Overview O i off C Canada’s d ’ G Grain i Industry Supply Chain

Canada Grains Council Mycotoxin Workshop April 21/22, 21/22 2010

This overview: • Reflects a reference material compendium being assembled by Canada Grains Council WG to pprovide context for discussion on management of myctoxins • Is intended to illustrate the scope scope, size and complexity of Canada’s cereal grains, oilseeds il d andd special i l crops sector – production, storage, handling, transportation and processing

Supply Chain Components • Grain production • Post-harvest on-farm storage • Off-farm storage, handling and transportation p • On-farm grain use • Off-farm Off f ffood d & non-food f d iindustrial d i l use • International trade

Grain Production in Canada • Approximately 75 million tonnes of cereals, l oilseeds, il d pulses l andd other h crops • Nearlyy 70 million acres/28 million hectares • National in scope, scope in all provinces where soil types and climate zones permit • BC, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia and PEI

Wide variation in climate factors in areas of grain production • Range of temperatures – plant h di hardiness zones • Range of degree days • Average rainfall Also factors in mycotoxin production

Plant hardiness zones

Grain Production • • • •

Cereal grains Oilseeds Pulses O h special Other i l crops

Relative Share of All Production 2008-2009 • All wheat

36.0%

• • • •

71.2% 21 3% 21.3% 7.0% 0.5%

All cereal grains incl. wheat All oilseeds il d All pulses Other special crops

Cereal Grains – 2008 2008-2009 2009 Millions of Tonnes • • • • • •

Wheat Barley Corn O Oats Rye Total cereal grain production

28.61 11 78 11.78 11.65 4 27 4.27 .32 56.63

Oilseeds – 2008 2008-2009 2009 Millions of Tonnes • • • • •

Canola Soybeans Flax S fl Sunflower Total oilseeds production

12.64 3 34 3.34 .86 .12 12 16.96

Pulses – 2008 2008-2009 2009 Millions of Tonnes • • • • •

Dry peas Lentils Dried beans Chi k Chickpeas Total pulse production

3.57 1 04 1.04 .27 .67 67 5.55

Other Special Crops – 2008 2008-2009 2009 Millions of Tonnes • Mustard seed • Canary seed T l other Total h special i l crops

.16 .20 20 .36 36

M Many G Grain i P Producers d • 325,000 farms producing field crops • 82,000 82 000 farm operators whose principal (50% or more) source of income is grain i production d i • Total number of farms contributingg to off-farm shipments of grains estimated to be well in excess of 100,000 100 000

On-Farm Storage - Capacity • Estimated to be between 50 and 55 million tonnes of bin and shed capacity p y • Estimated 600,000 storage bins ranging in age from 1 to 40 years • Capacity augmented by temporary covered storage and grain bags – a relatively new technology for grain storage

On-farm storage methods • Metal bins of various designs & sizes – 25 MT to 2,000 MT

• • • • •

Wooden bins Concrete silos Various shed configurations On-ground covered storage Plastic g grain bags, g , modeled after silage g storage tunnels

On-farm On farm storage utilization 2008/09 Millions of Tonnes • • • • •

Cereal grains 35.95 Oilseeds 10 32 10.32 Pulses 2.93 S i l crops Special 0 27 0.27 Total on farm at December 31 49.47

On farm storage - duration On-farm d ration • Using wheat as an example:

December 31 March 31 July 31 Millions of tonnes

2007/08 16.962 11.243 1 979 1.979

2008/09 12.116 7.577 0 541 0.541

Off-farm commercial stocks • Using wheat as an example: Millions of tonnes

December 31 March 31 July 31

2007/08 4.611 4.714 4 886 4.886

2008/09 4.000 3.881 4 020 4.020

Regional distribution of off-farm storage f iliti facilities– CGC li licensedd elevators l t

Regional g distribution of off-farm storage g capacity – CGC licensed elevators

Post-farm storage, handling and transportation – regional characteristics • • • •

West Ontario Quebec Atlantic

Post farm, handling and Post-farm transportation - west: • Highly rationalized, streamlined system with vastly y fewer storage g and handling g points than 20 years ago • A system of primary, primary process, process and export terminal grain elevators • Linked to domestic and export markets by a network of road, railway and water transportation infrastructure

W t Western primary i elevator l t system: t • 314 country (primary) elevators with average storage capacity of 18,000 tonnes • Combined storage capacity of 5.4 5 4 million tonnes • Annual A l hhandling dli capacity i off 32 million illi tonnes • Handles wheat, barley, oats, rye, canola, flax, soybeans, corn, peas, lentils, canary seed and mustard

T Terminal i l elevators: l t • Terminal elevators principally used for receiving grain already inspected, graded for ccleaning, ea g, storage, sto age, treatment t eat e t before be o e moving ov g onward. • Most grain moves from primary to terminals, average distance of 1,400 km. • Major M j terminals t i l are att ports t off Vancouver, V Prince Rupert, Thunder Bay and Churchill.

Prairie to Port

2050 km

1750 km

1450 km

1450 km 3350 km

U.S./Mexico Mills

US Gulf

Rail movement of grains • 20 20,000 000 hhopper cars • Average capacity per car - 90 tonnes • 32 million tonnes of grain exports equates to pp car loads over 350,000 hopper • Average turnaround time per car is approximately two weeks

G t lakes Great l k shipping hi i off grains i - 2008 Millions of tonnes Domestic movement Import p shipments p Export shipments

4.493 0.095 0.589

Off-farm storage and handling Ontario • • • •

264 licensed grain dealers 337 licensed elevators 7 terminal elevators (Thunder Bay) 5 transfer elevators

Grain use within Canada • • • •

Seed Animal feed Off-farm, non-food industrial use Off-farm food processing use

On-farm On farm grain use - seed Thousands of tonnes Wheat Oats Barley Rye Corn Canola y Soybeans Flax

990 130 310 13 13 47 140 30

Animal feed Thousands of tonnes Wheat 3,500 Barley 7 600 7,600 Oats 1,200 R Rye 100 Corn 7,600 Canola 330 Total over 20 million tonnes

Oil d crushing Oilseed hi Th Thousands d off tonnes t Canola 4,200 Soybean 1,300 Flax 75 S fl Sunflower 35 Total over 5.6 million tonnes

Biofuels – ethanol and biodiesel Thousands of tonnes Wheat C Corn Canola Soybeans

700 4 000 4,000 100 ???

Off-farm food use – primary processing • Cereal grain milling Wheat 3 2 million tonnes 3.2 Oats .6 million tonnes • Malting M li Barley .8 million tonnes Wheat .05 million tonnes ??? • Distilling

Off-farm food use – further processing • • • • • • •

Bakery products Cookies biscuits Cookies, biscuits, crackers Breakfast cereals P Pasta Pizza’s and other doughs Nutritious portable foods – snack bars Savory snack foods

The Wheat Value Chain $ + $ $ + $ + $ $ + $ $ $ + $ $ = Retail Grain Millers

Farm inputs

Producers

Marketers, Handling and Transportation

Further processors

Consumers

Foodservice and retailers

Canadian consumers eat wheat flour in products found in virtually every aisle of the grocery store: • Packaged breads, rolls • In-store bakeryy products • Pasta • Breakfast cereals • Cookies • Crackers Snack foods • S • Food bars

• • • • • • • •

Frozen doughs Frozen desserts Fresh & frozen pizzas y and Frozen ppoultry seafood products p meats Prepared Soups and sauces Condiments C Confectionery

International Trade Importance • Total export volume is approximately 32 million tonnes annually y • Exports account for a huge portion of farm income from grains, grains oilseeds and special crop production

Export p Highlights g g – Cereal Grains Thousand Tonnes Wheat 19,252 Wheat products 181 Oats 1,651 Oat products 157 Barley 1,573 Barley l malt l 631 Rye 100 Corn 227

$Millions 6,013 131 374 98 441 444 30 108

Export Highlights - Oilseeds Thousand Tonnes $Millions Canola 7,637 3,459 Canola oil 1,532 , 1,544 , Canola meal 1,750 390 Flaxseed 549 291 Flax oil & meal 11 15 Soybeans 2,027 998 y oil/meal 120 75 Soy Sunflower seed 71 65

Export p Highlights g g – ppulses and special crops Thousand Tonnes Dried beans 260 Dried peas 2,596 Lentils 1 239 1,239 Chickpeas 71 Mustard seed 111 Canary seed 155

$Millions 262 817 1 044 1,044 55 128 89

Key Observations - one • Grains, oilseeds and special crops are produced and stored in wide range of eg o a climates c ates regional • Cereal grains are stored for periods of days to many months, months up to a year or more • On-farm storage quality assurance in the h d off over 100 hands 100,000 000 producers d • Approximately 800 to 900 off-farm storage l locations i across Canada d

Key y observations - two • Producer cereal grain deliveries number more than h 6,000 6 000 per day, d six i days d per week, k or approximately 2.0 million annually • Rail car cereal grain shipments from west to ports and domestic users are more than 250,000 annually • Cereal g grain truck/rail deliveries to domestic mills exceed 90,000 annually Potentially nearly 2.5 2 5 million shipments to monitor/test for mycotoxins annually

Efficiency Implications • Implies a tremendous loss of efficiency in all regions g • Implies 600 person years if testing required on all cereal grain movements and completed in 0.5 hours per test, less than currently required