CSGA Report Saskatchewan Seed Growers Association Annual General - PowerPoint PPT Presentation

CSGA Report Saskatchewan Seed Growers Association Annual General Meeting Jan 16-17, 2019

Priorities for 2019 • Acreage and Membership • Disruption and Innovation • Seed Synergy • CSGA Membership Model • Program Updates • Value Creation 2

Acreage and Membership 2018 3

Certification Progress and Updates 2018 At A Glance • 1,334,973 Acres • 14,074 Fields • 2,630 Plots • 46 Different Crop Kinds • 2,326 Different Varieties 4

Canadian Pedigreed Acres - 1994 to 2018 1,600,000 1,417,239 1,372,055 1,400,000 1,334,973 1,200,000 1,099,697 1,000,000 Acres 800,000 600,000 400,000 200,000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Years 5

Certification Progress and Updates Canada Acreage Changes by Province: Summary 2018 Province 2017 Acreage 2018 Acreage Difference % Change P.E.I. 4,253 1,380 2,873 48 Nova Scotia 74 53 -21 -28 New Brunswick 3,660 4,020 360 10 Québec 87,139 86,749 -390 0 Ontario 178,398 174,728 -3,670 -2 Manitoba 390,982 380,139 -10,843 -3 Saskatchewan 330,473 324,284 -6,189 -2 Alberta 345,766 349,340 3,574 1 British 6,874 5,070 -1,804 -26 Columbia Total 1,353,175 1,334,973 -18,202 -1 6

Canada's Top Crop Kinds: 2018 Breakdown 450,000 400,000 350,000 300,000 250,000 Acres 200,000 150,000 100,000 50,000 0 SOYBEAN WHEAT BARLEY PEAS CANOLA ALFALFA OATS TIMOTHY LENTIL FLAX Crop Kind 7

Certification Progress and Updates Canada's Top Crop Kinds: 2007 to 2018 500,000 450,000 400,000 350,000 300,000 Acres 250,000 200,000 150,000 100,000 50,000 0 Wheat Soybeans Barley Peas Alfalfa Crop Kind 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8

CSGA Membership Totals: 2001 to 2018 5000 4500 4000 3500 Number of Members 3000 2500 2000 1500 1000 500 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year 9

Saskatchewan: 2018 Analysis

Saskatchewan Inspected Acreage: 1995 to 2018 500,000.00 451,040.00 450,000.00 400,000.00 350,000.00 324,284 300,000.00 273,290.48 Acres 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00 0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year 11

Saskatchewan Inspected Acreage by Crop Kind: 2018 160,000 140,000 120,000 100,000 Acres 80,000 60,000 40,000 20,000 0 WHEAT PEAS BARLEY LENTIL ALFALFA OATS FLAX TIMOTHY SOYBEANS CLOVER FABA BEAN Crop Kind 12

Saskatchewan Crop Kinds by Inspected Acreage: 2011 to 2018 180000 160000 140000 120000 100000 Acres 80000 60000 40000 20000 0 WHEAT PEAS BARLEY LENTIL ALFALFA OATS FLAX TIMOTHY SOYBEANS CLOVER FABA BEAN OTHER CROPS Crop Kind 2011 2012 2013 2014 2015 2016 2017 2018 13

Saskatchewan Acreage Changes by Crop Kind: Summary 2018 (Page 1) Crop Kind 2017 Acreage 2018 Acreage Difference Alfalfa 16,401 14,008 -2393 (-15%) Barley 30,047 31,794 1747 (5.8%) Bean 887 329 -558 (-63%) Birdsfoot Trefoil 100 100 0 Bromegrass 3,358 2,454 -904 (-27%) Canarygrass 1,509 2,115 606 (40%) Chickpea 1,388 2,583 1195 (86%) Clover 2,018 2,755 737 (36.5%) Faba Bean 4,540 1,884 -2656 (-59%) Fescue 456 1,155 699 (153%) Flax 12,622 12,630 8 (0.1%) Hemp 4,051 1,727 -2324 (-57%) Lentil 29,767 21,389 -8378 (-28%) 14

Saskatchewan Acreage Changes by Crop Kind: Summary 2018 (Page 2) Crop Kind 2017 Acreage 2018 Acreage Difference Mustard 494 1,595 1101 (223%) Oats 14,088 10,756 -3332 (-24%) Peas 37,668 42,401 4733 (12.6%) Rye 440 196 -244 (-55%) Ryegrass 1,065 1,970 905 (85%) Soybeans 17,454 17,138 -316 (-1.8%) Timothy 4,355 3,545 -810 (-19%) Triticale 335 997 662 (198%) Wheat 144,338 149,181 4843 (3.4%) Wheatgrass 1,270 1,470 200 (15.7%) Minor Crops 1,873 94 -1779 (-95%) Total 330,764 324,284 -6,480 (2%) 15

Saskatchewan CSGA Membership Totals: 2001 to 2018 1000 898 900 800 700 Number of Members 600 511 508 505 500 400 300 200 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year 16

Disruptors 17

Farmers Business Network • Farmers Business Network has 25 million acres contracted across Canada and the US • F2F Genetic Network • Input Wholesaler 18

Current Certification Process (Seed Cert 1) ‘Black Box’ Application Inspection Certification Part of CSGA’s Existing SeedCert System & Data Holdings

Future Certification Process Tagging Application Processing Inspection Certification Creating an End-to-End Streamlined & User Friendly Certification Process

SeedCert 2 – Single Window Platform All Facilities/Services Available in One (Virtual) Place – reducing transactions costs and increasing system responsiveness and utility (usefulness). • Controlled Access based on user profile (Breeder, Seed Grower, Company, RSE, etc.) • Integrates information such as: • Variety Specific Information (Descriptions, Production Figures, Royalty Information, Regulatory Approvals) • Forms, Applications, Standards, Regulations etc. • Supporting Documentation and Test Results (Purity, Germination, Hybridity, Phytosanitary Certificates, etc.)

How Do We Get There? • Electronic Crop Certificates • Electronic Pedigreed Seed Declaration • Digitized Record Keeping • Integrated Record Keeping and File Storage

In parallel – Testing Blockchain Potential For Seed in Pilot Projects • Currently exploring private business blockchain networks. • Testing small scale blockchains that require the use of Certified seed as starting point (IP Soybeans) • Incorporate smart contracts that are variety specific • Value Capture/Royalty Collection mechanism to ensure resources are returned to Breeders and Seed Growers. • (D. Miller. U of G MBA Thesis)

Seed Synergy Decision Time

Seed Synergy 25

Seed Synergy White Paper December 1, 2018 - CSGA preliminary Board Endorsement December 2018 to February 2019 – Member Consultations March 2019 – CSGA and Provincial Board Endorsement Decision 26

White Paper – The Substance Convergence on six major ideas: Stimulating Innovation 1. Improved delivery of regulatory scheme for plant breeding innovation 2. Seed variety use agreement (trailing royalty) for IP-protected seed Modernizing the Seed Regulatory Framework 3. Amend the Seeds Regulations to allow for incorporation by reference and other changes 4. Delegate authority for the seed certification program to a consolidated industry body 5. Create a single window for all seed regulatory services Building the Next Generation Seed Organization 6. Create a more efficient and effective industry organizational model 27

Seed Synergy Value Proposition • Better Access to new traits and varieties Multiplied By • Better Return on Investment for Breeders Multiplied By • More Efficient and Effective Regulatory Program Design and Delivery Multiplied By • Consolidated Delivery Equals • Seed Synergy > Sum of the parts 28

Seed Synergy Implications for CSGA • Consolidation of seed certification functions within a single regulatory service window (CSGA-CFIA-CSI). • Aligning Seed Grower Voice across Provincial and National Associations. • Transitioning Multiple Seed Grower Voices to Aligned National Seed Voice • Including possibility of Provincial Seed Grower Associations Becoming Seed Associations 29

Building the Next Generation Seed Organization • Agreement-in-principle to explore a potential merger • Governance Committee set up to manage the process (In Transition) • CSGA Merger Diagnostic Conclusions – Confirm Value Drivers and Alignment – Confirm Objectives, Time Lines, Resources $$$ – Establish Merger Transition Teams (Internal-External) 30

Membership Structure - Recommendation • Multiple class model: – Where a Seed Specific Business (including Seed Farms) is the core sustaining membership class – With other classes/categories around the core class for Seed (Farm) Business linked individuals; including contributing family member & employee seed professionals – With other classes/categories around the core for other related seed industry service businesses (ex. ASCIS, Seed Labs) and other professional categories (ex. plant breeders, LSCI, analysts, operators, graders etc.) 31

2018 Program Updates 32

Five Key Result Areas of the Strategic Plan 1. Trusted, High Performing Seed System 2. Supporting Members 3. Sector Growth 4. Partnerships 5. Organizational Efficiency & Effectiveness http://seedgrowers.ca/strategic-plan/ 33

Communications, Member Services and Stakeholder Relations Communications Work Planned in 2019 Development of our Training and Education Platform Membership Survey Communications and Engagement 34

Circular 6 Modernization Circular 6 Modernization – Phase One Complete • First step was to form six crop specific working groups: Cereals; Pulses; Soybeans; Canola; Forages; Hemp • Addressed less difficult issues with approx. 30 changes implemented in 2018 • Changes included requirements for: land use; isolation; weeds; maximum impurity standards; and timing and number of inspections 35