2014–15 - Report on Plans and Priorities

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome

Canada’s grain is safe, reliable and marketable and Canadian grain producers are properly compensated for grain deliveries to licensed grain companies.

Program 1.1: Quality Assurance Program

Description:

The CGC's quality assurance program is delivered pursuant to the Canada Grain Act and the Canada Grain Regulations. This program assures consistent and reliable grain quality that meets the needs of international and domestic markets. Grain quality refers to end-use processing quality, grain safety and cleanliness, and, in some cases, the composition of varieties in shipments of grain. Provision of grain inspection, grain safety, and grading services, as well as strong scientific and technical support programs and services are integral components to the overall delivery of an effective quality assurance program. The program includes a complaints resolution process for resolving customer complaints and disputes with respect to grain quality assurance. An effective grain quality assurance program is a key factor in permitting Canadian exporters to market successfully in competitive international grain markets and is essential for producers to realize maximum value from their grain. The quality assurance program is funded by revolving fund revenue.

Budgetary Financial Resources (dollars)
2014–15 Main Estimates 2014–15 Planned Spending 2015–16 Planned Spending 2016–17 Planned Spending
38,428,772 38,428,772 32,876,490 33,474,531
Human Resources (FTEs)
2014–15 2015–16 2016–17
233 233 233
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Consistent and reliable grain quality and grain safety assurance to meet the needs of domestic and international markets Number of justified cargo complaints due to a breakdown in CGC quality and/or safety assurance Zero March, 2015
  Number of instances where buyers are dissatisfied with CGC standards, methods or procedures used to ensure a safe and dependable commodity for domestic and export markets Zero March, 2015

Planning Highlights

The Quality Assurance Program directly supports the ongoing delivery of the CGC’s mandate and is necessary for the CGC to deliver upon its strategic outcome of assuring Canada’s grain is safe, marketable, and reliable. To meet the target and achieve the expected results associated with this program, the CGC will continue to maintain and deliver an effective Quality Management System as per the ISO 9001:2008 standard. Adherence to ISO Quality Management System procedures includes regular review of quality assurance processes allowing the CGC to adjust service procedures and identify or adjust training as necessary.

To ensure consistent and reliable grain quality and grain safety assurance and facilitate international trade, the Quality Assurance Program must continue to align with and be able to respond to the changing requirements of domestic and international grain markets. During 2014–15, the CGC will continue to work closely with producers, industry stakeholders, AAFC, the Canadian Food Inspection Agency (CFIA), and other government departments and agencies to adjust and adapt the Quality Assurance Program to align with amendments to the Canada Grain Act that came into force on August 1, 2013. Further amendments to the Quality Assurance Program and possibly the regulatory framework, identified as an organizational priority in Section I, will be investigated to enhance Canada’s GQAS, improve grain safety assurance, and complement the amendments that came into force on August 1, 2013. The CGC will continue to liaise with other federal government departments (e.g. CFIA, AAFC, Health Canada, and Department of Foreign Affairs and International Trade), the Canadian grain industry, producers, and international agencies concerning grain quality and safety matters and trade implications. In addition, the CGC will continue efforts to clarify its role within the industry and among other government departments as a foundation for developing technology and enabling the evolution of certification services in accordance with that role. Additional information on the activities and services that contribute to the Quality Assurance Program is available at: Quality Assurance Program.

Program 1.2: Quantity Assurance Program

Description:

The CGC’s quantity assurance program is delivered pursuant to the Canada Grain Act and the Canada Grain Regulations. The services delivered under this program facilitate the official weighing of export shipments of grain discharged from terminal elevators and the issuance of accompanying quantity assurance documentation. This program ensures international grain buyers and end users that Canadian export grain shipments are accurately weighed and that the weighed product is delivered to conveyances as reported on CGC documentation. The program includes weighing systems certifications at terminal elevators, input into weighing equipment requirements and device inspection frequency at primary elevators to ensure accurate weighing of producer deliveries, and a quantity assurance dispute resolution process. To maintain relevancy and to address constantly changing industry demands, the quantity assurance program is supported through legislative requirements and technically based responsibilities. The quantity assurance program is funded by revolving fund revenue.

Budgetary Financial Resources (dollars)
2014–15 Main Estimates 2014–15 Planned Spending 2015–16 Planned Spending 2016–17 Planned Spending
4,665,784 4,665,784 3,193,300 3,251,388
Human Resources (FTEs)
2014–15 2015–16 2016–17
15 15 15
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Consistent and reliable quantity assurance of Canadian grain shipments Number of justified cargo complaints due to a breakdown in CGC quantity assurance processes Zero March, 2015

Planning Highlights

The CGC’s Quantity Assurance Program must align with and be able to respond to the changing requirements of the grain industry while still effectively ensuring consistent and reliable quantity assurance of Canadian grain shipments. Recent amendments to the Canada Grain Act streamlined CGC service delivery to more efficiently deliver this program and removed services that were no longer necessary to meet the program expected result. This included implementing new technology and fully transforming to a Weighing Oversight and Certification Program (WOCP) for export grain shipments. Going forward, the CGC will provide oversight validation of weighing process documentation and weighing device records along with the establishment and maintenance of a weighing systems certification program. In addition, the CGC will provide input into weighing equipment requirements to ensure accurate weighing of grain shipments from terminal elevators.

During 2014–15, the CGC will continue to provide all weighing activities as per ISO 9001:2008 Standards to ensure consistent and reliable quantity assurance of Canadian grain shipments and to meet the legislative requirements of the Canada Grain Act. This includes regular review of quantity assurance processes allowing the CGC to adjust service procedures and identify or adjust training as necessary. The CGC will continue to work closely with producers, industry stakeholders, Measurement Canada, AAFC, and other government departments and agencies to establish and maintain grain quantity assurance standards that evolve with industry grain weighing procedures, equipment standards, and quantity assurance needs. This aligns with the organizational priority “relevant, efficient and innovative programs and services” identified in Section I of this report.

Additional information on the activities and services that contribute to the Quantity Assurance Program is available at: Quantity Assurance Program

Program 1.3: Grain Quality Research Program

Description:

The Canada Grain Act requires the CGC to undertake, sponsor and promote research related to grains. The CGC conducts research in support of Canada’s grain quality assurance system to address emerging issues and permit the effective marketing of Canadian grain. The CGC’s Grain Research Laboratory (GRL) researches factors affecting the quality and safety of grain and grain-based products. Research in the GRL forms the basis of grain specifications. This program benefits not only the agricultural sector, but also Canadians as consumers of grain products. Close collaboration with Canadian and international scientific, academic, analytical, grain industry organizations and other Canadian government departments (e.g., Agriculture and Agri-Food Canada, Canadian Food Inspection Agency, Health Canada) ensures that the CGC remains abreast of new research developments and is able to adapt research priorities to emerging challenges. The grain quality research program is funded by a combination of revolving fund revenue and appropriations.

Budgetary Financial Resources (dollars)
2014–15 Main Estimates 2014–15 Planned Spending 2015–16 Planned Spending 2016–17 Planned Spending
7,978,107 7,978,107 6,582,955 6,607,258
Human Resources (FTEs)
2014–15 2015-16 2016-17
34 34 34
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Scientific information is available to support and inform GQAS decision making Number of instances where timely and appropriate scientific information is not available to support and inform GQAS decision making Zero March, 2015
Domestic and international marketers, buyers, and processors have accurate and appropriate scientific information on the quality and safety of Canadian grain Number of instances where domestic and international marketers, buyers, and processors do not have access to accurate and appropriate scientific information on the quality and safety of Canadian grain Zero March, 2015
Threats to Canada's GQAS from registration of new varieties are minimized Number of complaints from end-users of Canadian grain on the quality of newly registered varieties Zero March, 2015

Planning Highlights

The Grain Quality Research Program contributes directly to the CGC’s strategic outcome of ensuring Canada’s grain is safe, reliable and marketable. Research undertaken and sponsored under this program leads to the development of recognized methods for quality and safety evaluation of all grains as well as objective testing protocols and specifications to support the Canadian grading system. The research from this program also facilitates the end-use diversification of Canadian grains and ensures that Canadian grain meets the end-use needs and processing expectations of domestic and international buyers.

During 2014–15, the GRL will continue to adjust, adapt, and streamline research activities to align with recent amendments to the Canada Grain Act and the merging of several work units. Research priorities to build upon and strengthen Canada’s GQAS will be identified based on feedback received by CGC personnel from international and/or domestic buyers, processors, producers, grain handlers, and the Western Standards Committee and Eastern Standards Committee. To remain abreast of new developments, GRL personnel will continue to liaise with Canadian and international scientific, academic, analytical, and grain industry organizations.

Close cross-divisional collaboration among the GRL’s Crops Section, the GRL’s Technologies Section, and the CGC’s Industry Services Division is critical to meeting the expected results associated with the Grain Quality Research Program. Continued efforts to maintain collaboration and coordination of research efforts both internally and with external research partners (e.g. universities, international organizations) and other government departments (e.g., AAFC, CFIA, Health Canada) will ensure that the GRL is able to adapt research priorities to emerging challenges and use resources effectively.

Additional information on the grain quality research program is available at: Grain quality research program.

Program 1.4: Producer Protection Program

Description:

Pursuant to the Canada Grain Act and Canada Grain Regulations, the CGC has implemented a number of programs and safeguards to ensure that grain producers are properly compensated for grain delivered to licensed grain companies. These include the licensing and security program, allocation of producer cars for producers and producer groups that wish to ship their own grain, and producer liaison measures including a grain grade reinspection system. In addition, the CGC collects and updates grain quality data and grain handling information to facilitate producer sales and marketing decisions. The producer protection program is funded by revolving fund revenue.

Budgetary Financial Resources (dollars)
2014–15 Main EstimatesFootnote * 2014–15 Planned SpendingFootnote * 2015–16 Planned SpendingFootnote * 2016–17 Planned SpendingFootnote *
1,520,937 1,520,937 1,265,212 1,288,226
Human Resources (FTEs)
2014–15Footnote * 2015–16Footnote * 2016–17Footnote *
8 8 8

Footnotes

Footnote *

Note: These amounts do not include amounts for the Producer Support Programs Sub-Program. Amounts in support of the Producer Support Programs Sub-Program are currently reported in other programs.

Return to footnote * referrer

Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Risk to producers of not receiving fair compensation for their grain is mitigated Percentage of producers who agree that CGC producer protection activities help to reduce the risk of not being fairly compensated for grain delivered into the licensed grain handling system 75 percent March, 2016
Producers are aware of CGC producer protection programs and services Percentage of producers who are aware of CGC producer protection activities 75 percent March, 2016

Planning Highlights

During the planning period, the CGC will continue to consult with and evaluate feedback from producers on the services provided under this program. Plans include adjusting and adapting the Producer Protection Program in line with recent amendments to the Canada Grain Act. Further amendments to CGC processes, protocols and possibly the legislative framework, identified as an organizational priority in Section I, are planned to address gaps in the Producer Protection Program and complement the amendments that came into force on August 1, 2013. Where possible, program amendments will be made to benefit producers and promote a lower cost, competitive and innovative grain handling sector. For example, this could include expanding “subject to inspector’s grade and dockage” provisions. The CGC will continue communication efforts to ensure producers are aware of their rights under the amended Canada Grain Act and to increase awareness of CGC producer protection activities and services.

Additional information on the producer protection programs and the benefits to Canadian producers is available at: Producer protection programs.

Sub-Program 1.4.1: Licensing and Security Program

Description:

Pursuant to the Canada Grain Act and Canada Grain Regulations, the CGC licenses or exempts grain companies from licensing if their businesses meet certain legislated requirements. The licensing and security program mitigates risks to producers of not being properly compensated for grain delivered to licensed grain companies and provides the framework for establishing and maintaining the Canadian grain quality assurance system. CGC licensees are required to obtain prescribed security for the purpose of covering their potential obligations to producers in the event of a company default.

Budgetary Financial Resources (dollars)
2014–15 Planned Spending 2015-16 Planned Spending 2016-17 Planned Spending
1,290,339 1,073,386 1,092,910
Human Resources (FTEs)
2014–15 2015-16 2016-17
6 6 6
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Risks to producers of not being properly compensated for grain delivered to a CGC licensee is mitigated Percentage of producers who agree that the CGC's licensing and security program reduces the risk of not being properly compensated for grain delivered into the licensed grain handling system 75 percent March, 2016

Planning Highlights

Recent amendments to the Canada Grain Act allow the CGC to implement an insurance-based security program for CGC licensees with the goal of providing cost-effective liability coverage for producers. The CGC is in the process of updating the Canada Grain Regulations to align with the amendments to the Canada Grain Act. It is anticipated that an insurance-based security program will be in place in 2014–15. Until such time as the insurance-based security program is in place, the CGC will continue to monitor CGC licensees using a risk assessment framework and a risk-based audit plan to determine audit priorities. This includes continuous refinements to the risk assessment framework and ongoing scrutiny to mitigate the risks associated with operating the current security program as well as non-payment risks to producers.

Sub-Program 1.4.2: Producer Car Allocation Program

Description:

Pursuant to the Canada Grain Act and Canada Grain Regulations, the CGC provides an alternate grain delivery mechanism for producers and producer groups that wish to ship their own grain by railcar. The CGC works closely and cooperatively with the grain industry and the railways in an effort to ensure that producer car orders are filled in a timely manner. The CGC has sole responsibility for the allocation of producer cars for all grains.

Budgetary Financial Resources (dollars)
2014–15 Planned Spending 2015-16 Planned Spending 2016-17 Planned Spending
230,598 191,826 195,316
Human Resources (FTEs)
2014–15 2015–16 2016–17
2 2 2
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Producers are able to bypass the primary elevator system and ship grain to port position or another destination of their choosing The number of formal justifiable complaints related to producer car access and availability Zero March, 2015
  Percentage of producers who use the producer car allocation program who are satisfied with the program 75 percent March, 2016

Planning Highlights

The CGC will continue to work closely and cooperatively with producer car administrators and the railways in an effort to ensure that producer car orders are filled in a timely manner. In addition, the CGC will continue communication efforts to ensure producers and producer groups are aware of the producer car program and the steps involved in applying for a producer car if they wish to ship their own grain by railcar.

Sub-Program 1.4.3: Producer Support Programs

Description:

The CGC has several programs and activities to ensure producers are properly compensated for the quality of grain delivered and shipped. These programs and activities are not material enough to be considered independently. They include the submitted samples program, the harvest sample program, reinspection of samples on producer request, and investigation of quality and dockage complaints. In addition, the CGC continually collects and updates grain quality data and grain handling information and makes it available to producers and other interested parties to facilitate producer sales and marketing decisions.

Budgetary Financial Resources (dollars)
2014–15 Planned Spending 2015–16 Planned Spending 2016–17 Planned Spending
Amounts in support of this sub-program are currently reported in other programs. The CGC is in the process of defining these amounts.
Human Resources (FTEs)
2014–15 2015–16 2016–17
FTEs in support of this sub-program are currently reported in other programs. The CGC is in the process of defining these FTEs.
Performance Measurement
Expected Results Performance Indicators Targets Date to be Achieved
Risk to producers of not receiving fair compensation for the quality of grain delivered into the licensed grain handling system is mitigated Percentage of producers who agree that access to CGC third party quality information reduces their risks of not receiving fair compensation for the quality of their grain upon delivery into the licensed grain handling system 70 percent March, 2016

Planning Highlights

During the planning period, the CGC will continue communication efforts to ensure producers are aware of the producer support programs available to them under this sub-program. This includes consulting with and evaluating feedback from producers on access to CGC third party quality information.

The CGC will continue to work with grain quality and grain handling data providers to ensure statistical information is accurate and available to producers and other users of the data. In addition, data systems are being updated to improve efficiency, reduce costs, and increase accessibility to online CGC statistical information.

Internal Services

Description:

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided specifically to a program.

Budgetary Financial Resources (dollars)
2014–15 Main Estimates 2014–15 Planned Spending 2015–16 Planned Spending 2016–17 Planned Spending
17,850,598 17,850,598 16,619,013 16,916,865
Human Resources (FTEs)
2014–15 2015–16 2016–17
114 114 114

Planning Highlights

During 2014–15, a key focus will continue to be providing support and services with respect to the CGC’s organizational priorities identified in Section I. In addition to providing organizational support for these priorities, plans include adjusting and adapting Internal Services activities, tools, and resources to be as efficient as possible and to achieve the goals of various government-wide initiatives. Two specific Government of Canada initiatives that will be a focus of CGC attention going forward include Blueprint 2020 and the Performance Management Directive.