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ARCHIVED - RPP 2007-2008
Canadian Grain Commission


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SECTION II - ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME

The CGC is organized around four strategic outcomes that reflect the planned direction of the CGC as well as the daily delivery of the CGC's program activities. The four strategic outcomes are:

1. A grain quality assurance system that addresses the changing requirements of domestic and international grain markets

2. A grain quantity assurance system that addresses the changing needs of the grain industry

3. Research and development on grain quality that enhances the marketability of Canadian grain

4. Producers' rights are supported to ensure fair treatment within the grain handling system

To illustrate the significance of each strategic outcome, the CGC has identified corresponding program activities and resources required. Each program activity has associated ongoing key programs or services with their own expected results. This section provides detailed information on each program activity and illustrates how the program activities and key programs or services contribute to and support the strategic outcomes and departmental plans and priorities.

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

Analysis by Program Activity


Strategic Outcome 1: A grain quality assurance system that addresses the changing requirements of domestic and international grain markets


Program Activity: Deliver inspection and testing services

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$50,279 $31,040 $31,040

Human Resources (FTE's)

2007-2008 2008-2009 2009-2010
445 271 271

An effective grain quality assurance system ensures the enhanced marketability of Canadian grain which directly benefits producers and the grain industry. Daily provision of grain inspection services supported by a strong scientific and technical base, including testing of grain, milling, baking, cooking, or making various end-use products form a major part of the quality assurance system.

There are major challenges facing the CGC and the GQAS including increased international emphasis on end-use functionality, growing global competition, and shifting domestic crop production and volume fluctuations. It is vital that the grading system and CGC services be 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.

The overall expected result of delivering inspection and testing services is increased buyer satisfaction through delivery of consistent Canadian grain quality and increased marketability of Canadian grain.

This program activity supports departmental Priority #1 and Priority #2. Delivering inspection and testing services supports not only the ongoing delivery of the CGC mandate, but also positions Canada with a sustainable competitive advantage in global grain markets. Addressing Priority #4 (a sustainable CGC funding mechanism) is critical for the CGC to continue fulfilling its statutory mandate and maintain service levels to producers and the grain industry. Priority #5 (ISO certification) supports efficient and effective processes and enhances the CGC's international reputation for providing services that assure consistent, uniform grain quality in every shipment.

Key Program or Service:

1. Deliver inspection and testing services for the quality assurance system

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$39,904 $24,635 $24,635

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

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

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

The expected result of this key program is ongoing data collection and analysis that supports an effective GQAS to facilitate and maintain the marketability of Canadian grain and customer satisfaction. Daily provision of inspection and testing services for the GQAS is a key mandate supporting program that directly contributes to departmental Priority #1. Maintaining and delivering an effective Quality Management System as per ISO 9001:2000 standards directly supports departmental Priority #5.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Tracking the number of samples inspected and the number of grade changes on official re-inspections (appeals of official inspection)
  • A monitoring and verification process for the inspection of grain (cargo quality monitoring program)
  • Ongoing monitoring and analysis of customer feedback received through the CGC's 1-800 line and directly from users of CGC services
  • Tracking customer feedback as part of the ISO 9001:2000 Quality Management System
  • Tracking buyer complaints on the accuracy of CGC certification (cargo complaints) on a weekly basis, through a comprehensive database of grain unloads

2. Provide scientific and technical support

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$5,401 $3,334 $3,334

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

The CGC has been testing grain for toxic substances since 1966 to monitor grain entering the licensed elevator system and to provide grain safety assurances to help marketers meet international buyers' requirements. The CGC is the only government agency that provides grain safety assurances on pesticides, trace elements, mycotoxins, fungi and moulds. Buyers of Canadian grain increasingly demand more rigorous, timely testing for chemical residues and trace elements on cargoes. For example, Japan has introduced a Food Sanitation Law that lists agricultural chemicals and their maximum toxic or harmful levels for all grains. Europe has established the European Food Safety Authority to regulate food safety in Europe and members of the European Union have embraced labelling and traceability of crops and food. These demands are increasing the importance of research aimed at developing new or adapting existing analytical methods.

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

  • Ongoing monitoring of domestic and export cargoes to ensure Canadian grain is meeting both domestic and international grain safety and sanitation tolerances and end-use quality (e.g. toxic residues, bacterial contamination, weed seeds, insects, and malting quality for specific barley varieties). In light of increasingly stringent international food safety regulations, cargo specific grain safety testing is increasing (e.g. DON, ochratoxin A).
  • Liaising with both international and other Canadian agencies on trade implications, to meet international standards and legislation on grain safety (e.g. Japanese Food Sanitation Law and the European Union tolerances for pesticides).
  • Annual Harvest Survey - Assessing new crop quality specific to each grain type and relevant to the marketing of each crop to provide new and ongoing geographical and quality data. http://grainscanada.gc.ca/Quality/harvsur/hs-e.htm
  • Monitoring the grading system and verification process to continually maintain and improve grading consistency. http://www.grainscanada.gc.ca/Pubs/GGG/ggg-e.htm
  • Evaluating new technology to measure end-use quality to improve the utilization and increase the marketability of Canadian grain.
  • Providing technical advice and training, information on grain quality assurance issues (e.g. issue official memoranda to the trade), and transfer technology in the form of validated methods to producers and industry stakeholders to support and improve the overall efficiency of grain grading, handling, segregation, and IP systems.
  • Managing and updating GIAS to ensure accuracy of terminal and transfer elevator transactions.
  • Managing a complaint resolution process for the quality of grain cargoes and conducting unload investigations upon shipper and producer request to ensure customer satisfaction.

The expected result of providing technical and scientific support to the GQAS is to increase and/or maintain current marketability levels for Canadian grains. In addition, provision of this type of information and support will facilitate the optimal management of the GQAS and afford increased opportunities for various end-uses of Canadian grain (e.g. animal feed, ethanol, malting). Based on these expected results, this key program supports departmental Priorities #1 and #2.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Tracking buyers' satisfaction with the consistency of Canadian grain through regular feedback garnered by CGC personnel from overseas or domestic buyers and processors
  • Ongoing monitoring and analysis of customer feedback received through the CGC's 1-800 line and directly from users of CGC services
  • A monitoring and verification process for the inspection of grain (cargo quality monitoring program)

3. Modify the system to meet changing requirements

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$4,974 $3,071 $3,071

Addressing the challenges facing Canada's GQAS and modifying the system to meet changing domestic and international requirements is vital in making significant progress towards the successful delivery of this program activity, but also contributes to the success of all of the CGC's strategic outcomes.

A broad spectrum of producers and grain industry representatives meet several times annually, through the Western and Eastern Standards Committees and commodity-specific subcommittees, to study and review grain standards, ensuring relevance and value of those standards in facilitating the movement of grain and transfer of ownership.

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

  • Developing, changing, and setting grain quality standards as well as generating and distributing grain quality data and information, in partnership with the grain industry through the Western and Eastern Standards Committee meetings, to meet specific industry and buyer needs. http://grainscanada.gc.ca/regulatory/standards/standards-e.htm
  • Administering and adapting a national grain sanitation program to ensure that grain in the domestic licensed elevator system and grain destined for export is infestation free.
  • Continuing to develop and modify the integrated three element Wheat Quality Assurance System (WQAS) program that was initiated in December 2003 to address the challenges facing the KVD system. http://grainscanada.gc.ca/pubs/discussions/wqas/wqas02-e.htm. This includes:
    • Continuing increased monitoring of railcar and vessel shipments for the presence and source of nonregistered wheat varieties to support the CGC certification processes and ultimately maintain end-use processing quality and customer perceptions of Canadian grain.
    • Continuing to develop effective, timely, affordable variety identification technology to identify the variety composition of wheat shipments and enable segregation for variety specific shipments.
    • Continuing with the implementation of the wheat class restructuring plan. Effective August 1, 2008, a Canada Western General Purpose (CWGP) wheat class will be introduced and KVD requirements for the six minor wheat classes will be removed. The plan is aimed at offering more flexibility for the development and registration of higher yielding, non-milling varieties of wheat, while continuing to protect the integrity of milling classes and grades. http://grainscanada.gc.ca/Pubs/discussions/wqas/update06_06_01pg01-e.htm
  • Continuing to develop rapid methods and systems that can assist in the identification of varieties of different quality types in grains other than wheat (e.g. flax and canola).
  • Ineligible Varieties Working Group (IVWG) - Continuing to participate in the development of protocols for sampling, testing, and process verification standards with the objective of addressing growing concerns with ineligible varieties in grain shipments and ultimately the issuance of incorrect certification.
    • Ineligible Varieties Technical Committee (IVTC) - Continuing to develop a quality plan that applies to varietal testing and process controls throughout the grain supply chain for all cargo shipments of western wheat and durum that will receive a Certificate Final. The CGC is overseeing the design and plans to conduct a pilot study to determine if IVWG protocols are auditable and effective in managing the risks of ineligible varieties.
  • Canadian Identity Preserved Recognition System (CIPRS) - Continuing to implement the voluntary CIPRS program to recognize industry's ability to deliver products with better quality assurance systems for maximum acceptance in global markets marked by demands for unique product specifications and traceability. http://www.grainscanada.gc.ca/pubs/brochures/ip_recognition/ip_recognition04-e.htm
    • CIPRS+ - In partnership with Manitoba Agriculture, Food and Rural Initiatives and the Ontario Ministry of Agriculture, Food and Rural Affairs, further development of the infrastructure supporting CIPRS to provide audits, verification and certification of HACCP-based processes in order to provide safety assurances for grain.
  • Contract Registration Technical Committee - Continuing to develop a risk assessment framework to assign non-conforming wheat varieties proposed for contract registration into different risk categories; work in partnership with the Canadian Food Inspection Agency (CFIA) to design a program to ensure the segregation of wheat lines with diverse risk within closed-loop contract registration systems; and establish monitoring requirements and costs according to risk categories.
    • In collaboration with CFIA, assessing the results of the pilot project designed to study the performance of the closed-loop contract registration system for variety 5400IP (formally known as BW295).
  • Third-Party Accreditation - Developing protocols for accrediting or designating third party agencies, with CGC oversight, to perform sampling in order to address inconsistencies with container, rail, and bulk handling shipments to enhance the marketability and handling of Canadian grain.
  • Coherent and Integrated Approach to Handling Imported Grain - continuing to work with appropriate government portfolio organizations and relevant industry stakeholders to explore, examine, and refine an integrated approach to handling imported grain.

The overall expected result of modifying the system to meet changing requirements is to improve technology and objective methods for determining quality in order to facilitate grain movement and enhance the marketability of Canadian grains. Given these expected results, this key program supports departmental Priority #2.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Feedback from the annual meetings of the Eastern and Western Standards Committees with producers and the industry
  • Ongoing monitoring and analysis of customer feedback received through the CGC's 1-800 line and directly from users of CGC services
  • Tracking buyers' satisfaction with the consistency of Canadian grain through feedback garnered by CGC personnel from overseas or domestic buyers and processors

Strategic Outcome 2: A grain quantity assurance system that addresses the changing needs of the grain industry


Program Activity: Deliver weighing services

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$14,969 $9,241 $9,241

Human Resources (FTE's)

2007-2008 2008-2009 2009-2010
133 80 80

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. Daily provision of CGC grain weighing services benefits both producers and the grain industry and forms a major part of the quantity assurance system. Weighing services are supported by a strong technical base.

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

The overall expected result of delivering weighing services is to implement an improved strategy to monitor client satisfaction with the CGC weighing and dispute resolution programs.

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

Key Program or Service:

1. Deliver weighing services for the quantity assurance system

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$13,546 $8,363 $8,363

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

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

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

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

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Consistently monitoring the use, by all interested parties, of CGC-generated data such as track lists and railcar exception reports, certified weighing systems reports, and official weight statements
  • On-site monitoring of railcar unloads and provision of critical unload data to interested parties
  • Monitoring producer and industry usage of, and satisfaction with, the DRS
  • Tracking the number of licensed terminal and transfer elevator weigh-overs performed within mandated timeframes and resolution of any discrepancies between physical stocks and officially registered grain stocks
  • Tracking the continued used of the GIAS and the number of adjustments to grain inventories

2. Provide technical support of the quantity assurance system

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$1,423 $878 $878

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

The following services are integral components to this key program:

  • Delivery of the weighing system inspection program and grain inventory accounting services (GIAS) to maintain an effective Quality Management System as per ISO 9001:2000 standards. http://grainscanada.gc.ca/newsroom/news_releases/2004/2004-03-11-e.htm
    • Maintaining a regular weighing system inspection program to verify the accuracy and reliability of licensed terminal and transfer elevator weighing equipment.
  • Generating, collecting, interpreting and distributing railcar data and information and generating reliable grain quantity data on an ongoing basis to meet specific industry and buyer needs to support the quantity assurance system. http://grainscanada.gc.ca/Information/stats-e.htm
  • Establishing and maintaining grain quantity assurance standards to continuously evolve with industry grain weighing procedures and equipment standards.
  • Developing monitoring systems for both weighing and grain flow verification processes to increase the effectiveness of the quantity assurance system.
  • Managing the Grain Inventory Accounting System (GIAS) for the industry to provide accurate information of licensed terminal and transfer grain inventory data. http://grainscanada.gc.ca/prodser/gias/gias-e.htm
  • Managing the complaint resolution processes for quantity of export grain cargoes to maintain ongoing customer satisfaction.
  • Managing the DRS to assist grain producers and the grain industry in recovering for grain lost during transport by railcar or during the discharge process. Although the CGC does not provide binding arbitration for weight shortages, a CGC railcar investigation provides key information to support shippers' entitlement to adjustment for excessive grain shortages at unload and transport charges. An extensive historical railcar deficiency database is maintained to further substantiate shippers' reported weight loss claims. This database provides information on railcar derailments, railcars missing at destination and commingling of contents at unload, and allows tracing of railcar location and placements.
  • Verifying the overage or shortage of grain, grain products, or screenings in licensed terminal and transfer elevators pursuant to the tolerances stipulated in the Canada Grain Regulations.
  • Providing ongoing technical advice to meet specific industry and buyer needs.

The expected result of this key program is to assist clients in accurate reporting of quantity information, through technological advancements, in order to maintain and increase the marketability of Canadian grain. Providing technical support of the quantity assurance system supports departmental Priority #1 and contributes to Priority #2.

To measure its success in delivering this key program and achieving the expected results, the CGC uses the following tools:

  • Tracking the use of the GIAS and the number of adjustments to grain inventories
  • Tracking scale complaints attributed to CGC approved weighing systems and industry adherence to CGC proposed weighing system improvements
  • Consistently monitoring the use, by all interested parties, of CGC-generated data such as track lists and railcar exception reports, certified weighing systems reports, and official weight statements

Strategic Outcome 3: Research and development on grain quality that enhances the marketability of Canadian grain


Program Activity: Conduct research to understand and measure grain quality

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$7,663 $4,130 $4,130

Human Resources (FTE's)

2007-2008 2008-2009 2009-2010
59 36 36

The Canada Grain Act requires the CGC to undertake, sponsor and promote research related to grains. The CGC conducts research directly related to supporting the GQAS that permits the effective marketing of Canadian grain in the interests of producers. The GRL researches new methods for quality, new measurement factors to determine quality, end-use applications of Canadian grain, quality of new breeders' varieties, and carries out the annual Harvest Survey. The GRL, through its research, supports the continual improvement of the GQAS.

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

The expected results of conducting research to understand and measure grain quality are: adaptation of new objective methods for quality assessment and grain safety assurance; adoption and publication of new methods by current standard setting organizations; and provision of accurate quality assessment tools for new breeder lines.

This program activity directly supports departmental Priority #1 as undertaking, sponsoring and promoting grain related research upholds the mandate of the CGC and facilitates effective marketing of Canadian grain. In addition, ongoing research of new methods and measurement factors to determine quality, end-use applications of Canadian grain, and quality of new breeders' varieties supports improvement of the Canadian GQAS and departmental Priority #2. Addressing Priority #4 (sustainable funding mechanism) is critical in order for the CGC to fulfil its statutory mandate and continue ongoing research focused on understanding and measuring grain quality. During the planning period, the GRL will be assessing the applicability of ISO/IEC 17025 certification to certain processes in its laboratory testing environment in support of departmental Priority #5.

Key Program or Service:

1. Research methods to measure grain quality

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$3,448 $1,859 $1,859

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

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

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

The expected result of this key program is the development of internationally recognized methods for quality evaluation of all grains in collaboration with other national and international laboratories. Based on this expected result, researching methods to measure grain quality supports departmental Priority #2.

To measure its success in developing research methods that support the grain quality assurance system, the CGC tracks:

  • The number of objective testing methods adapted into the CGC's grading and inspection system
  • Industry integration of objective testing methods into segmentation and/or marketing systems
  • The quality and number of research papers published
  • Grain industry response (domestic and international) to the research, scientific and technical support provided by the CGC
  • Customer satisfaction with end-use quality as measured by client feedback during foreign missions or by client visits
  • End-user response to the quality assessment of new varieties and harvest survey information
  • Technology transfer to private sector users, other government agencies, universities and international organizations

2. Research new quality factors

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$3,448 $1,859 $1,859

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

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

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

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

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

  • The application of newly developed objective measures of quality into the CGC's grading and inspection system
  • Industry integration of objective testing methods into segregation and/or marketing systems
  • Technology transfer to private sector users, other government agencies, universities and international organizations
  • Grain industry response (domestic and international) to the research, scientific and technical support provided by the CGC
  • The quality and number of research papers published

3. Research new grain standards

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$767 $412 $412

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

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

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

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

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

  • The application of newly developed objective measures of quality into the CGC's grading and inspection system
  • Customer satisfaction with end-use quality as measured by client feedback during foreign missions or by client visits
  • End-user response to the quality assessment of new varieties and harvest survey information
  • The quality and number of research papers published

Strategic Outcome 4: Producers' rights are supported to ensure fair treatment within the grain handling system


Program Activity: Protect producers' rights

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$3,086 $1,861 $1,861

Human Resources (FTE's)

2007-2008 2008-2009 2009-2010
27 16 16

The CGC is mandated to serve producer interests by upholding the Canada Grain Act and as a result, has implemented a number of programs and safeguards. These include the licensing and security program, producer liaison measures, producer car procedures, and 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 expected result of this program activity is increased producer satisfaction with the grain handling system.

Protecting producer rights directly supports departmental Priorities #1 (ongoing delivery of the CGC mandate) and Priority #3 (regulatory compliance), as the CGC is mandated to ensure the fair treatment of producers within the grain handling system. Addressing Priority #4 (sustainable CGC funding mechanism) is necessary to maintain producer satisfaction with the delivery of various procedures and systems related to their protection.

Key program or service:

1. Administer the licensing and financial security system

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$1,263 $762 $762

The CGC licenses and regulates primary, process, transfer, and terminal elevators as well as grain dealers. Licensed elevators and grain dealers are required to post security to cover their liabilities to producers in the event of a company default. This regulatory activity contributes to the fair treatment of western Canadian producers.

The following ongoing activities are integral components of an effective licensing and financial security program:

The expected result of this key program is to decrease the level of CGC licensing non-compliance, increase the number of new grain dealers or operators that are licensed, and mitigate financial risk to producers. This key program directly supports departmental Priorities #1 and #3.

While the number of unlicensed facilities has decreased as a result of the recent licensing compliance initiative, unlicensed facilities still present an ongoing challenge to the CGC, as producers delivering to these facilities are not protected in the case of a default. During the reporting period, the CGC will continue to broaden the licensee base at the producer delivery level and will increase licensing, audit and compliance operational unit resources to address the increase in the number of licensees. To facilitate compliance, the CGC will continue to work toward improving the efficiency of administrative requirements of licensees.

In order to measure the success of its efforts in administering the licensing and financial security system, the CGC will utilize the following methods and processes:

  • Evaluation of producer claims under the licensing and security program. In the event of financial failure of a licensed elevator or grain dealer, the CGC tracks producer reimbursement from posted security.

2. Manage the allocation of railcars for individual producer requests

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$122 $74 $74

The CGC allocates producer cars for producers and producer groups that wish to ship their own grain. http://grainscanada.gc.ca/prodser/producercars/information/prodcars-e.htm

The CGC will continue to work with the Canadian Wheat Board and the railways to develop and implement strategies to address producer car issues, including the increasing demand from producers for railcar allocations.

The expected results of this key program are, pursuant to the Canada Grain Act and Canada Grain Regulations, to provide and make available an alternate grain delivery mechanism and respond to producer car allocation challenges. Managing the allocation of railcars for individual requests contributes to departmental Priority #1.

In order to measure the success of its efforts in managing the allocation of railcars for individual producer requests, the CGC will utilize the following methods and processes:

  • Monitoring producer concerns with accessing producer cars by tracking cars allocated versus the demand by station.

3. Fair treatment of producers by grain companies and dealers

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$1,590 $958 $958

To safeguard fair and equitable grain transactions for producers, the CGC has set up an information and compliance network. Inspection, weighing, and arbitration services are essential to the efficient and fair operation of grain markets for producers and the grain industry. Grades allow buyers to identify end-use characteristics without the need for end-use tests or direct examination of individual grain lots. This helps to ensure that producers are properly compensated for the quality and quantity of grain delivered and shipped.

The following ongoing activities are integral components of this key service:

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

The expected result of this key service is to successfully resolve complaints and facilitate settlements acceptable to those parties involved, while improving the ability of producers to manage their business risks. Based on this expected result, fair treatment of producers by grain companies and dealers directly supports both departmental Priority #1 and #3.

In order to measure the success of its efforts in facilitating fair treatment of producers by grain companies and dealers, the CGC will utilize the following methods and processes:

  • Tracking producer inquiries and complaints on unfair treatment by grain companies. Feedback, complaints and requests for information are received through: direct contact with Assistant Commissioners and CGC staff at Prairie service centres or Head Office; or the CGC 1-800 line.
  • Consulting with producers and producer groups to gain a producer perspective on the CGC, CGC services, or industry trends. This provides the CGC with an understanding of producer requirements and expectations, benchmarks for setting service standards, and the impact of CGC services at the producer level.
  • Tracking the number of producer requests for grain sample analysis (e.g. "subject to inspector's grade and dockage"). Satisfaction by producers in CGC-facilitated resolution of disputes involving grain transactions is measured by direct confirmation (part of the process) and by absence of recurrence.

4. Provision of grain quality information to producers

Financial resources ($ thousands)

2007-2008 2008-2009 2009-2010
$111 $67 $67

The CGC continually collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties. This information and technical support facilitates producer sales and marketing decisions.

The following ongoing activities are integral components of this key service:

The expected result of this key service is the provision of accurate and relevant technical and statistical information to support producer sales and marketing decisions. As such, this key service supports departmental Priority #1.

In order to measure the success of its efforts in providing grain quality information to producers, the CGC will utilize the following methods and processes:

  • Tracking user-access to CGC on-line statistical publications.
  • Conducting periodic surveys of producers and producer groups to gain a producer perspective on the CGC, industry trends, producer requirements and expectations, benchmarks for setting service standards, and the impact of CGC services at the producer level.