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Global Excellence 



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Canada 



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Agriculture 
and Agri-Food 
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Corporate 
Strategic Plan 

1999 - 2002 






Agriculture and 
Agri-Food Canada 



Agriculture et 
Agroalimentaire Canada 



We live in innovative times. The evidence, 
in the agriculture and agri-food sector, is all 
around us: Canada's innovative excellence is 
recognized worldwide. 

Farmers use satellites to maximize land 
production yields. Processors use robots and 
lasers to produce the perfect cuts of meat 
consumers demand. Retailers and manufac- 
turers are linked by sophisticated informa- 
tion technology, from the grocery store scan- 
ner to state-of-the-art systems that give shop- 
pers the products they want, in the size and 
quantity they need. 

Businesses at every level of industry are 
using technology to boost productivity and 
reduce costs. At the same time, Canadian 
producers are taking even better care of 
the resources on which we depend. Agri- 
environmental indicators tell us that the lands 
on our prairies are in better shape than they 
were a decade ago. 

The bottom line is that this sector is built on 
innovative businesses run by people who 
know that to succeed in a knowledge-based, 
global economy, you need talented people 
and state-of-the-art tools. 

There's a real dynamism in this business, 
both here at home and globally, and that is 
why we believe, at Agriculture and Agri-Food 
Canada, that the growth and successes of the 
last half decade will continue. We believe 
that the ambitious goals, set by industry two 
years ago, continue to be well within our 
reach. Canada currently holds about 3.3 per 
cent of world trade in agriculture and agri- 
food products. We intend to increase that to 
our 4 per cent target by 2005. Just this year, 
despite the turmoil in several of our priority 
export markets, sales of our processed prod- 
ucts continued to grow worldwide. 

Our success in the international arena is 
built on a strong base. We have together con- 
structed a highly competitive, increasingly 
diverse industry that is remarkable not only 
for the excellence of the products we produce. 




Innovating 
for Success 



but also for the safe and environmentally sus- 
tainable ways we produce them. We take 
good care of health and safety, just as we take 
good care of our resources. 

Canada's domestic markets are our spring- 
board to international success. This home- 
grown excellence, translated into increasing 
sales in world markets, pays dividends for 
Canada, in a strong sector and more jobs 
coast to coast. 

This is not to say, however, that success 
comes easily. Optimism or not, farming is 
a risky business. 1998 was a difficult year 
in many ways. You can't always predict 
the weather and you can't always predict the 
markets. 

Right now, many Canadian farmers are 
experiencing a significant decline in their 
incomes, largely due to low commodity 
prices. To help deal with the current crisis, 
the Agricultural Income Disaster Assistance 
program was announced in December 1998. 
The Government of Canada will invest up 
to $900 million in this program over the next 
two years, matched by up to $600 million 
from the provinces. In the first half of 1999, 
AAFC, in cooperation with participating 
provinces, will deliver this assistance to agri- 
cultural producers who face dramatic declines 
in net income as a result of factors beyond 
their control. 

The unpredictable nature of our business is 
the reason industry and government have — 
through consultation, partnership and fore- 
sight — developed one of the most stable and 
reliable safety net systems in the world. But 



it's not perfect. No system is. At AAFC we 
continue to work toward a modernized income 
stabilization system which fosters self- 
reliance and competitiveness in the sector, 
and helps farmers manage risk. 

Reduced risk, of course, also depends on 
secure markets. New trade realities demand 
that we continue to press our interests on the 
international stage. With the World Trade 
Organization negotiations scheduled to begin 
in late 1 999, one of our priorities will be to 
negotiate hard for a level playing field on 
which the Canadian agriculture and agri-food 
sector can compete with the world. Our first 
step will be to ensure that we have developed 
a consistent and inclusive position. Input 
from industry will be invaluable to us. I am a 
firm believer that working together is not 
only the best strategy; it is the only strategy. 

The same philosophy underlies our govern- 
ment's approach to rural Canada. Last year, 
we announced the Canadian Rural Partner- 
ship (CRP), bringing federal departments 
and agencies together to help us serve rural 
Canadians better and develop and maintain 
strong rural communities. 

We believe that all of us — whether we live 
in Wendake, Woodstock, Wynyard or 
Windigo — should be equally able to take 
advantage of new opportunities and new 
technologies. As Canadians, we should be 
entitled to share the economic benefits of the 
global knowledge-based economy regardless 
of our address. 

Our successes rest on our ability to transform 
ourselves as an industry: to seize opportunities, 
to maintain our competitive edge, and to build 
our future through sound environmental 
stewardship of our land and resources. 

I invite you to read Global Excellence, and 
judge for yourself the difference we intend to 
make on behalf of Canadians. 

Lyle Vanclief 

Minister of Agriculture and Agri-Food and 

Minister Coordinating Rural Affairs 



Beyond the Bread Basket: 

Innovating 
for Success 

"Speaking as someone who farmed for 

25 years, I am absolutely convinced that 

the industry cannot help but grow and prosper 

by serving as a supermarket to the world." 

Lyle Vanclief, December 1998 




A generation ago, Canada was the bread basket 
to the world, the quality of its grain fields known 
even in remote corners of the globe. This has not 
changed. But the agriculture and agri-food indus- 
try of the nineties is transforming itself through con- 
sistent innovation — and the pace is accelerating. 
The industry today is sophisticated, increasingly 
complex, and ready to meet the changing needs of 
consumers around the world. 



Adding value here at home 

No longer are excellent grains and raw products 
Canada's sole stock in trade. Canada is lining the 
shelves of supermarkets from Brazil to Taiwan with 
a growing range of higher- value products, processed 
right here at home. Even in the difficult global 
markets of 1998, Canada's processing sector surged 
ahead, with $10.6 billion-worth of value-added prod- 
ucts, from canola oil to ice wine, shipped to mar- 
kets around the world — almost triple Canada's 
processed export sales a decade ago. 

With these record sales, exports of processed 
products actually exceeded exports of primary prod- 
ucts, confirming the potential for a growing, 
vigorous processing industry in the 21st century. 



In individual products, the successes were 
many. In 1998, for example, canola oil exports rose 
69% to $41 1 million and boneless fresh beef exports 
rose 58% to $720 million. With this remarkable 
growth, Canadians are showing an enviable 
ability to compete in increasingly sophisticated 
markets — while creating jobs and prosperity for 
Canadians. The processing sector alone employed 
232,400 Canadians in 1997, an increase of 13,400 
from 1993. 



Exports exceed imports 

The bottom line, for Canada, is a more profitable 
industry, which benefits all Canadians and our coun- 
try's balance of trade. In 1996, for the first time, 
Canada exported more processed food than it imported, 
and that positive trend continues. In a decade, 
Canada's balance of trade in agri-food products has 
shifted from a deficit of more than $630 million to 
a surplus in excess of $200 million in 1998. And as 



a whole, the agriculture and agri-food system is 
expected to contribute 8.4 percent to Canada's Gross 
Domestic Product in 1998. 

The success of Canada's processors has been a 
critical factor in the sector's overall performance 
over the last two years. In 1 997, export sales reached 
$22.3 billion, and preliminary figures for 1998 are 
almost $21 billion, with final figures expected to 
be higher. This is remarkable performance, consid- 
ering the serious economic problems that have dis- 
rupted global markets. 



Living in interesting times 

Canada has weathered a year of chaotic export 
markets, and serious declines in farm income. 
Farmers around the world were faced with a cycli- 
cal downturn in prices for hogs, grains and cattle, 
greatly exacerbated by the economic turmoil in 
Southeast Asia and Russia. 



Measuring Canada's 
Performance 

From Canada, with love: Trade with Canada's 
biggest partner, the United States, is double the 
value of 10 years ago when the Canada-United 
States Free Trade Agreement was signed. On 
January 1, 1998, tariffs on almost all agri-food 
products traded between the two countries were 
removed, and by year end, Canada had set new 
sales records, exporting $12.8 billion to the U.S. 
More than two thirds of the exports were pro- 
cessed agricultural products— a remarkable 
increase of 16% over 1997. 



Exports of Primary Agriculture Products and Processed 
Agri-Food Products (in $000) 



25000 - 



20000 - 



15000 



10000 — 



5000 -- 



•- 




88 89 90 91 92 93 94 95 96 97 98 



Primary 
Processed 



1998 Data preliminary 



Global Excellence is based on Agriculture and Agri-Food Canada's 1999-2002 Estimates: A Report on Plans and Priorities tabled in Parliament in March this year. 
That document is available on our website: www.agr.ca. 



CORPORATE STRATEGIC PLAN, 1999-2002 



Vital Statistics 

A sophisticated industry where the stakes are high 

One in every seven working Canadians — or some two million people — is employed in the agriculture 
and agri-food sector. Three out of four work beyond the farm gate. 

The agriculture and agri-food sector contributed $4.6 billion to Canada's trade surplus, or an estimated 
24 percent, in 1998. 

About 145,000 retail and foodservice establishments accounted for Canadian food and beverage sales 
of over $91 billion in 1997, up from just $71 billion in 1988. 

An average Canadian farm produces enough food for 120 people. Some 98 percent of all farms in Canada 
are family-owned and operated. 

Farm net worth increased by almost 20 percent between 1993 and 1997 on average. 

Our farm production is up (livestock production alone grew over 25 percent from 1992-1997) — yet rural 
land and water quality is better now than it was 10 years ago. 

In 1997, Canadians processed more than $54 billion in foods and beverages, up more than a third from 
a decade earlier. 



The difficult markets have been a testament — if 
we needed more proof — of how closely Canada's 
fortunes are tied to global markets, and how inti- 
mately the bottom line for a family in Indian Head, 
Saskatchewan can be linked to an economic crisis 
at the other end of the world. Canada is a trading 
nation, and about 40 cents of every dollar reaching 
the farm gate comes from trade. 

Profiting from growth 

While our growing dependence on global trade 
offers many opportunities for Canada, it will be crit- 
ical to ensure that this trade translates into more 
jobs and better access for Canadian farmers and our 
processing sector. International trade must also be 
compatible with a healthy environment and strong 
rural communities. 

Export growth needs to be supported by a strong 
risk management approach to protect farmers from 
major variations in farm income. As well, profiting 
from growth means we need to aggressively pursue 
a more rules-based international trading system that 
will assure Canadians they can fairly compete on a 
level global playing field. And as we shift our grow- 
ing exports towards value-added products, we will be 
embodying more Canadian jobs in products that are 
less vulnerable to trade barriers of other countries. 



Good value for Canadians 

Profitable growth means using this sector's domes- 
tic strengths as a springboard to success. Our indus- 
try is remarkably innovative. Canada's products 
consistently take prestigious international prizes for 
excellence. And worldwide, Canada is recognized 
for our country's excellence in food safety. The 
Canadian Food Inspection Agency (http://www.cfia- 
acia.agr.ca) is the first of its kind in the world, and 
continues to enhance Canada's reputation for 
healthy, wholesome foods. 

The result, here in Canada, is a world-class agricul- 
ture and agri-food system that benefits all Canadians. 
The domestic market remains healthy. At our retail 
and foodservice establishments, Canadian consumers 
rack up purchases of slightly more than $91 billion. 
Yet for the average Canadian family, food and bev- 
erage expenditures are among the lowest in the 
developed world. 



Measuring Canada's 
Performance 

Farming for fries! Canada's potatoes are tick- 
ling the palates of French fry lovers from Asia to 
Latin America, and two new processing plants in 
Alberta intend to capture more of the worldwide 
appetite. The plants, which will initially require 
5000 hectares of potatoes each, will provide new 
impetus for the growth of the potato industry in 
the west. 

The prognosis: new record sales in 1999! 

• Exports of frozen potato products hit record 
highs in 1997, then climbed an additional 
31 percent to reach $462 million in 1998. 

• Growers planted a record 1 58,900 hectares in 
1998, to produce 4 million tonnes of potatoes. 



The Canadian industry is in a better position 
than most to prosper in the global marketplace, 
largely due to a healthy domestic market and strong 
trading relationship with the United States. It has 
gone through a period of adjustment, adapting to 
more liberalized trade, changing consumer demands, 
more environmentally sustainable practices, and 
rapid advances in technology. 

The sector will certainly have some challenging 
times ahead. But its foundations are solid, its direc- 
tion clear-sighted. We are certainly well prepared 
for a promising future. This Corporate Strategic 
Plan will detail what Agriculture and Agri-Food 
Canada intends to do to help the industry to realize 
its goals. 



Growing Better 



Can Canadian producers add some 700,000 head 
(or 15 percent) to today's cattle herds, and a pre- 
dicted 5.5 million head (or 30 percent more) to our 
hog population, by 2005? It's a tall order, but 
Canada's trade success is directly linked to robust 
production on the farm. 

Farm production is indeed growing. Preliminary 
figures show that 1998 almost matched 1997 farm 
production, which had topped $29.5 billion — up 
fully $2 billion over 1996. In order to meet the ambi- 
tious goals set by industry, Canadian farmers will 
be challenged to dramatically increase overall pro- 
duction, building livestock herds and in many cases, 
doubling crop yields over 1996 levels. 

The challenge, today, is to precisely define how 
to continue moving forward. To increase cattle 
herds, for example, producers will need to improve 
rangeland management, feed production, manure 
management — and more. On the prairies, where 
much of the growth is expected to occur, AAFC's 
Prairie Farm Rehabilitation Administration (PFRA) 
launched the Prairie Agricultural Landscapes (PAL) 
project. PAL will set out economic growth scenar- 
ios to determine specific impacts on lands, and to 
lay out strategies to achieve the growth in envi- 
ronmentally sustainable ways. 



Technology on a fast track 

New technology, coupled with a greater diversifi- 
cation in what farmers grow and how they grow it, 
will lead the way. Over the next few years, for exam- 
ple, Canada expects to reap the benefits of new 
grain varieties. A ten-year push to intensify our 
work in wheat breeding, launched in 1995, promises 
to add an additional 20 percent — or $1 billion — 
to the value of our exports by 2005, thanks to the 
development of varieties with higher yields and 
higher protein content. 

Biotechnology plays a critical role in the crop 
development process. Canada's goal is to couple 
higher yields with hardiness and pest resistance. 
Strains that require fewer pesticides and fertilizers 
are good news for agricultural landscapes — and 
easier on farmer's pocketbooks. Over the next few 
years, Canadian producers expect to see a 15 per- 
cent drop in the marginal costs of producing soy- 
beans, corn and wheat. 

To maintain Canada's competitive edge, the 
federal government's 1999 budget earmarked 
an additional $55 million dollars over three years 
for biotechnology. One third of this will be targeted 
to agriculture. 



Canadian Agriculture and Food Celebration — October 1999 

The first Canadian Agriculture and Food Celebration will be observed in October 1999, highlighting the 
importance of the agriculture and agri-food sector, its remarkable contributions to Canada throughout his- 
tory, and its potential to provide jobs and stimulate economic growth. 

The celebration provides AAFC and its provincial, territorial and industry partners with an opportunity 
to acknowledge and thank the nearly two million people involved in the agriculture and food industry. 
This will be a time to celebrate an industry that feeds that Canadian spirit. 



www.agr.ca 





Industry Outlook: 1999 and Beyond 



"Growing world population 
and income growth spell 
opportunities" 

- Lyle Vanclief 



Keeping our Common 
Goals in Sight 



Right now, many producers are experiencing a 
reduction in their income over 1997 levels, largely 
due to lowered prices on the world market. For 
the prairies, declines of 40 percent in Manitoba, and 
about 80 percent in Saskatchewan over 1998 are 
projected for 1999. 

For many commodities, however, there are signs 
of gradual improvement, with indications that prices 
have hit a cyclical bottom. As a result, the outlook 
for Canada's agriculture and agri-food sector 
remains positive. Prices of pork, for example, should 
return to higher levels by 2000. As well, the non- 
prairie provinces are benefitting from more diver- 
sified product mixes, which mitigate the exposure 
to weak prices. 



Food : A growth industry 

Canada's domestic market for processed food 
products alone is expected to grow by some $2. 1 bil- 
lion annually, or an average of some 3 percent per 
year until 2005. Canadian industry is expected to 
capture almost three-quarters of that, or $ 1 .5 billion 
each year. The greatest opportunities for growth, 
however, lie beyond our borders. Continued pop- 
ulation growth, rising standards of living around 
the world and the adoption of North American food 
consumption patterns is fueling demand for more 
food and new food products. 

World trade in agriculture and agri-food products, 
which in 1996 was $US 464 billion, is expected to 
grow to between $US 625 billion and $US 745 bil- 
lion by 2005. Canada's industry intends to capture 
4 percent of that by 2005. 

This ambitious target was set by the Canadian Agri- 
Food Marketing Council (CAMC), a council of sec- 
toral leaders which advises the Ministers of Agriculture 
and Agri-Food and International Trade. Already, the 
industry has made considerable gains. In 1 996, export 
sales set new records, at $20 billion. In 1997, export 
sales reached $22.3 billion, representing a 3.3 percent 
share of global agri-food trade. And while final 
export figures for 1998 are not yet available, Canada 
logged major increases in exports of processed prod- 
ucts. CAMC puts considerable emphasis on these 
higher- value products. Today, they account for half of 
the value of our export sales. By 2005, they should 
account for 60 percent. 



What does this mean for the processing sector in 
terms of projected growth? If current market trends 
continue, the sector, which accounted for more than 
$54 billion in shipments in 1998, may well have 
to produce more than $80 billion in processed food, 
to meet the demands of domestic and foreign 
markets in 2005. 

To better track the industry's progress, AAFC exten- 
sively analyzed the annual growth that each process- 
ing sub-sector will need to contribute to 
meet CAMC targets. The growth in 1998 is expected 
to continue. With an expanding food processing capac- 
ity, Canada increasingly targets the more lucrative 
end of the market. In 1998, 40 percent of processed 
food exports were primarily shelf-ready products, 
compared to 25 percent a decade ago. Since 1996, for 
example, exports of frozen fruits and vegetables have 
grown 68 percent, surpassing $650 million. 

Widening our net 

Canada is well-positioned to take advantage of 
several smaller specialized markets that have growth 
rates significantly higher than the industry as a 
whole. A good example is the domestic and inter- 
national markets for functional foods and nutraceu- 
ticals — products which provide demonstrated 
physiological benefits beyond basic nutrition or 
reduce the risk of chronic disease. Industry has the 
technological know-how and many of the raw ingre- 
dients, including grains, oilseeds and dairy products 
that are necessary for their production. In Saskatche- 
wan, for example, 25 companies are currently 
involved in production and processing, and the 
Saskatchewan Nutraceutical Network received 
federal/provincial innovation funding of $1 million 
over four years to boost its work. 



Who's Who in the Grains Industry 

Grain merchants of the world will head for 
Regina, Saskatchewan in June, 2000, for the 
global grain industry's first major event in the 
new millennium — the International Grains 
Council 2000 conference. The week-long forum 
will showcase Canada's industry, promote exports 
and encourage investment. 




i 




\ * 



Vital Signs 



Markets for miso and maple syrup 

• Finding Japan's sweet tooth: Exports of maple 
products to Japan were up 20 percent in 1998, 
thanks to Quebec's Regroupement pour la com- 
mercialisation des produits de I'erable du 
Quebec, together with the Maple Products 
Working Group. Canada leads the world in 
maple exports, selling $113 million to 20 coun- 
tries around the globe. Canada's goal: to dou- 
ble sales by 2003. 

• Miso packed with protein — and promise: 
Researchers in Harrow, Ontario are breeding 
new varieties of high protein soybeans sought 
by Far East markets. Canada's goal: to capture 
more of the Japanese miso market — and tackle 
the $150 million U.S. market, which is doubling 
every four years. 

Miso: fermented soybean paste 



Parternship will be increasingly important to these 
emerging industries, and also to the country's 
2000 small-and-medium-sized-enterprises (SMEs). 
SMEs often target specialized markets, and many 
SMEs lack the volume and range of products needed 
to penetrate larger export markets. Alliances, such 
as the Frozen Food Network, pave the way. Strong 
alliances are part of Canada's strategy to expand 
SME outreach, not only in the agriculture and 
agri-food sector, but across all industries. In the 
International Business Development Plan, the 
federal government challenged the industry to 
substantially increase the number of exporters by 
the year 2000. 



Canadian Agri-Food Marketing Council Goal to 2005 



wv 




J I I I I I L 



I I I I 



I I I I L 



I 



66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 

Increased sales in the processing sector are essential if Canada is 
to capture 4 percent of the value of world agri-food trade by 2005. 



CAMC Goal 



Canadian Share 
of World Market 



CORPORATE STRATEGIC PLAN 



999-2002 



Staying on Target 




Global Excellence sets out where we are headed: 
how we, together with the sector, intend to stimu- 
late a growing, competitive agriculture and agri- 
food sector, well equipped to carry us into the 
next century. 

The environment in which we work is increas- 
ingly complex. The playing field has greatly 
expanded: our clients and competitors are equally 
likely to be across the globe as in the next office. 

As the nature of our business has transformed 
itself, so has the way we approach these new real- 
ities. We have made fundamental changes in the 
way we work: individually, with each other, and 
with the business community. 



Cutting across traditional 
organizational boundaries 

To strengthen the department's management struc- 
ture, AAFC has built inter-branch management 



OUR VISION FOR THE 
CANADIAN AGRICULTURE 
AND AGRI-FOOD SECTOR 

A growing, competitive, 
market-oriented agriculture 
and agri-food sector that: 

• is profitable; 

• responds to the changing 
food and non-food needs of 
domestic and international 
customers; 

• contributes to the well-being 
of all Canadians and the 
quality of life in rural com- 
munities while achieving: 

- farm financial security, 

- environmental 
sustainability, and 

- a safe, high quality food 
supply; 

• is less dependent on govern- 
ment support; and 

• is supported by a foundation 
of effective policies and 
infrastructure. 



ORGANIZATIONAL RESPONSIBILITY 
FOR DELIVERY OF RESULTS 



BUSINESS LINES 


PRIMARY 


CONTRIBUTING 




Market and Industry 


Research Branch 




Services Branch 




EXPANDING 




Policy Branch 


MARKETS 




Canadian Grain 
Commission 




Research Branch 


Market and 


INNOVATING 




Industry 


FOR A 
SUSTAINABLE 


Prairie Farm 


Services Branch 


Rehabilitation 




FUTURE 


Administration 
Policy Branch 




STRONG 


Policy Branch 


Research Branch 


FOUNDATION 






FOR THE 


Prairie Farm 


Market and 


SECTOR AND 


Rehabilitation 


Industry 


RURAL 


Administration 


Services 


COMMUNITIES 




Branch 




Corporate Branches ni 


Line Branches 


SOUND 






DEPARTMENTAL 


Legal Services 




MANAGEMENT 


Executive Offices 





1. Corporate branches include Corporate Services, Communications, Review, and 
Human Resources. 



teams that cut across traditional boundaries. Our 
three core business lines precisely define where we 
will place our efforts: 

• Expanding Markets 

• Innovating for a Sustainable Future 

• Strong Foundations for the Sector and Rural 
Communities 



Planned Departmental Spending by Business Line 



2000 



1500 



1000 



500 



Expanding 
Markets 




Innovating 

for a Sustainable 



Future 



1999-2000 





Strong 
Foundation 



for the Sector 

Sound 

Departmental 

Management 



2000-2001 



2001-2002 



These figures include initiatives to be approved. 

The department is operating in a stable fiscal environment where 

program spending is consistent and predictable over the long term. 



In each business line, we clearly fix on targets for 
growth and rural prosperity. Global Excellence lays 
out those targets, and defines how we intend to reach 
them, by pulling together players from every branch 
of the department, from our sister agencies, and 
from right across the sector. Our fourth business 
line, Sound Departmental Management, provides 
the tools to help us succeed, while respecting our 
work force with internal policies that promote effi- 
ciency and personal growth. 

AAFC's horizontal approach will be evident 
throughout this planning document, from our work 
with federal partners in the Canadian Rural Part- 
nership, to dozens of initiatives with the provinces 
such as Canada's International Business Strategy 
for Agriculture, Food and Beverages, to literally 
hundreds of joint programs with producers, proces- 
sors, industries, associations and academia across 
the world. To work more efficiently within limited 
resources, AAFC is increasingly involving these 
key players in planning and in delivering essential 
programs and services to the sector. 

Monitoring our progress 

The business line structure guides our organiza- 
tion by firmly fixing on the results we want to 
achieve — not only for the sector, but for all Cana- 
dians. Within each of the business lines, AAFC has 
defined key result areas that serve as a departmen- 
tal roadmap, providing clear direction en route 
to our common goals. By providing better infor- 
mation to the sector, and by linking our resources 
and pooling our strengths, we can, together, improve 
the sector's contribution to all Canadians. 



www.agr.co 



Strong Foundation 

I for the Sector and Rural Communities 



Working with the sector, provinces and 
other partners to enhance the sector's 
economic viability, while strengthening 
opportunities for rural economic 
development. 



Building Our 
Capacity 



In its work to strengthen the agricultural and rural 
economy, AAFC directly touches individuals right 
across the country. Working in partnership with the 
sector, AAFC promotes a more stable, self-reliant 
industry — one where producers are better able to 
manage their risks, and reshape their businesses to 
meet the changing demands of the 21st century. 
AAFC's strategy is to maintain, within Canada's 
borders, an operating environment that enables 
producers to succeed in a global economy. 

Every year brings further evidence that produc- 
ers in Canada confront not only the challenges 
imposed by weather, but also the ongoing challenges 
of our global economy. Today, Canada's farmers com- 
pete on the world stage. 

How do we manage the risk? AAFC provides the 
groundwork for production and market risk manage- 
ment, by putting in place safety net programs to 
assist producers when incomes are down, by fund- 
ing adaptation programs designed to help the sec- 
tor deal with the new business climate, and advancing 
discussion on policy development and distribu- 
tion of analysis related to farm level programs. 




Stabilizing farm incomes 

Canada has one of the most stable, reliable safety 
net systems in the world, but improvement can and 
will be sought. The punishing market conditions of 
1998 will help shape AAFC plans for future 
improvements to safety net programming. 

Today, there are more than 146,000 participants 
in AAFC's Net Income Stabilization Account 
(NISA) program. The NISA accounts, which total 
over $2.8 billion, have been built through the con- 
tributions farmers make to their individual NISA 
accounts, matched by either the federal/provincial 
governments or the federal government alone. 
Changes made last year allow for interim with- 
drawals with 30 days notice. As well, the Govern- 
ment of Canada, through the Expanding Markets 
business line, provides an Advance Payments 
Program to help farmers maintain cash flow when 
expenses are high, providing interest-free cash 
advances on the first $50,000. 

By participating in NISA, as well as federal/ 
provincial crop insurance, farmers are increasing 



IN B R 1 


E F 


Key Expected Results 


Farm Income 


• Improved stability of farm income 


Adaptation 


• Increased rate of adaptation across the sector, in response to changes in 
markets, technology, etc. 


Policy Development/Analysis 


• Improved business climate that fosters industry competitiveness and 
self-reliance, while ensuring environmental and social sustainability 


Market Regulation 


• Market regulation strategy that improves industry growth, competitiveness 
and self-reliance 


Adaptation 


• Increased rate of adaptation across the sector, in response to changes in 
markets, technology, etc. 



Agriculture/Rural 
Economic Development 



Co-operatives 



Policies, programs and services that are more targeted to the needs of rural 
Canadians, and more accessible 

Strategies and implementation plans supporting prairie clients in building 
the capacity for rural growth 

Ensure that federal policies and programs facilitate the development 
of co-operatives 



Community pastures staff leading a herd of cattle. 



their ability to proactively manage their own risks, 
in trade-neutral ways. The federal government invests 
$600 million each year in safety nets, with the 
provinces spending an additional $400 million. 
Federal, provincial and territorial representatives are 
working on the renewal of long-term safety net agree- 
ments. Changes will continue to be made, however, 
to align programs more closely with producers' needs. 



Agricultural Income 
Disaster Assistance 

In February 1 999, the Government of Canada and 
participating provinces put in place the Agricultural 
Income Disaster Assistance program. The federal 
government is committing up to $900 million 
over two years. Under the 60:40 cost-sharing 
principle, the provincial contribution could add up 
to $600 million. This will provide much needed 
assistance to those with severe income problems. 
(Visit http://www.agr.ca/aida) 

Moving forward, the federal and provincial Minis- 
ters of Agriculture are assessing the needs of the 
future and how current agricultural safety nets fit 
these needs. An important part of this assessment 
will be the determination of how an ongoing income 
disaster assistance program could be made part of 
the safety net package. 



Vital Signs 



What to do if it hails on your chickpea crop: If 

you live in Saskatchewan... call your insurance 
agent. Saskatchewan's Net Crop Development 
Account is a new form of crop insurance designed 
for producers of non-traditional crops. Crops such 
as kabola (a chickpea used in falafels), dezy (a chick- 
pea used in salads), coriander and caraway are nor- 
mally difficult to insure because of their limited 
production history. The program, to be launched 
with a $15 million cheque from AAFC and $10 mil- 
lion from Saskatchewan, will help Saskatchewan 
producers diversify. 



CORPORATE STRATEGIC PLAN, 1999-2002 



On the 
road again 

An investment in infrastructure 
is an investment in future success. 

The Canadian Agri-Food Infrastructure Program 
(CAIP) is a $140 million dollar investment in west- 
ern Canada, to help build what rural communities 
need to deal with the changes triggered by trans- 
portation reform. 

This can mean responding to grain elevator con- 
solidations and railway branchline abandonment 
by improving local roads. In Saskatchewan's 
Plenty/Dodsland areas, CAIP funds will help 
upgrade a highway link to the new Prairie West 
Grain Terminal and a new farrow-to-sow hog oper- 
ation. It can also mean equipping the industry with 
more cost-effective energy for local processing. 
Four Manitoba communities are pooling CAIP funds 
to build a gas distribution system, which should 
boost the development of grain processing. Or CAIP 
can mean infrastructure that promotes diversifica- 
tion. The Red-Hat Co-op in Redcliff, Alberta, repre- 
senting 55 members and 55 acres of greenhouse 
capacity, will fully automate its cucumber grading 
and sorting system through CAIP funding. The 
result: a fresher, more uniform product in the 
customer's hands. 




Irrigation system on Prairie land 

Global change affects not only the agriculture 
and agri-food sector, but Canadians as a whole. 
Advances in biotechnology, for example, hold 
enormous promise, and AAFC is working with 
government and industry partners in the Food 
Biotechnology Communications Network to pro- 
vide Canadians with access to accurate, under- 
standable information. Since public participation is 
emphasized in the Canadian Biotechnology Strategy, 
Minister Vanclief has held roundtables with the sec- 
tor, and the new Canadian Biotechnology Advisory 
Committee will give Canadians a forum to parti- 
cipate in open dialogue on biotechnology issues. 



Adapting to the 
next century 



The ability of the sector to adapt to new global 
realities is essential to managing risk. Since 1995, 
AAFC has invested $60 million annually in the 
Canadian Adaptation and Rural Development 
(CARD) Fund, to build the sector's capacity to adapt 
in areas difficult for industry to tackle alone. With 
its first four year term complete, CARD funding 
was reestablished as a continuous program in 1999, 
with a mandate to help the industry build a pro- 
ductive, competitive, and market-oriented agri- 
culture and agri-food sector. (See sidebar page 7.) 



Measuring Our 
Performance 

Combining combines: In 1991, the producers of 
Bas-St. Laurent in Quebec combined forces, and 
formed an agricultural equipment co-operative. 
The co-operative purchased expensive farm 
machinery, which was in turn rented by the mem- 
bers. The idea proved so popular that today, 
Quebec has 52 agricultural equipment co-ops 
involving over 1,000 farms. 



Net Farm Income, Canada, 1993-1999 
(billions of dollars) 

8r 
7 

6 " 
5 " 
4 - 
3 - 



1993 



1994 



1995 1996 1997 1998* 



1999* 



1 



Realized 
Net Income 

Net Cash 
Income 



* Forecast data 

Source: Agriculture and Agri-Food Canada, Policy Branch, for 1998 and 1999 
forecast data. Statistics Canada for historical data. 



Supply Management: 
Success in evolution 

The ability to adapt is a key strength of the dairy, 
poultry and egg supply management systems as they 
continue their evolution into the next millenium. 
While the system is national and supported through 
the Canadian Dairy Commission (dairy) and National 
Farm Products Council (poultry and eggs), the day- 
to-day operations of these systems are in the hands 
of provincial boards and agencies. AAFC's role is 
to support the system's evolution and growth. 

The federal-provincial agreements governing the 
poultry and egg systems are currently being renewed 
to make them more flexible. In dairy, the industry 
has continued to make improvements to the system 
through the continued implementation of a more 
flexible allocation for production quotas. 



New approaches 
on the Prairies 



Over the last two years, the Canadian Wheat Board 
has been restructured, to give prairie producers more 
control over the marketing and pricing options avail- 
able for their wheat and barley. A more efficient and 
accountable transportation and handling system for 
western grains and oilseeds is also under develop- 
ment. This framework, based on former Supreme 
Court Justice Estey's report, calls for collaboration 
by AAFC, Transport Canada and stakeholders in 
the prairie grain industry to develop a system in 
which producers benefit from new efficiencies, and 
customers receive our products on time and at a 
competitive cost. 

In some cases, however, the best response to 
change has been to look broadly at the options, con- 
sidering not only alternate transport, but also farm 
diversification, or further processing near home 
base. The $300-million Western Grain Transpor- 
tation Adjustment fund, administered by AAFC's 
Prairie Farm Rehabilitation Administration, not only 
supports such projects as road upgrades, it promotes 
new industry — providing some $40 million over 
several years, for example, to assist the dehydrated 
alfalfa industry. 

The pressure to deal with change has nowhere 
been more extreme than on the Prairies, and here, 
PFRA will continue to lend its considerable rural 
expertise to help the sector adjust. PFRA tackles 
constraints which are hampering efforts to diversify 



www.agr.co 



Making a good 
thing better 

CARD Fund changes with 
the times 

"CARD has proven that government-industry 
partnerships work. " 

Lyle Vanclief 

After four years of proving itself extremely pop- 
ular with the industry, the $60-million-a-year 
Canadian Adaptation and Rural Development Fund 
is being extended well into the millennium. 

CARD'S renewal is a major vote of confidence for 
the program, which was launched in 1995 to pro- 
mote jobs in rural Canada, and to help the sector 
adapt and grow in a rapidly changing world econ- 
omy. Today, CARD is shifting its funding priorities 
to reflect new opportunities in the future. CARD will 
focus on six policy priorities identified through 
extensive consultations last year: research/innova- 
tion, environmental sustainability, food safety and 
quality, human resources, marketing and rural 
development. In the first three areas, funding will 
increase substantially. 

Some 60 percent of CARD Funds are invested 
in national programs, with the remaining money 
going to 13 regional councils. AAFC provides the 
funds through a formula that reflects the size and 
value of the sector in each province. The industry- 
led councils decide where and how the funds should 
be spent. Priority setting and decision making are 
in the hands of these grassroots organizations. 

A unique feature of CARD is its performance man- 
agement system. Program success is monitored 
using measures established under a common 
framework, and reported through an Internet data- 
base. Together with CARD'S role to set policy, this 
tool will improve communication and account- 
ability, while pointing the way to new targets for 
the sector. 



or intensify production or processing. For example, 
to overcome water constraints, PFRA provides 
technical and financial assistance for the develop- 
ment of rural water supply systems which ease the 
impact of inconsistent supplies in areas with poor 
quality or unreliable water sources. Over 150 rural 
pipelines have been designed and built, with PFRAs 
assistance, to bring reliable water supplies into the 
homes and businesses of rural residents throughout 
the Prairies. 



Leading the way to stronger 
rural communities 

Across the department — and across the federal 
government — AAFC is leading the way in 
connecting rural Canada with the rest of Canada. 
The stakes are high. Only through concerted 
cross-government leadership and coordination 
will government investment respond to the 
needs and concerns of rural Canadians. AAFC is 
putting its own house in order, reviewing new and 
renewed policies through the "rural lens" to make 
sure the effects on rural Canada are considered. 




The goal is to enhance AAFC's responsive- 
ness to rural concerns. Our contribution to these 
initiatives will build over the next few years. 

One universal concern of rural Canadians is access 
to information, and AAFC is paying close attention 
to how the department communicates, to ensure the 
right information gets into the hands of clients. To 
ensure that federal programs are accessible to rural 
agricultural clients, AAFC is looking to offer more 
single-window service through its points of service, 
to give rural people easy, one-stop access to federal 
programs and services. ACEIS, our electronic infor- 
mation service, provides a window for agriculture 
and agri-food information. And the Canadian Rural 
Information Service (CRIS) relays information on 
rural-focused subjects such as policies, conferences 
and meetings. CRIS has also created "pathfinders" 
on such diverse topics as recruitment of rural doctors 
and microcredit. (Visit http://www.agr.ca/cris) 

Co-operatives: 
A Canadian option 

As Canadians, both rural and urban, explore busi- 
ness options, the Co-operatives Secretariat of AAFC 
is increasing awareness of the co-operative busi- 
ness model as a viable option. The Co-operatives 
Secretariat coordinates co-op policy both within 
and outside of agriculture. 

A Canada Cooperatives Act was adopted in 
1998, giving co-operatives access to essential tools, 
including more flexibility in raising capital. 
With this legislative groundwork done, AAFC is 
focusing on growth. The co-operative's community- 
based, member-owned structure makes it a natural 
ally for government in promoting self-reliance, par- 
ticularly in rural areas where citizens use the co-op 
business model to provide goods and services to the 
community. 

Plans include working across federal departments 
both to ensure cooperatives are a well understood 
business option, and to craft a development policy 
for the sector. And to broaden the net, the Secretariat 
will disseminate information through points of ser- 
vice such as Canada Business Service Centres. 

The Secretariat will be building on a sound foun- 
dation. Collectively, as of 1997, co-ops employ over 
1 5 1 ,000 Canadians and those numbers are on 
the rise. The 50 largest co-ops (excluding financial 



co-operatives such as credit unions) did a combined 
business of $21.6 billion in 1997, topped by the 
Saskatchewan Wheat Pools sales of $4.2 billion. In 
1997, fully 35 of the top 50 co-ops are related to 
agriculture and the Financial Post Top 500 listing 
for 1998 showed that five of the top ten agricultural 
firms in Canada are co-operatives. 



Vital Signs 



Building world leadership in food safety 
standards ... and more 

The Canadian On-Farm Food Safety Program, 
led by an industry-government partnership involv- 
ing AAFC and the Canadian Food Inspection Agency 
(CFIA), keeps producers abreast of international food 
safety standards. With the help of CARD funds, the 
Program has worked with 13 commodity groups thus 
far, to develop on-farm food safety programs. 

CARD also assists industry in managing food 
safety risks, by helping fund the implementation of 
Hazard Analysis Critical Control Point (HACCP) sys- 
tems. Canada is a world leader in the develop- 
ment of HACCP, and the CARD Fund's National 
HACCP Adaptation Contribution Program is in tune 
with industry's keen interest in gate-to-plate food 
safety initiatives. 

CARD funding is put to work in a variety of 
initiatives right across the country. 

• The Ontario Beekeeper's Association is launching 
an all-out offensive against parasitic mites that 
have caused a quarter of the province's honey- 
bee colonies to fail in just five years. (Healthy hon- 
eybees are invaluable to crop pollination, adding 
an estimated $45 million to Ontario agriculture 
alone.) With CARD funding, the Association will 
develop a management program, launch an infor- 
mation marketing package, and work to breed 
mite resistance into bees. 

• The Prairie Fruit Growers Association is using CARD 
funds to develop hardier strawberry breeds for 
northern climes. By becoming more self reliant, 
the growers will cut their costs considerably. 

• The National Soil and Water Conservation 
Program, funded with $10 million from the CARD 
Fund over two years, aims at better environmen- 
tal management on the farm, including improved 
manure management, and conservation clubs to 
reduce the impact of farming on watersheds. 



CORPORATE STRATEGIC PLAN, 1999-2002 



Innovating for a Sustainable Future 



Working to support the 
sector 's efforts to develop 
and produce competitive 
products and processes 
in an environmentally 
sustainable manner. 



Transforming 

for the 
21st Century 



Canada's agriculture and agri-food industry is 
known all across the globe for its innovative excel- 
lence. Our reputation for world-class research and 
development lies in our ability to transform our 
products — and indeed our business — in tune with 
the needs of a changing world, while at the same 
time, taking good care of the natural resources on 
which we all depend. 

In global terms, however, Canada's transforma- 
tion has barely begun. Over the next six years, 
Canada intends to double our impact in international 
markets, capturing some four percent of world agri- 
food trade. Doubling our exports will require major 
increases in production. Canadian producers will 
be challenged to increase productivity while miti- 
gating the pressures on our lands and waters created 
by the growing demand. 



Innovation: Growing better 

If we are serious about growth, we need to invest 
our resources where the sector benefits most. 




Agri-food research regularly achieves excellent 
results. Canadians spend $1 billion annually on agri- 
food research and development, $353 million of 
which was invested by AAFC in 1997-98. We 
intend, through partnerships, to stimulate greater 
investment throughout the sector. 

AAFC focuses its research in areas of public good 
which the private sector, working alone, cannot 
do for a profit. Each of AAFC's research centres 
reflects the strengths of the region in which it is 
located, and each acts as a catalyst for industry 
growth. For example, since cereal breeding is key 
to the economic well-being of the prairies, for exam- 
ple, the Cereal Research Centre in Winnipeg is ded- 
icated to building better grain varieties. 

The Centre is developing wheats tolerant to fusar- 
ium head blight — a fungus that can devastate entire 
crops. Since 1993, combined losses from lower 
yields and downgrading caused by fusarium head 
blight are estimated to be around $253.5 million. 
That's an average of over $40 million a year. 
Registration of a new tolerant Prairie Spring Wheat 



is planned for 2000-2001. The wheat is just one of 
several new breeds under development. The Centre 
is breeding a new hard white wheat, for example, 
since white wheats are out-competing Canada's tra- 
ditional bread wheat in the market. 



State-of-the-art tools 

Continued research success depends on its state- 
of-the-art technology. The Saskatoon Research 
Centre, for example, is becoming a world leader in 
agricultural biotechnology. There, the breeding 
processes now produce species more resistant to 
cold, pests and diseases faster than was previously 
possible. 



IN B R I 



Key Expected Results 



Innovation • Transferred technologies to reduce costs of producing and processing 

food 

• Improved quality/safety of food produced 

• Advanced environmental practices that sustain agricultural production in 
the long term 

• Increased knowledge and technology development in Canada 



Sustainable Resource Use 



Increased environmental sustainability of our land, water and air 



Integrated Policies and 
Decision Making 



An environmentally sound agri-food policy framework 

Information to support environmentally sustainable agri-food decision-making 



Measuring Our 
Performance 

The whole hog 

$1.3 billion is a tidy sum to invest in swine 
research. But the money, spent over 24 years, 
has increased almost tenfold, making a net 
contribution of $12.1 billion to the Canadian econ- 
omy. Our next targets: 

• Creating the perfect pork chop. (AAFC is 
working on fat distribution, which relates to 
the genes.) 

• Solving odour and water quality problems. 
(The comprehensive Hog Environmental 
Management Strategy, crafted with the pork 
industry and the provinces, aims to make pork 
producers better neighbours.) 

• Handling that manure. (Hog wastes may be 
used in potato production. Check AAFC's 
ManureNet to stay up to date on the news.) 
(Visit http://res.agr.ca/manurenet/) 



www.ogr.ca 



Measuring Our Performance 

Beating up on beetles: Instead of fighting bugs with yet another chemical, Hedley's Protect-it kills cereal 
insects such as the rusty grain beetles by simply drying them out. The environmentally-friendly product, 
made from diatomaceous earth, controls pests in food processing and storage facilities. The collabora- 
tors — Hedley Technologies Inc. and Winnipeg's Cereal Research Centre — won a Federal Partners in 
Technology Transfer award for research leading to a commercial product. 



Biotechnological expertise is critical. Large com- 
panies outside Canada are actively aiming to patent 
fundamental biotechnological tools, gene sequences 
and complete plant varieties. To protect Canada's 
interest, AAFC will accelerate gene sequence iden- 
tification, emphasizing plant varieties economically 
important to Canada. 

AAFC is also planning major capital investments 
to better equip researchers to meet the challenges: 
a new state-of-the-art meat safety and quality lab- 
oratory at Lethbridge, Alberta; and new facilities to 
develop technology for the field and greenhouse 
horticultural industries in Agassiz, British Columbia. 
Substantial growth in both these areas is expected 
over the next six years. 



New perspectives, 
new processes 

As well as increasing productivity on farms, 
research centres are pioneering alternatives for the 
country's processing sector. As an example, flax has 
traditionally been grown for industrial use such as 
oils for paint. This year, a pharmacologically active 
component of flax will be available for licensing. 
We are also working on bio-ingredients and on an 
alternative to conventional thermal pasteurization. 



Collaborating for excellence 

Despite our comprehensive research program- 
ming, we cannot keep pace working alone. Increas- 
ingly, AAFC works in collaboration with the private 
sector. Our investment in partnership projects now 
totals over $70 million in a variety of programs across 
the sector, including the popular Matching Investment 
Initiative (Mil). 

The joint approach is popular across the sector. 
Through Mil, the department can match, dollar for 
dollar, the investments of industry. In 1997-98 
alone, industry and AAFC jointly funded some 



Measuring Our 
Performance 

That's a half billion trees — and counting — 

Over its six decade history, PFRA has supplied 
a half billion trees and shrubs to Prairie produc- 
ers for shelterbelts. Shelterbelts not only con- 
serve soil from erosion; they also help sequester 
carbon, thereby helping to reduce the threat of 
global warming. This year, PFRA will grow and 
distribute enough foliage to protect 24,000 hectares 
of agricultural lands and rehabilitate 325 hectares 
of wildlife habitat. 



Vital Signs 



Cinnamon, cloves and crabshells make deli wrap: 

Scientists in Saint-Hyacinthe combined chitosan 
(a substance derived from the material found in 
crab shells), with essential oils of cloves and cin- 
namon, and voila! ... a new antibacterial film wrap 
that significantly slows the growth of some of the 
nastier bacteria that can cause food poisoning. 



930 projects. From a $12.5 million investment in 
Mil in 1995 when the program was launched, 
AAFC's investment has climbed to $32.2 million 
for this year. 

Mil projects are good measures of research rele- 
vance. We take our cues from the sector itself, and 
the soundness of our focus is reflected in their inter- 
est in collaboration. The job opportunities — 
particularly for younger scientists — pave the 
way to leading edge research in the future. 



Sustainable resource use: 
Economic security in 
the long term 

Much of AAFC's research is targeted at conserving 
our land, water and air quality. We expect some par- 
ticularly challenging years ahead as Canadians strive 
to increase the health and productive capacity of 
our lands. To prepare ourselves and the sector, AAFC 
will complete a study this year which assesses how 
growth will affect the agricultural resource base. 
(See Growing Better, page 2.) 



Grimshaw: Where 
water matters 

Times have changed in Peace River. 
Residents have stopped hauling water 

and now, they're ensuring a healthy, 
pollution-free aquifer for their children. 

Water is a very valuable commodity for the 
7,500 people of the north central Peace River region. 
Before water cooperatives installed pipelines 
several years ago, hauling water for domestic use 
was common. 

The region depends for its water on the Grimshaw 
Gravels Aquifer, which covers almost 600 square 
kilometers and supplies high quality water. It is only 
in the last six years, however, that local people have 
realized how vulnerable the shallow aquifer is — 
particularly to pollution from nitrates resulting from 
farm operations. 

In 1993, PFRA and Alberta Agriculture, Food and 
Rural Development brought together a wide vari- 
ety of players to form the Grimshaw Aquifer 
Management Advisory Committee (GAMAC). Since 
then, the momentum has grown. GAMAC includes 
four municipalities, the town of Grimshaw, the vil- 
lage of Berwyn, and five rural water cooperatives, 
who together direct the development of a proactive 
aquifer management plan. The goal: to take care 
of the aquifer, and ensure clean water for the future. 
Using PFRA's technical expertise, the committee 
has done a base hydrology study, a survey of water 
levels, water quality surveys, a well owner's survey, 
a vulnerability map and awareness newsletters. 
Now, their action plan has set priorities for good 
management, including dealing with such problems 
as illegal drainage, highway borrow pits and aban- 
doned wells. 



Larger livestock herds, for example, will present 
challenges that go well beyond the obvious neces- 
sity to find environmentally sustainable ways 
to secure more pastures and more forage. We are 
working to find ways to handle increased manure 
production in an environmentally sustainable 
manner through anaerobic digestion technology, 



Estimated C0 2 Emissions from Canadian Agriculture 
from Direct and Indirect Sources (Tg C0 2 ) 

35 



30 - 

25 ~ 
20 " 
15 - 
10 - 
5 - 
— 





Indirect 
Emissions 



Direct 
Emissions 



1981 



1986 



1991 



1996 



CORPORATE STRATEGIC PLAN, 1999-2002 



Vital Signs 



Beyond Pemmican: AFIF invests in innovation. 

Every Canadian school child learns that early explor- 
ers ate buffalo meat ground into pemmican. But 
today's Saskatchewan school children are more 
likely to enjoy delicious buffalo stew. The 
Saskatchewan buffalo industry is promoting its 
products with support from the Canada- 
Saskatchewan Agri-Food Innovation Fund, a pro- 
gram which funds over 230 richly varied projects 
across the province. Supporting research to 
develop plant-based vaccines, and funding a 
Nutraceutical Network are among the endeavours 
of the $91-million AFIF. Contact www.agr.ca 
for information. 



Caring for the 
environment 



In the last decade, Canadians have seen a growing 
environmental consciousness across government, 
and AAFC is increasingly working to encourage stew- 
ardship of our resources right across the sector. 
AAFC's Biodiversity in Agriculture action plan, 
for example, works to conserve genetic resources 
important to agriculture, and to make those resources 
available to the sector. As a mark of our commitment 
to careful land management, community pasture lands 
in Saskatchewan controlled by PFRA will be desig- 
nated under the Representative Areas Network — a 
designation that formally recognizes well managed 
lands that protect the biological diversity of natural 
ecosystems. 




a technique which uses airtight manure reservoirs 
to eliminate emissions of harmful greenhouse gases 
during manure treatment and storage. (It cuts down 
odor as well!) AAFC is also developing new tech- 
nologies to ensure the welfare of farm animals, tools 
to help conduct environmental assessments of new 
livestock facilities, and methods to reduce stress on 
livestock during transport. 

The Prairie Farm Rehabilitation Administration 
(PFRA) is our window to the prairies, where an 
estimated 80 percent of Canada's production 
increases in grains and livestock will take place. 
PFRA provides practical guidance, and both finan- 
cial and technical help where it is needed, particu- 
larly in the management of land and water resources. 

Since water is an on-going concern on the prairies, 
PFRA's target over the next three years is to supply 
new sources of safe, reliable water to 3000 rural 
residents and 1250 rural enterprises. AAFC iden- 
tifies those areas at most risk environmentally, 
and supplies technologies to treat poor quality water 
in rural areas. After the devastation of the 1997 Red 
River Flood, for example, PFRA used a new coag- 
ulation treatment system to treat 120 dugouts on an 
emergency basis — a very promising technology 
that will be refined in coming years. This year, to 
improve water quality in rural areas, AAFC will 
develop and distribute guidelines for the aeration 
of surface water supplies. 

Irrigation, too, is a growing priority for expanded 
production. PFRA is developing and demonstrating 
low elevation spray applications, drip irrigation tech- 
nology and optimum irrigation scheduling: efficient 
techniques that mitigate impacts on the environment. 



Greenhouses near Leamington, Ontario 

Agriculture in Harmony with Nature, AAFC's sus- 
tainable development strategy created through con- 
sultation with over 800 industry representatives, has 
had such a major impact on how we conduct busi- 
ness, department wide, that AAFC will begin draft- 
ing its second three-year plan this year. To increase 
our understanding of key environmental trends, for 
example, AAFC launched a comprehensive research 
project to develop agri-environmental indicators 
that can supply the sector with current information. 
The indicators, which have already won praise from 
the Canadian Environmental Assessment Agency, 
measure six key variables in agricultural landscapes. 
The Soil Degradation Risk indicator, for example, 
not only assesses how we are doing in preventing 
erosion, but also identifies soils at risk. The 
Agroecosystem greenhouse gas balance indicator 
measures trends in harmful gas emissions from 
agricultural sources. 



Repaying the carbon 
deficit: Tackling world 
problems 

Thus far, Canadian agriculture has made some 
headway en route to meeting our commitments 
under the Kyoto Protocol, to reduce greenhouse 
gases by 6 per cent from 1990 levels, by the year 
2010. A committee of industry, academic and 
government representatives is developing short- and 
long-term options for the sector. However, agri- 
culture still accounts for about 10 percent of Canada's 



Taking a TagTeam 

approach to research 

success 



Canada's lentil and field pea growers are poised 
to increase yields dramatically, thanks to TagTeam, 
a breakthrough product produced by AAFC 
researchers in partnership with Philom Bios Inc. of 
Saskatoon. 

TagTeam is made up of two radically different life 
forms — a fungus and a bacterium. The fungus, 
which helps plants take up soil-bound phosphorus, 
was discovered and isolated by scientists at the 
Lethbridge Research Centre. The bacterium, devel- 
oped by scientists at the Lacombe Research Centre, 
is a cold-tolerant strain that helps plants make bet- 
ter use of nitrogen. Both microorganisms, com- 
mercialized by Philom Bios, have enjoyed success 
in the marketplace, but AAFC scientists were 
not satisfied. 

Working with the Alberta Agricultural Research 
Institute, the Saskatchewan Wheat Pool and Philom 
Bios, scientists came up with a seed inoculant that 
put the two together, and Philom Bios developed 
the inoculant into a quality commercial product. 
Scientists hope lentil and field pea yields will 
increase by an average of 12 percent. 



Vital Signs 



More beef — and more fragrant too. Cows 
grazing on legume-grass pastures produce up 
to 50 percent more beef per acre than cows on 
grass-only pastures. Tests at the Brandon Research 
Centre show they also release 10 percent less 
methane — a powerful greenhouse gas with 
21 times the global warming effect of carbon 
dioxide. Scientists precisely tallied the reduction 
using a "cow breathalyzer" to measure what the 
animals breathe out. 



emissions, and, if trends continue, emissions are 
projected to rise, largely due to predicted increases 
in agricultural production. 

Particularly promising research is exploring how 
certain farming practices can slow the loss of car- 
bon from soils and increase their ability to store 
carbon. Reduced-till farming, for example, not only 
improves carbon balance, but makes for healthier 
lands and boosts a farm's bottom line by reducing 
machinery use. The four-year, Prairie Soil Carbon 
Balance Project, undertaken by AAFC, the govern- 
ment of Alberta, and the industry consortium GEMCo., 
will measure how much carbon can be removed 
from the atmosphere and stored in soil carbon sinks. 

AAFC's environmental focus includes work with 
the sector to eliminate use of methyl bromide, a 
fumigant which is a proven threat to the ozone layer. 
AAFC, Environment Canada and the sector led 
a concerted search for alternatives, and are now 
exchanging critical information and transferring 
technology to the field. To date, agriculturalists have 
reduced use of methyl bromide by 35 percent. 



10 



a g r . c a 



Expanding Markets 



Working to improve and secure 
market access; to enable the 
agri-food sector to capture 
opportunities for trade in 
domestic and international 
markets, with a focus on 
processed agricultural products; 
and to increase domestic and 
foreign investment in the sector. 



Full Speed 
Ahead 



Canada's domestic market is — and will continue 
to be — the most important outlet for the $54 bil- 
lion-worth of processed food and beverage 
products Canadians take to market every year. Com- 
petition for Canadian consumers, however, is keen. 
As freer trade opens our doors to the world, Cana- 
dians have an increasing number of choices. To 
retain our strong hold on our primary market, we 
must be second to none in the marketplace. 

The industry's success at home prepares Canada for 
the global challenge: wider access to foreign markets. 
Herein lies the greatest potential for industry growth. 



Tackling world markets 

The Canadian Agri-Food Marketing Council's tar- 
get is to capture a four percent share of the value of 
world agri-food trade, with 60 percent of exports 
coming from processed agricultural products. If 
trends continue as Canada works toward its goals, 
the industry could create an estimated 120,000 to 
170,000 jobs in the food and beverage sector. 



Team Canada Inc 

Reaching CAMC's goals will require not only a 
huge cast of industry players, but strong coordina- 
tion and synergy right across government. The 




federal government's course has been set through 
the 1999-2002 International Business Development 
(IBD) program, which supports Canadian exporters 
across all commodities. The IBD was developed 
by three core departments (AAFC, Industry Canada, 
and the Department of Foreign Affairs and Inter- 
national Trade), but the momentum has grown. 
Seventeen new federal departmental members 
are contributing to the IBD program. Team Canada 
Inc. (TCI) was established to serve as a "storefront" 
for easier access to IBD programs, by providing an 
immediately accessible, single-window network of 
federal information. TCI's Business Centre can be 
reached at 1-888-811-1119. 



Market Access: 

Fair play in world markets 

Improving access to foreign markets depends on 
strong negotiating in the international arena. In late 
November 1999, the World Trade Organization 
(WTO) will begin its agricultural negotiations. The 
process, which is expected to continue over the next 
few years, is critical for our sector. While the WTO 
negotiations unfold, AAFC will continue to aggres- 
sively negotiate improved access in countries 
such as China and Russia, as they accede to the 
WTO. 



Expanding 
Markets: 3 Keys to 
Market Success 



IN B R I 



Key Expected Results 



1998 Trade Mission to Latin America 



There are other negotiations, equally vital to the 
sector. AAFC will complete agricultural negotia- 
tions on a free trade agreement with the European 
Free Trade Association in 1999; we will continue 
the renegotiation of the Canada/Israel Free Trade 
Agreement in order to increase commodities 
covered by this agreement; and we are aiming to 
conclude the negotiation for the Free Trade Area of 
the Americas with 34 North and South American 
countries by 2005. 



Using the rule book 
to resolve barriers 

Regardless of how carefully we negotiate, agree- 
ments are not cure-alls. Much of AAFC's effort 
is directed at defending our rights and removing 
technical barriers or trade irritants before tensions 
mount. A primary focus over the next years, for 
example, will be maintaining and improving 
our relationship with the United States, our largest 
trading partner. 



Tackling priority and 
emerging markets 

With opportunity knocking in literally every cor- 
ner of the world, AAFC has tightened its focus 
through intensive federal/provincial government 



Market Access 



Reduced barriers to domestic and international trade 



Market Development 



More agri-food firms ready to export more products to capture more markets 



Investment 



Increased awareness of Canada as a preferred investment destination 
Increased number of investments supported by AAFC 




CORPORATE STRATEGIC PLAN, 1999-2002 



11 



Average Annual Growth in the Value of Selected Exports, 
1990-1998 



600 - 
500 - 



400 - 



300 - 



200 - 



100 - 




Bread Fresh Hog & Meat& 
& Biscuits Fruit& Cattle Meat 

Vegetables Products 



Oilseeds Others 



Processed Processed 

Fruit& Oilseed 
Vegetables 



While prices for several commodities (such as wheat and hogs) fell 
sharply in 1998, average annual export sales in the 1990s have shown 
an upward trend, with processed products (such as oilseeds and 
processed fruits and vegetables) posting dramatic average annual gains. 



Measuring Our 
Performance 

Choose your beverage — but make it Canadian 

• In the Japan Liquor Tax Case of 1997, the WTO 
agreed with Canada: Japanese tax rates on 
imported and domestic liquor should be simi- 
lar. As a result, Canada doubled its whisky 
exports to over $21 million in 1998. 



and industry strategic planning. Working together 
in the Federal-Provincial Market Development 
Council, we have set goals in each of the eight 
priority markets where we sell approximately 
80 percent of our exports (United States, Japan, 
European Union, China, South Korea, Taiwan, 
Mexico and Brazil), and in four emerging markets 
(Singapore, the Philippines, Russia and Colombia). 
Departmental efforts will focus on these markets, 
but AAFC will also support provinces and industry 
in other markets, where significant gains can be made. 

The United States alone buys over half our exports. 
Part of the reason for our continuing success is 
healthy growth in sales of intermediate and con- 
sumer-oriented exports, which accounted for 87 per- 
cent of our exports to the country. We aim to 
replicate that success in processed product sales 
in our other priority markets. 



Ambitious AIMS 

AAFC's work with specific sectors is key to our 
success, as is our work with industries and indi- 
viduals. AAFC's goal is to make sure Canadian 
exporters have the tools they need to succeed. 

Just as every enterprise needs a business plan, more 
and more agriculture and agri-food industries are 
recognizing the benefits of a long-term strategic 
approach to market development rather than relying 



solely on ad hoc initiatives. Potential exporters may 
need innovative research and technologies, for 
example, or sources of adaptation and development 
funding. The Agri-Food Industry Marketing Strategies 
(AIMS) works to develop long-term export strategies 
with agri-food sectors and alliances. Under AIMS, 
five federal departments and agencies work together 
to provide one-stop approval of government financial 
support, through funding programs such as Agri-Food 
Trade 2000. AAFC's goal is to increase agri-food 
associations' participation in the development of 
export strategies by 10 percent by March, 2000. (Visit 
http://www.agr.ca/progser/aafaims.html). 



Market intelligence 

The AIMS planning efforts are aided and abetted 
by the agri-food arm of Team Canada Inc, the Agri- 
Food Trade Service (ATS). ATS works with indi- 
viduals and businesses, providing a seamless federal 
export service from the initial inquiry to global mar- 
kets. It brings staff in regional offices together with 
specialists in embassies abroad, national experts 
and key regional players. 

The ATS Internet website, ATS Online, provides 
comprehensive market information, from trade leads 
and a database of foreign buyers, to market infor- 
mation. For exporters looking beyond agri-food, 
it directly links to ExportSource, a site developed 
by Team Canada Inc. to link export informa- 



Measuring Our 
Performance 

When paperwork makes a real difference: A new 

Export Certification System, developed by the 
Canadian Food Inspection Agency and AAFC, 
was the ticket to success for pet food producers, 
whose exports totalled $200 million last year. 



World Food Security 

Meeting the challenge of 
the world's under-nourished 



"Far too many people in the world are under- 
nourished, their health impaired, their potential 
never realized because of their daily struggle for 
survival.... Food security is a key building block to 
stability within families, economies and nations. " 

Lyle Vanclief, 

Minister of Agriculture and Agri-Food 

Canada's Action Plan for Food Security is the 
country's commitment to work toward food security 
at home and abroad. 

At the 1996 World Food Summit in Rome, the 
international community agreed to reduce by half 
the 800 million under-nourished people of the world 
by no later than 2015. Canada's national plan, built 
through consultation with non-governmental orga- 
nizations, industry groups and all levels of gov- 
ernment, will be part of the solution. It specifies 
ways Canada can work toward a safe and nutritious 
food supply for all, including finding economically 
and environmentally sustainable ways to increase 
food production, and promoting health and edu- 
cation. AAFC is establishing a Bureau to begin 
the work, and to track our progress. 



tion government wide (regulations, financing, 
statistics, trade shows, missions and more). (Visit 
http://www.agr.ca/progser/aft2000.html and 
http://www.exportsource.gc.ca) 



Taking on the world: 
In October, it's Cologne! 

AAFC's most visible work lies in helping com- 
panies take products to market. It is a complex task 
that involves not only bringing buyers and sellers 
together, but also ensuring our products can meet 
market demand. When necessary, for example, 
AAFC helps ease the way for producers who are 
adapting products to meet foreign needs. As well, 
we sponsor trade missions, and encourage partici- 
pation in the world's leading food shows, such as 
the one in Cologne, Germany, which will be held 
from October 9th to 14th, 1999. 



Investment: The power 
of partnership 

Increased investment is fundamental to the growth 
of the agri-food sector. Capital investment in the 
sector took a major leap forward a decade ago. Since 
then, it has remained relatively stable at a higher 
plateau, averaging some $1.5 billion each year. 

In certain areas, such as frozen potato products, 
investment has grown dramatically, and the 
prognosis for the next few years is excellent (see 
page 2). But to boost investment overall, AAFC is 
building stronger links with the Canadian financial 
community, by supporting such initiatives as the 
successful conference hosted by the Canadian 



12 



www 



a 9 



Measuring Our Performance 

Letting the Taiwanese in on Canadian quality: Buyers from the Sung Ching Supermarket of Taipei 
attended the Gourmet International Bio-Food Fair last year. So did some 100 other international buyers 
from the US, Asia, Latin America, Africa, the Middle-East and Europe, who racked up estimated purchases 
of $20 million. Winning Canadian products ranged from apple hops beer to bakeapple wine, royal jelly 
to duck pate, and beef jerky to Canadian sturgeon. 




1998 Trade Mission to Latin America 

Securities Institute in December, 1998. To remove 
impediments to investment, AAFC is working with 
Revenue Canada and industry on tax credit incen- 
tives to increase research investment in Canada. 

We also promote investment by helping develop 
alliances which increase efficiency and cut costs. 
We intend to build on the success of new strategic 
partnerships, in which Canadian enterprises are tack- 
ling foreign markets together (see Coming Home 
Happy box). 

We build alliances not only within our own bor- 
ders, but abroad. Through partnerships with foreign 
enterprises, we increase Canada's access to new 
technology and know-how, while gaining inroads 
to new markets. The Strategic Alliance Seminar orga- 
nized at SIAL in October 1998 not only highlighted 
successful alliances; it also laid the groundwork for 
future work. 

AJthough Canada's agriculture and agri-food sec- 
tor has outpaced some other Canadian sectors 
in attracting foreign investors, growth has been 



Coming up: Seven top 
international exhibitions 

FMI, Chicago, U.S.A. - May 

Hofex, Hong Kong, China — May 

Fancy Food Show, New York, U.S.A. — July 

SIAL/MERCOSUR, Buenos Aires, Argentina — 
August 

Food China, Bejing, China — September 

Anuga, Cologne, Germany — October 

FoodEx 2000, Tokyo, Japan — March 2000 



Vital Signs 



Investment: the Canadian Advantage. Canada 
offers the lowest food processing industry costs in 
North America, says KPMG, a world-renowned 
international consulting firm. And that's not all. 
Labour costs are 30 percent lower than in the U.S., 
and building costs 16 percent lower. 

An additional benefit: Canada ranks highest among 
G-7 countries in developing knowledge workers, 
according to the 1997 Global Competitiveness 
Report. 



gradual. Canada is aggressively aiming to increase 
this, by working closely with the Federal Provincial 
Investment Steering Committee in three areas. We 
are building our knowledge of our competitors 
across the United States to hone our competitive 
edge; we are launching a public relations campaign 
to enhance Canada's image as the best place for 
agri-food concerns to expand investment; and we 
are taking these messages directly to investors. This 
includes increased outreach to potential investors at 
the U.S.'s biggest food trade event hosted by the 
Food Marketing Institute in Chicago in May 1999. 

This targeted outreach is expanded through the 
Country Champion Program, in which seven fed- 
eral Deputy Ministers promote investment in Canada 
in specific areas around the world. Working on 
behalf of all Canadian industry, AAFC's Deputy 
Minister Frank Claydon promotes the investment 
case to select multinational companies in the US 
Midwestern states. Existing and potential investors 
benefit from the work of AAFC's Rapid Response 
Teams: federal and provincial experts tackle invest- 
ment hurdles, to smooth the way for new investment. 



Ensuring farmers 
compete with farmers... 

not foreign government treasuries 

"It's time we stopped beating up on each other, 
stopped wasting our time looking for scapegoats. 
We must never allow ourselves to lose sight of our 
very real, mutual interests .... to make sure the next 
WTO round leads to a more open and fair world- 
trading system. " 

Lyle Vanclief, Dec. 1998 to the 
American Farm Journal Forum 



The next round of World Trade Organization nego- 
tiations is vitally important to furthering Canada's 
goals. The negotiations, to be launched at the WTO's 
third Ministerial Conference in Seattle, Washington 
in late 1999, give Canada a chance to build on what 
was begun in the last Uruguay Round of negotia- 
tions — bringing trade in agricultural products under 
effective rules. 

Canada has everything to gain from rules-based 
trade and effective dispute settlement mechanisms. 
A rules-based international trading system is impor- 
tant to smaller countries such as Canada, because 
it provides a counterbalance to economic super- 
powers. Just this year, Canada used the rules agreed 
to in the Uruguay Round to successfully address 
border problems for grain and livestock exported to 
the United States. 

Canada's goal is to make further progress in 
reforming agricultural trade and disciplining trade 
distorting policies in competitor countries. We want 
to ensure that Canada's farmers compete with other 
countries' farmers, not their government treasuries. 



"Take Note" Hearings 

Canada's initial negotiating position is being 
developed through extensive consultations with 
the full range of agriculture and agri-food industry 
participants. These consultations have involved 
Parliamentary hearings, private meetings between 
Minister Vanclief and agriculture and agri-food indus- 
try associations and stakeholders, and a national 
conference in April 1999 that brought players from 
all sectors and government levels together to shape 
Canada's position. The process of consultation will 
continue through the negotiations so that there will 
be no surprises. 



Measuring Our 
Performance 

Coming Home happy: In just two years, the 
Coming Home label has proved a winner in Ameri- 
can supermarkets. Coming Home is a marketing 
alliance of six Canadian family-owned food firms 
specializing in frozen foods. Bringing their chickens, 
pastries and pastas (and more) together under one 
export label, they have successfully tackled the huge 
markets south of the border. 



CORPORATE STRATEGIC PLAN, 1999-2002 



13 



Building Stronger Rural Communities 



Bringing federal departments and agencies 
together to assist rural communities compete 
in the global economy, and to ensure rural 
Canadians can access government programs 
and services that meet their needs. 



A Network of Support 
for Rural Canada 



The Canadian government, recognizing the 
strengths and values of rural Canada, has set clear 
goals: to build the rural economy and help make 
rural Canada an even better place to live. One key 
vehicle: the Canadian Rural Partnership (CRP), with 
$20 million in federal funding over four years. 

AAFC's Rural Secretariat is the focal point for 
the multi-department CRP, which focusses on oper- 
ating differently within the federal government. 
Twenty-six federal departments and agencies 
have formed an Interdepartmental Working Group 
to craft new ways to respond to rural issues in part- 
nership with rural communities. In every province 
and two territories, Rural Teams of federal and 
provincial officials take the partnership approach 
into rural communities, working with rural citizens 
to better address key issues. 



A dialogue with 
rural Canadians 



The federal government launched the Rural 
Dialogue in 1998, which elicited the views of some 
7000 rural and remote residents through regional 
workshops, workbooks and a National Rural Work- 
shop. Rural Canadians identified their key priorities: 
access to financial resources, opportunities for youth, 
leadership and training, infrastructure, telecommu- 
nications and the Internet, access to health care and 
education, access to information about government 
programs and services, economic diversification 
and partnerships. To help shape the Government of 



Canada's rural policy, a cross-departmental Strategic 
Action Plan has been drafted, incorporating a num- 
ber of guiding principles such as building capacity, 
recognizing rural uniqueness and investing in long- 
term solutions. 

Since rural citizens clearly indicated that they 
would like to continue the Rural Dialogue, 
the Canadian Rural Information Service, the CRP 
website (www.rural.gc.ca) and the Internet Rural 
Dialogue On-Line Discussion Group are keeping 
the lines of communication open. 

The continuing dialogue is one way of helping 
incorporate rural concerns into overall government 
planning, in line with federal goals. Today, the devel- 
opment of the new policies, programs and services 
is accompanied by a commitment across all depart- 
ments to examine each new initiative through a 
"rural lens" to assess its impact on rural Canada. 
The goal is to ensure that the impact of new and 
renewed initiatives on rural Canada is known before 
implementation proceeds. 

Partnerships for 
viable communities 

The CRP takes a proactive approach to responding 
to rural concerns and levers support from a wide 
variety of players. In 1998-99, CRP dedicated 
$3.8 million to 68 pilot projects developed by rural 
associations, organizations and residents, every one 
involving a cast of government and rural players. 




IN B R I 



Key Expected Results — Cross-Government 



Policy and Programs 



Information and Outreach 



• Better policy and program decisions at the national and regional level, with 
the input of rural Canadians 

• Increased rural awareness of federal services and programs, and more 
equitable access to them 



Rural Dialogue session 

The CRP funding generated a total investment in 
rural Canada of almost $12 million. 

Many of the pilot projects are about sharing infor- 
mation, and building the links that rural people need 
to be part of the knowledge-based, global economy. 
The Northern Ontario Web-Networking Program, 
for example, will connect 38 northern communities 
to an Internet-based communications network. La 
Voix Des Villages will work through community 
radio stations to create a cooperation and informa- 
tion exchange network in rural francophone and 
Acadian communities. 

From pocket directories 
to the World Wide Web 

Many government departments have taken the ini- 
tiative in bringing more and better information to 
rural and remote areas. Several programs aim at 
making Canada "the most connected nation in the 
world by the year 2000," as the 1997 federal budget 
promised. Industry Canada's Volnet, for example, is 
expanding the technological capacity of the volun- 
teer sector with $15 million over three years. 

In 1998, to help rural residents find federal ser- 
vices and programs AAFC in conjunction with its 
CRP partners updated a Rural Resource handbook 
with details on 200 programs and services. The infor- 
mation is available as a popular pocket directory 
and on the Web. Information on federal programs 
and services is also made available through the Rural 
Exhibits program, which has been to over 250 rural 
and remote communities. 



Vital Signs 



Aromatic Economics: Or the best (indigenous) 
medicine: To the people of the Eel River Bar First 
Nation in New Brunswick, the Medicinal and 
Aromatic Plants Aboriginal Heritage Garden 
promises long-term economic development. Their 
goals: to catalogue and map the aromatic and med- 
icinal plants of Atlantic Canada, and grow promis- 
ing species in greenhouses and on farms — thanks 
in part to $49,500 from CRP. For several commu- 
nity members, the project provided a first job, and 
they used the experience to secure more perma- 
nent employment. 



14 



www.agr.ca 



Sound Departmental Management 



Working to be tlie best 
performing organization 
in the public service. 



Toward the 
Next Century 
of Excellence 



Sound Departmental Management centres on 
the way we do business, and is fundamental to the 
success of Agriculture and Agri-Food Canada. Our 
role is to create an environment characterized by 
excellence, in which we can meet and even exceed 
expectations for growth. 

Our goal is ambitious: to become the best per- 
forming organization in the public service. It means 
managing both carefully and creatively, to ensure 
that all resources entrusted to the department are 
appropriately allocated and used to achieve the 
results valued by Canadians. 



Measuring results 

Our focus in 1999 is to refine our management 
processes, with a responsive set of performance 
measures that will better enable us to monitor our 



Vital Signs 



How am I doing, coach? The Corporate Services 
Branch is launching a refresher course for 
managers that focuses on objective setting and 
providing useful feedback. A companion program 
trains staff to get the most out of a performance 
review. A new mentoring program will begin in fall 
1999. 







progress toward our goals. In 1998, we laid the 
groundwork, selecting key indicators to tell us how 
we're doing. Now, we're fine tuning those indica- 
tors and our tracking systems to provide managers 
with the information they need to guide their 
decisions. We are combining the powerful assets of 
SATURN, AAFC's new financial and materiel man- 
agement system, with PeopleSoft, our human resource 
management system, to create a new Management 
Information System. The system promises a speed- 
ier strategic response to changes in the agri-food 
business environment, and more concise, timely 
reporting to the sector and central agencies. 



Reaching for excellence 

Our sector targets are not the only measures of 
organizational success. Improving AAFC's perfor- 
mance depends on keeping track of how we're doing 
corporately. In our pursuit of sound management, 
AAFC has set out seven guideposts, which, together, 
will serve us on the road to continued organizational 
excellence. (See box.) 



Shared direction 

A high performance workforce with a common 
purpose is essential to strong business results. At 
AAFC, we are Unking the work of each unit, and each 
individual in the field, to our organizational goals. 



Departmental Y2000 Team 



IN B R 1 


E F 


Key Expected Results 


Shared Departmental 
Direction 


• AAFC is the best performing organization in the public service 


Motivated, Representative 
and High Performance 
Workforce 


• AAFC is an employer of choice 

• AAFC has a workforce aligned to meet its business needs 


The Right Tools/ 

The Right Environment 


• The right information in a timely manner 

• A supportive work environment 


Continuous Improvement 


• Improved management practices by responding to feedback 



Seven Building Blocks to 
Organizational Excellence 

• hearing all stakeholders 

• responsive organization 

• managers as leaders 

• high performance workforce 

• information that supports excellence 

• readiness for the future 

• results: performance excellence 



Our thrust, over the next planning period, is to 
renew our focus on two-way communication at 
all management levels, and bring staff right across 
the country into touch with senior managers. This 
year, AAFC is piloting regional meetings with the 
Deputy Minister and branch heads — meetings 
which not only communicate to staff, but also solicit 
feedback from them. And to build leadership net- 
works and links among middle managers, we will 
hold a Middle Managers' Council jointly with the 
Senior Managers' Meeting in June 1999. 



Measuring Our 
Performance 

Scouting talent.. ..When the Prairie Farm 
Rehabilitation Administration wanted to build an 
employee population that reflected the relatively 
high concentration of aboriginal peoples in the 
rural areas where it works, it started — as it 
always does — with the grassroots. It launched 
a youth program. The results, since the launch 
of the program: term employment for over 
75 aboriginal people in a variety of technical, 
scientific and administrative roles, and for PFRA, 
a growing pool of qualified people from which 
to draw talented employees in the future. 



CORPORATE STRATEGIC PLAN, 1999-2002 



15 



Vital Signs 

MISB people are taking the career 
planning challenge 

In the Market and Industry Services Branch 
(MISB), career planning is tackled with the same 
direct sense of mission that MISB applies to its 
business goals. 

• Every MISB manager receives a day of training, 
to begin the process of becoming an everyday 
career coach. Every employee receives a kit that 
includes detailed career-related information and 
a workbook which is part of a personal portfolio. 

• MISB courses help staff begin action planning. 
Managers and human resource specialists 
provide individual coaching to determine what 
training may be necessary... to gain what com- 
petencies? Once a signed plan is in place, MISB 
actively helps staff access training and devel- 
opment assignments both within the branch and 
beyond. 

In just over a year MISB managers have bought 
into the Career Development Initiative. The invest- 
ment is paying enormous dividends, both in indi- 
vidual terms, and in equipping the organization with 
a more potent workforce. 



Managers as leaders 

Our goal is not only to take departmental mes- 
sages directly to our 5,500 people, coast to coast, 
but also to build the ability of our managers to be 
responsive leaders, who can create the supportive 
work environment a high performance workforce 
needs to succeed. To equip managers to deal with 
new challenges, AAFC is designing a values-based 
leadership and development program, which 
emphasizes communications and people skills. This 
investment in leadership will serve the department 
well. Strong leadership is essential in shaping a more 
cohesive department, in which individuals continue 
to be respected, valued and supported. 

In 1998, AAFC's employees identified integrity, 
excellence and valuing people as our three core 
values. Since then, we have worked to ensure 
these values are part of our daily operations. We are 
incorporating them into performance appraisals, 
promotion decisions and awards and recognition 
programs. 




Measuring Our 
Performance 

AAFC's Corporate Exhibit: a learning experience 

AAFC's corporate exhibit not only introduces 
the department to Canadians: it makes learning 
fun! AAFC's interactive "BugBoard" game, for 
example, can teach you the difference between 
a potato beetle and a sugar maple borer. But that's 
just the beginning. The AAFC corporate exhibit 
attracted the attention of some 360,000 people at 
regional fairs and exhibitions last year, by demon- 
strating the Geographic Information Systems, by 
showing people how to control bugs and weeds, 
by baking bread with different kinds of wheat ... 
and more. 



Building on individual 
excellence 

The clarification of shared values is a critical ele- 
ment of AAFC's human resources strategy, Planning 
for the Future, which is founded on the belief that 
people are the department's most important resource. 
The strategy has guided the department's work to 
renew our focus on individuals. We are, for example, 
offering every employee an opportunity to develop 
a personal career plan by the year 2000, and work is 
well underway in every branch to provide employees 



Year 2000 



Preparing for the Future.... 

Stomping the Year 2000 Bug: AAFC began to attack the Year 2000 problem in 1995. Year 2000 readiness 
meant dealing with over 300 systems applications (51 of them mission critical), 1,200 components with 
potential embedded chip problems and approximately 7,000 personal computers. The good news: AAFC's 
in-house work is nearing completion, and work teams with representatives from across the portfolio have 
turned their focus to sectoral readiness and emergency contingency planning. 

In with the New... 

Cause to Celebrate: AAFC will mark the Millennium with four national initiatives: revitalization of the 
Dominion Arboretum in cooperation with the Friends of the Central Experimental Farm, launching National 
Agriculture and Food Celebration Week, inviting people to our research stations, and bringing rural and 
urban youth together in a series of exchanges. 



with the tools they need. Branches have designed 
toolkits customized to their own situations, and they 
have increased opportunities for mobility and devel- 
opment. (See sidebar.) In 1999, the department will 
track progress on career planning across the depart- 
ment, and will continue to commit four percent of its 
overall salary budget to training and development. 



A richer workplace culture 

In 1999 and beyond, AAFC's employment equity 
thrust will be accelerated. A three-year Employment 
Equity Action Plan aims, for example, at improving 
recruiting and providing more support for desig- 
nated groups. Diversity workshops are providing 
managers with the tools to lead a diverse workforce 
and encourage a richer workplace culture. 



The information we need 
to get the job done 

One of the major challenges for our knowledge- 
based sector is the growing amount of available 
information. AAFC created a new Electronic Infor- 
mation Services Division to deal with the rapid 
increase in use of electronic information manage- 
ment tools. We are consulting with clients and 
employees to find ways to provide better informa- 
tion management, better tools and better service. 

It is no longer an exaggeration to say that our clients 
are everywhere. The Agriculture and Agri-Food 
Canada Electronic Information Service (ACEIS) 
website, for example, is accessed 250,000 times 
each week — double last year's rate. 



Continuous improvement 

How will we measure our effectiveness? A sec- 
ond employee survey in the year 2000 will track 
our overall progress since our benchmark survey in 
1998, including that key indicator of success, 
increasing job satisfaction. We will intensify our 
consultations with clients outside the department, 
both to set our business goals and monitor our 
performance. As well, AAFC has developed a 
performance management framework to increase 
awareness and measure results. The ultimate test of 
our services is the satisfaction of our clients — 
Canadians as a whole — and our readiness for the 
next century of excellence. 




16 



www.agr.ca 



Portfolio Snapshot 



CAL/BCA OTTAWA K1A 0C5 




Minister of Agriculture and Agri-Food 
And Minister Coordinating Rural Affairs 



3 9073 00153439 7 



Secretary of State for Agriculture 

and Agri-Food and 

Fisheries and Oceans (3 



Minister Responsible 
for the Canadian 



Agriculture and 
Agri-Food Canada 



Deputy Minister and 



Research 
Branch 



Corporate 

Services 

Branch 



Canadian 
Pari-Mutuel 
Agency (4* 



Policy 
Branch 



Human 

Resources 

Branch 



Market and 

Industry Service 

Branch 



Review 
Branch 



Prairie Farm 
Rehabilitation 
Administration 



Communications 
Branch 



Canadian 

Wheat 

Board (2) 



Canadian 

Dairy 

Commission 



National Farm 
Products 



Canadian Food 
Inspection 




Deputy Minister and 
Associate Deputy Minister 

Frank Claydon, 
Deputy Minister, 
(613)759-1101 
claydonf@em.agr.ca 

Michelle Comeau, 
Associate Deputy Minister, 
(613)759-1090 
comeaum@em.agr.ca 

Branch Contacts 

Denise Boudrias. 
Assistant Deputy Minister, 
Market and Industry Services 
Branch, 

(613)759-7561 
boudriasd@em.agr.ca 



Douglas Hedley, 

Acting Assistant Deputy Minister, 

Policy Branch, 

(613)759-7349 
hedleyd@em.agr.ca 

George Shaw, 
Director General, 
Communications Branch, 

(613)759-7964 
shawg@em.agr.ca 

Sharon McKay, 

Director General, 

Human Resources Branch, 

(613)759-1196 
mckays@em.agr.ca 



Farm 

Credit 

Corporation 



Dr. Brian Morrissey, 
Assistant Deputy Minister, 
Research Branch, 

(613)759-7794 
morrisseyb@em.agr.ca 

Andrew Graham, 
Assistant Deputy Minister, 
Corporate Services Branch, 

(613)759-6811 
grahaman@em.agr.ca 

Elizabeth Massey, 

Executive Director, 

Canadian Pari-Mutuel Agency, 

Phase 2, Suite 12, 

6 Antares Drive, 

Nepean, Ontario K2E 8A9 

(613)946-1700 

emassey@em.agr.ca 



Notes: 

(1) The Honourable Ralph 
Goodale is the Minister 
Responsible for the 
Canadian Wheat Board. 

(2) The Canadian Wheat Board 
is not part of the Agriculture 
and Agri-Food Portfolio. 

(3) The office of the Secretary 
of State for Agriculture and 
Agri-Food and Fisheries and 
Oceans is funded jointly 
with Fisheries and Oceans 
Canada. 

(4) On April 1, 1997, the 
Canadian Pari-Mutuel 
Agency began reporting 
through the Corporate 
Services Branch. 

(5) On April 1,1997, the Food 
Production and Inspection 
Branch became part of the 
Canadian Food Inspection 
Agency (CFIA). 



Elaine Lawson, 
Director General, 
Review Branch. 

(613) 759-6470 
lawsone@em.agr.ca 

Bernie Sonntag, 

Director General, 

Prairie Farm Rehabilitation 

Administration, 
CIBC Tower, 

603-1800 Hamilton Street, 
Regina, Saskatchewan S4P 4L2 
(306) 780-6545 
pfT0354@em.agr.ca 



CORPORATE STRATEGIC PLAN, 1999-2002 



How to contact AAFC 

In Canada, please check the blue pages of your telephone 
directory for Agriculture and Agri-Food Canada's local 
number. Outside the country, contact the nearest Canadian 
diplomatic post. You will be put in touch with the right 
person to assist you. 

You can reach AAFC electronically, by phone, facsimile, 
or through the mail. For more information about agriculture 
and food production in Canada, or to obtain a list of free 
publications, contact: 

Public Information Request Service 

Agriculture and Agri-Food Canada 

Sir John Carling Building 

Room 133 

930 Carling Avenue 

Ottawa, Ontario, Canada Kl A 0C5 

Tel: 613-759-1000 

Fax: 613-759-6726 

E-mail: pirs@em.agr.ca 



Agriculture and Agri-Food Canada maintains an electronic 
information service providing instant access to departmental 
on-line services and information including federal agri-food 
programs, trade, commodity prices, regulations, agri-science, 
and technology. 

Contact AAFC on the Internet at: 
www.agr.ca 

or by modem at: 1-800-234-4410 

Voice and fax-back services are available 

by calling: 1-800-346-2222 

Spring 1999 

Publication number 2005/E 



To obtain additional copies: 

Departmental Publications Service 
Agriculture and Agri-Food Canada 
Sir John Carling Building 
930 Carling Avenue 
Ottawa, Ontario K1A0C5 
Tel: (613) 759-6626 

Ce document est disponible en francais 
sous le titre L' excellence sur la scene mondiale : 
Innover pour reussir — Plan strategique ministeriel 
1999-2002 d'AAC 



Canada 1