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Section II – Analysis of Program Activities by Strategic Outcome

The CGC has one strategic outcome, as above, 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. All CGC program activities contribute to the achievement of this sole strategic outcome. 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.

Performance Indicator	Target
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

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 to ensure their relevance and value in facilitating the segregation, movement and transfer of ownership of grain. In addition, the CGC tracks buyers' satisfaction of the consistency of Canadian grain through feedback garnered by CGC personnel from overseas or domestic buyers and processors. The CGC also receives feedback on the GQAS directly from producers and grain handlers. Feedback is used to build upon and strengthen the existing GQAS and producer protection programs to ensure continued relevance.

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 CGC has five program activities to reflect how its resources are allocated and managed to achieve intended results. 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 non financial resources that will be dedicated to each program activity as well as a description of how the operational priorities identified in Section I align with each program activity. The management priorities identified in Section I indirectly support all program activities and will be discussed under the Internal Services program activity.

2.1.1 Program Activity 1: Quality Assurance Program

Program Activity: Quality Assurance Program

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
177	21 176	177	21 176	177	21 176

Note: The 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 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
Operational Priorities that align with this Program Activity
Deliver services as mandated by the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences Position the GQAS to remain relevant and support the continued competitiveness of Canadian grains in both domestic and international markets Grain Safety Assurance

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.

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. The CGC's performance during the reporting period will be measured against the expected result, performance indicator, and target as identified above. The CGC plans to achieve the target of zero justifiable cargo complaints due to a breakdown in CGC assessment of quality and/or safety assurance. To make progress towards the expected result and meet the target, the CGC plans to continue the following activities and services:

• Maintain and deliver an effective Quality Management System as per ISO 9001:2008 standards. 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 of grain exports to assure sellers and buyers of the quality and safety of a shipment of Canadian grain
• Conduct testing to ensure that grain in the domestic licensed elevator system and grain destined for export is infestation free.
• 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 the quality of grain cargo disputes
• Conduct unload investigations upon shipper and producer request to ensure customer satisfaction.

The consistent daily delivery of the above activities and services will continue to be the main focus of this program activity and is the primary focus of operational priority #1 (ongoing delivery of the CGC mandate). The additional strategic initiatives identified under operational priority #1 are directly focused on enhancing and improving the activities and service delivery of this program activity and integrating new technologies and protocols into the GQAS.

Addressing the challenges facing the CGC and GQAS is necessary to maintain the successful delivery of this program activity as well as the CGC's strategic outcome. The strategic initiatives identified under operational priority #2 are focused on ensuring Canada's GQAS adapts to challenges and remains relevant in both domestic and international markets. These initiatives directly support the CGC's long term ability to meet the expected results associated with this program activity.

In light of increasingly stringent international food safety regulations, the demand for cargo specific grain safety testing continues to increase. Buyers of Canadian grain are increasingly demanding more rigorous and timely testing for toxins, chemical residues and trace elements in cargoes. Plans under operational priority #3 include evaluating present and future CGC requirements for grain safety monitoring and assurance to ensure appropriate allocation of adequate human and financial resources to meet these service demands. This includes prioritizing Grain Research Laboratory (GRL) grain safety analytical procedures for ISO/IEC 17025 certification to ensure international recognition of CGC grain safety assurances.

Benefits for Canadians

The CGC's quality assurance program provides quality control for the Canadian grain industry and supports the enhanced marketability of Canadian grain. Grain quality refers to end-use processing quality, grain safety and cleanliness, and, in some cases, the composition of varieties in shipments of grain. In addition, the CGC will continue to benefit Canadians by providing technical advice and training, information on grain quality assurance issues, and transfer technology in the form of validated methods to producers and industry stakeholders when 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.

2.1.2 Program Activity 2: Quantity Assurance Program

Program Activity: Quantity Assurance Program

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
71	8 479	71	8 479	71	8 479

Note: The 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 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
Operational Priorities that align with this Program Activity
Deliver services as mandated by the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences Position the GQAS to remain relevant and support the continued competitiveness of Canadian grains in both domestic and international markets

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.

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. The CGC plans to achieve the target of zero justifiable cargo complaints due to a breakdown in CGC assessment of quantity. To make progress towards the expected result and meet the target, the CGC plans to continue the following services and programs:

• Deliver weighing services, weighing system inspection programs, and grain inventory accounting services (GIAS) to maintain an effective QMS as per ISO 9001:2008 standards. 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 IP systems is preserved.
• Conduct official weigh-overs of all stocks in store at licensed terminal and transfer elevators at prescribed intervals.
• Prepare official unload reports at licensed terminal and transfer elevators to authenticate received weights. These reports are used by the Dispute Resolution Service (DRS).
• Manage the Grain Inventory Accounting System (GIAS) and the Montreal Registration System for the industry to provide accurate information of licensed terminal and transfer grain inventory data.
• 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 complaint resolution processes for quantity of export grain cargoes to maintain ongoing customer satisfaction.

These activities are components of operational priority #1 (ongoing delivery of services as mandated by the Canada Grain Act) and contribute to the successful delivery of the CGC's strategic outcome of ensuring Canada's grain is safe, reliable and marketable and Canadian grain producers are protected.

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 extent, the CGC will continue to collect, interpret and distribute railcar 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 made to weighing programs, procedures, and equipment contributes to the reliability of the Canadian GQAS and a sound regulatory framework (operational priority #2).

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.

2.1.3 Program Activity 3: Grain Quality Research Program

Program Activity: Grain Quality Research Program

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
30	3 564	30	3 572	30	3 572

Note: The 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 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
Operational Priorities that align with this Program Activity
Deliver services as mandated by the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences Position the GQAS to remain relevant and support the continued competitiveness of Canadian grains in both domestic and international markets Grain Safety Assurance

Program Activity Summary

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 the continual improvement of the 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. The CGC's performance during the reporting period will be measured against the performance indicator and target as identified above. The CGC plans to achieve the target of “excellent” on a scale of excellent, good, fair or poor. 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.

To measure performance during the reporting period, the CGC will continue to:

• 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.
• Participate in several external proficiency tests to receive unbiased evaluations with respect to GRL accuracy and precision

The changing needs of the Canadian grain industry present new opportunities for the CGC's research activities and the GQAS. There has been 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 demands for objective non-visual testing of grain quality and/or safety factors has increased. Research focus and allocation of resources at the GRL continuously adapts to address emerging issues and to increase efficiency, reduce costs and enhance the testing capabilities of the CGC. The strategic initiatives identified under operational priority #2 and #3 will provide direction for the GRL's research activities during the planning period.

The CGC's science and technology capacity must keep pace with 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 track buyers' satisfaction with the GQAS through feedback received by CGC personnel from overseas and domestic buyers and processors, producers and grain handlers. The feedback received will be used to identify research priorities to build upon and strengthen the existing GQAS to ensure continued relevance.

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. This allows Canada's GQAS to continually adapt 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.

2.1.4 Program Activity 4: Producer Protection Program

Program Activity: Producer Protection Program

Human Resources (FTEs) and Planned Spending ($ thousands)
2010-11		2011-12		2012-13
FTEs	Planned Spending	FTEs	Planned Spending	FTEs	Planned Spending
8	903	8	904	8	904

Note: The 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 Expected Results	Performance Indicators	Targets
Producer satisfaction with the grain handling system	CGC response to producer complaints	Zero unresolved or unaddressed complaints
Operational Priorities that align with this Program Activity
Deliver services as mandated by the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences Position the GQAS to remain relevant and support the continued competitiveness of Canadian grains in both domestic and international markets Grain Safety Assurance

Program Activity Summary

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. The CGC's other program activities also contribute to the CGC's overall mandate of 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. The CGC's performance during the reporting period will be measured against the performance indicator and target as identified above. During the reporting period, the CGC plans to meet the target of zero unresolved or unaddressed complaints. The CGC will continue to assess its programs and services in order to meet the evolving needs of producers and the grain industry. Where possible, amendments will be made to benefit producers by encouraging a lower cost, competitive and innovative grain handling sector.

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 plans to continue operating 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. In addition, licensees are required to report grain handling information as stipulated in the Canada Grain Regulations to facilitate the CGC's statistical reporting activities. The expected result of this program sub-activity is licensing compliance in accordance with the Canada Grain Act. The CGC will continue increased scrutiny and enforcement of security requirements to mitigate the risks associated with operating the security program.

Producer Car Allocation Program

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. The expected result of this program sub-activity is an alternate grain delivery mechanism for producers and producer groups.

Producer Support Programs

The CGC has set up an information and compliance framework to safeguard fair and equitable grain transactions for producers. 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, 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. 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. During the planning period, the CGC will continue to consult with and evaluate feedback from producers on the activities and services provided under this program activity.

Benefits for Canadians

The 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.

2.1.5 Program Activity 5: Internal Services

Financial Resources ($ thousands)				Human Resources (FTEs)
2010-11	2011-12	2012-13		2010-11	2011-12	2012-13
8 455	8 458	8 458		71	71	71

Note: The 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.

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