of the Canadian GQAS. The CGC will continue to work with appropriate government portfolio organizations and relevant industry stakeholders to explore, examine, and refine an integrated approach to handling imported grain.

Research and Objective Testing

Many international grain buyers are investigating the exporting country of origin's practices and regulations concerning such factors as approved genetically modified (GM) events, pesticide registrations and usage, and recognized grain and food safety programs. International concern is also growing with respect to the adventitious presence (AP) of grain in shipments. AP refers to the unintended, technically unavoidable presence of GM material in an agri-food commodity. The presence of adventitious materials has potentially significant impacts on the marketability of Canadian grain.

During the planning period, the CGC will continue to augment its GQAS system with objective ways to quantify the impact of degrading factors and to assure grain quality and safety for end- users.

Genetically Modified (GM) Grains

With increasing consumer concerns, many countries are establishing GM labelling and traceability requirements. As a result, the ability to segregate GM grain and non-GM varieties is critical to maintaining Canada's international market share and meeting the requirements of the International Biosafety Protocol. The ability to segregate GM from non-GM grains will benefit exporters of Canadian food products given that there is a growing requirement to label products.

During the planning period, the CGC will continue to validate GM organism detection methods and focus research on the detection and identification of GM grains. The CGC will also continue to collaborate with Agriculture Portfolio partners in the development of operational and testing efficiencies to address GM organism and AP concerns.

Grain Safety

The CGC is currently developing new and improved objective methods for testing chemical residues, natural toxins, and trace elements because of the growing complexity and sophistication of regulatory and technological requirements of importing countries. Research initiatives directed at cargo specific grain safety testing for toxins such as deoxynivalenol (DON) associated with fusarium and ochratoxin A are currently underway. http://grainscanada.gc.ca/Grl/grain_safety/grain_safety-e.htm

Grading System Factors - Falling Number (FN) and Rapid Viscosity Analysis (RVA)

FN is the internationally accepted measure of alpha-amylase activity - an enzyme found in sprout-damaged (germinated) wheat. Many buyers place strict limits on FN in the wheat they buy because flour damaged by alpha-amylase results in undesirable final product characteristics. Sprout damage in wheat is difficult to assess - a wheat sample containing even a small amount of severely sprouted kernels may have high levels of alpha-amylase activity.

In the Canadian wheat grading system, sprout damage is a visually assessed grading factor. The CGC is currently chairing a grain industry working group to determine how best to implement FN into the grading system should technology prove to be viable.

During the planning period, the CGC is committed to continuing its assessment of new RapidVisco Analyser (RVA^TM) technology. RVA technology offers an objective assessment of sprout damage by estimating FN values quickly and simply. The technology may provide the Canadian grain industry with the ability to segregate producer deliveries at the primary elevator. RVA technology also may provide a solution to precise, objective results in licensed primary and terminal elevators where space for specialized laboratory equipment is limited and rapid turnaround is key.

Priority #3: Regulatory Compliance

The CGC is committed to a sound regulatory framework that is effective, responsive, cost-efficient and accountable. The CGC's regulatory requirements will add value to the entire grain sector including producers and Canadians in general and will address the risks and challenges present in today's GQAS taking into account producer needs, changing agricultural business environments, and the need to enhance the sector's competitiveness.

The CGC promotes, maintains and enforces compliance with the Canada Grain Act through compliance promotion programs, inspection and weighing activities, monitoring, and investigations. The CGC collects grain samples from a variety of sources (primary elevator deliveries, terminal elevator unloads, new crop, and exports) in order to measure the effectiveness of, and compliance to, grain quality assurance standards and the overall GQAS.

In May 2005, the CGC provided notice of its intention to require compliance to the licensing provisions of the Canada Grain Act to enhance producer protection and strengthen the grain quality assurance system. To facilitate compliance, the CGC is continuing its efforts to reduce the costs and administrative requirements of licensees. For example, the CGC has implemented measures to streamline the licence renewal process and continues to explore and evaluate alternative security instruments while still providing adequate financial protection to producers. In addition, the CGC will increase resources in the licensing, auditing, and compliance operational units to address the increase in the number of licensees. Enhancing licensing and security directly aligns the CGC with its legislative obligations and supports CGC strategic outcome #4 (producers' rights are supported to ensure fair treatment within the grain handling system).

Priority #4: Sustainable CGC Funding Mechanism

The CGC is mandated to perform services as legislated by the Canada Grain Act. Over the past 15 years, a combination of increasing costs and a freeze on mandatory fee levels has led to the CGC being chronically under-funded. During this time period, cost recovery levels have dropped from around 90% to between 50 and 60%. This has required the CGC to seek interim government appropriations on an annual basis.

In order to meet evolving grain industry needs, labour contract settlements, and general increases in the costs of goods and services, the CGC has engaged in an ongoing process of cost containment and internal re-allocation of resources to new and emerging priorities. The CGC recognizes the importance of continuing to evolve and refine the Canadian GQAS to remain relevant and competitive in both the domestic and international marketplaces and will continue to work diligently to improve how it adds value to the grain industry and producers. The CGC will continue to seek a sustainable funding mechanism to maintain the CGC's capacity to create value for producers, the grain industry, and the Canadian public as an integral part of a successful Canadian GQAS. This priority is critical in order for the CGC to continue to fulfill its statutory mandate and in achieving all of its strategic outcomes and program activities.

Priority #5: Certification to Meet International Organization for Standardization (ISO) Standards

ISO is a non-governmental organization and is the world's largest developer of standards. ISO itself does not regulate or legislate and its standards are voluntary. Industry Services, the CGC's main operating division, is ISO 9001:2000 certified. The ISO 9000 series of standards are primarily concerned with quality management specifically with respect to quality assurance in production, installation, and servicing. Maintaining ISO certification in Industry Services directly supports CGC strategic outcome #1 (a grain quality assurance system that addresses the changing requirements of domestic and international grain markets) and strategic oucome #2 (a grain quantity assurance system that addresses the changing needs of the grain industry).

While Industry Services is ISO 9001:2000 certified, the CGC's GRL will be assessing the applicability of ISO/IEC 17025 certification to certain methods in its laboratory testing environment. IEC (International Electrotechnical Commission) is the leading global organization that prepares and publishes international standards for all electrical, electronic and related technologies. The ISO/IEC 17025 standard contains most of the aspects of the ISO 9000 series with the additional requirement of proven competencies in the area of certification, and general requirements for the competencies of testing and calibration of laboratories. ISO/IEC certification in the GRL directly supports CGC strategic outcome #3 (research and development on grain quality that enhances the marketability of Canadian grain).

ISO certification throughout the CGC will improve efficiencies and give the customer increased confidences in the processes and testing methods that support Canada's GQAS. There is wide acceptance of ISO standards and an expectation by domestic and international grain customers that organizations such as the CGC conform to them.

 

• Previous Page
• Table of Contents
• Next Page