,4 l . MS ' iS-i Q/^jnistry BUSINESS PLAN ♦ 2006/07 to 2008/09 I Alberta Agriculture, Food and !| Rural Development Digitized by the Internet Archive in 2017 with funding from University of Alberta Libraries https://archive.org/details/ministrybusiness2006albe Agriculture, Food and Rural Development BUSINESS PLAN 2006-09 1 ACCOUNTABILITY STATEMENT The business plan for the three years commencing April 1, 2006 was prepared under my direction in accordance with the Government Accountability Act and the government's accounting policies. All of the government's policy decisions as of March 7, 2006 with material economic or fiscal implications of which I a m aware have been considered in preparing the business plan. The Ministry's priorities outlined in the business plan were developed in the context of the government's business and fiscal plans. I a m committed to achieving the planned results laid out in this business plan. Doug Homer, Minister of A griculture, Food and Rural Development March 7, 2006 THE MINISTRY The Ministry of Agriculture, Food and Rural Development (AFRD) consists of the Department of Agriculture, Food and Rural Development and Agriculture Financial Services Corporation (AFSC). The Ministry is also responsible for the Office of the Farmers' Advocate; Irrigation Council; Agricultural Products Marketing Council; and Alberta Grain Commission. 1 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 VISION MISSION Growing Alberta farms, processors, and all other To enable the growth of a g lobally competitive, sustainable agricultural businesses along with vibrant rural agriculture and food industry through essential policy, communities. legislation, information and services in partnership with vibrant rural communities. CORE BUSINESSES Core Business 1: Facilitate Sustainable Industry Growth Core Business 2: Enhance Rural Sustainability Core Business 3: Strengthen Business Risk Management LINK TO THE GOVERNMENT OF ALBERTA STRATEGIC BUSINESS PLAN Agriculture, Food and Rural Development contributes to Goal 1 : A lberta will have a d iversified and prosperous economy, under the key opportunity of Unleashing Innovation. The Ministry contributes to this goal by facilitating the growth of the agriculture industry through several programs and functions, including implementing the Agriculture Growth Strategy and the Six-point Recovery Strategy. The Ministry also works to secure a stronger future for rural Alberta through implementation of the Rural Development Strategy. The Ministry contributes to Goal 14: Alberta will have a supportive and sustainable infrastructure that promotes growth and enhances quality of life, under the Capital Plan. This is done by providing cost-shared funding to Alberta's 1 3 i rrigation districts to rehabilitate the districts' water conveyance infrastructure, supporting municipalities to develop water/wastewater infrastructure for agricultural processing and administering funding under the Municipal Industrial Wastewater Infrastructure Program. The Ministry also contributes to Goal 8: Alberta will have a f inancially stable, open and accountable government, under the key opportunity of Making Alberta the Best Place to Live, Work and Visit. This contribution is made by servicing the debt incurred by the Agriculture Financial Services Corporation (AFSC) in providing service to its clients. SIGNIFICANT OPPORTUNITIES AND CHALLENGES The Ministry will continue to partner with industry and other governments as we support the industry in strengthening its position globally in its recovery from the longer-term impacts of Bovine Spongiform Encephalopathy (BSE) and successive years of drought and ongoing cost competitiveness issues. The erosion of equity resulting from these events increases the need for innovative long-term solutions to mitigate these types of risk. These events, combined with the opportunity to grow the value-added industry, will continue to result in revisions to Ministry programming in 2006 and in future years, ensuring the industry is p oised to grow and diversify beyond its pre-BSE strength. The Agricultural Policy Framework (APF) continues to impact the strategic direction in this plan. The objectives of the five chapters of the APF are linked to the goals in this plan. Negotiation of the next phase of the Framework will require ongoing effort in partnership with industry to allocate resources for the implementation of components of the strategy. Opportunities to appropriately align Alberta's policies and processes with national and international developments and opportunities, such as food policies, environmental goods and services and biowaste management will need to be explored. 2 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 Strategies for rural development, growth and research and development are at various stages of implementation. These initiatives will continue to impact the future direction of the Ministry and its programming in 2006 and beyond. Current conditions in the agriculture and food industry clearly demonstrate the susceptibility to inherent risks such as poor weather, declines in global commodity prices and exchange rates, and changes in the overall economy. While the Ministry's strategic direction is outlined, it is acknowledged that from year to year, changes must be made to accommodate specific developments. Monitoring of world trade issues, including food policy challenges and the associated impacts on legislative and regulatory frameworks will require ongoing management. The Institute of Food and Agricultural Sciences, Alberta (IFASA) is a collaboration among the Alberta Research Council, the University of Alberta and AFRD. IFASA will enable internationally recognized, multidisciplinary research programs, which have critical mass, to be built, strengthening Alberta's applied research and technology commercialization capacity. STRATEGIC PRIORITIES 2006-09 Through the Ministry's review of environmental factors, the strategic priorities described below have been identified. These are in addition to the important ongoing core activities of the Ministry. 1. The Rural The Rural Development Strategy is a cross-government strategy and is being implemented Development Strategy through rural-focused initiatives within each ministry. The Ministry of Agriculture, Food Linkage: Goal 4 and Rural Development is responsible to coordinate a collaborative, cross-ministry approach that delivers an integrated suite of programs and services to rural Albertans. In addition to implementing their own specific initiatives, the Ministry is also responsible for fostering community engagement and providing opportunities and mechanisms for government to hear and respond to rural based needs, issues and concerns. Funding has been allocated to support community based projects to respond to the recommendations of government's Rural Development Strategy. 2. The Agriculture The industry opportunity to sustainably grow primary agricultural production to $10 billion Growth Strategy and value-added industry to $20 billion by 2010 will be achieved through the Linkage: implementation of the growth strategy by industry. The Ministry will continue to work in Goals 1 and 4 partnership with industry to clearly articulate outcomes in both qualitative and quantitative terms, including the development of appropriate levels of slaughter capacity, to facilitate achievement. 3. The Research and Longer-term achievement of the Ministry's vision and mission will be dependent on Innovation Strategic Framework industry's ability to support strategically targeted research in the agriculture and food industry. The Ministry will focus efforts on the components of the Research Strategy in Linkage: partnership with industry and Innovation and Science. Goals 1, 2, 3 a nd 4 4. Animal Health and The Ministry and the province's cattle industry are committed to implementing processes Food Safety Surveillance that will help maintain Canada's status as a minimal risk country and promote Alberta's safe food practices as among the best in the world helping to contribute to the growth of the Linkage: industry. Goals 1 and 2 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 3 5. Business Risk The susceptibility of the agriculture and food industry to inherent risks evidences the need Management for a continued strategic focus on business risk management. The Ministry will continue to Linkage: work in partnership with industry and other governments to help business managers make Goals 1, 4 a nd 5 the decision necessary to mitigate the impacts of these risks. 6. Six-point Recovery The Ministry's Six-point Recovery Strategy will require continued commitment from Strategy Ministry officials in assisting the beef industry in its recovery from the impacts of BSE. The six elements of the strategy include addressing slaughter capacity, new product development, Linkage: Goals 1, 2 a nd 6 set-aside programs, surveillance, the Canadian Agricultural Income Stabilization Program as well as research initiatives. 7. Using and Respecting Agriculture, Food and Rural Development is working with other ministries to develop a l and the Land use framework for effective management of competing land use interests to preserve Linkage: Alberta's high quality of life and continued economic prosperity. The framework will Goals 1 and 3 consider the needs, perspectives and issues of all Albertans, including the agricultural industry, working agricultural landscapes and the natural capital value of those landscapes. 8. Water for Life: Water for Life: Alberta's Strategy for Sustainability is a comprehensive, 10-year strategy for Alberta's Strategy for water and watershed management in the province. Implementing the Water for Life Strategy Sustainability is a k ey strategic priority of the 2006-09 business plan. Agriculture, Food and Rural Linkage: Development, along with a number of other ministries, is working collaboratively to ensure Goals 1, 3, 4, 5 a nd 6 the outcomes of the strategy - safe, secure drinking water; healthy aquatic ecosystems; and reliable, quality water supplies for a sustainable economy - are achieved. CORE BUSINESSES, GOALS, STRATEGIES & P ERFORMANCE MEASURES Core Business One: Facilitate Sustainable Industry Growth goal one [ Sustainable growth of the agriculture and food industry What it means This goal recognizes that industry growth is the outcome of long-term profitability arising from a competitive agriculture and food industry focused on consumer-driven market opportunities. The Ministry contributes to this goal by encouraging new and diversified product development and investment (primary and value-added food and non-food products) and facilitating long-term sustainable growth in established sectors. To achieve this goal, the Ministry will incorporate the objectives of the following initiatives into the appropriate division operating plans: • Alberta's Agriculture Growth Strategy, • Securing Tomorrow's Prosperity (A Strategy for Sustaining the Alberta Advantage), • Alberta's Agriculture Research and Innovation Strategic Framework, • A P lace to Grow - A lberta's Rural Development Strategy, and • Agricultural Policy Framework. 4 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 Strategies 1 . 1 Encourage development of new products, processes and services that respond to new market opportunities and enhance diversity. 1.2 Facilitate capital investment in the agriculture and food industry through opportunity identification, evaluation and lending products. 1 .3 Advocate policies/programs and develop networks that facilitate market access, human resource development, industry competitiveness and add value to primary production. 1 .4 Develop and administer essential policy, legislation and regulations. 1.5 Deliver targeted research, technology, information and services to enhance competitiveness and market access. 1 .6 Work with partners to ensure that appropriate physical infrastructure is in place. Target Performance Measures Last Actual Target Target (2004-05) 2006-07 2007-08 2008-09 1 . a Number of value added products developed and successfully introduced to market with 75 105 assistance from AFRD. 90 1 . b Research and development investment by collaborators leveraged through ministry resources. $6.7 million $8.5 million $10 million $12 million I.c Investment supported by AFSC lending services2. $298 million 551 $217 million $221 million $225 million Notes: 1 The last actual and target numbers for this measure differ from the ones reported in the 2005-2008 Business Plan and the 2004-2005 Annual Report. They have been restated to reflect the intended meaning of this measure, which focuses on development and commercialization of new value-added products. 2 Total investment in rural business and total amount of farm loans. GOAL TWO Continued excellence in food safety What it means This goal recognizes that a reputation for excellence in food safety is essential to maintain consumer confidence and expand markets, both domestic and international. The Ministry contributes to this goal by promoting or directing implementation of food safety systems in the production of food. This is achieved through essential food safety legislation, regulations, policy and education, and through surveillance systems that support consumer confidence and market access. These initiatives support the development of a national approach to food safety as identified in the Agricultural Policy Framework. Strategies 2.1 Facilitate adoption of internationally accepted food safety systems and standards in production and processing of Alberta food. 2.2 Maintain a continually improving surveillance system that validates and identifies opportunities for enhancing the safety of Alberta's agriculture and food products. AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 5 2.3 Review and administer essential policy, legislation and regulation, and facilitate emergency response. 2.4 Develop and transfer knowledge and technology in support of safe food production and processing. 2.5 Deliver information, training and other programs that enhance food safety awareness and supports access to domestic and international markets. 2.6 Represent the Province's interests in national, provincial and industry food safety and traceability initiatives. Target Performance Measures Last Actual Target Target (2004-05) 2006-07 2007-08 2008-09 2. a Number of surveillance and monitoring initiatives 10 12 12 17 designed to measure hazards in food production. 2.b Percentage of Alberta production produced 98 98 under on-farm food safety programs1. 99.93 98 98 • chicken farms (mandatory) 60 4908 98 • hog farms (voluntary) 945..82 20 50 • beef feed lots (voluntary) • dairy 8.5 30 40 2.c Percentage of Alberta licensed food production facilities that have added a p reventative system to their existing food safety system. 45 95 • meat - H ACCP2 Pre-requisites (Meat Facility Standards ver. II) 0 5 • meat - H ACCP2 (Alberta HACCP Advantage) 0 1010 1020 1030 0 • dairy3 Notes: 1 On-Farm Food Safety programs are industry led initiatives designed to provide an optimum level of safety for products produced on farms. These programs undergo national technical review and are implemented by producers with help from their provincial commodity groups. Implementation by producers may be voluntary or mandatory depending on the commodity. 2 HACCP is an acronym, which means Hazard Analysis Critical Control Point. HACCP is a system, which identifies, evaluates, and controls hazards, which are significant for food safety. Measure has changed to reflect new provincial programs and standards. 3 Written and auditable food safety preventative programs will be implemented in a stepwise fashion in Alberta licensed dairy food processing facilities. This approach considers a need to mitigate risk in a voluntary environment and industry's capability to implement. The strategy would see implementation of a recall program in all facilities in 06/07, followed by a comprehensive allergen program in 07/08 and sanitation/pest control in 08/09. These programs are consistent with the Alberta HACCP Advantage. Core Business Two: Enhance Rural Sustainability goal three Improved environmental stewardship What it means This goal recognizes it is the role of the Ministry to assist the agriculture and food industry to maintain or improve Alberta's air, water and soil for the well being of current and future generations. The Ministry contributes to this goal through essential policy, legislation, information and services related to soil conservation, water quality, air quality, climate change and biodiversity. To achieve this goal the Ministry will incorporate the objectives of the Environment Chapter of the Agricultural Policy Framework, Water for Life: Alberta's Strategy for Sustainability, the Agriculture Growth Strategy, the Rural Development Strategy and the agricultural components of the provincial Climate Change Strategy into appropriate division operating plans. 6 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 Strategies 3.1 Support and conduct applied/adaptive research and evaluations to develop economically sound, environmentally friendly beneficial management practices for relevant areas of crop and livestock production and agricultural processing. 3.2 Transfer integrated technology and knowledge to assist the industry in becoming more environmentally sustainable, including provision of support for adoption of environmental farm plans. 3.3 In consultation with the industry and other involved ministries, provide guidelines, standards, regulations and legislation for environmental performance requirements to sustain the quality of Alberta's soil, water and air. 3.4 Monitor the effect of the agricultural production and processing industry on soil and water quality. Target Target Performance Measures Last Actual Target 2006-07 2007-08 2008-09 (year) 3. a Percentage of producer survey respondents who have adopted improved environmentally sustainable agriculture practices (formal 58 evaluation every three years; next survey to be conducted in 2006/07 and reported in June 53 58 2007). 58 (2003-04) 3.b Number of producers provided with specific 1968 training and technical support to enable development of environmental farm plans. (2004-05) Note: 1 Targets reflect a cumulative growth of 1000 per year. 40001 50001 60001 GOAL FOUR Strengthened rural communities What it means This goal recognizes that sustainable rural communities with increased human and business capacity are components of a p rosperous province. The Ministry contributes to this goal by working to strengthen rural communities through facilitating leadership and skill development, business growth and development and community infrastructure. To achieve this goal, the Ministry will incorporate the priorities of the Rural Development Strategy. Strategies 4. 1 Provide leadership and skill development for youth and adults actively engaged in agriculture and community organizations and rural businesses. 4.2 Facilitate the development and sustainability of rural communities and organizations to be flexible, adaptable and manage change. 4.3 Facilitate the growth and development of sustainable agricultural and rural businesses. 4.4 Coordinate a collaborative, cross-ministry approach to the implementation of the Government of Alberta Rural Development Strategy. AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09 7 Target Performance Measures Last Actual Target Target (2004-05) 2006-07 2007-08 2008-09 300 4.a Number of rural1 businesses assisted by AFSC 210 255 lending services. 273 4.b Total investment leveraged in rural1 businesses facilitated through AFSC lending services2. $80.0 mil $82.0 mil $84.0 mil $169 mil3 4.c Percentage of ministry supported, agricultural- related community activities that focus on 27 29 30 30 leadership development. 4.d Percentage of rural youth and adults participating 90 in Ministry-supported programs that report effective learning from those programs. 91 90 90 Notes: * Rural means communities outside Edmonton and Calgary. 2 The figures presented in the targets represent all investment in rural businesses, including AFSC direct assistance, partnership lending (i.e. Farm Credit Corporation), borrower investment and other sources. 3 The introduction of two new programs (Beef Product and Market Development Loan Program and the Project Investor Financing Loan Program), enabled AFSC to be involved in a f ew larger projects, resulting in AFSC exceeding its rural investment target. Core Business Three: Strengthen Business Risk Management mmm Effective risk management decisions by agricultural business goal five f managers What it means This goal recognizes the business risk associated with production affected by weather extremes, disease epidemics and unforeseen global market influences. Cooperative efforts by service providers will target business management training and information dissemination, allowing managers to adopt the most economical and effective management practices to sustain their business. "Agri-business manager" is an inclusive term indicating the range of industry people, from primary to value added, using risk management tools in decision-making. This goal is manager-driven. The manager makes the decisions, not government on behalf of the manager. Strategies 5.1 Determine risk management information needs of business managers in the primary and value added sectors. 5.2 Collect, develop and distribute data and information to support business risk management decisions in the primary and value added sectors. 5.3 Facilitate development and use of analytical tools to proactively identify, measure and manage business risk in the primary and value added sectors. 5.4 In collaboration with the private sector, provide information and training on business risk management tools and strategies in the primary and value added sectors. 8 AGRICULTURE, FOOD AND RURAL DEVELOPMENT BUSINESS PLAN 2006-09