Canadian Grain Commission: Evolving with a changing grain industry Elwin Hermanson, Chief Commissioner Saskatchewan Ministry of Agriculture meeting

Topics      

About the CGC Canada’s grain grading system Canada’s seed variety registration system Protecting producer rights Modernizing the CGC The CGC’s role in market access

About the Canadian Grain Commission

About the Canadian Grain Commission  Federal government agency  Report to Parliament  Through Minister of Agriculture and Agri-Food Canada  Operate under Canada Grain Act  Regulate 21 grains  Certify the quality, safety and weight of grain

Mandate Guided by the Canada Grain Act, and in the interest of grain producers, the Canadian Grain Commission works to establish and maintain standards of quality for Canadian grain, regulate grain handling in Canada, and to ensure that grain is a dependable commodity for domestic and export markets.

Canada’s grain grading system

Canada’s grain grading system  Canada’s system is unique  Responds to challenges of our industry  Transactions  Based in grain grading system  Also can be based on specifications set by customer

Canada’s grain grading system  Shipping options

 Bulk handling  Identity preserved  Varieties  Only eligible varieties can be delivered into wheat classes  Deregistered eligible for feed class  Unregistered varieties prohibited from importation into CWB area

Canada’s grain grading system  Grades describe quality  Grades help meet customers’ end-use needs  Graded according to grading standards  Grades help producers determine value  Official Grain Grading Guide  Online at www.grainscanada.gc.ca

Canada’s grain grading system  Inspectors grade visually  Based on end-use quality  Supported by scientific research  Regularly reviewed  Western and Eastern Standards Committees  Members represent industry

 Built on consensus

Canada’s variety registration system

Canada’s variety registration system  Complex process  Breeders  CFIA

• Administers variety registration system

 CGC  Industry representatives  Registered varieties  Disease-resistant  Agronomic benefits  End-use quality requirements

Canada’s variety registration system  Canadian Grain Commission  Evaluates end-use quality of varieties  Researchers  Conduct end-use quality research  How physical and chemical properties affect end-use value  Study ways to evaluate grain quality

Variety eligibility  Under Canada Grain Act  CGC designates class of grain for which new varieties are eligible  We maintain variety designation lists  Wheat  Barley  Flaxseed

Declaration of Eligibility for the Class form  Legal document  Upholds quality  Producer completes for each    

delivery point once a year Verbally declares for each delivery Confirms varieties in delivery eligible for specific class Producer also verbally declares Non-declared or ineligible  CW Feed  5 CWAD

Protecting producer rights

How do we protect producers’ rights?  Subject to Inspector’s Grade and Dockage  Producer cars  Payment protection

Subject to inspector’s grade and dockage

Producer cars  Producers apply to CGC  First come, first served  CGC negotiates for cars  Must have a sale (guaranteed unload)  Producers or administrators can load and ship grain to port  10,000-12,000 producer cars allocated annually  4% of total railcars shipping grain

Payment protection    

Deliveries to licensed primary elevators Payment claims if not paid Eligible claims out of security - Not 100% guaranteed Producers should:  Ensure company is licensed  Seek payment immediately on delivery  Cash cheques as soon as received  Check shrinkage deductions  Report payment issues to CGC as soon as possible

How do we support your interests?       

Grading Scientific research Monitoring grain safety Monitoring grain weighing Submitted sample service Harvest Sample Program Information resources

Modernizing the CGC: User fees and the Canada Grain Act

Background: User fees  No change

since 1991  Service sustainability  Industry input  Consultation process

User fees consultation  Stable funding will maintain:  Canada’s reputation as leader in grain quality  Our role in: • Grain quality, quantity and safety assurance • Producer protection • Integrity of grain transactions

Future of the Canada Grain Act

Modernizing the Canada Grain Act  Past bills: C-39 & C-13  Government remains committed to:  Flexibility, retaining effectiveness  Removing unnecessary rules, costs  Supporting industry  Continuing to protect producers’ interests

 Working group on marketing freedom  Recommended modernizing Canada Grain Act

Modernizing the Canada Grain Act  Inward inspections and weighing  CGC inspections and weighing at terminal elevators  Potential changes to Canada Grain Act • Past bills: C-13 and C-39 proposed changes

Canada Grain Act: Consequential amendments  Western Standards Committee • CWB still eligible for representation

 Checkoffs • Voluntary deductions to fund research organizations

 End-use certificates • Provision no longer necessary

The CGC’s role in market access

CGC role in market access  CGC provides technical support when international market issues arise  Technical support can be through the Grain Research Laboratory (GRL) and/or Industry Services (IS)  CGC expertise covers a broad spectrum of topics:  Sampling  Grading  Grain safety  Laboratory testing processes

CGC market access support – Examples  European Union - Lentil exports 2011

 Pulse Canada engaged CGC experts in grain sampling and analysis of pesticide residues  CGC provided advice to Pulse Canada: • • • •

On how to conduct proficiency tests for residues in pulses Aided in understanding causes of testing variability Aided in assessment of data quality out of EU labs Established sampling processes for future testing for residues in pulses

 Algeria

 Technical exchange related to grading of lentils

CGC market access support – Examples  EU, Japan & Brazil

 Developed protocols and running proficiency tests for shipments of flax following LLP event  Italy  Article 23 approved by EU for pre-shipment testing of Ochratoxin (OTA) in wheat and durum  China  CGC statistics for selenium levels provided through Pulse Canada to allow ongoing shipments of peas  GRL technical advice on germination of malting barley

CGC role in market access Collaborations with CFIA    

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

CGC role in market access – Collaborations  Meetings of North American Plant Protection

Organization (NAPPO)  Workshop on International Movement of Grain • CFIA – December 2011

 Co-existence Conference (October 2011)  Member of Government of Canada Steering

Committee for Low Level Presence (Fall 2011)

Questions?