Operating context

External Environment

• In response to the onset of the COVID-19 pandemic in March 2020, Canadian Grain Commission resources focused primarily on the critical areas of inspection and licensing, as well as aiding in producer protection through the Harvest Sample Program. New approaches were implemented to provide critical mandated services while ensuring the safety of Canadian Grain Commission employees. During 2020-21, the Canadian Grain Commission initiated a phased business recovery approach for the return of services that were suspended or modified due to the pandemic. During 2021-22, the Canadian Grain Commission will continue to draw on innovative practices adopted during the pandemic and integrate them as part of the future of our work. This presents real opportunities to further improve and streamline business processes in all of the Canadian Grain Commission’s operations including stakeholder engagement, and program delivery.
• The Canadian grain sector has experienced a period of significant transformation within the past 10 years including the ending of the Canadian Wheat Board’s single desk for wheat and barley marketing in 2012 and the transfer of inward grain inspection and weighing from the Canadian Grain Commission to the private sector in 2013. Grain companies with grain elevators on the prairies have consolidated significantly, and investment spending related to grain handling facilities and grain processing facilities has occurred. As a result, the Canadian Grain Commission continues to experience an increase in licensing demands for all four classes of licences.^{Footnote 1}
• Canadian grain production has been increasing due to new technologies and agronomic practices. In turn, this has increased export volumes and the demand for Canadian Grain Commission program delivery and documentation. The 10-year average for Canadian grain production between crop years 2010-11 to 2019-20 was 86.033 million metric tonnes. The recent 5-year average (92.298 million metric tonnes), 2015-16 to 2019-20 was 16 percent higher than the previous 5-year average (79.570 million metric tonnes). Canadian grain exports from Canadian Grain Commission-licensed grain elevators averaged 38.898 million metric tonnes between fiscal years 2010-11 to 2019-20. Additionally, domestic consumption/disappearance^{Footnote 2} of Canadian grain rose by 15 percent between crop years 2015-16 (16.397 million metric tonnes) and 2019-20 (19.889 million metric tonnes).

The growth in grain production and export has increased demand on the Canadian Grain Commission’s grain quality assurance system. This includes pressures to ensure efficient and effective analytical services and testing, and grain inspection and weighing.

• The Canadian grain sector faces uncertainty regarding access to international markets due to heightened market sensitivity related to actual and perceived grain quality and food-safety issues. There is increasing emphasis on selling to specification, ongoing transition toward analytical assessment of grain quality factors, as well as the focus on niche-marketing and increased value-added processing. Through scientific research and innovation, the Canadian Grain Commission continues to provide scientific and analytical evidence to mitigate market access issues both globally and domestically on issues such as product residues, mycotoxins, and approved traits.

Internal Environment

• In 2019, Agriculture and Agri-Food Canada committed to undertaking a review of the Canada Grain Act under the Targeted Regulatory Review’s Agri-food and Aquaculture roadmap, to identify if changes are needed to meet the needs of Canada’s modern grain sector. Budget 2019 also included a commitment to a review of the Canada Grain Act. Throughout 2019-20, the Canadian Grain Commission supported the Agriculture and Agri-Food Canada-led review with evidence-based analysis and advice. While further review work was paused due to the COVID-19 pandemic, the grain sector has continued to operate at or above normal levels and stakeholders emphasized the continued need for the review to proceed. In January 2021, Agriculture and Agri-Food Canada launched the consultation phase of the Canada Grain Act review. The Canadian Grain Commission will work with Agriculture and Agri-Food Canada and stakeholders through the review to continue improving Canada’s grain quality assurance system and protections for producers.
• Prior to updating fees in 2013, prolonged periods of ad-hoc and unstable funding resulted in the under-investment in the Canadian Grain Commission’s facilities and infrastructure, programs and services, and information management technology. The ongoing Canadian grain sector transformation continues to increase pressure on the Canadian Grain Commission’s aging infrastructure, equipment, technology, and research capabilities. Fee information is located on the Canadian Grain Commission website.
• The Canadian Grain Commission has unique human resource challenges and opportunities due to its non-traditional and highly technical workforce where many of its employees are dedicated to scientific research or grain inspection. As of March 31, 2020, the average age of Canadian Grain Commission employees was 45 years and approximately 28.5 percent of the Canadian Grain Commission workforce was eligible to retire in five years or less. This is a 3 percent increase from previous years. These factors have the potential to affect the continuity of corporate and technical knowledge, and capacity to deliver programs as currently mandated. The Canadian Grain Commission continues to identify key positions for either external recruitment or internal succession planning which includes identifying the competencies and learning requirements of these positions.