Ministry of Agriculture 2016/17 – 2018/19 SERVICE PLAN February 2016 For more information on the British Columbia Ministry of Agriculture, see Ministry Contact Information on page 18 or contact: Ministry of Agriculture: PO BOX 9120 STN PROV GOVT VICTORIA, BC V8W 9B4 or visit our website at www.gov.bc.ca/agri Published by the Ministry of Agriculture Table of Contents Table of Contents ......................................................................................................................................... 3 Minister of Agriculture Accountability Statement ....................................................................................... 4 Purpose of the Ministry ................................................................................................................................ 5 Ministry Roles & Responsibilities ............................................................................................................... 5 Strategic Direction and Context ................................................................................................................... 6 Goals, Objectives, Strategies and Performance Measures ........................................................................... 7 Resource Summary .................................................................................................................................... 17 Appendices ................................................................................................................................................. 18 Appendix A: Ministry Contact Information ............................................................................................... 18 Appendix B: Agricultural Land Commission ............................................................................................ 21 Appendix C: British Columbia Farm Industry Review Board ................................................................... 24 2016-17 – 2018/19 Service Plan 3 Minister of Agriculture Accountability Statement The Ministry of Agriculture 2016/17 - 2018/19 Service Plan was prepared under my direction in accordance with the Budget Transparency and Accountability Act. I am accountable for the basis on which the plan has been prepared. Honourable Norm Letnick Minister of Agriculture February 5, 2016 Ministry Vision: An innovative, adaptive and globally competitive Agrifood sector valued by all British Columbians. Ministry Mission: Cultivate a competitive and socially responsible Agrifood sector. 2016-17 – 2018/19 Service Plan 4 Purpose of the Ministry The Ministry of Agriculture (the Ministry) is responsible for the production, marketing, processing and merchandising of agrifood and seafood products; the institution and carrying out of advisory, research, promotional, sustainability and adaptation, food safety or plant and animal health programs, projects or undertakings relating to agrifood and seafood; and the collection of information and preparation and dissemination of statistics relating to agrifood and seafood. The legal and regulatory environment that guides the work of the Ministry includes 28 statutes which relate wholly or primarily to the Ministry. A complete list of legislation for which the Ministry is responsible is available at: http://www.bclaws.ca/civix/document/id/amr/amr/1135179498 Ministry Roles & Responsibilities The following outlines the Ministries major business areas, including their roles and responsibilities. Agriculture Science and Policy Division: • Corporate Governance, Policy & Legislation Branch – Supports government’s policy and legislative development, assessing market trends, leading intergovernmental relations, and evaluating the success of initiatives. • Food Safety & Inspection Branch – Provides provincial and regulatory standards throughout the food system (processors, packers, distributors), assesses industry food safety compliance, and supports industry in its adoption of food safety standards. • Plant & Animal Health Branch – Provides diagnosis and surveillance of plant and animal pests and diseases, identification of and response to emerging plant and animal diseases, and program delivery including licensing. Business Development Division: • Business Risk Management Branch – Improves access to capital and enables investment by helping producers manage risks that cause income losses and lead to financial instability, including weather hazards, natural disasters, wildlife, diseases, pests and market declines. • Innovation and Adaptation Services Branch – Works to enhance agrifood and seafood sector growth, competitiveness, sustainability and adaptability. Provides expertise and support for: innovation, domestic and international marketing, management practices that promote agrifood systems that are environmentally sustainable and productive, and creating and maintaining a positive regulatory climate with local government. • Sector Development Branch – Works directly with the agrifood and seafood sector in all areas of B.C. to build industry capacity by supporting: business development, First Nations agriculture, youth development, farm succession / new entrants, and agroforestry. Provides in-depth knowledge of the opportunities, challenges and needs of various sectors, and the emergency preparedness and coordination required for the agrifood sector in B.C. 2016-17 – 2018/19 Service Plan 5 Strategic Direction and Context Strategic Direction The B.C. Jobs Plan: Agrifood & Seafood Strategic Growth Plan sets out actions in three key areas of priority to help grow B.C.’s agrifood and seafood sector: increasing production, driving competitiveness, and building markets. The agrifood and seafood sector includes agriculture, fisheries, aquaculture and food and beverage processing. This plan addresses key challenges and opportunities facing the sector including achieving economic growth, adapting to climate change and ensuring food supply security. The Ministry’s operations are guided by the Minister of Agriculture’s Mandate Letter and the Province of British Columbia Strategic Plan 2015/16 – 2018/19, in which the agrifood and seafood sector is featured. The Ministry, the Agricultural Land Commission and the Farm Industry Review Board must operate under the Taxpayer Accountability Principles – cost-consciousness, accountability, appropriate compensation, service, respect, and integrity – to ensure that decisions that are made reflect the priorities and values of government and the citizens of B.C. Strategic Context B.C. has an enviable reputation as a leader in the production and processing of a wide range of safe, high-quality agrifood and seafood products, and enjoys a strong local domestic market driven by the largest population of the four western provinces. The Ministry works collaboratively with B.C.’s agrifood and seafood industry to improve the sustainability and security of B.C.’s food supply by improving production methods, enhancing biosecurity measures, and ensuring the highest standards in animal care and food safety. In 2014, B.C.’s agricultural, fisheries, aquaculture and food and beverage manufacturing sectors employed approximately 55,000 people and generated $12.3 billion in annual revenue. The nearly 20,000 farms had total sales of $2.9 billion in 2014, and employed 22,900 people. The 678 aquaculture operations had $414.5 million in sales, while the 2,514 commercial fishing vessels had sales of $414.6 million and, together, employed another 3,400 people. The more than 1,800 processors handled a wide range of agrifood and seafood products, employed an estimated 28,100 people and generated over $8.5 billion in sales. In 2014, B.C. exported $3.0 billion worth of agricultural and seafood products to 150 countries. There is a strong focus in B.C.’s agrifood and seafood sector on maintaining access and competitive advantage in global markets, necessitating quick responses to changing market opportunities. As a result, innovation, including new product development, is very important in establishing and servicing niche markets and responding to emerging market opportunities. 2016-17 – 2018/19 Service Plan 6 Goals, Objectives, Strategies and Performance Measures The Ministry’s service plan is organized around three long-term goals: • Goal 1: Economic growth and diversity throughout the agrifood and seafood sector; • Goal 2: An environmentally sustainable agrifood and seafood sector; and, • Goal 3: Community and social well-being are enhanced by responsible agrifood and seafood sector practices. The Ministry is committed to supporting government’s strategic priorities for a strong economy and a secure tomorrow, as laid out in the Minister of Agriculture’s Agrifood and Seafood Strategic Growth Plan, the Minister`s Mandate Letter and the Province of British Columbia Strategic Plan 2015/16 – 2018/19. The priorities in the Minister’s Mandate Letter as well as in the above plans are consolidated and reflected in this service plan. In addition, this year's service plan goals, objectives, performance measures and strategies have been updated to better align with the recently released Agrifood & Seafood Strategic Growth Plan. Through the implementation of the Taxpayer Accountability Principles, the Ministry is strengthening cost management capabilities and fostering a principled culture of efficiency and accountability at all levels to ensure that this service plan is delivered in a way that best serves the public interest. Goal 1: Economic growth and diversity throughout the agrifood and seafood sector. Objective 1.1: Increased agrifood and seafood production. B.C.'s agrifood and seafood producers benefit from a number of attributes, including a mild climate and extended growing season in many regions, an international reputation for food safety and quality, strong domestic markets and proximity to many export markets. These competitive advantages place B.C. in a strong position in the event of possible future disruptions to food supply systems. By increasing production of our wide range of products, introducing new products and increasing the value of market sales, we will increase the sector’s revenues and create jobs for British Columbians. Strategies • Implement the new Agrifood and Seafood Strategic Growth Plan, developed in collaboration with the sector through the Minister’s AgriFoods Advisory Committee. Implementation will help increase sector revenues. • Implement B.C.’s Seafood Strategy to maximize the aquaculture, commercial, and marine recreational fisheries to support a diversified economy while balancing environmental sustainability objectives. 2016-17 – 2018/19 Service Plan 7 • Work with the Ministry of Forests, Lands, and Natural Resource Operations, private landowners, local governments and industry to develop and implement approaches that will increase and intensify production on unused and underutilized land. • Provide strategic business development leadership and build business management awareness, market intelligence, and capacity within the agrifood and seafood sector. • Continue delivery of the sustainable, long-term Tree Fruit Replant Program that supports grower’s efforts to meet consumer demands for high-value, high-quality fruit. • Create and implement a provincial forage plan. • Work with stakeholders and other ministries to ensure that Provincial policies and programs relating to wildlife management and losses due to wildlife-agriculture conflicts are effective. • Implement the changes to the Agricultural Land Commission and ensure the Agricultural Land Reserve is working for B.C. • Work with the Agricultural Land Commission and the BC Farm Industry Review Board to implement a new performance and accountability regime that is in compliance with the Taxpayer Accountability Principles. Performance Measure 1: Annual revenue growth in the Agrifood, Seafood, and Processing sectors ($ Billions). 2014 2015 2016 2017 2018 Performance Measure Baseline Forecast Target Target Target Agriculture $2.9 $3.1 $3.2 $3.3 $3.5 Seafood $0.8 $0.9 $0.9 $1.0 $1.0 Food and Beverage $8.5 $8.9 $9.2 $9.7 $9.9 Manufacturing Total Annual Projected Revenue* $12.3 $12.8 $13.3 $14.0 $14.4 Data Source: Statistics Canada, Cansim Tables 002-0001 and 003-0001 and adapted from Cansim Table 304-0015. Forecast and Targets – B.C. Ministry of Agriculture *Note: Totals may not add due to rounding Discussion This outcome measure reflects the objective of achieving economic growth and aligns with the Ministry’s new Agrifood and Seafood Strategic Growth Plan, and the previous strategy: BC Agrifoods: a strategy for growth. This measure shows growth in annual revenues by the agrifood and seafood sector by monitoring growth in the value of farm cash receipts for crops and livestock, the landed value of seafood, and the estimated value of shipments from B.C. food and beverage processors. Targets are based on the average annual rate of change in revenues. Since these revenues are driven by market conditions, they are not wholly under the Ministry’s control. In 2015, the forecast revenues for the agrifood and seafood sector are higher than those realized in 2014. These increases reflect the rises in both average prices and harvest levels for many agrifood and seafood 2016-17 – 2018/19 Service Plan 8 commodities. The 2016 – 2018 targets, if achieved, would see the agrifood industry revenues reach the BC Agrifoods: a strategy for growth goal of $14 billion in sectoral revenues by 2017 and create a strong foundation for achieving the Agrifood and Seafood Strategic Growth Plan goal of $15 billion per year by 2020. Objective 1.2: Increase the competitiveness of the agrifood and seafood sector. The Ministry encourages growth in the agrifood and seafood sector through programs that foster innovation, including the development of new products and agri-technologies, competitiveness and improved market access. The Ministry works with industry to identify opportunities and take calculated and balanced risks that create value, increase efficiencies and reduce costs which enhance the viability of agrifood and seafood businesses. Strategies • Support innovative product and process development, commercialization and technology adoption. • Implement programs and initiatives that help the sector become more competitive. • Enable industry to identify, reduce, and manage risk to improve access to capital and enable investment. • Promote one portal access to government services and ensure that Ministry of Agriculture services are easily accessed by British Columbians and agrifood and seafood sector businesses. • Promote the sector’s labour interests and encourage industry to leverage labour partnerships, training, and programs. • Work with the Ministry of Finance to implement the 25 per cent tax credit on the value of farmed food donated to nonprofit organizations. Objective 1.3: Build markets for agrifood and seafood products at home, across Canada, and internationally. The Ministry encourages the growth of the agrifood and seafood sector through programs, policies, and trade agreements that develop markets and improve market access. By expanding domestic, interprovincial and international markets, we can ensure sustainable, long-term growth for B.C.’s agrifood and seafood sector and contribute to economic growth and continued job creation across the province. 2016-17 – 2018/19 Service Plan 9 Strategies • Work with industry and government partners to create and implement an international marketing strategy that guides market development and trade access priorities and continues to build on the province’s export successes. • Help producers and processors capitalize on new domestic and international market opportunities. • Deliver market development initiatives to expand export sales of B.C.’s agrifood and seafood products to international markets, including the U.S. and China. • Implement the ministry’s interprovincial trade strategy in an effort to break down barriers for B.C. agrifood and seafood products in other provincial markets (e.g. pursue agreement from all Canadian provinces on direct-to-consumer shipments of wine). The Ministry of International Trade will continue to be a key partner in these efforts. • Provide the B.C.’s agrifood and seafood sector with timely information, market data, and market intelligence reports to identify opportunities for the sector. Performance Measure 2: Annual Value of Agrifood and Seafood Exports ($ Billions). Performance Measure 2014 Baseline 2015 Forecast 2016 Target 2017 Target 2018 Target Annual Value of Agrifood $2.96 $3.00 $3.05 $3.10 $3.20 and Seafood Exports1 Data Source: Statistics Canada, CATSNET Analytics 1. This performance measure replaces the “Ratio of administrative costs to Production Insurance premiums” performance measure used in previous service plans. The Ministry had reported against a ratio of administrative costs to premiums, with an ongoing target of 20:80 as this type of ratio is most comparable to the private sector. Because the stability of a 20:80 ratio was a positive indicator of performance, the measure did not demonstrate performance improvement over time, as improved performance was best represented through a static 20:80 ratio. Discussion In 2014, BC exported almost $3.0 billion worth of agrifood and seafood products. This performance measure tracks BC agrifood and seafood exports to more than 150 markets, including those destined for BC’s top five markets; the United States, China, Japan, Hong Kong and Taiwan. 2016-17 – 2018/19 Service Plan 10