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SECTION II - ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME

The CGC has one strategic outcome to reflect the planned direction of the CGC as well as the daily delivery of the CGC’s program activities. The strategic outcome reflects the long-term benefit to Canadians that stems from the CGC’s mandate and vision. The CGC’s strategic outcome is:

Canada's grain is safe, reliable and marketable and Canadian grain producers are protected.

To measure its success in delivering upon this strategic outcome, the CGC monitors the number of instances where buyers are dissatisfied with the CGC standards, methods and/or procedures used to ensure a dependable commodity for domestic and export markets. In addition, the CGC monitors the level of producer satisfaction with CGC producer protection services.

The CGC has identified four program activities to reflect how the resources under its control are allocated and managed to achieve intended results. Theses are the quality assurance program, the quantity assurance program, the grain quality research program and the producer protection program. Each program activity has associated ongoing key programs or services with their own expected results and performance indicators. This section provides detailed information on each program activity and illustrates how each program contributes to and supports the CGC’s strategic outcome and plans and priorities delineated in Section I.

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

Analysis by Program Activity

Program Activity 1 : Quality Assurance Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
53,306	28,886	28,886

Human Resources (FTE's)

2008-2009	2009-2010	2010-2011
445	270	270

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 operate successfully in competitive international grain markets and is essential for producers in order to realize maximum value from their grain.

The overall expected result of the CGC’s quality assurance program is consistent and reliable grain quality and grain safety assurance to meet the needs of domestic and international grain markets. The performance indicator used to measure success is the number of justified cargo complaints due to a breakdown in CGC quality and/or safety assurance. The annual target is zero justifiable cargo complaints.

This program activity supports departmental Priority #1 and Priority #2. Delivering inspection and testing services supports not only the ongoing delivery of the CGC mandate, but also positions Canada with a sustainable competitive advantage in global grain markets. Addressing Priority #4 (a sustainable CGC funding mechanism) is critical for the CGC to continue fulfilling its statutory mandate and maintain service levels to producers and the grain industry. Priority #5 (ISO certification) supports efficient and effective processes and enhances the CGC's international reputation for providing services that assure consistent, uniform grain quality in every shipment. ISO/IEC 17025 certification of the GRL will provide customers with increased confidences in the processes and testing methods that support Canada’s GQAS. Successful development, implementation and delivery of the CGC’s management priorities (Priority #6) support the organization in achieving all of its program activities.

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. The proposed amendments to the Canada Grain Act (Priority #7) include repealing mandatory CGC inward inspection and weighing. This includes:

• introducing amendments to facilitate private sector delivery of these services,
• providing a mechanism for producers or elevator operators to have access to binding CGC determination of grade and dockage,
• ending inspection and weighing of domestic laker shipments,
• eliminating the grain appeal tribunals, registration and cancellation of receipts, and terminal and transfer elevator weigh-overs; and
• combining terminal and transfer elevators into a single class.

In addition, the proposed amendments provide the CGC with the authority to require declarations during grain transactions and strengthen enforcement provisions. All of the proposed legislative amendments reflect the government’s commitment to modernizing regulation and reducing mandatory costs to the grain sector, including producers. Modernization of the Canada Grain Act will ensure that the CGC’s legislation, programs and services continue to meet the evolving needs of Canadian producers and the grain industry.

The CGC has identified the following key outputs as the main products and/or services of the quality assurance program: grain inspection and testing services provided, scientific and technical support provided to measure grain safety and end-use quality, and adaptations made to Canada's GQAS to ensure continued relevancy. These outputs contribute directly to the success of the CGC’s quality assurance program and the CGC’s overall success in making progress towards its strategic outcome. Details are provided to illustrate the key programs and services associated with each key output.

Key Program or Service:

1. Grain inspection and testing services provided

Daily provision of grain inspection and grading services forms a major part of the quality assurance system. The CGC delivers inspection services in accordance with the legislative mandate of the Canada Grain Act in order to meet the requirements of the grain industry from producers to customers. Grades allow buyers to identify end-use value without the need for end-use testing or direct examination of individual lots of grain. This improves the efficiency of grain handling and helps to ensure that sellers receive payment that reflects the value of their grain.

The following ongoing inspection activities and testing services are components of the overall delivery of the CGC’s GQAS:

• Maintaining and delivering an effective Quality Management System as per ISO 9001:2000 standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
• Inspecting and grading grain using regularly updated and approved standards:
  • prior to receipt at licensed terminal elevators, and
  • prior to export from licensed terminal, transfer or primary elevators to enhance marketing in the interests of producers and the industry.
• Providing 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. There are three levels of appeal: the regional inspector, the Chief Grain Inspector, and the Grain Appeal Tribunal. http://grainscanada.gc.ca/regulatory/grainappeal/tribunal-e.htm
• Conducting testing to ensure that grain in the domestic licensed elevator system and grain destined for export is infestation free.
• Providing certificates and documentation related to the inspection of grain exports to assure sellers and buyers of the quality of a shipment of Canadian grain and to facilitate its marketing.
• Inputting data into the grain inventory accounting system (GIAS) to ensure accuracy of terminal and transfer elevator transactions. http://www.grainscanada.gc.ca/prodser/gias/gias-e.htm

The expected result of this key program is consistent and accurate grain grading and testing. Daily provision of inspection and testing services for the GQAS is a key mandate supporting program that directly contributes to departmental Priority #1. Maintaining and delivering an effective Quality Management System as per ISO 9001:2000 standards directly supports departmental Priority #5.

To measure its success in delivering this key program, the CGC uses the following performance indicators:

• Number of instances where CGC inspection and testing results to not accurately represent the sample analyzed (target zero)
• Number of instances where the CGC did not follow established ISO Quality Management System (QMS) procedures (target zero)
• Percent adherence to established service standards (target 100 percent)

2. Scientific and technical support provided to measure grain safety and end-use quality

Canada’s GQAS is supported by a strong scientific and technical base including testing of grains, processing into various end-use products, and assessing cooking quality.

The CGC has been testing grain for toxic substances since 1966 to monitor grain entering the licensed elevator system and to provide grain safety assurances to help marketers meet international buyers’ requirements. The CGC is the only government agency that provides grain safety assurances on pesticides, trace elements, mycotoxins, fungi and moulds. Buyers of Canadian grain are increasingly demanding more rigorous, timely testing for chemical residues and trace elements on cargoes. These demands are increasing the importance of research aimed at developing new or adapting existing analytical methods.

The following scientific and technical support services are components of the delivery of an effective GQAS:

• Ongoing monitoring of export cargoes to ensure Canadian grain is meeting international grain safety and sanitation tolerances and end-use quality (e.g. toxic residues, bacterial contamination, weed seeds, insects, and malting quality for specific barley varieties). In light of increasingly stringent international food safety regulations, cargo specific grain safety testing is increasing (e.g. DON, OTA).
• Liaising with both international and other Canadian agencies on trade implications, to meet international standards and legislation on grain safety.
• Annual Harvest Survey - assessing new crop quality specific to a range of grain types and relevant to the marketing of the crop to provide new and ongoing geographical and quality data. http://grainscanada.gc.ca/Quality/harvsur/hs-e.htm
• Monitoring the grading system and verification process to continually maintain and improve grading consistency. http://www.grainscanada.gc.ca/Pubs/GGG/ggg-e.htm
• Evaluating new technology to measure end-use quality to improve the utilization and increase the marketability of Canadian grain.
• Canadian Identity Preserved Recognition System (CIPRS) – providing a voluntary program to recognize industry's ability to deliver products with better quality assurance systems for maximum acceptance in global markets marked by demands for unique product specifications and traceability. http://www.grainscanada.gc.ca/pubs/brochures/ip_recognition/ip_recognition04-e.htm
• Providing technical advice and training, information on grain quality assurance issues, and transferring technology in the form of validated methods to producers and industry stakeholders.
• Managing a complaint resolution process for the quality of grain cargoes and conducting unload investigations upon shipper and producer request to ensure customer satisfaction.

Provision of scientific and technical support facilitates optimal management of the GQAS and affords increased opportunities for various end-uses of Canadian grain. The expected result of this key program is accurate and relevant scientific and technical support provided in support of the GQAS. Based on these expected results, this key program supports departmental Priorities #1 and #2. Maintaining and delivering an effective Quality Management System as per ISO 9001:2000 standards directly supports departmental Priority #5. ISO/IEC 17025 certification of the GRL will provide customers with increased confidences in the processes and testing methods that support Canada’s GQAS.

To measure its success in delivering this key program, the CGC uses the following performance indicators:

• Number of instances where clients are dissatisfied with the scientific and technical support provided to measure grain safety and end-use quality (target zero)
• Number of instances where Industry Services did not follow established ISO Quality Management System (QMS) procedures (target zero)
• Number of instances where the GRL did not follow established scientific methods and procedures (Good Laboratory Practices) and where laboratories did not meet proficiency standards (target zero)
• Percent adherence to established service standards (target 100 percent)

3. Adaptations made to Canada’s GQAS to ensure continued relevancy

There continues to be challenges facing the CGC and the GQAS including increased international emphasis on end-use functionality, growing global competition, and shifting domestic crop production and volume fluctuations. Addressing these challenges is vital in making significant progress towards the successful delivery of this program activity and the ultimate success of the CGC in delivering upon its strategic outcome.

A broad spectrum of producers and grain industry representatives meet several times annually, through the Western and Eastern Standards Committees and commodity-specific subcommittees, to study and review grain standards, ensuring relevance and value of those standards in facilitating the movement of grain and transfer of ownership. The CGC tracks buyers’ satisfaction with the consistency of Canadian grain through feedback garnered by CGC personnel from overseas or domestic buyers and processors. In addition, the CGC receives feedback on the GQAS directly from producers and grain handlers. The feedback received is used to build upon and strengthen the existing GQAS to ensure continued relevancy.

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

• Developing, changing, and setting grain quality standards as well as generating and distributing grain quality data and information, in partnership with the grain industry through the Western and Eastern Standards Committee meetings, to meet specific industry and buyer needs. http://grainscanada.gc.ca/regulatory/standards/standards-e.htm
• Administering and adapting a national grain sanitation program to ensure that grain in the domestic licensed elevator system and grain destined for export is infestation free.
• Industry Committee on the Removal of KVD – Continuing to participate in the development of protocols for sampling, testing, and process verification standards with the objective of addressing the challenges of correctly segregating and certifying wheat shipments without the use of KVD.
• Continuing increased monitoring of railcar and vessel shipments for the presence and source of nonregistered wheat varieties to support the CGC certification processes and ultimately maintain end-use processing quality and customer perceptions of Canadian grain.
• Continuing to develop effective, timely, affordable VID technology to identify the variety composition of wheat shipments and enable segregation for variety specific shipments.
• Continuing to develop rapid methods and systems that can assist in identifying varieties with different characteristics in grains other than wheat (e.g. flax and canola).
• CIPRS+ HACCP – finalizing the infrastructure to provide audits, verification and certification of HACCP-based processes in order to provide safety assurances for grain.
• Contract Registration Technical Committee – Continuing to develop a risk assessment framework to assign non-conforming wheat varieties proposed for contract registration into different risk categories; work in partnership with the CFIA to design a program to ensure the segregation of wheat lines with diverse risk within closed-loop contract registration systems; and establish monitoring requirements and costs according to risk categories.
  • In collaboration with CFIA, assessing the results of the pilot project designed to study the performance of the closed-loop contract registration system for variety 5400IP.
• Third Party Accreditation – Developing protocols for accrediting or designating third party agencies, with CGC oversight, to perform sampling in order to make CGC certification services more readily available to container facilities.
• Pre-export certification for OTA – Continuing efforts to receive pre-export approval to recognize Canada's OTA sampling and testing protocols and demonstrate Canada’s ongoing commitment to EU customers, consumers, and regulators.

The expected result of this key program is implementation of new programs, initiatives, research methods and processes aimed at strengthening Canada’s GQAS. Given this expected result, this key program supports departmental Priority #2. To measure its success in delivering this key output and achieving the expected results, the CGC evaluates its response to client feedback with respect to programs, initiatives, research methods and processes aimed at strengthening Canada's GQAS. The target is zero instances where feedback has not been considered.

Program Activity 2: Quantity Assurance Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
17,659	11,554	11,554

Human Resources (FTE's)

2008-2009	2009-2010	2010-2011
133	81	81

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 program. To maintain relevancy and address constantly changing industry demands, ongoing technical assistance is provided in support of the grain quantity assurance system.

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

The overall expected result of this program activity is consistent and reliable quantity assurance of Canadian grain shipments. The performance indicator used to measure the CGC’s success in meeting the expected result is the number of justified cargo complaints due to a breakdown in CGC assessment of quantity. The target is zero justifiable cargo complaints.

This program activity directly supports departmental Priority #1. Delivery of weighing services and programs is a component of the ongoing provision of the CGC mandate and the Canadian GQAS. In addition, the ongoing review and development of weighing programs, procedures, and equipment contributes to enhancing the Canadian GQAS and departmental Priority #2. Addressing Priority #4 (sustainable funding) is critical in order for the CGC to fulfill its statutory mandate and maintain weighing service levels to the grain industry. ISO certification (Priority #5) of CGC quantity assurance services supports efficient and effective processes and enhances the CGC's international reputation for consistent and reliable grain shipments. Successful development, implementation and delivery of the CGC’s management priorities (Priority #6) supports the organization in achieving all of its program activities.

The proposed amendments to the Canada Grain Act (Priority #7), aim to reduce the mandatory costs and regulatory burden to the grain industry while at the same time maintain the integrity of the grain quantity assurance program. As noted under Program Activity #1, the amendments include a proposal to repeal mandatory inward inspection and weighing. The proposed amendments impact upon many of the activities and services provided under the Quantity Assurance Program including inward weighing services at all port locations, registration and cancellation of receipts, and terminal and transfer elevator weigh-overs. Until such time as the amendments become law, the CGC will continue to operate and provide service under the current provisions of the Canada Grain Act and Regulations.

The CGC has identified the following key outputs as the main programs and services of the quantity assurance program: grain weighing services provided and technical support provided to the quantity assurance program. These outputs contribute directly to the success of the CGC’s quantity assurance program and the CGC’s overall success in making progress towards its strategic outcome. Details are provided to illustrate the key programs and services associated with each key output.

Key Program or Service:

1. Grain weighing services provided

The CGC delivers weighing services to meet the legislative mandate of the Canada Grain Act and the requirements of the grain industry from producers to customers. Essential weighing procedures are defined within the CGC’s Quality Management System (QMS) Procedure Manual, or outlined in a QMS Work Instruction Format, and are accessed by weigh staff to ensure consistent application of procedures. CGC weighing policies and procedures are monitored and evaluated through a series of reporting policies and national discussion and review forums.

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

• Delivery of weighing services to maintain an effective QMS as per ISO 9001:2000 standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
• Providing weighing services:
  • upon request, at licensed primary elevators for the quantity assurance of grain shipments; and
  • prior to receipt at licensed terminal elevators and prior to export from licensed terminal or transfer elevators to enhance grain marketing in the interests of producers and industry.
• Collecting railcar data and information and inputting into the Grain Inventory Accounting System (GIAS) for the industry to provide accurate licensed terminal and transfer grain inventory data. http://grainscanada.gc.ca/prodser/gias/gias-e.htm
• Preparing official unload reports at licensed terminal and transfer elevators to authenticate received weights. These reports are used by the Dispute Resolution Service (DRS).
• Conducting official weigh-overs of all stocks in store at licensed terminal and transfer elevators at prescribed intervals.
• Monitoring to ensure that the quantity and/or identity of grains shipped under IP systems is preserved.

The expected result of delivering weighing services for the quantity assurance system is accurate reporting of official weights in grain transactions. The daily provision of weighing services supports not only the ongoing delivery of the CGC mandate (Priority #1) but also supports the continued reliability and competitiveness of Canadian grains in both domestic and international markets (Priority #2). Delivering weighing services to maintain an effective Quality Management System as per ISO 9001:2000 standards directly supports departmental Priority #5.

To measure its success in delivering this key output, the CGC uses the following performance indicators:

• Number of instances where CGC reporting of official weights is not accurate (target zero)
• Number of instances where the CGC did not follow established ISO Quality Management System (QMS) procedures (target zero)
• Percent adherence to established service standards (target 100 percent)

2. Technical support provided to the quantity assurance system

In order to maintain relevancy and to address constantly changing industry demands, the CGC provides ongoing technical support for the quantity assurance system. Regular review of quantity assurance processes allows the CGC to adjust the service procedures as necessary through Improvement Requests (IR), and identify or adjust training requirements as needed.

The following services are components to this key program:

• Delivery of the weighing system inspection program and grain inventory accounting services to maintain an effective QMS as per ISO 9001:2000 standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
• Generating, collecting, interpreting and distributing railcar data and information and generating reliable grain quantity data on an ongoing basis to meet specific industry and buyer needs. http://grainscanada.gc.ca/Information/stats-e.htm
• Establishing and maintaining grain quantity assurance standards to continuously evolve with industry grain weighing procedures and equipment standards.
• Developing monitoring systems for both weighing and grain flow verification processes to increase the effectiveness of the quantity assurance system.
• Managing the Grain Inventory Accounting System (GIAS) for the industry to provide accurate information of licensed terminal and transfer grain inventory data. http://grainscanada.gc.ca/prodser/gias/gias-e.htm
• Managing the complaint resolution processes for quantity of export grain cargoes to maintain ongoing customer satisfaction.
• Managing the DRS to assist grain producers and the grain industry in recovering for grain lost during transport by railcar or during the discharge process. An extensive historical railcar deficiency database is maintained to substantiate shippers’ reported weight loss claims. This database provides information on railcar derailments, railcars missing at destination and commingling of contents at unload, and allows tracing of railcar location and placements.
• Verifying the overage or shortage of grain, grain products, or screenings in licensed terminal and transfer elevators pursuant to the tolerances stipulated in the Canada Grain Regulations.
• Providing ongoing technical advice to meet specific industry and buyer needs.

The expected result of this key program is to maintain standards on quantity for Canadian grain shipments and facilitate accurate reporting of quantity information. Providing technical support of the quantity assurance system supports departmental Priority #1 and contributes to Priority #2.

To measure its success in delivering this key output, the CGC assesses the programs, initiatives and processes that support the quantity assurance program (target = zero instances where feedback has not been considered).

Program Activity 3: Grain Quality Research Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
11,350	4,431	4,431

Human Resources (FTE's)

2008-2009	2009-2010	2010-2011
60	36	36

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 grain standards. In addition, the GRL carries out the CGC’s annual Harvest Survey.

There are major challenges confronting the CGC’s research activities and the GQAS due to the changing needs of the Canadian grain industry. There is a shift in the type of crops grown and their end-uses, increased demand for variety identification by objective non-visual methods, and concerns with GM crops. Research focus has shifted to address these issues in pulses, new types of oilseeds, variety identification, and GM crops. However, research related to traditional crops, such as wheat, barley, canola and flax, is still essential as these crops make up a significant proportion of the domestic and export markets. There is increasing emphasis on end-use functionality, especially new end-uses in the domestic industry. Grain is increasingly being sold based on specifications requiring objective non-visual testing of quality or safety factors and the provision of grain quality and safety assurances.

The expected result of this program activity is research and development on grain quality and grain safety to support and improve Canada’s GQAS. The performance indicator used to measure the CGC’s success is an overall assessment of the grain quality and grain safety research undertaken, sponsored, and/or promoted by the CGC. The target is delivering excellence in grain quality and safety research.

This program activity directly supports departmental Priority #1 as undertaking, sponsoring and promoting grain related research upholds the mandate of the CGC. In addition, ongoing research on methods and measurement factors to determine quality and safety, end-use applications of Canadian grain, and quality of new breeders’ varieties supports improvement of the Canadian GQAS and departmental Priority #2. Addressing Priority #4 (sustainable funding mechanism) is necessary in order for the CGC to fulfil its statutory mandate and continue ongoing research focused on understanding and measuring grain quality. During the planning period, the GRL will be assessing the applicability of ISO/IEC 17025 certification to certain processes in its laboratory testing environment in support of departmental Priority #5. Successful development, implementation and delivery of the CGC’s management priorities (Priority #6) and the review of the Canada Grain Act (Priority #7) supports the organization in achieving all of its program activities.

The CGC has identified the following key outputs as the main products and services of the grain quality research program: research conducted on methods to measure grain quality and grain safety, research conducted on grain quality and grain safety factors, and research conducted on grain standards. These outputs contribute directly to the overall effectiveness of the GQAS and as a result, the CGC’s ability to deliver upon its strategic outcome. Details are provided to illustrate the key programs and services associated with each key output.

Key Program or Service:

1. Research conducted on methods to measure grain quality and grain safety

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

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

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

The expected result of this key program is the development of recognized methods for quality and safety evaluation of all grains. Based on this expected result, researching methods to measure grain quality and grain safety supports departmental Priority#1 and Priority #2.

To measure its success in developing research methods in support of the GQAS, the CGC tracks:

• Adaptation and implementation of objective testing methods used to measure grain quality and grain safety
• Publications and/or presentations on methods to measure grain quality and grain safety

2. Research conducted on grain quality and grain safety factors

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

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

• Continuing collaborative and jointly funded research efforts (nationally and internationally).
• Research of relevant factors and development of methods to provide grain safety assurances on quality factors for domestic and international markets.
• Developing and validating research to improve quality and safety evaluation of grains (e.g. sprout damage in wheat, chlorophyll in canola, dehulling in lentils, germination energy in barley, food use of flax, noodle quality, trace element determination).
• Continuing research on wheat and barley DNA and protein fingerprinting methods to develop tests for identifying and quantifying varieties of grains in shipments in order to develop the capacity for identifying multiple variety composition and enable segregation of variety specific shipments.
• Development of methods for identifying and quantifying GM grains to enable determination of GM status of grain shipments.
• Identifying specific areas of interest (as part of the portfolio’s strategic research plan) by establishing working groups on science infrastructure, human resources, longer-term science vision, GM issues, and disposal of animal and plant health emergencies.

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

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

• Adaptation and implementation of objective methods to support emerging producer, industry and customer demands
• Publications and/or presentations of methods on grain quality and grain safety factors

3. Research conducted on grain standards

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

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

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

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

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

• Adaptation and implementation of objective testing protocols and specifications to support the Canadian grading system
• Publications and/or presentations on grain standards

Program Activity 4 : Producer Protection Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
4,863	1,607	1,607

Human Resources (FTE's)

2008-2009	2009-2010	2010-2011
27	16	16

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 overall expected result of the producer protection program is that producers’ rights are supported to facilitate fair treatment within the licensed grain handling system. The performance indicator used to measure success is CGC response to producer complaints. The target is zero unresolved or unaddressed complaints.

Protecting producer rights directly supports departmental Priorities #1 (ongoing delivery of the CGC mandate) and #3 (regulatory compliance) as the CGC is mandated to ensure the fair treatment of producers within the grain handling system. Addressing Priority #4 (sustainable CGC funding mechanism) is necessary to maintain producer satisfaction with the delivery of various procedures and systems related to their protection. Successful development, implementation and delivery of the CGC’s management priorities (Priority #6) supports the organization in achieving all of its program activities.

The proposed amendments to the Canada Grain Act (Priority #7) will ensure the CGC’s legislation, programs, and services continue to meet the evolving needs of producers and the grain industry. The amendments will benefit producers by building a lower cost, competitive and innovative grain sector. The proposed amendments include clarification of the CGC mandate by identifying that the CGC shall specifically act in the interests of producers with respect to: deliveries to elevators and grain dealers, access to binding CGC determination of grade and dockage, and allocation of producer railway cars. Repealing the CGC producer payment security program is also a proposed amendment and will benefit producers by reducing barriers for new entrants into the grain handling system and removing system costs.

Sub Activities:

1. Licensing and Security Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
1,994	659	659

The CGC licenses and regulates primary, process, transfer, and terminal 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. In addition, licensees are required to report grain handling information as stipulated in the Canadian Grain Regulations to facilitate the CGC’s statistical reporting activities. This regulatory activity contributes to the fair treatment of western Canadian producers.

The following ongoing activities are components of the CGC’s licensing and security program:

• Licensing eligible grain elevators and grain dealers.
  http://grainscanada.gc.ca/information/licensing-e.htm
  http://grainscanada.gc.ca/Regulatory/licensees/licensees-e.htm
• Obtaining security to protect producers in case of default by a licensee.
• Conducting audits of licensees’ liabilities to producers to monitor compliance.

The expected result of this key program is licensing compliance in accordance with the Canada Grain Act. The performance indicator used to measure success is CGC response to known instances of licensing non-compliance. The target is zero instances where non-compliance has not been addressed. This activity directly supports departmental Priorities #1 and #3. The proposed amendments to the Canada Grain Act (Priority #7) include ending the producer payment security program. During the reporting period, the CGC will continue to investigate unlicensed facilities and enforce licensing and security compliance in accordance with the provisions of the current Canada Grain Act and Regulations.

2. Producer Car Allocation Program

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
195	195	195

Pursuant to the Canada Grain Act and 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 works 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. http://grainscanada.gc.ca/prodser/producercars/information/prodcars-e.htm

The expected result of this activity is an alternate grain delivery mechanism for producers and producer groups. The performance indicator used to measure the CGC’s ability to deliver upon the expected result is the CGC’s response to complaints with respect to administration of the allocation of producer cars. The target is zero unresolved or unaddressed complaints. Managing the allocation of railcars for individual requests contributes to departmental Priority #1.

3. Producer Support Programs

Financial resources ($ thousands)

2008-2009	2009-2010	2010-2011
2,675	884	884

The CGC has set up an information and compliance framework to safeguard fair and equitable grain transactions for producers. This helps to ensure that producers are properly compensated for the quality and quantity of grain delivered and shipped. This sub-activity 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, and investigation of quality and dockage complaints. In addition, the CGC continually collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties to facilitate producer sales and marketing decisions.

Inspection, weighing, and arbitration services are essential to the efficient and fair operation of grain markets for producers and the grain industry. Grades allow buyers to identify end-use characteristics without the need for end-use tests or direct examination of individual grain lots. The following ongoing activities are components of this key service:

• Mediating and/or arbitrating producer complaints concerning transactions with licensed grain companies to facilitate negotiated settlements acceptable to both parties. http://grainscanada.gc.ca/Regulatory/Licensees/for_producers-e.htm
• Re-inspection of samples on producer request and investigation of quality and dockage complaints to mediate and resolve issues with grain transactions. This may include provision of “subject to inspector’s grade and dockage” for deliveries to licensed primary elevators or re-inspection for producer car deliveries to licensed terminal elevators. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-10-07b-e.htm
• Ongoing review of the Canada Grain Act and the Canada Grain Regulations to amend or eliminate regulations that are no longer relevant, enforceable, or contributing to the effective operation of the Canadian grain industry.
• Analysis of licensed primary elevator weigh-over/audit data and conducting investigations when appropriate. http://grainscanada.gc.ca/forms/licencerep/info_wei-e.htm

The CGC continually collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties. This statistical information and technical support facilitates producer sales and marketing decisions. The following ongoing activities are components of this key service:

• Maintaining and disseminating grain quality assessment and technical information. http://www.grainscanada.gc.ca/Quality/harvsur/hs-e.htm http://www.grainscanada.gc.ca/Information/gg_tools-e.htm.
• Publishing statistical reports on Canadian grain exports, grain stocks and grain handling within the licensed elevator system. http://grainscanada.gc.ca/pubs/pubmenu-e.htm#Statistical_Publications
• Providing statistical analysis and reports to industry and other government agencies as requested.
• Providing extension support to producers on statistical related topics (e.g. metric conversions, calculations, test weight conversion charts).

The expected result of the CGC’s producer support programs is that producers are properly compensated for the quality and quantity of grain delivered within the licensed grain handling system. The performance indicator used to measure the CGC’s ability to deliver upon the expected result is the CGC response to producer complaints related to compensation received for the quality and/or quantity of grain delivered within the licensed grain handling system. The target is zero unresolved or unaddressed complaints. Based on this expected result, fair treatment of producers by grain companies and dealers directly supports both departmental Priority #1 and #3. The proposed amendments to the Canada Grain Act (Priority #7) include extending “subject to inspector’s grade and dockage” provisions to include producer deliveries to grain dealers and process elevators.

In order to measure the success of its efforts in providing technical and statistical information, the CGC tracks CGC response to complaints related to technical and statistical information provided. The target is zero unresolved or unaddressed complaints. Provision of technical and statistical information supports departmental Priority #1.

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