Western Canadian Deduction Annual Report

Transcription

1 Western Canadian Deduction Annual Report Alberta Barley November 28, 2013 Supporting on-going efforts to develop new and improved varieties of high-quality wheat and barley building on Canada s reputation as a trusted source supplying markets around the world.

2 Contents Glossary 01 Message from Recipients 02 Administrator s Message 03 Recipient Corporate Profiles 04 Statement of Principles and Regulations 06 Reporting Procedures 08 Distribution of Funds to Recipients 09 Recipient Funded Activities Canadian International Grains Institute 10 Western Grains Research Foundation 16 Canadian Malting Barley Technical Centre 22 Financials 26 Alberta Barley Administration 27 Canadian International Grains Institute 28 Western Grains Research Foundation 28 Canadian Malting Barley Technical Centre 29

3 Glossary Organizations: IAOM International Association of Operative Millers (referenced under Middle East New Crop-Saudi Arabia/Abu Dhabi Mission) CGC Canadian Grain Commission COFCO China National Cereals, Oils and Foodstuffs Corporation (referenced under China-Canada Wheat Technical Mission) CIMMYT International Maize and Wheat Improvement Center ICARDA International Center for Agricultural Research in Dry Areas SSR Simple Sequence Repeat Marker Development PRCOB Prairie Recommending Committee for Oats and Barley Wheat Classes: CWRS Canada Western Red Spring CWAD Canada Western Amber Durum CWRW Canada Western Red Winter CPSR Canada Prairie Spring Red CWSWS Canada Western Soft White Spring CWHWS Canada Western Hard White Spring CESRW Canada Eastern Soft Red Winter CPS Canada Prairie Spring Wheat Red (could be White) DON Deoxynivalenol, a toxin that is produced by fusarium FHB Fusarium head blight FAN Free Amino Nitrogen PML Prairie Malt Ltd. 01

4 Messages Message from Recipients The WGRF, Cigi and CMBTC would like to recognize the Government of Canada s initiative in establishing the wheat and barley check-off in support of our work on behalf of the western Canadian grain industry. Thank you to the farmers of western Canada for continuing to invest in the variety research, market development and technical support provided by WGRF, Cigi and CMBTC. This funding is key to supporting on-going efforts to develop new and improved varieties and build upon Canada s reputation as a trusted source of high-quality wheat and barley used in markets around the world. 02

5 As a grassroots, farmer-led organization focused on research and market development, Alberta Barley is committed to ensuring that the valuable research, market development and technical assistance programs provided by WGRF, Cigi and CMBTC are maintained in the coming years via this transitional program. Administrator s Message On August 1, 2012 Alberta Barley took on the administration of the Western Canadian Deduction (WCD) for wheat and barley. This responsibility came about via the Government of Canada s Regulations Respecting Research, Market Development and Technical Assistance (Wheat and Barley). Throughout the 2012/13 crop year, Alberta Barley collected program remittances from grain buyers on behalf of the federal government. These funds were then distributed to the three recipient groups mandated by the government: the Western Grains Research Foundation (WGRF), the Canadian International Grains Institute (Cigi) and the Canadian Malting Barley Technical Centre (CMBTC). The funds distributed through the deduction enabled these three organizations to deliver innovative variety research, market development and technical support programs that benefit the industry. Alberta Barley uses the services of Levy Central to collect the information on wheat and barley sales in the Peace River region of British Columbia, Alberta, Saskatchewan and Manitoba from the Canadian Grain Commission s (CGC) licensed dealers. Levy Central manages the database, collects remittances and assists in the refund process on behalf of the new program. Alberta Barley manages the program day-to-day, including accounting, administration, public relations and communications. Key communications and outreach tactics include development of a program website ( posters, press releases and related initiatives. Alberta Barley s finances are audited annually and are available separately in our organization s annual report, published each November. In this report, each recipient organization has provided descriptions of the money received through the WCD and how it was spent in accordance with the federal government s regulations. Although each recipient is responsible for the money allocated to their organization, Alberta Barley worked closely with the individual groups in order to provide as much detail as possible in this report. To that end, we have published the information on the recipients activities and finances, as provided by each individual organization. Sincerely, Lisa Skierka General Manager 03

6 Corporate Profiles of Recipients Canadian International Grains Institute For 40 years, Cigi has worked with the worldwide agricultural community in the promotion and utilization of Canadian field crops. Cigi is an industry leader in delivering customized training programs and technical expertise and providing on-going specialized technical support to customers around the world. Through unique projects and applied research activities, Cigi is also working with industry to identify diverse applications for Canada s field crops. Cigi is a one-stop shop of technical expertise and facilities uniquely housed underneath one roof. Since 1972 more than 35,000 people representing grain, oilseed, pulse and special crop industries from 115 countries have participated in Cigi programs and seminars. Cigi is funded by farmers, the Government of Canada, specifically Agriculture and Agri-Food Canada (AAFC), and industry partners. Western Grains Research Foundation WGRF is a farmer funded and directed non-profit organization investing in crop research that benefits western Canadian producers. Through investments of over $86.5 million the WGRF has assisted in the development and release of more than 158 new wheat and barley varieties over the past 20 years, many of which are seeded today to large portions of the cropland in western Canada. The WGRF also invests in research on other western Canadian crops through the Endowment Fund. Since 1981 the Endowment Fund has supported a wealth of innovation across western Canada, providing over $28.5 million in funding for over 250 research projects. History The WGRF was created in 1981 by several western Canadian farm organizations plus a representative from AAFC to administer the $9 million in producer dollars turned over by the federal government from the discontinued Prairie Farm Assistance Act, a forerunner of today s crop insurance program. The WGRF was created with the vision of being a research funding organization that would partner with research providers. The WGRF began administering the wheat and barley check-off programmes during the 1993/1994 crop year. 04

7 Western Grains Research Foundation con t The WGRF supports many public research programs and projects from across western Canada with both long-term and short-term agreements. Each dollar invested is leveraged to attain additional government funds that match or double the investment made by producers. The Endowment Fund supports research across all crop types, looking specifically at projects that show potential for farmer benefit and demonstrate scientific merit. This fund is set-up to look at the long-term stability of crop research in western Canada. Check-off dollars are invested into wheat and barley breeding research through long-term agreements with public institutions. Breeding agreements target increasing yield, improving disease and insect resistance, developing special adapting characteristics and improving overall quality. Canadian Malting Barley Technical Centre The CMBTC is a non-profit, independent organization that was set up to provide technical assistance to the malting barley and brewing industries. The CMBTC is a unique organization that was created to add value to Canadian malting barley. Their mandate includes: The evaluation of new varieties of malting barley; Providing technical marketing support to their member companies who market malting barley, and malt, around the world; Applied malting and brewing research; and Providing educational opportunities for customers of Canadian malting barley and malt. The CMBTC focus is on conducting applied research and pilot scale malting and brewing tests of registered Canadian barley varieties. The facilities will be used to commercially evaluate the malting and brewing characteristics of new and existing varieties. The CMBTC also provides training and educational opportunities in malting and brewing for customers of Canadian malting barley and malt. 05

8 Statement of Principles & Regulation The existing regulations implemented a five-year mandatory, refundable point-of-sale check-off for western wheat and barley delivered to the CGC licensees. The CGC licensees required to issue cash purchase tickets must make the necessary deductions from the producer payments and remit the deducted funds to the prescribed agency along with a report, no later than 30 days from the end of the month in which they were collected. REGULATIONS RESPECTING RESEARCH, MARKET DEVELOPMENT AND TECHNICAL ASSISTANCE (WHEAT AND BARLEY) INTERPRETATION 1. In these Regulations, Commission means the Alberta Barley Commission. APPLICATION 2. These Regulations apply to wheat and barley grown in Manitoba, Saskatchewan and Alberta and the Peace River District of British Columbia. RESPONSIBLE AGENCY 3. The Commission is the agency to which amounts are to be remitted under section 83.1 of the Canada Grain Act. 4. (1) Any person required to issue a cash purchase ticket under the Act must collect a deduction of the following amounts: (a) $0.48 per tonne for wheat; and (b) $0.56 per tonne for barley except in the case of barley grown in Alberta for which the amount to be collected is $0.04 per tonne. (2) The amounts that are deducted must be remitted to the Commission within 30 days from the end of the month in which they are collected along with a report that indicates the amounts deducted in respect of wheat and barley from each producer. REFUNDS OF AMOUNTS DEDUCTED 5. (1) Any producer may make an application for a refund from the Commission of any amount that was deducted under subsection 4(1). (2) The application must be in the appropriate form supplied by the Commission, be signed and dated and contain the producer s name, mailing address and telephone number. (3) The application may be made once every crop year and must be submitted by July 31 of that crop year. (4) The Commission must remit the refund no later than 60 days after the end of the crop year. ANNUAL REPORTS 6. The Commission must provide an annual report to the Minister of Agriculture and Agri-Food no later than 90 days after the end of the crop year that contains the following information in respect of wheat and of barley: (a) the total amounts of deductions; (b) the total amounts paid for research activities into new and improved varieties of wheat and of barley, the recipients of the funds and a description of those activities; 06

9 (c) the total amounts paid for the promotion of the marketing and use of wheat and of barley, the recipients of the funds and a description of those activities; (d) the total amounts paid for technical assistance relating to the use of wheat and of barley, the recipients of the funds and a description of the technical assistance activities; (e) the total amounts of refunds; and (f) details of the administrative costs. COMING INTO FORCE 7. These Regulations came into force on August 1, The original refund deadline of 60 days after the end of the crop year is inadequate to process and remit the refund requests. Since the CGC licensees provide check-off deductions up to 30 days after the end of the crop year and producers are able to submit their refund request until the end of the crop year, the prescribed agency and its service provider have identified that the original deadline stipulated in the regulations creates a difficult burden. The collection, tracking, and documentation process requires more time than originally anticipated to ensure an accurate outcome. Additionally, the annual report would not be finalized until after all the refunds were processed, thus the request to extend the annual report deadline is as a result of the extended refund-processing deadline. The Regulations allow the prescribed agency to better meet its regulatory obligations by extending the deadlines for processing producer refunds and for submitting the annual report. However, the work requirements and obligations remain the same with these deadline extensions. These proposed regulations were approved and passed on April 16, 2013, and came into force August 1, REGULATIONS AMENDING THE REGULATIONS RESPECTING RESEARCH, MARKET DEVELOPMENT AND TECHNICAL ASSISTANCE (WHEAT AND BARLEY) AMENDMENTS 1. The title of the Regulations Respecting Research, Market Development and Technical Assistance (Wheat and Barley) is replaced by the following: Wheat and Barley Research, Market Development and Technical Assistance Regulations 2. Subsection 5(4) of the Regulations is replaced by the following: (4) The Commission must remit the refund not later than 90 days after the end of the crop year. 3. The portion of section 6 of the Regulations before paragraph (a) is replaced by the following: 6. The Commission must provide an annual report to the Minister of Agriculture and Agri-Food not later than 120 days after the end of the crop year that contains the following information in respect of wheat and of barley: COMING INTO FORCE 4. These Regulations come into force on August 1,

10 Reporting Procedures & Distribution of Funds to Recipients Reporting Procedures Grain buyers are responsible for remitting WCD fees on a monthly basis. Forms for each of the reporting procedures were provided to all CGC licensed dealers at the beginning of the program, and are available through the Alberta Barley office at any time. Refund forms are provided by the office upon request and refund requests must be made before July 31 of each crop year. The recommended Regulation, which went into effect on August 1, 2013, outlines the following federally implemented deductions that are collected on wheat and barley sales. In BC s Peace Region: $0.48/tonne for wheat $0.56/tonne for barley In Alberta: $0.48/tonne for wheat $0.04/tonne for barley (in addition to the existing $1.00/tonne collected provincially) In Saskatchewan: $0.48/tonne for wheat $0.56/tonne for barley In Manitoba: $0.48/tonne for wheat $0.56/tonne for barley 08

11 Distribution of Funds to Recipients $0.48 WHEAT Full Remittance: 5% Administration (Alberta Barley) 10% WCD savings / Holdback for potential refunds Recipients: 85% gets divided and is now 100% of what goes to the recipients WGRF: $0.30 of $0.48 = 62.5% = 62.5/93.75 = % Cigi: $0.15 of $0.48 = 31.25/93.75 = % $0.56 BARLEY Full Remittance: 5% Administration (Alberta Barley) 10% WCD savings / Holdback for potential refunds Recipients: 85% get divided and is now 100% of what goes to recipients WGRF: $0.50 of $0. 56 = 89.3/94.7 = 94.3% CMBTC: $0.03 of $0.56 = 5.4% = 5.4/94.7 = 5.7% $0.04 BARLEY Alberta Full Remittance: 5% Administration (Alberta Barley) 10% WCD savings / Holdback for potential refunds Recipients: 85% goes only to one group, CMBTC, which means they get 100% of the remainder. 09

12 Recipient Funded Activities Cigi Mexican Wheat Importers Program 2012 Nine participants from Mexico were provided with an overall understanding of the post-monopoly wheat and barley marketing system in Canada and introduced to the various companies that are now marketing Canadian wheat and barley internationally. Participants were also provided with additional information on other Canadian field crops. Results: The Mexican wheat importers now fully understand the changes that have taken place with the elimination of the single desk for selling wheat and barley. They also had an opportunity to meet with a number of Canadian grain companies marketing wheat and barley. Mexican Wheat Importers Program 2013 Eleven Mexican wheat importers came to Cigi for training on how to determine the quality of Canadian wheat and to gain a better understanding of the quality control systems in place in Canada in private companies. They also became familiar with the role of the CGC. Individual meetings with Canadian grain exporters also took place. Results: The Mexican wheat importers now fully understand the changes that have taken place with the elimination of the single desk for selling wheat and barley. They also had an opportunity to meet with a number of Canadian grain companies marketing wheat and barley. 46th International Grain Industry Program Twenty-two representatives of international buyers of Canadian wheat, from 15 countries, participated in a two-week program that included a farm and a grain elevator visit as well as a visit to the grain port in Vancouver. Results: This program reinforced the relationship between Canada and customers for Canadian wheat and other crops. Various technical demonstrations in terms of milling, baking, and making pasta and noodles with Canadian wheat were part of this program, helping to support continued Canadian sales. Bangladesh Technical Investigation Cigi visited bakeries and milling companies to provide technical support to customers of Canadian wheat, specifically CWRS. Cigi technical representatives presented at a seminar hosted by a company for about 50 of its baking customers, discussing flour quality and baking. Results: The mission supported continued exports of Canadian wheat to Bangladesh, which is an important customer, importing more than one million tonnes of CWRS annually. European New Crop Mission U.K., Italy, Germany Mission representatives presented CWRS and CWAD new crop data that focused on wheat quality to buyers and other users of Canadian wheat at seminars in London, England (with 15 participants), Foggia, Italy (with 94 participants) Bologna, Italy (with 21 participants), and Frankfurt, Germany (with 10 participants). Results: The mission assured customers that despite any changes in Canadian wheat marketing there would be no changes to Canadian wheat quality standards. The mission supported continued exports of Canadian wheat to Europe. Venezuela New Crop Mission Mission representatives presented new crop quality information with a focus on CWAD and CWRS to potential and current customers at Eslamo, Puerto Cabello, Venezuela. One seminar was held with 35 participants. Results: The mission supported a South American market for Canadian wheat and durum assuring customers that Cigi is there to assist them with any quality concerns. The mission also provided Cigi with information to help its work in support of Canadian wheat exports on behalf of Canadian farmers and the grain industry. 10

13 Investment of Check-Off Funds August 1, 2012 to July 31, 2013 promotion and marketing activities which utilized WCD Check-Off Funds. Cigi has two program advisory committees, one representing western Canadian farmers and the other, marketers. Committee members provide guidance and direction to Cigi on programming activities related to western Canadian wheat, durum and barley. Middle East New Crop Saudi Arabia and Abu Dhabi Mission Cigi staff carried out this mission to better understand the training needs of the Grain Silos and Flour Mills Organization and SAC for training and consultation for future opportunities at Cigi (Cigi has held two six-month programs in the last two years to train GSFMO staff). In addition, two Cigi staff attended the IAOM Middle East and Africa conference in Abu Dhabi. Results: Cigi will be holding another training program in 2013 for GSFMO staff from their mills and labs; information garnered from this trip was incorporated into the upcoming program. Also the IAOM Middle East and Africa conference provided an opportunity to promote Cigi s educational and technical research support that is available to customers of Canadian field crops. Southeast Asia New Crop Mission Philippines, Malaysia, Indonesia, Singapore, Vietnam, Thailand New crop quality information with a focus on CWRS, CWRW, CPSR and CWAD was presented to customers in seminars in the Philippines (with 50 participants), Indonesia (with 55 participants), Singapore (with 25 participants), Thailand (with 40 participants), Vietnam (with 44 participants) and Malaysia (with 25 participants). In addition, one company was visited in Singapore and a presentation was given to 15 staff. North Africa New Crop Mission Algeria, Tunisia, Morocco Canadian Organizations participating: Cigi, Canadian Wheat Board (CWB), CGC New crop seminars in Algiers (with 80 participants), Tunis (with 60 participants) and Casablanca (with 47 participants) focused on the quality of the 2012 CWAD and CWRS crops regarding quality of the 2012 crop in addition to discussion of quality systems in Canada and changes within the CWB and the CGC. Results: The mission increased customers knowledge of the 2012 Canadian crop and supported on-going sales to those countries despite intense competition. Latin America Analytical Training Mission Colombia, Peru Presentations on analytical methods and techniques used to evaluate wheat and flour were given to technical staff of customer milling/food processing companies in Bogota (with 48 participants) and Lima (with 15 participants). The mission aimed to discuss analytical testing methods in order to ensure accuracy of results when testing Canadian wheat and flour by customers in these countries. Results: Participants were provided an increased understanding of analytical testing methodologies and how Canadian wheat and flour is expected to perform. Results: Customers were assured that the wheat quality of the new crops and that the Canadian grain system remains intact to meet their processing needs. On-going contact has resulted with companies since this mission. 11

14 Japan Korea Feed Barley Promotion Mission Canadian Organizations participating: Cigi, Alberta Agriculture, Alberta Barley, AAFC, Stony Plain Seed Cleaning, Mastin Seeds, and Green Prairie International. The mission aimed to increase the exports of feed grains to South Korea and Japan with a focus on barley, but covered all feed grains including wheat, canola and peas. The mission addressed concerns of buyers who were reluctant to replace higher levels of corn and soybean meal with alternative Canadian ingredients. A feed seminar and networking luncheon for feed industry representatives was held in Seoul, Korea (with approximately 85 participants) and a seminar and networking dinner was held in Tokyo, Japan (with approximately100 participants). Mission members also met with feed companies, livestock producers and importers in Seoul and Gangwon, Korea and in Tokyo, Obihiro, and Sapporo, Japan. Results: There is greater opportunity for feed grain exports in Japan and Korea. Both regions are looking to reduce the reliance on corn and soybean meal, especially given the tight supplies and high prices resulting from drought in the U.S. The hesitation to use greater levels of barley, wheat and canola meal are related to technical, supply and price concerns. The mission was able to address the technical concerns and follow-up missions with key companies are recommended. The companies represented on the mission are committed to providing quotes on a routine basis and ensuring customers are aware of opportunities based on current pricing and availability. Taiwan Wheat Technical Mission Canadian Organizations participating: Cigi, CGC, Alberta Wheat, Alberta Agriculture, Providence Grain Solutions Inc., and Paterson GlobalFoods Inc. The mission focused on the applicability of Canadian wheat in the production of end products such as bread, steamed buns, noodles and dumplings, and included a formal seminar on Canadian wheat quality in Taipei. The Taiwan Flour Milling Association assisted with arrangements and about 90 participants from flourmills attended. Mission members also visited larger milling companies in Taiwan. Results: Understanding the suitability of Canadian wheat in processing Taiwanese end products helped increase interest in purchasing the Canadian product among existing and potential buyers. China Canada Wheat Technical Mission A formal seminar was held in Shenzhen for COFCO which invited its key customers to attend (with approximately 60 participants). The seminar focused on promotion of all classes of Canadian wheat and discussion of quality issues related to CWRS shipments at the request of COFCO s customers. Any concerns that the new deregulated wheat marketing environment is affecting overall wheat quality were refuted. In addition, mission members visited a major milling and food processing company. Results: The technical assistance provided on the mission reassured COFCO that Cigi technical support is always available to them and quality concerns were covered in discussions to help maintain this important market for Canadian wheat. 12

15 Cigi s technical staff are specialists in a wide range of disciplines, sharing their commercial knowledge and technical expertise through training programs, applied research and customer service activities. Japan Technical Mission Mission members promoted the application of CPSR and CWRW discussed test results of some newer wheat varieties during technical visits to milling companies in Tokyo. A baking institute and pasta manufacturer were also visited. The mission aimed to assure customers that Canada continues to deliver high quality wheat in the new marketing environment and also helped the members to better understand Japanese end-use requirements and to initiate collaborative work. Results: The information and technical activities helped increase customers understanding of the wheat applications better. Exchange of samples and technical information between Cigi and Japanese milling companies on wheat quality evaluation is on-going in support of marketing efforts. KOFMIA South Korea Technical Mission Mission members visited milling companies in Seoul to promote the use of Canadian wheat and investigate quality requirements and the possibility of collaborative work. Discussion included the application of CWAD, CPSR, and CWRW, as well as CWSWS and CESRW. Results: Further technical support was arranged with one mill interested in processing durum wheat and arrangements were made for participation in Cigi s upcoming international durum program. There was also discussion of on-going assistance to other companies in support of Canadian wheat exports. Moderna Alimentos Baking Program (Technical Exchange) Ten participants from Ecuador came for training and focused on the quality of western Canadian wheat and the technical processes involved in milling and baking using it. Results: The program was successful in demonstrating the milling and baking qualities of Canadian wheat and will help ensure that Ecuador remains an important customer for Canadian wheat. Cigi Interflour Technical Exchange Program Four participants from Malaysia, Indonesia and Vietnam were provided with fundamental and practical knowledge on the applicability of Canadian wheat in milling, analysis, baking, noodles and steamed zend products. Results: Increased understanding of the end-use applicability of Canadian wheat. Cigi Bunge Brazil Technical Exchange Program Three participants from Bunge of Brazil were provided with technical and practical training in milling, baking, noodle processing and analytical testing with Canadian wheat. Results: Improved understanding of the end-use applicability of Canadian wheat in support of its sale to Brazil. Cigi Prima Technical Exchange Program 2012 Five participants from Sri Lanka and Singapore gained fundamental and practical knowledge on the applicability of Canadian wheat in making noodles and steamed end products. Results: The program better prepared individuals in milling and noodle processing and will help them to carry out technical service, quality assurance, and product development activities. 13

16 Japan Durum Wheat Program Participants from Japan gained a solid understanding of the functional properties of CWAD wheat and the important role new varieties play in this wheat class. The practical sessions provided insight into CWAD quality and its applicability in meeting the quality requirements for Japanese products. Results: Increased understanding of the end-use applicability of Canadian wheat in making noodles and steamed products. This will also help the participants to carry out technical service, quality assurance, and product development activities. The program helps maintain sales of CWAD to Japan. 8th Cigi Altex Technical Exchange Program Four participants from Altex of Mexico who are involved in wheat procurement, milling and secondary processing were provided with new crop information regarding CWRS (numbers one and two). The consistent quality of Canadian wheat and the advantages of other wheat classes, including CPSR and CWRW, were also discussed. Participants took part in hands-on technical sessions in Cigi s pilot mill, pilot and test bakeries, and analytical services lab. Results: This program was successful in providing technical/practical information to the same group of individuals from Altex who have visited Cigi before, and who are involved in the procurement, milling and secondary processing of Canadian wheat. This program also showcased the quality of Canadian wheat classes. Canadian National Millers Association New Crop Assessment Seminar Eighteen CNMA members (including one from the United States) gained a comprehensive understanding of the 2012 new crop with analysis of a series of composites from across the Prairies. The program focused on Nos. 1 & 2 CWRS, CPSR, CWRW and CWAD characteristics, as well as any changes from the previous year. Results: This program provided CNMA members with a complete overview of the 2012 new crop that included milling, baking and analytical test results. North Africa Durum Millers Program Sixteen north African participants from Tunisia, Algeria and Morocco gained understanding of the technical aspects of Canadian durum with a focus on flour milling, as well as pasta and couscous production. Results: The program successfully demonstrated the quality of CWAD for the north African market. The participants learned about the grading process and how to control insect infestation for stored grain, as well as about milling, baking and pasta processing. Improved customer knowledge of CWAD supports potential for increased durum sales into north Africa. Malayan Flour Mills Technical Exchange Program Six participants from Malaysia were provided with fundamental and practical knowledge of the applicability of Canadian wheat in milling, baking, noodles and steamed products, as well as analytical testing methods and their relationship to end-product quality. Results: The program supported continued sales of Canadian wheat to Malaysian flour mills. Wilmar China Technical Exchange Program (Pasta/Noodles) Six participants from Wilmar China gained knowledge of the quality and application of Canadian wheat, pulses and special crops, and were provided information on recent developments in milling, analytical work, and processing technology related to baked goods, noodles, pasta, and other extruded food products. The use of Canadian durum in the processing of Chinese food products was also explored. 14

17 Results: Participants left with a better understanding of the quality and application of Canadian wheat, pulses and special crops. They were provided information on recent developments in milling, analytical work, and processing technology related to baked goods, noodles, pasta and other extruded food products, as well as the use of Canadian durum in the processing of Chinese food products. The exchange supports China s demand for Canadian wheat for Chinese end products. Bogasari Indonesia Technical Exchange Program Six participants from Indonesia were provided with technical and practical information on the quality and applicability of Canadian wheat in milling, baking, pasta and noodle processing. The participants from Bogasari Flour Mills are a major buyer of Canadian wheat. Results: The program helped participants understand the quality attributes and application of western Canadian wheat classes through milling, lab analysis, baking, noodles and Asian food products. They also saw a comparison of end products made from Canadian wheat flour versus other commercial flours. The exchange supported the customer s future purchases of Canadian wheat. Latin American and Caribbean Millers Program Nine participants received technical training on the use of western Canadian wheat demonstrating the differences between the wheat classes and grades and were also shown how flour quality can be optimized to the customers advantage. Participants were also shown how common wheat flour could be blended with durum semolina in the production of pasta. They also learned about milling, baking, pulse processing and analytical services. Japan Canada Milling Program Eight customers from Japan enhanced their understanding of Canadian grain quality control and handling systems, as well as the functionality of Canadian wheat classes. The program demonstrated to a broad cross-section of the Japanese milling industry the merits of CPSR, CWRW and CWHWS wheat for their flour needs. The program also focused on how newly registered varieties of CWRS are having a positive impact on this class of wheat which is regarded as very high quality in Japan. Results: This program improved the participants understanding of Canadian wheat classes, quality and handling systems in support of Japanese milling requirements and Canadian grain exports to Japan. Prima Technical Exchange 2013 Six people from Sri Lanka and Singapore attended this program which provided fundamental and practical knowledge on the applicability of Canadian wheat in baked products, better preparing participants for the milling and use of Atta flour to bake roti and parathas. As well, sessions focused on baking baguettes and ciabattas. Overall, the program helped Prima s staff to carry out technical service, quality assurance and product development activities with Canadian wheat. Results: Prima, a major customer, gained processing knowledge, which will help ensure that the company remains a customer for Canadian wheat. Results: Participants left with a better understanding of western Canadian wheat including the differences between the wheat classes and grades, and how flour quality can be optimized to the customer s advantage. The program supports Canadian wheat and durum sales to these customer countries. 15

18 Recipient Funded Activities Western Grains Research Foundation Wheat Research Funding Activities: Agriculture and Agri-Food Canada AAFC is working to develop cultivars in each of the classes: CWRS, CWAD, CPSR, CWHWS, CWRW and CWSWS. All cultivars are widely tested across western Canada to ensure adaptation to drought, heat, weather damage and diseases such as rust, common bunt, fusarium head blight, leaf spots and loose smut, and insects such as orange wheat blossom midge and wheat stem sawfly. University of Saskatchewan The University of Saskatchewan s Crop Development Centre (CDC) wheat breeding programs are aimed at improving five classes of wheat CWRS, CWAD, CPSR, CWHWS and Canada Western General Purpose (CWGP). University of Alberta The University of Alberta is working to develop new and improved CPS and CWRS wheat germplasm with earlier maturity, improved straw strength and greater stress tolerance. Alberta Agriculture & Rural Development AARD is working to develop economically and agriculturally superior and adapted, improved winter wheat germplasm and cultivars suited for production outside the traditional winter wheat growing area of Alberta. The primary area for development is the black soil zone of the Alberta parkland. Barley Research Funding Activities: Agriculture and Agri Food Canada/Crop Development Centre AAFC and CDC is working to develop two-row malting, six-row malting, hulless food, forage, and two-row feed barley cultivars. Cultivars are tested in appropriate environments in western Canada to ensure adaptation to abiotic (drought, heat, weather damage) and biotic (diseases such as stem rust, fusarium head blight, spot blotch, net blotch, scald, common root rot, and loose and surface-borne smuts) stresses. University of Manitoba The University of Manitoba is working to develop winter wheat cultivars and winter wheat germplasm, including CWGP and CWRW wheat cultivars that are disease resistant, semi-dwarf, high yielding, cold hardy and suited to the higher moisture regions of the eastern prairies. All cultivars are widely tested across western Canada to ensure adaptation to stem and leaf rust, leaf spotting diseases such as tan spot and septoria leaf blotch, and fusarium head blight. 16

19 Agriculture and Agri-Food Canada (AAFC) Wheat Research Highlights AAFC is developing cultivars in each of the classes: Canada Western Red Spring (CWRS), Canada Western Amber Durum (CWAD) Canada Prairie Red Spring (CPSR), Canada Western Hard White Spring (CWHWS), Canada Western Red Winter (CWRW) and Canada Western Soft White Spring (CWSWS). All cultivars are widely tested across western Canada to ensure adaptation to weather damage (such as drought and heat) and diseases such as rust, common bunt, fusarium head blight (FHB), leaf spots, and loose smut; and insects such as orange wheat blossom midge and wheat stem sawfly. AAFC breeders were successful in obtaining support to register eight new wheat varieties: (BW462) AAC Prevail, CWRS has 7.1% more yield than McKenzie and a lower protein content (0.2%). It also features resistance to midge (Sm1), FHB slightly better than McKenzie and resistance to stem rust races Ug99 and variants. (DT832) CWAD has quality notably better than the checks with higher semolina yield, lower semolina ash and low cadmium. (DT833) AAC Marchwell CWAD is the first ever Sm1 midge resistance durum variety. (HW027) AAFC Whitefox CWHWS has overall better quality than the checks. (HY1319) CPS Red has significantly shorter, stronger straw and significantly larger seeds and test weight than 5701PR. It exceeded guidelines for all priority number one diseases and is moderately resistant to Ug99 and variants. It has improved quality for protein, falling number and farinograph absorption. (HY1610) CPS Red has Sm1 midge resistance, 8.3% more yield than 5701PR and one day earlier maturity. (HY1615) CPS Red has Sm1 midge resistance, the first ever FHB resistance, good disease resistance package and moderate resistant to Ug99 and variants. It has excellent pre-harvest sprouting resistance. (GP097) General Purpose Spring wheat has better disease resistance than Andrew. Crop Development Centre (CDC) Wheat Research Highlights The University of Saskatchewan s CDC wheat breeding programs are aimed at improving five classes of wheat: CWRS, CWAD, CPSR, CWHWS and Canada Western General Purpose (CWGP). All cultivars are widely tested across western Canada to ensure adaptation to weather damage (such as drought and heat) and diseases such as rust, common bunt, FHB, leaf spots, and loose smut; and insects such as orange wheat blossom midge and wheat stem sawfly. Two CDC lines were supported for registration: PT584 (CWRS) was supported for full registration. PT584 is a standard height, awned, and hollow-stemmed wheat with a higher yield potential. The higher yield potential of PT584 was achieved despite a grain protein concentration that was higher than that of the mean of the checks in two years of testing. PT584 was 0.2 to 2.7 days later maturing than the check with an intermediate plant height and similar lodging scores. PT584 had a higher test and seed mass than the check cultivars. Based on two years of assessment in the Parkland Wheat Cooperative Test, PT584 is resistant to the wheat midge. PT584 is resistant to prevalent races of leaf, stem, and stripe rust. On average leaf spotting disease levels were similar to the checks. It is also moderately resistant to FHB. 17

20 Recipient Funded Activities Western Grains Research Foundation (cont.) DT570 (CWAD) has been supported for three years since interim registration and will be brought forward for regional registration in Interim registration was requested because three years of agronomic and disease data were available, but only two years of end-use quality data. Averaged over 29 station-years, DT570 yielded more than all of the check cultivars. Averaged over all years of testing, DT570 yielded approximately 5% more than Strongfield, 18% more than AC Navigator and 10% more than AC Avonlea. DT570 expresses conventional height similar to AC Avonlea and Strongfield, but has superior lodging resistance. Maturity and test weight of DT570 were similar to Strongfield, while kernel weight was slightly lower than the checks. Test weight of DT570 was better than AC Avonlea, AC Morse, Commander, and AC Navigator. Grain protein concentration of DT570 was similar to Strongfield and higher than AC Morse, AC Navigator, and Commander. DT570 expressed a solid stem phenotype with greater pith expression than Lillian, Golden Ball, and AAC Raymore. Disease Screening Nearly 16,000 breeding lines were tested in one or more disease tests over the reporting period. This represented advanced and early generation lines from the CWRS, CWHWS, CPS/GP and CWAD market classes. University of Alberta Wheat Research Highlights The University of Alberta is working to develop new and improved CPS and CWRS wheat germplasm with earlier maturity, improved straw strength and greater stress tolerance. Two CWRS wheat cultivars were supported for registration: BW947 (CWRS) is an early maturing, high yielding line of medium height wheat with good lodging resistance. It has good leaf rust resistance and very good stripe rust resistance. PT765 (CWRS) is a high yielding line of intermediate maturity wheat with good resistance to leaf, stem, and stripe rust. It has very high test weight. PT765 exhibits FHB resistance greater than the check cultivars and DON contamination lower than the check cultivars. Alberta Agriculture and Rural Development (AARD) Wheat Research Highlights AARD is working to develop agronomically superior winter wheat germplasm and cultivars suited for production outside the traditional winter wheat growing areas of Alberta. The primary area for development is the black soil zone of the Alberta Parkland. In 2012/13 a total of 49 new winter wheat recombinants were created. The main objectives of the crossing program were high yield, winter hardiness, multiple disease resistance, short stature, sprout resistance, and early maturity. Winter wheat breeding nurseries have made germplasm crosses at all generations. The germplasm used has included material from CIMMYT and ICARDA. This work has taken place at many locations across Alberta including Lacombe, Morrin, Olds, Trochu, and Ellerslie. Lines of winter wheat have been evaluated for the purpose of collecting registration data in 2012/13. University of Manitoba Wheat Research Highlights The University of Manitoba is working to develop winter wheat cultivars and winter wheat germplasm, including CWGP and CWRW wheat cultivars that are disease resistant, semi-dwarf height, high yielding, cold hardy, and suited to the higher moisture regions of the eastern prairies. All cultivars have been widely tested across western Canada to ensure adaptation to stem and leaf rust, leaf spotting diseases (such as tan spot and Septoria leaf blotch), and FHB. 18

21 In 2012 winter wheat breeding lines were evaluated for stem and leaf rust resistance and FHB resistance in field disease nurseries. Lines with good reactions were advanced to further testing in the fall of Two fursarium head blight mapping populations were tested in the field as part of a doctoral student s research. Another FHB mapping population was evaluated in the greenhouse for resistance to FHB spread within the spike (type II resistance). Molecular marker screening equipment has been set up and protocols were optimized for forty SSR markers that are linked to known FHB quantitative trait loci. Screening of winter wheat populations segregating for FHB resistance with these markers has begun. Work related to the identification of specific genes for FHB resistance is progressing and the characterization of putative resistance genes is being conducted. AAFC Barley Research Highlights AAFC is working to develop two-row malting, six-row malting, hulless food, forage, and two-row feed barley cultivars. Cultivars are tested in appropriate environments in western Canada to ensure adaptation to abiotic stresses (weather damage such as drought and heat) and biotic stresses (diseases such as stem rust, FHB, spot blotch, net blotch, scald, common root rot, and loose and surfaceborne smuts). Activities have expanded or been added in the following areas: screening for disease resistance, (particularly FHB), screening for field performance at multiple sites at earlier generations, development and utilization of biotechnology, where feasible, to enhance selection efficiency and accelerate development of new varieties, off-season activity in the New Zealand or California winter nurseries, expansion of a food utilization project, and physical and chemical grain and forage quality analyses. Two-Row Malting Coop Entries TR10214 was supported for registration recommendation by PRCOB in February TR10214 is sister to TR08203 tracing back to two-row Chinese accession Harbin with consistently lower DON levels (35% lower than AC Metcalfe over 14 site-years in Manitoba FHB nurseries). This line has shown 10% higher yielding than AC Metcalfe over two years, is slightly later, is taller but also has stronger straw, is heavier, and has plumper kernels. It is more resistant to spot and net blotch than AC Metcalfe, is more susceptible to common root rot and the smuts, and is similar for other diseases. Compared to the checks, the malting quality is similar and acceptable. TR12225 was advanced to second year Coop and first year collaboration entry. It is a high yield line with good disease resistance, including somewhat lower DON. It also has a promising malting quality profile. In 2013 the first year entries included: TR13231 a high yielding line with good disease resistance and malting quality. TR13232, TR13233, and TR13236 which have lower DON. TR13235 which may have low proanthocyanidin content, helping to reduce chill haze in beer. Hulless Food Advanced Lines in 2013 HB129 is a waxy type of food barley. Although not conforming to the specifics of the objectives, it has similar yield and beta-glucan content as the waxy check variety and a higher acid extract viscosity. 19

22 Recipient Funded Activities Western Grains Research Foundation (cont.) HB130 is a flour producing barley with similar yield and disease resistance package to CDC McGwire. It also has softer kernels, higher flour yield, whiter flour, smaller flour particle size, and better pearling than CDC McGwire. HB130 meets the objectives, except for reduction in DON content. Forage Advanced Lines FB018 shows promise for both agronomic performance and quality with 7% grain increase over Desperado and 5% forage yield increase over AC Ranger. FB018 has similar forage quality and disease profile to AC Ranger but better tolerance to lodging, plumper seed, and higher test weight. Most of the objectives are met, but it has only 5% increase in forage yield over AC Ranger versus the targeted 20% increase. CDC Barley Research Highlights The CDC is working to develop two-row malting, six-row malting, hulless food, forage, and two-row feed barley cultivars. Cultivars are tested in appropriate environments in western Canada to ensure adaptation to abiotic stresses (including weather damage, such as drought and heat) and biotic stresses (including diseases such as stem rust, FHB, spot blotch, net blotch, scald, common root rot, and loose and surface-borne smuts). TR10124 was supported for registration in February It is a two-row, hulled malt barley with good adaptability across western Canada. It combines good agronomic performance (including it s short height, strong straw, and equal yield to CDC Copeland) and physical grain quality (high kernel weight and plumps) with good disease resistance (resistant to true loose smut, covered smut, stem rust, and spot-form net blotch, and moderately resistant to net-form net blotch). The malting profile of TR10124 is very good with a grain protein and malt enzyme activity level between AC Metcalfe and CDC Copeland, with an extract greater than both, with malt beta-glucan lower than both, and with friability and FAN greater than both. HB11316 was also supported for registration in February It has demonstrated good agronomic performance combined with good grain quality. In particular, HB11316 possesses higher levels of beta-glucan making it suitable for food applications. TR11127 (malt) was advanced to second year testing in the 2013 collaborative malt trials. TR12135 and TR12137 (both of which are malt) were advanced to second year testing in the RCoop and first year testing in the 2013 collaborative malting trial. TR12139 (feed) was advanced to second year testing in the RCoop. TR12810 (malt) from the CDC-Sapporo-PML joint breeding program was also advanced for a second year of testing in the RCoop and first year testing in the 2013 collaborative malting trial. HB12320 (high beta-glucan for food) and HB12321 (high amylose for food) were both advanced to second year testing. FB206 (forage barley) was also advanced to second year testing. 20

23 Investment of Check-Off Funds WGRF invests the funds collected through the wheat and barley check-offs into wheat and barley variety breeding programs through a number of longterm research agreements with AAFC, the University of Saskatchewan, the University of Manitoba, the University of Alberta, and Alberta Agriculture and Rural Development (AARD). These agreements provide a framework for producer investment in wheat and barley breeding research. They feature funding allocations, breeding targets and other key provisions to get the most out of farmers investment in wheat and barley variety development. Alberta Barley 17 21

24 Recipient Funded Activities Canadian Malting Barley Technical Centre Project 1 Technical support of existing sales of Canadian malting barley maintain existing market share. Current Progress Towards Long-Term and Strategic Outcomes Maintenance of current world malting barley share. One share percentage is worth close to $ 30 million USD. Sub-Activity Description/Comments Performance Value Added + Results 1.1 New crop evaluations: barley analysis, micro and pilot malting and brewing of new crop as it is harvested. Using data generate reports, data sheets, presentations for international customers highlighting the quality attributes of the current Canadian crop, compared to previous years and compared to barleys of other origins. 12 high quality reports on new crop (222 barley quality analyses, 55 micromalting, 14 pilot malting and 14 pilot brewing analyses) generated and presented to customers in South America. 1 presentation to customers with 3 participants. The grain handling exporters were very satisfied with the reports and they used the reports in promotion of new business. 1.2 Cargo quality valuations: barley analysis, pilot malting and pilot brewing of all international malting barley shipments and generation of comprehensive report on malting and brewing quality and economics. This information is invaluable to the customer in that they do not need to spend time and money to do this upon shipment arrival. This information is value-added for the customer, information that cannot be procured from our competitors. 18 CQC analyses conducted to satisfaction of customer (100%). Our evaluation of cargoes heading to customers cannot be accomplished by any other origin barley, and as such is looked at as tremendous value added when purchasing Canadian. 1.3 Procure and evaluate barleys of other origins and compare to Canadian barley through barley analysis. Micro and pilot malting and brewing of new crop. Data is then used to highlight the positive attribute of Canadian versus our competitors. 4 high quality reports on comparisons (10 barley quality, 25 micromalting, 6 pilot malting and 6 pilot brewing analyses) of Australian generated. Customers extremely satisfied with the work and they have requested additional work. 22

25 Outcome and Goals for Breeding Programs: To develop improved varieties which grow well in farmers fields and are demanded by industry. Some of the objectives set for these breeding agreements target increasing yield, improving disease and insect resistance, developing special adapting characteristics and improving overall quality. Sub-Activity Description/Comments Performance Value Added + Results 1.4 Complete product testing (barley, malt or beer) as required by international customers (malting and/or brewing). This is a value-added service for customers that our competitors cannot match. Customer satisfaction rate (100%) in terms of analysis results/report and time to complete work. 4 pilot malting trials. 4 pilot brewing trials. 1.5 Make technical presentations on Canadian malting barley at international malting and brewing conferences (MBAA, EBC, ASBC, IBD). Presentations made at IBD meeting in the United Kingdom. Attendees numbered Provide troubleshooting or problem solving expertise for any customer of Canadian malting barley (remote or on-site depending on the assistance required). Disseminate information into the three largest markets, China, the U.S., and South America through crop update seminars in the target market. Worked with customers in China and in Colombia regarding problems. 100% customer and member satisfaction. 1.7 Hold training programs in Canada for customers to reinforce the Canadian malting barley quality advantage. We have held 1 program in this quarter for Tsingtoa with 3 participants. No new sales requests from customers to date. 23

26 Project 2 Ensure new varieties meet international customer needs and assist in commercialization. Current Progress Towards Long-Term and Strategic Outcomes Rapid acceptance and commercialization of new superior varieties of Canadian malting barley able to better compete in the world market. Sub-Activity Description/Comments Performance Value Added + Results 2.1 Recommended list and new varieties list development. Ensure that these reports are developed and disseminated to international customers for their information and use in the evaluation of new malting barley varieties being developed in Canada. Through this process the customers are made aware of the new varieties and their attributes and can match the attributes to their specific requirements. Recommended list assembled and published by November Delivers information for the customer as to the varieties to expect out of Canada for the coming year. As well delivers to the farmer what varieties will be in demand. 2.2 New malting barley variety evaluations: barley analysis, micro and pilot malting and brewing of new crop as it is harvested. Using data generate reports, data sheets and presentations for international customers highlighting the quality attributes of the new varieties, compared to current Canadian varieties and compared to barleys of other origins. 9 high quality reports on comparisons (45 barley quality, 125 micro-malting, 36 pilot malting and 36 pilot brewing analyses) of Australian generated. Customers extremely satisfied with the work and they have requested additional work. 24

27 These breeding agreements provide a framework for producer investment in wheat and barley breeding research. They feature funding allocations, breeding targets and other key provisions to get the most out of farmers investment in wheat and barley variety development. Sub-Activity Description/Comments Performance Value Added + Results 2.3 Develop reports of the evaluation of the new varieties for dissemination through report or presentation to international customers. Reports issued on micro, pilot malting and brewing of 4 new varieties, Landis, Synergy. Further trials for Meredith and Bentley underway for China. Information generated calls from AB-InBev and SABMiller. In process for trials of Meredith in U.S. and South America. 2.4 Assist customers in trialling new varieties either in our pilot facilities or on-site in their facility. Work with customers closely to determine their requirements in the future in terms on malting barley characteristics. Work with Meredith under South American conditions as well as Tsingtoa China conditions conducted. Additional work completed with Bentley and Major for South America. Customers satisfied with our work and have requested additional work. 25

28 Financial Statements Administration Breakdown Cost 5% Administrative costs - detailed breakdown Accounting $ 124, Administration/Management $ 26, Communications $ 63, Mailing & Supplies $ 6, Rent $ 6, Subcontracting/Levy Central $ 287, Telephone/Fax/Media $ 7, Travel & Meetings $ 2, Total $ 525,