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Section II - Analysis of Program Activities by Strategic Outcome

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

The CGC has one strategic outcome that reflects the daily delivery of 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. The CGC has five program activities to reflect how its resources are allocated and managed to achieve intended results.

The CGC is committed to modernizing legislation and reducing 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 CGC has initiated a process to look at key areas of potential change to the Canada Grain Act. In exploring possible changes, previous stakeholder feedback on the Canada Grain Act and previous Bills that proposed changes to the Canada Grain Act are being taken into consideration. A stakeholder engagement process, to seek input on possible amendments, was completed in March 2012. Please note that the information provided in the following section is based on plans under the existing Canada Grain Act and is not reflective of possible amendments.

The following section describe the targets, performance indicators, and expected results as well as the activities and plans, under the current Canada Grain Act, that will contribute to meeting the expected results for each program activity. Information is also provided on the financial and human resources that will be dedicated to each program activity under the existing Canada Grain Act. Please note that the program activity planned spending and planned full time equivalents are reflective of approved authorities to date only and not reflective of total resource needs for each program activity.

Program Activity: Quality Assurance Program

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. Canada's GQAS is continually adapted to the end-use needs of domestic and international buyers of Canadian grain, and to the ongoing structural changes within the grain industry to maintain Canada's reputation as a consistent supplier of quality grain. 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. The quality assurance program is funded by a combination of revolving fund revenue and appropriations. Additional information on the quality assurance program is available at: http://www.grainscanada.gc.ca/quality-qualite/iaqm-mrsq-eng.htm.

Financial Resources ($ thousands)

2012-13	2013-14	2014-15
32,726	21,565	21,565

Note: Planned spending is reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 spending for the quality assurance program as reported in the CGC's 2010-11 DPR was $39,095 thousand. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Human Resources (Full-Time Equivalent-FTEs)

2012-13	2013-14	2014-15
299	194	194

Note: Planned FTEs are reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 FTEs for the quality assurance program as reported in the CGC's 2010-11 DPR were 359. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity 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

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.

To ensure consistent and reliable grain quality and grain safety assurance, 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. 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.

Program Activity: Quantity Assurance Program

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 to address constantly changing industry demands, ongoing technical support is provided in support of the grain quantity assurance system. The quantity assurance program is funded by a combination of revolving fund revenue and appropriations. Additional information on the quantity assurance program is available at: http://www.grainscanada.gc.ca/quantity-quantite/iaqnm-mrsqn-eng.htm.

Financial Resources ($ thousands)

2012-13	2013-14	2014-15
11,213	8,642	8,642

Note: Planned spending is reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 spending for the quantity assurance program as reported in the CGC's 2010-11 DPR was $12,557 thousand. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Human Resources (Full-Time Equivalent-FTEs)

2012-13	2013-14	2014-15
102	78	78

Note: Planned FTEs are reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 FTEs for the quality assurance program as reported in the CGC's 2010-11 DPR were 119. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity 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

Planning Highlights

The overall expected result of this program activity is consistent and reliable quantity assurance for 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. During 2012-13, the CGC plans to continue the following quantity assurance services and programs:

• Deliver weighing services, weighing system inspection programs, and grain inventory accounting services (Grain Inventory Accounting System or GIAS and Montreal Registration System or MRS) to maintain an effective Quality Management System 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 GQAS and the MRS for the industry to provide accurate information of licensed terminal and transfer elevator 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 while still effectively ensuring consistent and reliable quantity assurance of Canadian grain shipments. During 2012-13, the CGC will continue to provide technical advice and continue to establish and maintain grain quantity assurance standards to evolve with industry grain weighing procedures, equipment standards, and quantity assurance needs. Adaptations to and modernization of weighing programs, procedures, and equipment will contribute to a cost-effective and dependable GQAS and a sound regulatory framework.

Program Activity: Grain Quality Research Program

Program Activity Description

The Canada Grain Act requires the CGC to undertake, sponsor and promote research related to grains. The CGC 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 CGC's Grain Research Laboratory (GRL) researches methods to measure grain quality, new quality factors, and new grain standards. Grain quality research supports the continual improvement of the GQAS. The grain quality research program is funded by appropriations. Additional information on the grain quality research program is available at: http://www.grainscanada.gc.ca/research-recherche/iarm-mrsr-eng.htm.

Financial Resources ($ thousands)

2012-13	2013-14	2014-15
3,521	3,521	3,521

Note: Planned spending is reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 spending for the grain quality research program as reported in the CGC's 2010-11 DPR was $10,075 thousand. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Human Resources (Full-Time Equivalent-FTEs)

2012-13	2013-14	2014-15
32	32	32

Note: Planned FTEs are reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 FTEs for the grain quality research program as reported in the CGC's 2010-11 DPR were 71. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Expected Results	Performance Indicators	Targets
Scientific information is available to support and inform GQAS decision making	Number of instances where timely and appropriate scientific information is not available to support and inform GQAS decision making	Zero instances
Domestic and international marketers, buyers, and processors have accurate and appropriate scientific information on the quality and safety of Canadian grain	Number of instances where domestic and international marketers, buyers, and processors do not have access to accurate and appropriate scientific information on the quality and safety of Canadian grain	Zero instances
Threats to Canada's GQAS from registration of new varieties are minimized	Number of complaints from end-users of Canadian grain on the quality of newly registered varieties	Zero complaints

Planning Highlights

This program activity contributes directly to the CGC's strategic outcome of ensuring Canada's grain is safe, reliable and marketable. 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 and ensures that Canadian grain meets the end-use needs and processing expectations of domestic and international buyers.

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. As such, 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

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 Grain Safety. This 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.

Close cross-divisional collaboration between the GRL's Crops Section, the GRL's Technologies Section, along with the CGC's Industry Services Division is critical to successfully achieve results associated with the grain quality research program and to successful delivery of the CGC's strategic outcome. Efforts to improve collaboration and coordination of research efforts both internally and with external research partners and other government departments (e.g., AAFC, CFIA, Health Canada) will ensure that the GRL is able to adapt research priorities to emerging challenges and use resources effectively. 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.

Program Activity: Producer Protection Program

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 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. The producer protection program is funded by a combination of revolving fund revenue and appropriations. 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.

Financial Resources ($ thousands)

2012-13	2013-14	2014-15
2,625	905	905

Note: Planned spending is reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 spending for the producer protection program as reported in the CGC's 2010-11 DPR was $3,688 thousand. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Human Resources (Full-Time Equivalent-FTEs)

2012-13	2013-14	2014-15
24	8	8

Note: Planned FTEs are reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 FTEs for the producer protection program as reported in the CGC's 2010-11 DPR were 31. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Program Activity Expected Results	Performance Indicators	Targets
Risk to producers of not receiving fair compensation for their grain is mitigated	Percentage of producers who agree that CGC producer protection activities help to reduce the risk of not being fairly compensated for grain delivered into the licensed grain handling system	Baseline will be determined in 2012-13
Producers are aware of CGC producer protection programs and services	Percentage of producers who are aware of CGC producer protection activities	Baseline will be determined in 2012-13

Planning Highlights

During the planning period, the CGC will continue to consult with and evaluate feedback from producers on the services provided under this program. Where possible, program amendments will be made to benefit producers and promote 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. The CGC will continue to deliver the following three 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 2012-13, 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. The CGC will continue to work closely and cooperatively with grain companies and the railways in an effort to ensure that producer car orders are filled in a timely manner.

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, reinspection 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.

Program Activity: Internal Services

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.

Financial Resources ($ thousands)

2012-13	2013-14	2014-15
8,445	8,445	8,445

Note: Planned spending is reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 spending for internal services as reported in the CGC's 2010-11 DPR was $13,156 thousand. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

Human Resources (Full-Time Equivalent-FTEs)

2012-13	2013-14	2014-15
77	77	77

Note: Planned FTEs are reflective of approved authorities to date only and not reflective of total resource needs for this program activity. For example, actual 2010-11 FTEs for internal services as reported in the CGC's 2010-11 DPR were 91. The CGC is currently assessing options to ensure appropriate funding is available to maintain program delivery.

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 has developed action plans for all areas of management based on the recommendations received in the Round VIII Management Accountability Framework (MAF) assessment. Going forward, the CGC is 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 continued efforts towards full compliance with Treasury Board's Policy on Internal Controls.

The CGC's People Management Framework is essential to the delivery of all CGC program activities and initiatives and is integral to leveraging the strengths of our people. The framework, which includes people planning, the Performance Development and Achievement Program (PDAP), and the Informal Conflict Management System, helps us achieve results by linking people management to the CGC's vision, goals and objectives. During 2012-13, the CGC will continue efforts to refine its integrated people and business planning (IPBP) and PDAP processes that links people management to the CGC's vision, goals and objectives, strategic plan and budgetary resources.

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