Canadian Grain Commission An evolving policy environment Jim Smolik Assistant Chief Commissioner, Canadian Grain Commission

Today’ss topics Today ƒ Modernizingg the Canadian grain g sector: ƒ Effect of Canadian Wheat Board legislation ƒ Future of the Canada Grain Act

ƒ Supporting market access ƒ Science S i and d innovation i ti

Modernizing the Canadian grain sector

CWB legislation Plans and dates ƒ October 18, 2011 ƒ Government introduced Bill C-18 ƒ Also called Marketing Freedom for Grain Farmers Act

ƒ August 1, 2012 ƒD Date t sett by b Minister Mi i t Ritz Rit tto endd CWB single-desk i l d k structure

ƒ Consequential amendments to Canada Grain Act identified

Canada Grain Act Consequential amendments ƒ Western Standards Committee ƒ New CWB still eligible for representation

ƒ End-use certificates ƒ Check-offs ƒ Require R i regulation l ti change h

Continuing to protect all stakeholders ƒ Certifying y gg grain quality, q y safetyy and weight g ƒ Using scientific research to validate: ƒ Grain grades ƒ Variety registration system ƒ End-use E d f ti lit functionality

Continuing to protect producers and industry ƒ ƒ ƒ ƒ ƒ ƒ

Allocation of p producer cars Providing financial protection Subject to CGC Inspector’s Inspector s Grade and Dockage Maintaining grain grading standards C d ti reinspection Conducting i ti on inwards i d Providing a quasi-judicial role

Canada Grain Act Modernization required ƒ Canada Grain Act ƒ No fundamental overhaul since 1970 p Act ƒ Government tried twice to update ƒ Bills C-39 and C-13 unsuccessful in minority parliament ƒ Act needs updating to: ƒ Improve flexibility and effectiveness ƒ Remove unnecessary rules and costs ƒ Support Canadian sector, including interests of producers

Canada Grain Act Need for f change is recognized ƒ Wide consensus changes g are needed ƒ 2010 Federal Budget – clear expression of government’s intent to modernize Act ƒ Working group on marketing freedom ƒ Feedback received from User Fees consultation

Supporting market access

Role in market access ƒ CGC provides technical support ƒ Including when issues arise in international markets

ƒ Technical support provided through: ƒ Grain Research Laboratory (GRL) ƒ Industry Services (IS)

ƒ CGC expertise covers broad spectrum including: ƒ Sampling ƒ Grading ƒ Grain safety ƒ Laboratory testing processes

Examples ƒ European p Union: Lentil exports p 2011 ƒ Pulse Canada engaged CGC experts in: • G Grain a sa sampling p g • Analysis of pesticide residues

ƒ CGC provided advice to Pulse Canada about: • Conducting proficiency tests for residues in pulses • Understanding causes of testing variability • Assessing data quality out of EU laboratories p g pprocesses for future testingg for • Establishingg sampling residues in pulses

Examples - continued ƒ EU, Japan p and Brazil – LLP event in flax, 2009 ƒ Developed protocols ƒ Running proficiency tests

ƒ Italy – Ochratoxin A in wheat and durum, 2005 ƒ Article A ti l 23 application li ti approvedd bby EU ƒ Sampling and testing methods accepted by EU ƒ Reduction in testing of vessels

ƒ Greece – Ochratoxin A in durum

Examples - continued ƒ China – Selenium levels in pulses, 2008 ƒ CGC provided statistics for selenium levels to Pulse Canada ƒ Allowed going shipments of peas

ƒ China – malting barley ƒ GRL gave technical advice on germination of malting barley

ƒ Algeria – Lentil grading ƒ Technical exchange ƒ Facilitated interpretation of damage, mutual understanding

Collaborations with CFIA ƒ ƒ ƒ ƒ

Communication on deregistered g varieties Vessel samples for phytosanitary certification Analysis on samples collected from containers Weed seed survey

Participation as stakeholder ƒ Co-existence Conference ((October 2011)) ƒ Member of Government of Canada Steering Committee for Low Level Presence

ƒ Meetings of North American Plant Protection Organization (NAPPO)

ƒ Workshop on International Movement of Grain (CFIA – December 2011)

Science and innovation

Update: ELISA ELISA-based based instrument ƒ Read Rite system y byy Bayer y CropScience p ƒ Used to determine sprout damage ƒ CWRS and CWAD

ƒ Six-week project, May and June 2011 ƒ Tested T t d att 6 CGC sites it and d 9 iindustry d t sites it

Update: ELISA ELISA-based based instrument ƒ Result: Met criterion for success

ƒ Based on industry

feedback, Bayer feedback CropScience withdrawing kits from the marketplace

ƒ CGC will not be able to complete further work

Update: Measuring chlorophyll with NIRS ƒ Usingg DICKEY-john j instrument ƒ NIRS – near-infrared reflectance spectroscopy

ƒ Measures chlorophyll content ƒ Would replace counting distinctly green seeds

Update: Measuring chlorophyll with NIRS ƒ 3 pprimaryy elevators, 2 terminal elevators ƒ Goal: To test 500 to 600 samples ƒ Currently: Have tested over 340 340, expect to reach goal this year

ƒ Results expected spring 2012