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ARCHIVED - RPP 2006-2007
Agriculture and Agri-Food Canada


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Section 1 - PLANS AND PRIORITIES OVERVIEW

INTRODUCTION

Canada's agriculture and agri-food sector is integral to creating opportunities for Canadians, and pursuing opportunity is central to the federal government's approach to building a strong and dynamic Canadian economy. Helping agriculture grow, prosper and be competitive on the world stage is key to the Canadian economy.

The sector's economic contribution each year is enormous. The agriculture and agri-food system, or value chain - including primary farming, processing, distribution and retail services - provides one out of every eight jobs in Canada, and accounts for about $151 billion in annual retail and food service sales, including more than $26 billion in exports. Canada is the world's fourth-largest agri-food exporter, behind the European Union, the United States and Brazil. Altogether, the sector is responsible for about eight per cent of Canada's total Gross Domestic Product.

Socially, the sector plays an important role, helping to maintain Canada's rural communities and the rural way of life. The hard-working people and communities that make up Canada's farming and rural landscape continue to be at the heart of this proud and productive industry.

However, each year brings new domestic and global challenges for producers, from natural risks, such as plant and animal diseases, to changing market-access conditions. These pressures attest to the inherently risky business environment confronting Canadian producers. The Government of Canada recognizes these pressures and has responded. It has committed an additional $500 million in annual funding for agriculture, along with an extra $1 billion for 2006-2007, to address immediate farm needs while it continues to work toward enhancing the sector's profitability for the long term.

For example, the government will help position the sector to benefit from increased market opportunities. At the World Trade Organization (WTO) agriculture negotiations, Canada has been seeking to improve market access for our exporters, and is also pursuing such efforts through regional and bilateral trade initiatives. In addition, Canada is working to prevent the emergence of unnecessary barriers to trade through WTO Committees and international standard-setting bodies. These efforts on the international front are complemented with targeted marketing programs.

Canada will have to be among the world's leaders in developing and adopting new research and technology that will help drive innovation in areas where this country can claim a competitive advantage. Skills and business practices within the sector will need to be enhanced. Ties with the economic development, energy, health, biosecurity, and environment agendas will need to be strengthened.

The joint federal, provincial and territorial Agricultural Policy Framework (APF) computer icon agreed for the five-year period 2003-2008, provides a stable platform of policies and programs to enhance the long-term profitability, competitiveness and sustainability of the sector. The APF established a new policy direction for governments and industry by enabling a full shift towards a whole-farm approach.

The APF is made up of five integrated and complementary elements: (1) Business Risk Management, (2) Food Safety and Quality, (3) Science and Innovation, (4) Environment, and (5) Renewal. Policies and programs under all five elements are in place, most in partnership with provincial and territorial governments, and many delivered by stakeholder groups.

During the next three years, AAFC's plans and priorities will continue to address the needs of the sector for the benefit of Canada's farmers, agri-food and other industry stakeholders, and all Canadians. While the APF will serve as the basis for this work up until its expiry in April 2008, the Department will be developing the next generation of agriculture and agri-food policy, to provide an enduring foundation for profitability throughout the value chain. To achieve this, federal, provincial and territorial governments recognize the need to work together and have committed to consulting with a broad range of stakeholders.

Through AAFC, together with its portfolio partners - the Canadian Food Inspection Agency (CFIA) Canadian Food Inspection Agency, Farm Credit Canada (FCC) Farm Credit Canada, the National Farm Products Council National Farm Products Council, the Canadian Dairy Commission Canadian Dairy Commission and the Canadian Grain Commission Canadian Grain Commission - the federal government will continue to work with other governments and industry, as well as all other partners, to address immediate needs and establish a strong policy foundation that will ensure a competitive and profitable agriculture and agri-food sector for years to come.

Among its other key objectives for agriculture and agri-food, the Government of Canada will consult with its provincial and territorial partners, and with industry on program options for the Canadian Agricultural Income Stabilization (CAIS) Canadian Agricultural Income Stabilization program. The Government has made a commitment to replace the current integrated CAIS program with one that separates stabilization and disaster relief, to ensure this type of programming is simpler and more responsive to the needs of Canadian producers, while also being affordable to taxpayers.

An important focus for the Government of Canada is to continue to support farmers and farming communities through investments and more effective programming that better meets their needs and recognizes the circumstances they face. An example is the Cover Crop Protection Program (CCPP) Cover Crop Protection Program, under which a one-time federal payment will be available to producers who were unable to plant a commercially viable crop in 2005 and 2006 due to spring flooding. The Government has also introduced the Canadian Farm Families Options Program Canadian Farm Families Options Program, a pilot program designed to help lower-income farm families explore options to raise their income for the future and provide short-term income support to lower-income farm families.

The federal government will also work with all partners to ensure Canada is well prepared to respond to a possible prolonged or widespread outbreak of avian influenza, and that the necessary precautions and preparations are taken to deal with other possible biosecurity issues as they relate to agriculture. Canada remains vigilant against bovine spongiform encephalopathy (BSE) Bovine Spongiform Encephalopathy, and, as such, measures have been implemented to strengthen Canada's BSErelated feed restrictions to provide additional protection to the health of Canada's cattle herd. Funding has also been committed to assist with related disposal issues.

International trade is critical for Canada's agriculture and agri-food sector. That is why the Government of Canada has been working hard in the WTO agriculture negotiations to achieve a more level playing field for Canada's agriculture producers and processors. Canada's objectives have been and remain to work toward the elimination of all forms of export subsidies, the substantial reduction of trade-distorting domestic support and real and significant market access improvements. In close consultation with the provinces and industry stakeholders, the Government will continue to advance the interests of Canada's agriculture and agri-food sector at the WTO and also through regional and bilateral trade initiatives.

AAFC will work to ensure key sectors such as grains and oilseeds can continue to pursue profitability for their operations. This encompasses providing advice on regulatory policy decisions coming out of the current review of the Canada Grain Act and developing an action plan to achieve the Government of Canada's commitment to enable western grain farmers to participate voluntarily in the Canadian Wheat Board.

The Government of Canada will help boost the long-term competitiveness of the agriculture and agri-food sector by implementing measures to help producers move into promising niche markets, support producers' efforts in biofuels ventures and create research networks related to the bioeconomy.

Indeed the development of biofuels is a priority for the Government of Canada, and AAFC will work with other federal departments, provinces, territories, and the entire sector to expand the use of biodiesels and ethanol in Canada's energy supply. The Government has committed to requiring an average of five-per-cent renewable fuel content in all Canadian transport fuel by 2010. This may help increase demand for grain and oilseeds each year, presenting a great opportunity for Canadian producers. The federal government will ensure the agriculture and agri-food sector is in a position to benefit from the increased use of biofuels.

AAFC's work in biofuels and other bioproducts will be a key part of the Department's new Science and Innovation Business Plan. This plan will help ensure AAFC continues to support the future competitiveness and prosperity of the agriculture and agri-food sector, and stays on the leading edge of new scientific advances.

The Government of Canada's agenda is based upon the values of integrity, family, respect for work, achievement, and commitment to a strong and free Canada. The plans and priorities of AAFC, described in this report, embrace these values and reflect the key federal themes of accountability, opportunity, security, and community.

STRUCTURE OF THE REPORT

This report is organized into four sections. Section I, Plans and Priorities Overview, outlines the contribution the agriculture and agri-food sector makes to Canada and Canadians. This is followed by a brief description of the operating environment, including key challenges and opportunities facing the sector and the government. The balance of this first section provides a summary of the Department's strategic responses in both the short and long term.

Section II, Analysis of Program Activities by Strategic Outcome, provides a more detailed description of the program activities the Department plans to carry out in support of its three strategic outcomes: (1) Security of the Food System, (2) Health of the Environment and (3) Innovation for Growth. Section II also describes the program activities of the Rural Secretariat and the Co-operatives Secretariat, and the two agencies that report to Parliament through the Department: the Canadian Pari-Mutuel Agency (CPMA) Canadian Pari-Mutuel Agencyand the National Farm Products Council (NFPC) National Farm Products Counci.

Section III, Supplementary Information, presents AAFC's financial information tables.

Section IV, Other Items of Interest, presents the organization of the Department and provides the names, titles and contacts of senior departmental and portfolio officials.

OPERATING ENVIRONMENT

The Canadian agriculture and agri-food sector has played an important role in this country's economy for generations. The sector is undergoing significant change, particularly as the international trade environment becomes more open. In recent years, the sector's growth has been fueled by value-added exports, but with challenges like low-cost competition in bulk commodities, some primary producers have faced mounting difficulty in earning income from the marketplace.

Just as Canada's agriculture and agri-food sector has undergone significant change, agriculture around the world has experienced a radical transformation both structurally and technologically in the latter half of the 20th century. Driven by advances in science and technology, the pace of change will continue to accelerate in the years to come.

Advances in technology and productivity improvements have expanded the capacity to produce agricultural commodities faster than the growth in demand, thus resulting in commodity surpluses and resulting in a sustained, long-term, real decline in many commodity prices.

Agricultural policies of some countries have also contributed to low prices. Increased international competition has put downward pressure on prices, particularly in recent years, and will likely continue to push prices down, regardless of the level of government support. For example, in several major commodities, such as oilseeds, low-cost countries are expanding production and capturing global market share despite relatively low levels of government support.

The Canadian agriculture and agri-food sector has successfully expanded value-added processing of food products, leading to more than a doubling of the value of Canadian agri-food exports during the past 15 years - from $10 billion to more than $25 billion. While the long-term growth potential for value-added food products is not expected to be sufficient to sustain the sector in the future, it will have substantial opportunities for sustainable profitability and growth based on new uses for agricultural, agri-food and non-food products in the emerging sustainable economy.

Production Risks and Market Conditions

From animal diseases such as BSE and avian influenza, to adverse weather and environmental conditions such as drought, floods, frost, and pests, producers in Canada face daunting natural risks each year that are beyond their control. The timing of these events are unpredictable, and the consequences are often wide-ranging and occasionally devastating. In short, production risks will always be intrinsic to the agricultural business. The APF was developed with this reality in mind.

Consumers of today have unparalleled power in the marketplace, both here in Canada and around the world. Buyers are increasingly conscious of the safety and quality of their food, and are demanding a new level of responsibility in how food is produced and processed. They want a greater variety of products, and expect a higher nutritional value in those products. Continuing to meet and exceed these demands will create new markets and opportunities for the Canadian agriculture and agri- food sector.

At the same time, world trade and market access issues can have an acute effect on producers at home. International market conditions, such as intensifying competition for market share from low-cost producers around the world, provide challenges for Canadian producers and processors, while new markets and products create new opportunities. As well, the market regulations and agricultural policies of nations around the world can have implications for imports of Canadian products. At any time, border and import issues can arise that work against the normal flow of Canadian agricultural exports.

For Canada, international trade is critical to the growth and prosperity of the agriculture and agri-food sector. In 2005, Canada exported $26.2 billion and imported $21.1 billion in agriculture and agri-food products. Canada's agriculture and agri-food exports have more than doubled since the early 1990s, with exports of consumer-oriented products more than quadrupling over this period.

Because of the central importance of international trade to Canadian agriculture, AAFC has been an active participant in the WTO agriculture negotiations, and has been pressing for an outcome to the Doha Development Round of negotiations that benefits Canada's entire agriculture and agri-food sector.

Canada was extremely disappointed at the impasse reached in the WTO Doha negotiations in July 2006. Nevertheless, Canada remains committed to more liberalized trade, the rules-based multilateral trading system, and the objectives of the Doha negotiations. Pursuit of opportunities for Canadian agriculture through regional and bilateral trade initiatives will also remain an important part of the Government's efforts to promote the future prosperity and competitiveness of the sector.

Science and Innovation Underpin the Sector's Future

Canadian producers have proven themselves to be more than capable of capitalizing on opportunities. As a nation that depends on trade and has a relatively short growing season, Canada needs to exploit every available competitive opportunity.

One of Canada's greatest strengths is its ability to innovate. Scientific research has helped Canadian producers to be among the most effective and cost-efficient in the world. More than ever, innovation holds the key to the sector's long-term profitability and competitiveness.

The rise in biotechnology has stimulated the emergence of a renewable-resource based bioeconomy with a vast array of new value-added possibilities for Canadian producers and processors, including bio-pesticides, which help farmers reduce the amount of chemicals used in food production, to using microorganisms to break down waste and provide cleaner water, functional foods, nutraceuticals and biopharmaceuticals, which help people live healthier and better lives, and biofuels that produce less greenhouse gas emissions and other bioproducts for use in all aspects of day-to-day life. In these ways and more. Canada's agriculture and agri-food sector has the potential to capture new markets for food and non-food products and further improve its competitive edge.

The ability of the sector and the entire country to compete successfully in the international marketplace is directly tied to its ability to generate and capitalize on ideas. While being able to turn an innovation into a commercially successful product, process or service is important, so too, is being first to the marketplace.

Our competitors realize this as well and are putting an increasing emphasis on innovation. Getting to the market faster, smarter and with better products and services is crucial to increasing the profitability of the Canadian agriculture and agri-food sector in the long run.

Environmental Responsibility Must Continue to Improve

Consumers are increasingly conscious of the conditions under which their food is produced, and have greater expectations that the agriculture and agri-food sector meet high standards for environmental responsibility. Consumer and advocacy groups are concerned about the use of pesticides and other chemicals, and their impacts on the health of the environment, food safety, farm workers, and the public. Producers and processors - already admirable stewards of the environment - realize that ensuring better environmental performance through improved agricultural practices is an essential part of ensuring responsible use of agricultural resources. At the same time, meeting increasingly stringent environmental standards offers great opportunity for the entire sector, in terms of increased marketability of agricultural products and the preservation of the environment. Such efforts also promote increased public awareness and support of the sector's environmental stewardship efforts and the production of safe, high-quality food in an environmentally friendly way.

The agriculture and agri-food sector also has an important and unique role to play in helping Canada reduce greenhouse gas emissions and reverse the trend of climate change. For their part, producers need to find ways to adapt and respond to the effects of climate change on their operations. Moreover, the entire sector must continue to develop ways to minimize greenhouse gas contributions, which will help to reduce overall greenhouse gas emissions in Canada and clean up the air Canadians breathe.

Alignment with Government-wide Priorities and Outcomes

AAFC's program activities reflect and support the Government of Canada's broad priorities and goals to create opportunities for Canadians, make the economy more productive and competitive and make Canadian communities better places to work, play and grow. Budget 2006 reflected this commitment by providing an additional $1.5 billion to Canada's agriculture and agri-food sector for 2006-2007. The Department works with producers, stakeholders and other levels of government to help ensure that the sector is competitive domestically and internationally, viable and prosperous, and contributing to a strong economy, while protecting and promoting integrity of the environment.

The Whole of Government Framework provides a structure for mapping the contributions of departments, agencies and Crown corporations to a set of high-level Government of Canada outcomes. AAFC's activities are focused in the following outcomes under the Framework:

  • Economic: Strong Economic Growth
  • Economic: An Innovative and Knowledge-Based Economy
  • Economic: A Fair and Secure Marketplace
  • Economic: A Clean and Healthy Environment
  • International: A Prosperous Canada through Global Commerce

Our Strategic Response

The APF provides a set of policies and tools to manage risks and enhance profitability. It has an international dimension that cuts across the five pillars to leverage progress made at home for success abroad. It was developed to respond to challenges facing the sector - such as consumer demands related to food safety, food quality, environmental practices, globalization, and rapid scientific and technological change - and was designed to maximize new opportunities.

The comprehensive policy framework provided by the APF guides the Department to achieve results under its three strategic outcomes - (1) Security of the Food System, (2) Health of the Environment and (3) Innovation for Growth.

The economics of the agriculture and agri-food sector are changing and the sector faces pressure to evolve. The Government of Canada has committed to conducting broad-based consultations in partnership with provincial and territorial governments to help develop the next generation of agriculture and agri-food policy, to provide an enduring foundation for profitability throughout the value chain.

While the work to develop this policy gets under way, the Department will continue to focus its efforts and resources on helping to create a competitive and innovative sector where partners work together to make Canada the world leader in agriculture and agri-food, meeting domestic and global customer demands while respecting the environment.

AAFC will pursue key program activities under each of its three strategic outcomes to advance the agriculture and agri-food agenda and ensure the best quality of life for all Canadians.

Strategic Outcome: Security of the Food System - A secure and sustainable agriculture and agri-food system that provides safe and reliable food to meet the needs and preferences of consumers

Program Activity: Business Risk Management Business Risk Management

Farming in Canada means dealing with risk. Business Risk Management (BRM) means ensuring producers have the tools they need to manage that risk as effectively as possible to minimize its impact on farm incomes.

AAFC's approach to BRM is based on two core programs: the Canadian Agricultural Income Stabilization (CAIS) Canadian Agricultural Income Stabilization program and Production Insurance Production Insurance. These programs are designed to work together to help producers manage the business risks associated with farming. Both are jointly funded by federal and provincial and territorial governments.

The CAIS program is designed to help producers manage farm income risk. Under the program, as currently designed, stabilization and disaster protection are integrated into a single program, helping producers protect their operations from both small and large drops in income.

Throughout 2006-2007, the Government of Canada will be working with its provincial and territorial partners, and industry, to put in place programming that is simpler and more responsive to the needs of Canadian producers. Specifically, the Government will be consulting on program options, including replacing the current integrated CAIS program with one that separates stabilization and disaster relief, as well as developing a more responsive approach to valuing inventories under CAIS. In the interim, until these options are adopted and governments proceed with improvements, the CAIS program will remain in place for the 2006 program year.

CAIS is a whole-farm program available to eligible farmers. Since funding allocations under the program are demand-driven, assistance goes where it is needed, with no fixed cap on government funding for any given year.

Improving the delivery of the program across Canada continues to be a high priority for federal, provincial and territorial governments.

Producers of milk, poultry and eggs primarily use supply management to stabilize their revenues. The supply-managed system provides mechanisms to allow individual producers to manage most business risk. The federal government will work to ensure that agricultural industries that choose to operate under domestic supply management remain viable. The Government recognizes that Canada needs efficient production planning, market-based returns to producers and predictable imports to operate domestic supply management systems.

Supply-managed sectors are eligible for financial assistance, under the CAIS program, whenever their margins in a year fall by more than 30 per cent.

Production Insurance is an expansion and enhancement of the long-standing Crop Insurance program. Production Insurance not only provides income protection against production losses resulting from uncontrollable natural hazards, it also covers more commodities and provides a broader range of program choices for producers. The program provides relatively stable levels of protection even after multiple years of loss, protection based on specific crops tailored to individual farmers' experiences, and quick payments once losses have been determined. In 2006-2007, a review of the Production Insurance program will be undertaken with a view to developing options for further expanding it to cover livestock and fresh horticultural commodities.

These two core BRM programs are complemented by Financial Guarantee Financial Guarantee programs, including the Spring Credit Advance Program (SCAP) Spring Credit Advance Program, the new Enhanced Spring Credit Advance Program (ESCAP) Enhanced Spring Credit Advance Program, the Advance Payments Program (APP) Advance Payments Program, the Farm Improvement and Marketing Cooperatives Loan Act (FIMCLA) Farm Improvement and Marketing Cooperatives Loan Act program, and the Price Pooling Program (PPP) Price Pooling Program, as well as the Private Sector Risk Management Partnerships (PSRMP) Private Sector Risk Management Partnerships program.

The SCAP provides crop producers interest free advances of up to $50,000 in the spring to offset input costs, while the APP provides a maximum $250,000 advance in the fall (with the first $50,000 interest free), so producers can store their crops and sell them throughout the crop year to achieve higher returns. Bill C-15, an Act to amend the Agricultural Marketing Programs Act (AMPA)Agricultural Marketing Programs Act , received Royal Assent on June 22, 2006. This new legislation will enable the SCAP and the APP to be combined into one program under the APP and allow producers of other commodities and livestock to be eligible for benefits under the program. Under the new APP, advances will be for a maximum $400,000, and the first $100,000 will be interest free. Following the regulatory process and the development of the delivery system, it is anticipated that program will be available by January 1, 2007.

To enable producers of existing eligible crops to have access to some of these new program benefits for the 2006 crop year, the ESCAP was announced on May 18, 2006. The ESCAP provides for interest free advances of up to $100,000 with a repayment period until September 30, 2007.

The FIMCLA program provides producers with access to credit to improve farm assets, strengthen production, and improve the financial viability of their farms. Through the program, loans of up to $250,000 for producers and $3 million for co-operatives owned by active producers are guaranteed by the federal government. Consultations during the summer of 2006 will help determine how the FIMCLA program can be more effective in meeting the capital needs of producers including beginning farmers and agricultural co-operatives. These consultations will also play a role in m odernizing the delivery mechanisms/processes of the program and addressing co-operative development issues.

The PPP provides a price guarantee to marketing agencies for agricultural products. The guarantee protects the marketing agencies and its producers against unanticipated declines in the market price of their products. The agencies can then use the guarantee as security to obtain credit from a lender.

AAFC and FCC Farm Credit Canada have worked cooperatively on the delivery of several federal programs, and a portfolio working group is being established to develop an implementation plan for further collaboration on federal programs.

Program Activity: Food Safety and Quality Food Safety and Quality

Public confidence in the safety and quality of food products is vital to the economic sustainability of Canada's agriculture and agri-food sector. Consumers continue to demand more information and greater assurances about the safety and quality of the food they eat, and they require healthy, nutritious products for the best quality of life. Enhancing Canada's food safety and quality systems requires AAFC to continue to work with its portfolio partners and other federal organizations, provincial and territorial governments, producers and processors, for a horizontal and cohesive approach.

To this end, federal, provincial and territorial governments are developing a coordinated approach to the development of food policy in Canada. Through the National Food Policy Framework, governments are setting complementary policy directions and goals that will strengthen the agriculture and agri-food system and enhance consumer confidence, health protection and promotion, and economic growth.

For example, having dealt together with the consequences of incidents such as BSE and avian influenza in Canada, governments recognize that animal health has significant impacts on public health, environmental sustainability, food security, and the economic well-being of the agriculture and agri-food sector and of Canadians as a whole. That is why AAFC, CFIA and the numerous collaborators involved in maintaining Canada's enviable animal health status continue to develop co-ordinated policies, programs and tools, such as the National Agriculture and Food Traceability System, to increase our capacity to manage current and emerging risks. AAFC is also collaborating with federal and provincial partners to enhance on-farm biosecurity measures.

One of the Government of Canada's primary objectives regarding the management of BSE is to assist the cattle and beef industry to regain and expand international markets. As a component of completing Canada's response to BSE, measures have been implemented to strengthen Canada's BSE-related feed restrictions to provide additional protection to the health of Canada's cattle herd, and funding has been committed to assist with related disposal issues.

AAFC scientists, with their portfolio partners, will continue to find ways to enhance livestock health and welfare through innovative nutrition, stress management and disease control strategies in livestock production. They will also enhance food safety through the detection, characterization and control of food-borne hazards, and improve human nutrition and wellness by conserving the functional properties of food from production to retail.

With funding from the Canadian Food Safety and Quality Program (CFSQP) Canadian Food Safety and Quality Programs, the agriculture and agri-food portfolio will continue to help producers and processors implement traceability and food safety systems, ensuring they have the tools they need to demonstrate the safety and quality of the products they sell.

Canadians are becoming increasingly aware of the direct linkages between health and diet and are looking for the Canadian food supply to offer products that could contribute positively to their health, or to minimize possible risks. AAFC scientists are focusing their efforts on enhancing human health and wellness. They are developing practical approaches to improve nutrition, making innovative products available, maximizing their benefits through customizing the formulations to meet consumer needs and generating scientific evidence needed to underpin health claims to facilitate their market entry. Discussions on the next generation of agriculture and agri-food policy that are currently under way provide the opportunity to incorporate specific health-related initiatives, thereby positioning the sector as a contributor to both the health of Canadians and a prosperous economy.

Program Activity: Markets and International Markets and International

Canada is a trading nation, and the agriculture and agri-food sector is a big part of the country's trade success. AAFC, along with its portfolio partners, continues to work toward maximizing international opportunities for Canadian agriculture and food by building on Canada's reputation as a provider of safe, high-quality, innovative products produced in an environmentally friendly manner.

To achieve long-term success, Canadian producers and processors must adapt to a changing global marketplace. Consumers are becoming increasingly discriminating in their food purchases, placing new demands for safety and quality attributes. At the same time, producers and processors are faced with a rapidly increasing pace of technological change.

Compounding these challenges is the fact that the sector is facing new competition in the global marketplace from lower-cost countries. In addition, as they pursue international trade opportunities, Canada's producers and processors continue to confront trade-distorting domestic support, export subsidies and constraints on market access in other countries. Further, the rules governing trade in agriculture and food products need to be strengthened in many cases and followed consistently by all trading nations.

The critical importance of agricultural trade to Canada's economy and to Canadians means that for AAFC pressing for a positive outcome in the agriculture negotiations at the WTO will remain an important objective . Through the WTO Doha Round, Canada's objectives are to achieve the elimination of all forms of export subsidies, the reduction of trade-distorting domestic support, and real and significant improvements to market access. Achievement of these goals would allow Canada's industry to prosper and grow as efficiently as possible and to its maximum potential.

In this context, Canada has been and will continue to pursue the best possible outcome from the WTO agriculture negotiations for Canadian agriculture and agri-food industry, including both supply-managed and export-oriented sectors.

The suspension of the WTO negotiations in July 2006 was a significant setback, given the economic benefits that Canada stood to achieve from an ambitious outcome, including for Canadian agriculture. Canada strongly supports efforts by WTO members to achieve a successful conclusion to the Doha Round of negotiations, and stands ready to re-engage if and when the negotiations resume. At the same time, Canada will also continue to pursue regional and bilateral trade negotiations which will have important implications for Canadian agriculture. AAFC will continue to work closely with other departments, in particular the Department of Foreign Affairs and International Trade, to ensure that Canada's overall trade policy agenda serves to sustain and advance the competitiveness of our agriculture and agri-food sector.

AAFC also remains committed to defending Canada's ability to make choices domestically about how to market Canadian products. The Department will continue to emphasize that decisions on the future of marketing systems should be made in Canada and not by international trading partners. The Government of Canada has committed to giving western grain farmers the option to participate voluntarily in the Canadian Wheat Board.

Continued success in world markets depends on international recognition of Canadian actions in food safety and quality, and environmental stewardship. Not only will this approach have a positive impact on those Canadians earning their livelihoods from the agriculture and agri-food sector, it will further enhance the sector's important contribution to this country's positive balance on trade. AAFC will continue implementing a strategy for branding Canadian agriculture and food. Building a strong brand will help differentiate Canadian products from the competition and is one of the ways AAFC is working to help stakeholders from across the value chain succeed in international markets.

The Canadian Agriculture and Food International (CAFI) Canadian Agriculture and Food International Program program will also continue to support industry associations in gaining recognition for the safety and quality of Canadian agriculture and food products. For example, Canada will continue work to negotiate equivalency of the Canadian organic production system with the European Union.

In addition, through a joint federal-provincial-industry initiative called the Legacy Fund, the Department will launch an aggressive marketing campaign to reclaim and expand markets for Canadian beef to increase exports and reduce Canada's reliance on any single market.

Of equal importance to the interests of the Canadian agriculture and agri-food sector are activities undertaken to ensure that current market access is maintained and improved by engaging with trading partners on a bilateral level. To further these objectives, AAFC monitors market access conditions in individual markets and reports on them to ensure that Canadian exporters are aware of the requirements they must meet to successfully enter these markets. The Department also works together with other federal departments, Canadian representatives abroad, provincial governments, and industry stakeholders to develop trade policy advocacy strategies to ensure that any potential impediments to trade are avoided, or at least minimized as much as possible, before Canadian exports are negatively impacted. The Department's activities also include ensuring that Canadian interests are represented when they are challenged under our trading partners' domestic laws - for example, antidumping and countervail investigations or litigation intended to prevent a trading partner from improving market access.

Similarly, AAFC monitors the development of regulations or import requirements in export markets that could, when implemented, affect Canadian trade interests to ensure that they do not unduly or unjustifiably restrict trade with Canada and that they are consistent with our trading partners' commitments - for example, under the WTO Agreements or the North American Free Trade Agreement. These activities include making representations directly to foreign authorities - or assisting Canadian representatives abroad to make such representations - and working where possible with stakeholders in the market contemplating these regulatory amendments to make them aware of the potential impact on trade with Canada and to convey any concerns.

AAFC will remain engaged in discussions on how the Biosafety Protocol will be implemented to ensure Canadian trade will not be unduly affected nor be at a competitive disadvantage to other exporters. AAFC will also continue to play a role interdepartmentally in determining Canada's positions at various multilateral fora, such as the WTO's Sanitary and Phytosanitary, Technical Barriers to Trade, and Trade-Related Aspects of Intellectual Property RightsCommittees, as well as the international standard setting bodies (such as the Codex Alimentarius Commission, and the Office International des Epizooties).

AAFC will undertake this work to ensure Canada is fully engaged with its trading partners to ensure market access and prevent unnecessary barriers to trade from arising.

Strategic Outcome: Health of the Environment - An agriculture and agri-food sector that uses environmental resources in a manner that ensures their sustainability for present and future generations

Program Activity: Environment  Environment

The Government of Canada has committed to developing and implementing a new Made-In-Canada approach which will focus on the direct impacts the environment has on the health of Canadians and communities. The new approach will be effective, realistic and will focus on achieving improved health for Canadians, while ensuring a strong economy.

The Made-In-Canada approach is all about taking action domestically to achieve tangible environmental results. Canada's agriculture and agri-food sector has an important role to play in this plan.

The sector is unique because while it must adapt to the effects of climate change, it also needs to find ways to reduce its own greenhouse gas (GHG) emissions. Further, it can make an important contribution to the mitigation of overall greenhouse gases in the atmosphere through practices such as carbon sinks, by which carbon is removed from the atmosphere and stored in soil, biofuel production and use, and improved methods of agricultural waste management.

The Department recognizes both the opportunities and challenges facing the sector related to improving the health of Canadians, and will:

  • work with Natural Resources Canada and Environment Canada to develop a national biofuels strategy and capture the economic benefits of biofuels production and utilization while enhancing the sector's environmental performance;
  • work with Natural Resources Canada and Environment Canada to develop a system for estimating and reporting GHG emissions;
  • work with other government departments to minimize the impact of potentially toxic substances that can be released into the environment by the agriculture and agri-food sector;
  • work towards reducing the environmental impact from agriculture by identifying best managment practices to minimize environmental risks; and
  • undertake climate data analysis, develop climate change scenarios for agriculture and use crop simulation models to improve understanding about potential climate stresses to crop production.

There are other environmental pressures facing the sector as well. Global competition, trade challenges and public expectations are accelerating the need to better use Canada's resources. Governments and industry have to respond to greater concern about the health and safety of food and the impact on natural resources such as air, water, soil, and biodiversity as a result of more intensive agricultural production practices.

By managing the effects of agriculture on the environment, producers can contribute to a better quality of life for Canadians, and better sustain their operations and improve their environmental performances. AAFC will continue to help producers develop their expertise in environmental management.

The Environmental Health National Science Program is developing new knowledge and new technologies to enhance the environmental performance of agricultural production and to protect Canada's natural resources: air, water, soil, and biodiversity. In the long term, the outcome of this research will sustain or improve the quality of the agri-environment and adjacent ecosystems. Environmental science activities guarantee that management practices bearing low environmental risk will be available for use by the Canadian producers.

The Prairie Farm Rehabilitation Administration (PFRA) Prairie Farm Rehabilitation Administration will continue to be key to the departmental focus on land and water resources. It will provide expertise, technical services and programs, such as such as Environmental Farm Plans Environmental Farm Plans, the National Farm Stewardship Program National Farm Stewardship Program, Greencover Canada Greencover Canada and the National Water Supply Expansion Program National Water Supply Expansion Program, to producers and land managers to help them take innovative approaches to improving stewardship of natural resources.

Last year, AAFC launched the first phase of the National Land and Water Information Service (NLWIS) National Land and Water Information Service, an investment in agri-environmental sustainability under the environment chapter of the APF. This will be a coordinated, national service providing easy and timely on-line access to detailed geographic information and interpretive models to support local and regional land-use decision making. As the new service goes on-line, it will transform the way in which Canadians access geographic information, and will give rise to better agri-environmental policies and increased understanding of the relationship between agriculture and the environment. The Department will continue implementation of NLWIS as a co-operative and collaborative initiative to provide an ever-increasing slate of services to Canadians.

AAFC will work with provincial and territorial partners and industry on projects and policies designed to promote sustainable, economically viable and environmentally sound activities from the farm level and up the value chain. Canada is committed to protecting and enhancing the environment, and AAFC will help Canada achieve that goal.

Strategic Outcome: Innovation for Growth - An innovative agriculture and agri-food sector that develops food and other agriculture-related products and services in order to capture opportunities in diversified domestic and global markets

Program Activity: Innovation Innovation and Renewal Renewal

Innovation

Much of Canada's success as a trading country has been built on excellence in science and innovation. Nowhere has this been truer than in Canada's agriculture and agri-food sector where for more than a century, AAFC scientists and their partners have been working to create better opportunities for farmers and all Canadians.

The products of Canadian agricultural research are found around the world, on grocery store shelves, and as ingredients in a growing range of non-food products, from medicines and health products to building materials and environmentally friendlier fuels. Canada's researchers are among the world's leaders in developing new crops and making improvements to animal breeding. In fact, AAFC accounts for almost half of the annual expenditures on agricultural research and development in Canada. This includes departmental research, as well as research funding provided to universities and other research providers to carry out agricultural research and development.

In the autumn of 2005, AAFC held extensive regional and national consultations with representatives from across the sector to seek feedback and advice on key science and research priorities and strategies to maximize returns from science investments. These consultations made it clear that science and innovation are increasingly important to uniquely position Canada for success in global markets, as they are the keys to economic growth, improved competitiveness of the Canadian agriculture and agri-food sector and farm profitability.

During the consultations, stakeholders recognized science has a critical role to play in opening up new opportunities for the sector. Producers want new opportunities that increase their farm income. Processors want value-added food products and new uses for agricultural production, new products and new markets. Consumers (domestically and globally) want increased assurance of the safety and quality of the food system and enhanced environmental performance of the agriculture and agri-food sector. Provinces, territories and rural communities want economic development opportunities from agriculture.

While traditional food and feed markets remain key to Canadian agriculture, stakeholders recognize that the future for agriculture is not simply food and food products. Significant opportunities for growth exist for non-food products, such as biomaterials, biomedical products, biohealth products, bioenergy products, biochemicals, and biopharmaceuticals.

There is also an increasing recognition among stakeholders of the need to take a collaborative approach to address issues and opportunities that are increasingly complex, interrelated and multidisciplinary in nature. Stakeholders are aware that no one research provider can expect to have all the necessary resources and that significant benefit can be achieved through integration of efforts and resources.

For example, biofuels is a key element of the energy, environmental and economic agenda for the Government of Canada. AAFC is working collaboratively and in partnership with other science and research providers to explore the more efficient use of farm-based feedstocks for ethanol and biodiesel production and the use of waste products to generate methane gas for energy production. In the longer-term, a key research goal is to help integrate biofuels production into biorefinery processes that produce fuels and a variety of high-value co-products from biomass, thereby creating improved economic opportunities for farmers and the agriculture and agri-food sector while addressing energy and environmental goals at the same time.

As a result of its recent consultations, AAFC has an enhanced understanding of future research needs and is better positioned to develop its Science and Innovation Business Plan that will help the sector to become the world leader in supplying safe, high-quality and innovative products in world markets. Key national research priorities that have emerged from the consultations include:

  • enhance human health and wellness through food, nutrition and innovative products;
  • enhance the quality of food and the safety of the food system;
  • enhance security and protection of the food supply;
  • enhance economic benefits for all stakeholders;
  • enhance environmental performance of the Canadian agricultural system;
  • enhance understanding of Canadian bioresources and protecting and conserving their genetic diversity; and
  • develop new opportunities for agriculture from bioresources.

An important part of the Science and Innovation Business Plan will be to ensure the Department's research efforts are complementary to those of other players in the national research community.

AAFC will increasingly pursue arrangements with its portfolio partners for collaboration, co-location and partnership opportunities to support the establishment of national networks of research facilities with world-class expertise.

Integral to success will be national consultation, co-ordination and co-operation among science providers to help ensure the collective research efforts and investments by governments, universities and the private sector are used to the country's greatest advantage.

Just as important as building scientific capacity for the agriculture and agri-food sector is ensuring the sector can more quickly put innovation to practical use. This will require a supportive business climate for innovation with:

  • existing and new innovation chains oriented towards new opportunities and access to new domestic and export markets;
  • approaches to managing intellectual property that facilitate innovative use in a timely manner;
  • a regulatory environment that is flexible, credible and up-to-date with the latest advances in science and technology, and encourages investment and innovation;and
  • an adequate supply of appropriately trained people to meet the requirements for strategic growth.

Renewal

Advances in science and technology promise a great future for the agriculture and agri-food sector. Continuous learning will ensure producers have the skills required to capitalize on these new opportunities. To this end, AAFC provides producers with several renewal programs to enhance their knowledge of and access to innovative practices and technologies that meet demands for safe, high quality food produced in an environmentally responsible way.

The renewal programs offered by the Department include: the Canadian Farm Business Advisory Services (CFBAS) Canadian Farm Business Advisory Services - comprised of Farm Business Assessment (FBA) Farm Business Assessment, Specialized Business Planning Services (SBPS) Specialized Business Planning Service and Planning and Assessment for Value-Added Enterprises (PAVE) Planning and Assessment for Value-Added Enterprises -  and the Canadian Agricultural Skills Service (CASS) Canadian Agricultural Skills Service.

Through Renewal programs, producers have access to a confidential, on-line benchmarking tool that allows them to compare their farm data with other farms of similar specialization and size within their region. Farmers and their families are also getting help in attaining their business and personal goals through a single point of entry for professional business services. Producers who are considering establishing or expanding a value-added enterprise can access funds to retain the services of a business planning professional.

In 2004, AAFC launched the Advancing Canadian Agriculture and Agri-Food (ACAAF) Advancing Canadian Agriculture and Agri-Food program. The ACAAF progam is a five-year, $240 million program designed to position Canada's agriculture and agri-food sector at the leading edge of new opportunities. The program provides funding for regional and national projects designed and implemented by the sector.

AAFC will continue to deliver renewal programs and will work to develop new options for the next generation of agriculture and agri-food policy. AAFC will make programs more easily accessible in various areas, including: farm business advisory services, awareness, skills development, and access to capital, and will work with other players including FCC.

Program Activity: Markets and International Markets and International

Canada's agriculture and agri-food sector has the potential to build on its reputation as a reliable supplier of products that meet and exceed consumer expectations. Realizing this potential - both at home and around the world - will require a focused, determined and innovative approach by governments and industry.

As mentioned, there are numerous market and trade challenges facing the sector. Globalization has made world markets more competitive as new, low-cost producers expand production. Market access is undermined by trade-distorting practices and circumvention of trade protocols. Consumers continue to raise the bar on food safety and quality and environmental practices.

The CAFI program will continue to support Canada's agriculture, food and seafood industry associations in their efforts to gain and expand international recognition for Canadian agriculture and food products. The program will help the industry deliver a comprehensive national strategy to ensure Canada is well-positioned to succeed in key markets, and respond to consumer demands and global competition.

Through the APF, AAFC will continue to help Canadian producers meet these challenges, while maximizing and capturing opportunities in both domestic and international markets.

A key to success in this area will be the implementation of a branding strategy designed to build on the strengths of the agriculture and agri-food sectorand on Canada's reputation as a supplier of safe and high-quality food and food products. AAFC will continue to work closely with industry toward the implementation and integration of this strategy, as well as the development of other long-term strategies designed to bring increased market success to the sector.

To help the sector continue to take advantage of new and existing export opportunities, the Department will also work to strengthen international market and development relationships. This will be achieved through initiatives such as the Canada-China Agriculture Development Program, as well as through implementation of other international market engagement, international development and international scientific co-operation strategies.

Program Activity: Rural Rural and Co-operatives Co-operatives

There is an obvious connection between a healthy and vibrant rural Canada, and a strong and prosperous agriculture and agri-food sector. It takes an entire network of rural communities in Canada to support a resource-based sector like agriculture; without those communities the huge contributions of the sector would be reduced. To ensure the sector remains strong, rural issues and priorities must receive due attention and consideration when policies, programs and legislation are developed.

Part of AAFC's mandate is to ensure viable rural communities, a mandate the Department shares with many other federal departments. As the federal lead on this horizontal initiative, AAFC will, during the next three years, identify rural community development priorities and develop an action plan for responding to those priorities. Information requirements and tools to support rural development in Canada will also be provided.

The AAFC mandate also includes coordination of federal government initiatives that support co-operative development. Canada has more than 10,000 co-operatives serving over 10 million citizens in different sectors of the social economy such as housing, childcare, financial services, and agriculture. There are over 1,300 agricultural co-operatives with a combined membership of 400,000 independent farmers. Agricultural co-operatives employ 36,000 people and possess 15 to 20 per cent of the market for farm procurement, processing and marketing of farm products. They generate more than $19 billion per year in revenue and play a key role in the viability of rural communities.

During the next three years, AAFC will focus on the Co-operatives Development Initiative (CDI) Co-operatives Development Initiative. The CDI is designed to provide expert assistance and advice to groups that want to start new co-operatives, or that need help to manage existing ones, and to study and demonstrate how co-operatives can be used in innovative and successful new ways.

Canadian Pari-Mutuel Agency (CPMA) Canadian Pari-Mutuel Agency

The CPMA regulates and supervises pari-mutuel betting on horse racing at racetracks across Canada. The agency's mandate is to protect the public against fraudulent wagering practices, thereby helping to maintain a viable racing industry. It is accountable to the Minister of Agriculture and Agri-Food.

A review has been launched of the CPMA's operations, practices and policies, designed to ensure the agency continues to be seen as fair and above board by the Canadian betting public, provincial regulatory bodies and the horse racing industry. The review is being undertaken with extensive consultation with a broad range of stakeholders in both the private and public sectors.

Our Management Priorities

To deliver on the APF vision for the agriculture and agri-food sector in the 21st century, AAFC moved to align its management structure with the Department's program activities. This new management structure, which evolved with the APF, is designed to provide the infrastructure and mechanisms needed for collaboration, to share responsibility to better address the horizontal policies and program issues and challenges in the agriculture and agri-food sector, and to maximize benefits for Canadians.

Management Accountability Framework (MAF) Management Accountability Framework

AAFC continues to place a high priority on management excellence and has been actively engaged in the Treasury Board Secretariat's MAF since its inception in 2003.

The MAF summarizes the government's expectations of sound management. It is used by the Government of Canada to assess the performance of departments in key management areas - from financial to people management, from assigning accountabilities to reporting results. Departmental management performance under the MAF is measured against 10 essential elements. AAFC's management commitments and priorities are outlined below.

Building on the Department's work over the past several years, AAFC is continuing to strengthen its management system. The Department has developed and implemented a comprehensive Strategic Planning and Accountability Framework. It consists of five interdependent components: Accountabilities and Responsibilities, Strategic Planning, Comptrollership and Financial Management, Results-based Management Framework, and Managing in a Matrix Environment.

The Framework provides the tools and internal policies to enable all departmental employees to work in the most efficient and effective manner possible, while emphasizing financial stewardship and accountability. It clearly demonstrates that AAFC's management practices are consistent with the Government of Canada's overall management agenda.

Portfolio Management

AAFC, together with its portfolio partners, is working to implement a portfolio approach to major issues and policies. There has been an extensive evolution in portfolio management since 2001, which has translated into continued adoption of portfolio management best practices. It demonstrates that AAFC's management practices are consistent with the Government of Canada's overall management agenda.

A co-ordinated approach has been taken with Main Estimates, Supplementary Estimates and Annual Reference Level Update. A strategic portfolio approach has been developed and will be implemented for annual planning and reporting.

Accountability

In keeping with enhanced Government of Canada policies designed to ensure sound financial comptrollership within federal departments, AAFC is in the process of implementing the Chief Financial Officer (CFO) model. The CFO will be accountable for managing financial risks within AAFC, understanding the financial implications of decisions before they are taken, reporting on financial results, and protecting against fraud, financial negligence, violation of financial rules or principles, and losses of assets or public money.

AAFC is also working to meet stringent new internal audit guidelines released by the Comptroller General of Canada. The Department's Chief Audit Executive (CAE) is responsible for overseeing and promoting professional conduct of internal audits. The CAE provides independent, objective information and assurance on the effectiveness and adequacy of the Department's governance, risk management and control processes, including assessing controls over financial management, financial reporting and evaluation of programs and activities.

The CAE is independent from departmental management and operations. This position has unimpaired ability to carry out responsibilities, including reporting findings to the Deputy Minister, the Departmental Audit Committee and the Comptroller General of Canada.

People

The Public Service Modernization Act (PSMA) Public Service Modernization Act is a cornerstone piece of legislation for modernizing human resources management in the public service. The ability of a department to maximize opportunities afforded by the PSMA is tied to the robustness of its human resources planning efforts. To support human resources planning at AAFC, the Department developed a corporate human resources planning approach in early 2005, aligned with the model designed by the Public Service Human Resources Management Agency of Canada. AAFC's approach guides the Department's human resources planning, ensuring rigour and consistency, and bringing together human resources plans from individual branches to create one department-wide plan.

AAFC has made notable progress towards integrated human resources and business planning.

First, human resource planning is an integral part of the departmental strategic planning cycle and overall strategic management direction at AAFC. Its matrix governance model encourages branch management to consider the current and future human resource needs required to support team business plans, and enables the crosswalk of human resource needs to the longer-term strategic work needs of teams, and the department as a whole.

Second, HR planning ensures the right people are recruited into the Department, and that development opportunities are made available to employees so that its workforce can respond to new work priorities and shifts in the strategic direction of the Department. AAFC recently launched several initiatives designed to help ensure individual employees are provided with career development opportunities that align with departmental priorities.

Key initiatives include the adoption of a competency-based HR management approach. AAFC, has developed a suite of competency profiles for virtually all occupational groups and levels, and is integrating these into recruitment, staffing, learning and the new Employee Performance Management Program. By integrating competencies into its staffing processes, in particular, the Department can hire people suited to a broader range of positions, not just one or a narrowly defined set of positions. This is critical to help AAFC continually move people from low-priority to high-priority work, and to have people who can adapt professionally as the work evolves.

Third, as implementation of HR plans is being finalized, the need to ensure that AAFC remains a representative and inclusive department, in terms of both usage of our official languages and in employment equity membership, is being taken into account. For example, Our Bilingualism Program at AAFC includes more than $1 million annually for non-statutory language training. This multi-year program is being accessed across the country, increasing the Department's ability to do business in both official languages. Another important initiative at AAFC is the Aboriginal Student Outreach Program, designed to increase interest and opportunities for Aboriginal students in science and science-related agricultural studies. Further expansion of the program is planned for 2006-2007.

A key challenge for the Department is affecting the full implementation of integrated HR and business planning within its matrix governance model, whereby it manages resources through branches and work through horizontal teams. AAFC continues to explore tools, processes and points of intersection that enhance the integration of HR Planning with business planning.

Another challenge is ensuring comprehensive and accurate data, and the tools and systems to manage information and reporting. AAFC recognizes this challenge and is overhauling its information management system and piloting new reporting tools to increase the accuracy and timeliness of reporting on HR activities.

Financial Management

AAFC is implementing a three-year financial strategy to help deploy future resources and ensure the Department can go in the direction it has planned. This strategy will determine how the majority of AAFC's discretionary resources are allocated to departmental priorities.

As part of this overall financial strategy, AAFC is working to implement its new Financial Matrix Management model, designed to support effective and efficient financial and results-based management, where teams are accountable for delivering results and outcomes, and branches support teams through day-to-day decision making. The Financial Matrix Management model will provide improved financial management accountability, while providing sufficient flexibility to manage changing departmental needs.

Strategic Planning

AAFC's strategic planning process has recently been enhanced to include six interdependent components. Each has its own set of requirements and steps, and each involves aspects of risk management. The six components are:

  1. Strategic visioning - provides a road map consisting of its overall strategic vision and long-term strategic objectives, to steer planning and decision making to deal with challenges as they emerge;
  2. Business planning - establishes annual plans and priorities, and balances the investment in ongoing operations and activities with the investment required for the change agenda initiatives;
  3. Human resource planning - integrated with business planning, identifies current and future HR needs based on departmental priorities, and develops and documents the HR management strategies that best support these priorities;
  4. Resource prioritization - involves analyzing departmental priorities and establishing resource priorities over a three-year period, with emphasis on the upcoming planning cycle;
  5. In-year management - involves monitoring the progress against the business plan, managing the impact of significant issues and new requirements, including risk, and adjusting resources in response to new pressures; and
  6. Performance management - outlines the structure and focal areas for measuring performance in AAFC with boards of directors and assistant deputy ministers monitoring progress, making course corrections and reporting on performance results.

Within the Department's framework, strategic visioning focuses on a three- to five-year horizon; resource prioritization focuses on the one-to three-year horizon; and the business planning process focuses on the upcoming year.

Emergency Preparedness

The Emergency Preparedness Act states that every Minister is accountable to Parliament for: 1) developing plans for contingencies that are within or related to their area of accountability; 2) implementing plans when requested, to support other government departments or provinces and territories; 3) providing for the safety and welfare of staff who are involved in responding to an emergency; and 4) conducting training and exercises to develop and test plans.

To this end, AAFC, with its portfolio partners, is implementing the National Disaster Assistance Framework (NDAF), to help better manage and co-ordinate the sector-wide response to emergencies.

The NDAF is an all-hazards emergency management system that is designed to link the federal, provincial/territorial and private sectors to better manage and co-ordinate responses to emergencies. The Framework is designed to be activated for agriculture and agri-food emergencies (including situations involving food safety, animal health, and plant health, or emergencies occurring in other countries where international organizations request support) that exceed a provincial/territorial lead agency's capacity to deal with the situation and when support to the response effort is needed from other federal, provincial and private sector stakeholders.

As part of the NDAF, the Department is developing a plan detailing how the portfolio will respond in the event, however remote, of an influenza pandemic.

AAFC is also a key contributor to the Government of Canada's whole-of-government plan for responding to such a pandemic. As part of this plan, committees have been established to address potential gaps in preparedness in six main areas: 1) International Issues; 2) Federal Business Continuity and Human Resources; 3) Public Health and Emergency Management; 4) Communications; 5) Economic and Social Impact and 6) the Private Sector.

In addition, the Department is developing a Business Continuity Program to ensure the continued availability of critical services and assets during the event of an emergency, as required by the Government of Canada's Security Policy.

Citizen-focused Service

AAFC is committed to a client-focused approach to service delivery, and to achieving measurable improvements in response to client expectations. To support this approach, the Department is guided by an Integrated Service Delivery Strategy, which aims to continuously improve service quality and focus on results for all Canadians.

Understanding clients and their needs is what drives service improvement at AAFC. Major activities will be undertaken in support of service improvement and service delivery, including building a client and service knowledge base, simplifying business processes, and migrating software programs to a common grants and contributions platform. Building upon its use of the Common Measurement Tool - a client satisfaction survey instrument - the Department will undertake further client surveys to determine levels of satisfaction and preferences.

As part of an ongoing effort to enhance access to information, programs and services, AAFC will strengthen its capacity to provide on-line services to complement the more traditional service channels of telephone, in person and mail. Clients will have more integrated, personalized access to services through an on-line AAFC Web portal and an AAFC My Account.

The Department is also working with its federal, provincial and territorial partners to develop and implement strategic communications plans and marketing activities. This will help better serve and inform AAFC clients at home and abroad about the objectives, benefits and value of AAFC programs and services, with the goal being to promote and increase stakeholder involvement in these programs. To achieve this goal, AAFC has set forth three key communications priorities to support our external clients:

  • develop and deliver integrated APF communications and marketing plans with federal, provincial and territorial partners;
  • deliver communications and consultations for the next generation of Canadian agriculture and agri-food policy; and
  • develop and deliver a proactive outreach program to promote science partnerships.

Internal Client Services

In keeping with guidelines from the Treasury Board of Canada Secretariat, AAFC has developed its Long-Term Capital Plan to plan for and manage its assets and capital priorities and expenditures. The plan was approved by Treasury Board in 2005-2006 and, as it is implemented, will help the Department retain or acquire only essential assets required to deliver programs efficiently, and manage its existing asset base and make appropriate changes to it with the resources that are available. It will also provide a rationale for proposed expenditures and project approvals.

AAFC is also contributing to the Government of Canada's Corporate Administrative Shared Services (CASS) initiative. Under the CASS initiative, federal transactional and administrative functions are planned to be delivered through new shared service structures, designed to provide the best service and value to Canadians. The initiative aims to improve effectiveness and efficiency of administrative services by developing government-wide information management and information technology systems, streamlining and standardizing administrative practices and processes, and ensuring access to information for better management of government. As a current provider of financial and human resource systems services to portfolio partners as well as to other departments, AAFC and its clients are uniquely positioned to offer lessons learned and successful practices to the CASS organization.

Information Management

AAFC has developed a long-term comprehensive information management and information technology strategy, known as the IM/IT Strategy, Roadmap and Investment Plan. This strategy identifies the context, business drivers, key targets, recommended approaches, and planning considerations to best use information technology to meet business challenges.

The business priorities of AAFC are refreshed annually through an internal client consultation process. The IM/IT Strategy, Roadmap and Investment Plan also defines the roadmap for continuing investments in technology and best practices and AAFC's strategic approach to integrated systems and common services.

AAFC has introduced a client-driven IM/IT governance framework, with a view to reviewing and prioritizing IM/IT activities on an annual basis and ensuring investments remain aligned with departmental and government-wide priorities. The results of this exercise are used to update the IM/IT Strategy, Roadmap and Investment Plan. The focus during the next year will be on improving the plan's alignment with the departmental planning processes, and broadening the scope of the IM/IT governance framework to include all departmental information management activities.

Parliamentary Committee Reports

The Standing Senate Committee on Agriculture and Forestry issued an interim report in May 2005 entitled Cattle Slaughter Capacity in Canada. This report focuses on the aftermath of the BSE crisis and on efforts by the Canadian cattle industry and governments to strengthen the Canadian processing industry and increase the domestic slaughter capacity.

Over a period of six months, the committee heard testimonies from the Minister of Agriculture and Agri-Food, representatives from the banking sector, Government of Canada officials, producers, processors, and different groups that have either started new processing facilities, or are in the process of doing so.

The report focuses on several specific areas: building Canadian capacity and reducing reliance on the United States, sustainability of the Canadian packing industry, financing of new plants, approval of new facilities by the Canadian Food Inspection Agency, and inspection needs, food safety regulations, and finally, international trade.

The report contains seven recommendations covering the areas listed above. AAFC responded in September 2005 in a letter from the Minister addressed to the Chair of the Committee.

This report is available on-line.

Conclusion

The Canadian agriculture and agri-food sector is a success story and will continue to make significant contributions to society and to the quality of life of all Canadians. This country's producers and processors have a world-wide reputation for meeting consumer expectations regarding food safety and quality and environmental standards.

For a variety of reasons outlined in this report, farm incomes have declined in recent years. While the sector has shown resilience, the nature and scope of pressures it faces require Canadian producers and governments to continue efforts aimed at stability and success in the sector. The policies and programs under the APF have provided a national framework and mechanisms for these efforts.

Taken together, AAFC's departmental program activities form a cohesive action plan that is working for the benefit of producers, for the rest of the value chain, and for all Canadians. Efforts will continue to ensure the Canadian agriculture and agri-food sector enjoys enhanced business stability. Consumers at home and abroad will have greater assurances about the safety and quality of their food and the environmentally responsible methods used to produce it. Canadians can also expect a broad range of new food and non-food products that will improve their day-to-day quality of life. A stronger Canadian agriculture and agri-food sector will, in turn, strengthen the Canadian economy as a whole.

AAFC, along with its portfolio partners, is well positioned to respond and to contribute to government-wide initiatives to strengthen management and sustain a culture of accountability. The Department's experience in developing and implementing the APF with provincial and territorial partners and with stakeholders has created a robust and dynamic framework for the development of the next generation of Canadian agriculture and agri-food policy.