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Section II - Analysis of Program Activities by Strategic Outcome

Strategic Outcome

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

Performance Indicator	Targets
Number of instances where buyers are dissatisfied with CGC standards, methods or procedures used to ensure a dependable commodity for domestic and export markets	Zero instances
Level of producer satisfaction with CGC producer protection services	Zero unresolved or unaddressed complaints

The CGC has one strategic outcome that reflects the daily delivery of the CGC’s program activities and the long-term benefit to Canadians stemming from the CGC’s mandate and vision. As a regulatory agency, the CGC is mandated to, in the interests of 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. To measure its success in delivering upon its strategic outcome, the CGC has identified two performance indicators with associated targets as identified above.

The CGC has five program activities to reflect how its resources are allocated and managed to achieve intended results. The CGC remains committed to modernizing regulations and reducing mandatory costs to the grain sector, including producers. Modernization of the Canada Grain Act and the Canada Grain Regulations will ensure that the CGC’s legislation, programs and services continue to meet the evolving needs of Canadian producers and the grain industry and that the CGC can effectively and successfully deliver upon its strategic outcome and program activities.

The following sections describe the targets for each program activity, performance indicators and expected results as well as the CGC activities and plans that will contribute to meeting the expected results. Information is also provided on the financial and human resources that will be dedicated to each program activity.

Program Activity: Quality Assurance Program

Quality Assurance Program

2011–12		2012–13*		2013–14*
Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)
373	41,799	186	21,176	186	21,176

Expected Results	Performance Indicators	Targets
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 CGC quality and/or safety assurance	Zero justifiable cargo complaints

* The 2012-13 and 2013-14 planned spending and planned FTE’s shown above are reflective of approved authorities to date only and not reflective of total resource needs. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Description

Canada’s GQAS assures consistent and reliable grain quality that meets 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 the overall delivery of an effective GQAS. The CGC continually adapts Canada’s GQAS to the end-use needs of domestic and international buyers of Canadian grain, and to the ongoing structural changes within the grain industry. An effective GQAS is a key factor in permitting Canadian exporters to market successfully in competitive international grain markets and is essential for producers in order to realize maximum value from their grain.

Planning Highlights

The quality assurance program directly supports the ongoing delivery of the CGC’s mandate and is necessary for the CGC to deliver upon its strategic outcome of assuring Canada’s grain is safe, marketable and reliable. To meet the target and achieve the expected result associated with this program activity, the CGC plans to continue the following activities and services:

• Maintain and deliver an effective Quality Management System as per the ISO 9001:2008 standard. Adherence to ISO Quality Management System procedures includes regular review of quality assurance processes allowing the CGC to adjust service procedures and identify or adjust training as necessary.
• Inspect and grade grain using regularly updated and approved standards as mandated by the Canada Grain Act.
• Provide certificates and documentation related to the inspection and testing of grain exports to assure sellers and buyers of the quality and safety of a shipment of Canadian grain.
• Provide an unbiased process for appeal of official inspections to producer car users, and licensed primary, terminal, and transfer elevator operators who disagree with the grades assigned by CGC inspectors.
• Manage a complaint resolution process for cargo disputes related to grain quality and conduct unload investigations upon shipper and producer request to ensure customer satisfaction.

The quality assurance program activity must continue to align with and be able to respond to the changing requirements of domestic and international grain markets to ensure consistent and reliable grain quality and grain safety assurance. While the consistent daily delivery of the above activities and services will continue to be the main focus of this program activity, the priorities and plans identified in Section I of this report are directly focused on enhancing and improving program and service delivery to maintain and improve the quality, safety and marketability of Canadian grains.

Benefits for Canadians

Grain quality refers to end-use processing quality, grain safety and cleanliness, and, in some cases, the composition of varieties in shipments of grain. The CGC will continue to benefit Canadians by assuring consistent and reliable grain quality to meet the needs of international and domestic markets. In addition, the CGC will continue to provide technical advice and training, information on grain quality assurance issues, and transfer technology in the form of validated methods to producers and industry stakeholders where feasible. The quality assurance program supports not only the delivery of the CGC mandate, but positions Canada with a sustainable competitive advantage in global grain markets. Additional information on the quality assurance program is available at: http://www.grainscanada.gc.ca/quality-qualite/iaqm-mrsq-eng.htm.

Program Activity: Quantity Assurance Program

Quantity Assurance Program

2011–12		2012–13*		2013–14*
Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)
114	12,761	74	8,479	74	8,479

Expected Results	Performance Indicators	Targets
Consistent and reliable quantity assurance of Canadian grain shipments	Number of justified cargo complaints due to a breakdown in CGC assessment of quantity	Zero justifiable cargo complaints

* The 2012-13 and 2013-14 planned spending and planned FTE’s shown above are reflective of approved authorities to date only and not reflective of total resource needs. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Description

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 to meet the requirements of the grain industry from producers to customers. Daily provision of grain weighing services as mandated by the Canada Grain Act forms a major part of the Quantity Assurance System. To maintain relevance and address constantly changing industry demands, ongoing technical support is provided in support of the grain quantity assurance system.

Planning Highlights

The overall expected result of this program activity is consistent and reliable quantity assurance for Canadian grain shipments. Delivery of weighing services and programs is an integral component of the ongoing provision of the CGC mandate and the Canadian GQAS. The CGC’s performance during the reporting period will be measured against the performance indicator and target as identified above. To achieve the target of zero justifiable cargo complaints due to a breakdown in CGC assessment of quantity, the CGC plans to continue the following services and programs:

• Deliver weighing services, weighing system inspection programs, and grain inventory accounting services (GIAS and MRS) to maintain an effective Quality Management System (QMS) as per the ISO 9001:2008 standard. This includes regular review of quantity assurance processes allowing the CGC to adjust service procedures and identify or adjust training as necessary.
• Monitor to ensure that the quantity and/or identity of grains shipped under Identity Preserved systems is maintained.
• Ensure official weigh-overs of all stocks in store at licensed terminal and transfer elevators are conducted at prescribed intervals.
• Prepare official unload reports at licensed terminal and transfer elevators to authenticate received weights. These reports may be used by the Dispute Resolution Service (DRS).
• Manage the DRS to assist grain producers and the grain industry in recovering for grain lost during transport by railcar or during the discharge process.
• Manage the Grain Inventory Accounting System (GIAS) and the Montreal Registration System (MRS) for the industry to provide accurate information of licensed terminal and transfer grain inventory data.
• Manage the complaint resolution processes for quantity of export grain cargoes to maintain ongoing customer satisfaction.

The CGC’s quantity assurance program must align with and be able to respond to the changing requirements of the grain industry to effectively ensure consistent and reliable quantity assurance of Canadian grain shipments. To this end, the CGC will continue to collect, interpret and distribute official weighing data and information and generate reliable grain quantity data to meet specific industry and buyer needs. The CGC will continue to provide technical advice and continue to establish and maintain grain quantity assurance standards that evolve with industry grain weighing procedures and equipment standards. Adaptations to and modernization of weighing programs, procedures, and equipment contributes to the reliability of the Canadian GQAS and a sound regulatory framework.

Benefits for Canadians

The quantity assurance program directly contributes to the CGC’s strategic outcome of ensuring Canada’s grain is reliable and marketable and Canadian grain producers are protected. The CGC establishes and maintains Canadian grain quantity assurance services to continuously evolve with industry grain weighing procedures and equipment standards. The grain quantity assurance program benefits Canadians by providing ongoing technical advice, training, and information on grain quantity assurance to meet specific industry and buyer needs. Additional information on the quantity assurance program is available at: http://www.grainscanada.gc.ca/quantity-quantite/iaqnm-mrsqn-eng.htm.

Program Activity: Grain Quality Research Program

Grain Quality Research Program

2011–12		2012–13*		2013–14*
Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)
90	10,038	31	3,521	31	3,521

Expected Results	Performance Indicators	Targets
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 CGC	"Excellent" on a scale of excellent, good, fair or poor

* The 2012-13 and 2013-14 planned spending and planned FTE’s shown above are reflective of approved authorities to date only and not reflective of total resource needs. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Description

The Canada Grain Act requires the CGC to undertake, sponsor and promote research related to grains. The CGC’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 CGC’s annual Harvest Sample Program. Grain quality and safety research supports continuous improvement to Canada’s GQAS.

Planning Highlights

The expected result of this program activity is research and development on grain quality and grain safety to support and improve Canada’s GQAS. This program activity is integral to the continued relevance of Canada’s GQAS and contributes directly to the CGC’s strategic outcome of ensuring Canada’s grain is safe, reliable and marketable.

Performance during the reporting period will be measured against the performance indicator and target as identified above. For example:

• Projects undertaken in the GRL are tracked through the CGC’s established Project Management System. Milestone and/or update reports and project close-out reports formally track project progress, results, and analysis of variances impacting cost, deliverables, schedule, risks, and lessons learned to assist the director-sponsor and the CGC’s Executive Management Committee in monitoring the progress and outcomes of the projects.
• The GRL participates in several external proficiency tests to receive unbiased evaluations with respect to accuracy and precision.

The CGC plans to continue the process of ISO/IEC 17025 accreditation for certain methods in its GRL environment. Focus is on accrediting methods in the Grain Safety Program of the GRL which includes the determination of mycotoxin, pesticide residue, trace element, and genetically modified organism (GMO) content in grain samples. ISO/IEC 17025 accreditation will give customers increased confidence in the GRL processes and testing methods that support Canada’s GQAS.

The changing needs of the GQAS present new opportunities for the CGC’s research activities. There continues to be a shift in the type of crops grown and their end-uses, and increased demand for variety identification by objective non-visual methods. Grain is increasingly being sold based on specifications and the demand for objective non-visual testing of grain quality and/or safety factors continues to increase. Research focus and allocation of resources must be managed to address these changing needs in an effort to increase efficiency, reduce costs, and enhance the testing capabilities of the CGC and Canada’s GQAS.

The CGC’s science and technology capacity must continuously adapt to and anticipate the needs of both domestic and international markets in order to ensure Canada’s grain is safe, reliable and marketable. To this end, the CGC will continue to identify research priorities to build upon and strengthen the GQAS based on feedback received by CGC personnel from overseas and/or domestic buyers, processors, producers, grain handlers, and the Western Standards Committee and Eastern Standards Committee.
http://www.grainscanada.gc.ca/gscommittee-comiteng/wgsc-cngo-eng.htm
http://www.grainscanada.gc.ca/gscommittee-comiteng/egsc-cnge-eng.htm

To remain abreast of new developments, GRL personnel will continue to liaise with Canadian and international scientific, academic, analytical, and grain industry organizations. In addition, the CGC will continue people planning initiatives to ensure that the CGC is able to attract, develop and retain sufficiently qualified human resources in the GRL.

Benefits for Canadians

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. The research from this program activity also facilitates the end-use diversification of Canadian grains. The grain quality research program facilitates adaptations to Canada’s GQAS to assure grain quality and grain safety to meet the end-use needs and processing expectations of domestic and international buyers of Canadian grain. Additional information on the grain quality research program is available at: http://www.grainscanada.gc.ca/research-recherche/iarm-mrsr-eng.htm.

Program Activity: Producer Protection Program

Producer Protection Program

2011–12		2012–13*		2013–14*
Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)
34	3,857	8	899	8	899

Expected Results	Performance Indicators	Targets
Producer satisfaction with the grain handling system	CGC response to producer complaints	Zero unresolved or unaddressed complaints

* The 2012-13 and 2013-14 planned spending and planned FTE’s shown above are reflective of approved authorities to date only and not reflective of total resource needs. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Description

The CGC is mandated to serve producer interests by upholding the Canada Grain Act and as such has implemented a number of specific 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 CGC collects and updates grain quality data and grain handling information to facilitate producer sales and marketing decisions. Delivery of the CGC’s quality assurance, quantity assurance, and grain quality research program activities also contribute to the CGC’s overall mandate with respect to producer protection.

Planning Highlights

The overall expected result of the producer protection program is that producers’ rights are supported to facilitate fair treatment within the licensed grain handling system. During the planning period, the CGC will continue to consult with and evaluate feedback from producers on the programs and services provided under this program. Where possible, amendments will be made to benefit producers by encouraging a lower cost, competitive and innovative grain handling sector. In addition, the CGC will continue communication efforts to ensure producers are aware of their rights under the Canada Grain Act and to increase awareness of CGC producer protection activities and services.

To achieve the expected result and target associated with this program activity and to successfully deliver upon the CGC’s strategic outcome of ensuring Canadian grain producers are protected, the CGC will continue to deliver the following three mandate supporting program sub-activities:

Licensing Program

The CGC licenses and regulates primary, process, terminal, and transfer elevators as well as grain dealers in accordance with the Canada Grain Act. Licensed elevators and grain dealers are required to post security to cover their liabilities to producers in the event of a company default. The licensing requirements also ensure that producers who deliver to a primary elevator can access their right to be paid on the basis of grade and dockage that is determined by a CGC inspector, rather than by the grain handler. During 2011-12, the CGC plans to complete the licence classification review and implementation process to ensure consistent application of the Canada Grain Act and the Canada Grain Regulations. In addition, the CGC will continue to monitor CGC licensees using a risk assessment framework and a risk-based audit plan to determine audit priorities. This includes continuous refinements to the risk assessment framework and ongoing scrutiny to mitigate the risks associated with operating the security program.

Producer Car Allocation Program

Pursuant to the Canada Grain Act and the Canada Grain Regulations, the CGC provides and makes available an alternate grain delivery mechanism for producers and producer groups that wish to ship their own grain. The CGC has sole responsibility for the allocation of producer cars for both Canadian Wheat Board (CWB) and non-CWB grains. The CGC will continue to work 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. Internal efforts will continue to re-engineer the producer car software and producer car database to assist with data management.

Producer Support Programs

The CGC has set up an information and compliance framework to safeguard fair and equitable grain transactions for producers. This framework is comprised of many programs and activities including mediating and/or arbitrating producer complaints concerning transactions with licensed grain companies, re-inspection of samples on producer request, investigation of quality and dockage complaints, and collecting and updating grain quality data and grain handling information and making it available to producers and other interested parties to facilitate producer sales and marketing decisions.

Benefits for Canadians

The CGC’s 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. Additional information on the producer protection programs and the benefits to Canadian producers is available at: http://www.grainscanada.gc.ca/protection-protection/iappm-mrspp-eng.htm.

Program Activity: Internal Services

Internal Services

2011–12		2012–13*		2013–14*
Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)	Human Resources (FTEs)	Planned Spending ($ thousand)
144	12,761	74	8,440	74	8,440

* The 2012-13 and 2013-14 planned spending and planned FTE’s shown above are reflective of approved authorities to date only and not reflective of total resource needs. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Planning Highlights

Internal services are enabling activities that allow the CGC to deliver the programs and services necessary to carry out its strategic outcome and program activities. Successful delivery of internal services is best indicated by the CGC’s ability to meet the expected results of its strategic outcome and other program activities. Performance can also be measured by tracking activities and results against the goals of various government-wide initiatives.

The CGC plans to identify management accountability framework (MAF) priorities based on the Round VIII MAF assessment currently underway. The Round VIII MAF results will be used to develop an action plan to identify initiatives aimed at addressing areas of management requiring enhancement or improvement. The CGC remains committed to continuous improvement in line with the key elements of MAF Round VIII.

The CGC’s Finance Division supports Canadians through the provision of Financial Management Services to facilitate the delivery of the CGC’s strategic outcome and to support Government of Canada initiatives to strengthen accountability and transparency. Plans include implementation of quarterly reporting as directed in the recent amendments to the Financial Administration Act and described in the Treasury Board Accounting Standard 1.3, continued work on the implementation of Treasury Board’s Policy on Internal Controls, and establishment of departmental future oriented financial statements in the Reports on Plans and Priorities to support Parliamentarians in their understanding and consideration of departments’ authorities.

A skilled and motivated workforce is critical to the CGC in delivering its services to Canadians. During 2011-12, the CGC will continue efforts to refine its integrated people and business planning (IPBP) and Performance Development and Achievement Program (PDAP) processes that links people management to the CGC’s vision, goals and objectives, strategic plan and budgetary resources. The main goal is to get the right number of people with the skills, experience and competencies, in the right jobs, at the right time, at the right cost as well as ensuring an effective work environment throughout the organization.

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