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CanaryseedDevelopment Commission of Saskatchewan

2013 - 2014 Annual ReportAnnual General Meeting

January 12, 2015Saskatoon Inn, Saskatoon

Mandate

The Canaryseed Development Commission of Saskatchewan was established in 2006 under the Agri-Food Act, 2004.

THE CDCS VISIONImproved canaryseed profitability through increased market diversity and crop innovation.

THE CDCS MISSIONTo coordinate research and market use expansion for the advancement of the canaryseed industry for the benefit of growers and other stake-holders.

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2014 Board and StaffDaVID NObbSChair31 Frere StreetKindersley, SK S0L 1S0T: 306.460.9272F: [email protected]

GENE LaHEYVice-ChairBox 8Lacadena, SK S0L 1V0T: 306.574.4626F: [email protected]

KEN CLaNCYPO Box 637Carrot River, SK S0E 0L0T: 306.768.3566F: [email protected]

LarrY FrISKYBox 14Arborfield, SK S0E 0A0T: 306.769.8892T: [email protected]

LaNCE STOCKbrUGGErPO Box 212 Englefeld, SK S0K 1N0T: [email protected]

LUCaS SUTHErLaNDPO Box 37Eston, SK S0L 1A0T: 306.962.7279 [email protected]

pIErrE HUCLadvisorCrop Development CentreUniversity of SaskatchewanCollege of Agriculture and Bioresources51 Campus DriveSaskatoon, SK S7N 5A8 T: 306.966.8667 [email protected]

bILL MaYadvisorAgriculture and Agri-Food CanadaPO Box 760 Indian Head, SK S0G 2K0 T: 306.695.5225 F: [email protected]

CDCS STaFF and OFFICE

Executive DirectorKevin HurshHursh Consulting & Communications Ltd.566 Adilman Drive Saskatoon, SK S7K 7H5 T: 306.933.0138C: 306.222.0238 F: [email protected]

General ManagerAdele Buettner AgriBiz Communications Corp.Bay 6A – 3602 Taylor Street EastSaskatoon, SK S7H 5H9T: 306.975.6624F: 306.244.4497

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Office Hours Monday to Friday 8:30 a.m. to 4:00 p.m.

AgendaCanaryseed Development Commission of Saskatchewan Annual General MeetingJanuary 12, 2015Canadian Room, Saskatoon Inn, Saskatoon, SK

12:30 p.m. registration

1:05 p.m. Opening remarks and announcements Lance Stockbrugger, CDCS Director Greetings from Saskatchewan’s Minister of Agriculture Honourable Lyle Stewart

1:10 p.m. Micronauts, aphids and Leaf Mottle Bill May, AAFC, Indian Head

1:40 p.m. On the Cusp of Food Use approval Carol Ann Patterson, Pathfinders Research & Management

2:10 p.m. CDCS annual business Meeting

2:40 p.m. Coffee

3:00 p.m. payment Security and Moisture Testing Murdoch McKay, Canadian Grain Commission

3:30 p.m. Canaryseed Value Chain: From Field to birdcage David Nobbs, Canpulse Foods

4:00 p.m. Canaryseed Market Outlook Alyssa Mistelbacher, FarmLink Marketing Solutions

4:30 p.m. Canaryseed association of Canada Meeting

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AgendaCDCS Annual Business Meeting, January 12, 2015 Canadian Room, Saskatoon Inn Saskatoon, SK

12:10 p.m.

Call to Order and Opening remarks David Nobbs, Chair

approval of 2015 CDCS annual business Meeting agenda

approval of 2014 CDCS annual business Meeting Minutes

Financial review Kevin Hursh, Executive Director

approval of budget

annual report 2013-14 and proposed activities 2014-15 State of the Industry – David Nobbs, Chair

research

resolutions

New business

adjourn Meeting

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Motions to be PresentedCDCS Annual Business Meeting, January 12, 2015 Canadian Room, Saskatoon Inn Saskatoon, SK

That the agenda of the January 12, 2015 Annual Business Meeting be approved as presented.

That the Minutes of the January 13, 2014 meeting be approved as presented.

To appoint an Audit Chair.

That the Canaryseed Development Commission of Saskatchewan audited financial statements for the year ended July 31, 2014 be approved as presented.

That the Canaryseed Development Commission of Saskatchewan appoint Twigg & Company as auditor for the year ending July 31, 2015.

To approve the State of the Industry report as presented.

To approve an increase in the per diem for directors from $150 per day for directors and $175 per day for the chair to $300 per day for all directors including the chair.

To adjourn the January 12, 2015 CDCS Annual Business Meeting.

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2014 MinutesCDCS Annual Business Meeting, January 13, 2014 Saskatoon Inn, Saskatoon, SK

1. Meeting called to order by Chair byrnes

2. approval of the agenda

Motion #1 To approve the agenda as presented. L. Frisky / G. Lahey / Carried

3. approval of the Minutes

Motion #2 That the minutes of the January 7, 2013 meeting be approved as presented. D. Nobbs / B. Podhorodeski / Carried

4. Financial review Hursh presented the audited financials and the budget.

Motion #3 That Larry Frisky be appointed audit chair for 2013-2014. G. Lahey / K. Clancy / Carried

Motion #4 That the Canaryseed Development Commission of Saskatchewan’s audited financial statements for the year ended July 31, 2013 be approved as presented. R. Lindsay / L. Frisky / Carried

Motion #5 That the Canaryseed Development Commission of Saskatchewan appoint Twigg & Company as auditor for the year ending July 31, 2014. B. Podhorodeski / K. Clancy / Carried

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5. annual Update Chair G. Byrne provided a detailed State of the Industry update.

Motion #6 That the State of the Industry be approved as presented. B. McEwan / L. Sutherland / Carried

6. resolutions None

7. New business No new business was brought forward.

8. adjourn Meeting

Motion #6 To adjourn the January 13, 2014 Annual Business Meeting. L. Frisky

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Management’s�Responsibility�

To�Saskatchewan�Canaryseed�Producers:�

Management is responsible for the preparation and presentation of theaccompanying financial statements, including responsibility for significant accountingjudgments and estimates in accordance with Canadian accounting standards for not forprofit organizations. This responsibility includes selecting appropriate accountingprinciples and methods, and making decisions affecting the measurement oftransactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financialstatements, management designs and maintains the necessary accounting systems andrelated internal controls to provide reasonable assurance that transactions areauthorized, assets are safeguarded and financial records are properly maintained toprovide reliable information for the preparation of financial statements.

The Board of Directors (the “Board”) is composed entirely of Directors who areneither management nor employees of the Organization. The Board is responsible foroverseeing management in the performance of its financial reporting responsibilities,and for approving the financial information included in the annual report. The Boardfulfils these responsibilities by reviewing the financial information prepared bymanagement and discussing relevant matters with management and external auditors.

Twigg & Company, an independent firm of Chartered Accountants, is appointedby the Board to audit the financial statements and report directly to the members, theirreport follows. The external auditors have full and free access to, and meet periodicallyand separately with, both the Board and management to discuss their audit findings.

January�12,�2015��________________________��__________________________�Management��Management��

CANARYSEED DEVELOPMENT COMMISSION OF SASKATCHEWAN

AUDITED FINANCIAL STATEMENTS

for the year ended July 31, 2014

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TWIGG&COMPANY CHARTERED ACCOUNTANTS

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J.S. TWIGG B.Comm., C.A. 333 25th STREET EAST

L.D. SAFINUK B. Comm., C.A SASKATOON, SK. S7K 0L4M. LINGARD B. Comm., MPAcc., C.A.

TELEPHONE (306) 244 0808FACSIMILE (306) 244 0004www.twiggandcompany.com

Independent Auditors’ Report

To the Board of Directors of Canaryseed Development Commission of Saskatchewan

Report on the Financial StatementsWe have audited the accompanying financial statements of Canaryseed Development Commission ofSaskatchewan, which comprise the statement of financial position as at July 31, 2014 and the statementsof operations, changes in net assets and cash flows for the year then ended, and a summary of significantaccounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian accounting standards for not for profit organizations, and for such internalcontrol as management determines is necessary to enable the preparation of financial statements that arefree from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with Canadian generally accepted auditing standards. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about amounts and disclosures in thefinancial statements. The procedures selected depend on our judgement, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, we consider internal control relevant to the entity’s preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances, butnot for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour qualified audit opinion.

(continued on page 2)


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Independent Auditors’ Report (continued)

(continued from page 1)

Basis for Qualified OpinionThe commission collects a check off fee from Saskatchewan producers through buyers of canaryseed. Itwas not practical for us to verify whether all buyers of canaryseed produced in Saskatchewan havecollected and remitted the required check off fee to the commission as such the completeness of therelated revenue does not lend itself to satisfactory audit verification. Accordingly, our verification ofcheck off fee revenue was limited to the amounts recorded in the accounts of the commission. As such,we were unable to determine whether any adjustments might be necessary to revenue, excess of revenueover expenses, assets, liabilities, net assets and cash flows of the commission.

Qualified OpinionIn our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph,the financial statements present fairly, in all material respects, the financial position of CanaryseedDevelopment Commission of Saskatchewan as at July 31, 2014 and the results of its operations and cashflows for the year then in accordance with Canadian accounting standards for not for profitorganizations.

Saskatoon, SaskatchewanJanuary 12, 2015 Chartered Accountants

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STATEMENT OF FINANCIAL POSITIONas at July 31, 2014

With�comparative�information�for�2013�

2014 2013CURRENT:Cash $ 534,623 $ 312,980Cash – internally restricted (Note 4) 206 230Short term investments 105,156 103,236Accounts receivable 36,213 49,611Prepaid expense 1,691 1,691

677,889 467,748

RESTRICTED INVESTMENTS (Note 4) 41,162 40,468

$ 719,051 $ 508,216

LIABILITIES

CURRENT:Accounts payable and accrued expenses $ 90,812 $ 74,606Deferred contributions (Note 3) 122,453 20,400

213,265 95,006

NET ASSETS

INTERNALLY RESTRICTED (Note 4) 41,162 40,698

UNRESTRICTED 464,624 372,512

505,786 413,210

$ 719,051 $ 508,216

COMMITMENTS (Note 9)

APPROVED BY THE BOARD:

Director

Director

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STATEMENT OF CHANGES IN NET ASSETSfor the year ended July 31, 2014


Internally 2014 2013restricted Unrestricted Total Total

BALANCE – BEGINNINGOF YEAR 40,698 372,512 413,210 385,162

Excess of revenue overexpenses for the year 464 92,112 92,576 28,048

BALANCE – END OF YEAR $ 41,162 $ 464,624 $ 505,786 $ 413,210


STATEMENT OF CASH FLOWSfor the year ended July 31, 2014


2014 2013OPERATING ACTIVITIES:

Excess of revenue over expenses $ 92,576 $ 28,048

Changes in non cash working capitalBalances related to operation:

Short term investments ( 2,614) ( 42,690)Accounts receivable 13,398 ( 18,386)Prepaid expenses 15,175Accounts payable 16,206 15,001Deferred contributions 102,053 5,400

129,043 ( 25,500)

Total from operating activities 221,619 2,548

INCREASE IN CASH AND EQUIVALENTSFOR THE YEAR 221,619 2,548

CASH AND EQUIVALENTS, BEGINNING OF YEAR 313,210 310,662

CASH AND EQUIVALENTS, END OF YEAR $ 534,829 $ 313,210

CASH AND EQUIVALENTS CONSISTS OF:Cash 534,623 312,980Cash – internally restricted 206 230

$ 534,829 $ 313,210

SUPPLEMENTAL CASH FLOWDISCLOSURE:Interest paid 329 316Income taxes paid NIL NIL

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NOTES TO FINANCIAL STATEMENTSas at July 31, 2014

1. AUTHORITY:

The Canaryseed Development Commission of Saskatchewan (“CDCS”) was established onFebruary 23, 2006, pursuant to The Canaryseed Development Plan Regulations (“Regulations”), underthe authority of The Agri Food Act, 2004. The purpose of CDCS is to assist in growing the canaryseedindustry through research, communications and market development programs. The activities of CDCSare funded primarily by a check off fee charged on canaryseed sales from canaryseed production inSaskatchewan.

2. SIGNIFICANT ACCOUNTING POLICIES:

The financial statements have been prepared in accordance with Canadian accounting standardsfor not for profit organizations in Part III of the CICA Handbook and include the followingsignificant accounting policies:

a) Revenue:

Producer check off fees are recognized upon receipt of the Buyer’s report. Refunds are recognizedwhen refund applications are received from producers and the requested refund has been agreed tocheck off fee records.

The deferral method of accounting is used for any externally restricted contributions.

b) Research and development projects:

Expenses are recognized when projects are approved and the recipient has met eligibility criteria.Funds advanced to recipients prior to eligibility criteria being met are recorded as advances. CDCSreceives reimbursement from Agriculture and Agri food Canada for eligible costs incurred forcertain projects.

c) Administration contract expense:

Administration contract expense is a fee charged by the Agriculture Council of Saskatchewan(“ACS”), a related party, to CDCS for administering the check off fee program. The fee includes acharge for time spent by ACS staff and a share of ACS’s overhead costs. The expense is recognized asthe service is received.



2. SIGNIFICANT ACCOUNTING POLICIES (continued):

d) Financial Instruments:

The Commission initially measures its financial assets and financial liabilities at fair value. Itsubsequently measures all its financial assets and financial liabilities at amortized cost,except for investments in equity instruments that are quoted in an active market, which aremeasured at fair value. Changes in fair value are recognized in the statements of operationsin the period incurred.

Financial assets subsequently measured at amortized cost include cash and accountsreceivable. Financial liabilities subsequently measured at amortized cost include accountspayable and deferred contributions. The fair value of the cash, accounts receivable, andaccounts payable approximates their carrying value due to their short term nature.

e) Use of estimates:

The preparation of financial statements in conformity with Canadian accounting standardsfor not for profit organizations requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and disclosure of contingent assetsand liabilities at the date of the financial statements, and the reported amounts of revenuesand expenses during the reporting period. These estimates and assumptions are reviewedperiodically and, as adjustments become necessary, they are reported in excess of revenuesand expenses in the periods in which they become known.

f) Income taxes:

The Commission qualifies as a tax exempt organization under section 149 of the Income Tax Act.

g) Contributions in kind:

Contributions in kind are recorded at fair value for goods or services used in the normal course ofoperations that would otherwise have been purchased.

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3. DEFERRED CONTRIBUTIONS:

The Commission receives funding from the Ministry of Agriculture to be held, administered anddistributed in accordance with the related funding agreements. Deferred contributions related toexpenses of future periods represent unspent externally restricted funding for the purposes of payingoperating expenditures in future periods.

2014 2013

Opening deferred contributions for expenses of future periods $ 20,400 $

Contributions during the year:Ministry of Agriculture (ADOPT) 34,800 20,400Ministry of Agriculture (ADF) 113,776

148,576 20,400Less:Amounts recognized as program expenses (ADOPT) (20,400)Amounts recognized as program expenses (ADF) (26,123)

Ending deferred contributions for expenses of future periods $ 122,453 $ 20,400

The deferred contributions and revenue relates to the following:

2014 2013Ministry of Agriculture (ADOPT) $ 34,800 $ 20,400Ministry of Agriculture (ADF) 87,653Deferred contributions and revenue, end of year $ 122,453 $ 20,400

4. INTERNALLY RESTRICTED NET ASSETS:

The Commission has internally restricted net assets for the completion of certain projects and to refundthe check off fees in the event of the disestablishment of the Commission.

On April 6, 2010 the Board of Directors passed a motion to internally restrict $40,000 held in a savingsaccount. Accordingly, any investment income earned on this account has been allocated to the internallyrestricted net asset balance.



5. BUDGET:

The Board approved the 2013/2014 fiscal year budget on November 16, 2012. The budget figures includedin the accompanying financial statements are unaudited.

6. PRODUCER CHECK OFF FEES:

Under the Regulations, each buyer of canaryseed is required to remit to CDCS a check off fee of $1.75 pernet tonne of canaryseed marketed upon final settlement to producers. Producers can request a refund ofcheck off fees paid from August 1 to July 31 by submitting a refund application by August 31.

7. ADMINISTRATION CONTRACT:

The Agriculture Council of Saskatchewan Inc. charged CDCS $ 9,114 (2013 $10,784) for administeringthe check off fee program and the business activities of CDCS of which $1,890 (2013 $1,870) is includedin accounts payable.

8. MANAGEMENT FEES:

During the year, the Commission entered into a contract with Hursh Consulting & Communications Inc.and AgriBiz Communications Corp. for management services. This contract began on August 1, 2012 andwill continue for thirty six months with the option to renew by any or all parties.

9. RESEARCH COMMITMENTS:

Effective January 18, 2013 the Commission agreed to provide an annual contribution of $80,000 to theUniversity of Saskatchewan. The annual contribution is provided for research related to CanaryseedBreeding and germplasm development. The annual research commitments under the terms of theagreement are as follows:

Year ending July 31:2015 80,0002016 80,0002017 72,0002018 8,000

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10. FINANCIAL INSTRUMENTS:

The Commission as part of its operations carries a number of financial instruments. It is management’sopinion that the Commission is not exposed to significant interest, currency or credit risks arising fromthese financial instruments except as otherwise disclosed.

Credit Risk

The Commission is exposed to credit risk from potential non payment of accounts receivable. Most of theaccounts receivable were collected shortly after year end.

Interest rate risk

Interest rate risk is the risk that the value of a financial instrument might be adversely affected by achange in the interest rates. Changes in market interest rates may have an effect on the cash flowsassociated with some financial assets and liabilities, known as cash flow risk, and on the fair value ofother financial assets or liabilities, known as price risk. The Commission is not exposed to significantinterest rate risk on its investments.


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AUDITORS’ REPORT

To the Board of Directors ofCanaryseed Development Commission of Saskatchewan

We have audited Canaryseed Development Commission of Saskatchewan’s compliance, as atJuly 31, 2014, with the provisions of the following legislative and related authorities pertaining to itsfinancial reporting, safeguarding agency resources, spending, revenue raising, borrowing and investingactivities during the year ended July 31, 2014.

The Agri Food Act, 2004 The Canaryseed Development Plan Regulations Commission Orders #01/06 to #06/06

Compliance with the aforementioned legislative and related authorities is the responsibility of themanagement of Canaryseed Development Commission of Saskatchewan. Our responsibility is to expressan opinion on this compliance based on our audit.

We conducted our audit in accordance with the Canadian generally accepted auditing standards. Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether CanaryseedDevelopment Commission of Saskatchewan complied with the provisions of the aforementionedlegislative and related authorities. Such an audit includes examining on a test basis evidence supportingcompliance, and where applicable, assessing the accounting principles used and significant estimatesmade by management.

In our opinion, as at July 31, 2014, the Canaryseed Development Commission of Saskatchewan is incompliance, in all material respects, with the aforementioned legislative and related authoritiespertaining to its financial reporting, safeguarding agency resources, spending, revenue raising,borrowing and investing activities.


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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors ofCanaryseed Development Commission of Saskatchewan:

We have audited the Canaryseed Development Commission of Saskatchewan’s control as of July 31, 2014to express an opinion as to the effectiveness of its control related to the following objectives:

(1) To safeguard agency resources. That is, to ensure its assets are not lost or usedinappropriately; to ensure it does not inappropriately incur obligations; to establish afinancial plan for the purposes of achieving it financial goals; and to monitor and reactto its progress towards the objectives established in its financial plan.

(2) To prepare reliable financial statements.

(3) To conduct its activities following laws, regulations and policies related to financialreporting, safeguarding agency resources, revenue raising, spending, borrowing andinvesting.

Management’s ResponsibilityThe Organization’s management is responsible for maintaining effective control over the objectives statedabove.

Auditors’ ResponsibilityOur responsibility is to express an opinion based on our audit as to the effectiveness of its control relatedto the following objectives:

(1) To safeguard agency resources. That is, to ensure its assets are not lost or usedinappropriately; to ensure it does not inappropriately incur obligations; to establish afinancial plan for the purposes of achieving it financial goals; and to monitor and reactto its progress towards the objectives established in its financial plan.

(2) To prepare reliable financial statements.(continued on next page)


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(continued from previous page)

(3) To conduct its activities following laws, regulations and policies related to financialreporting, safeguarding agency resources, revenue raising, spending, borrowing andinvesting.

We used the control framework developed by The Canadian Institute of Chartered Accountants(“CICA”) to make our judgments about the effectiveness of the Canaryseed Development Commission ofSaskatchewan’s control. We did not audit certain aspects of control concerning the effectiveness,economy and efficiency of certain management decision making processes.

The CICA defines controls as comprising those elements of an organization that, taken together, supportpeople in the achievement of the organization’s objectives. Control is effective to the extent that itprovides reasonable assurance that the organization will achieve its objectives.

We conducted our audit in accordance with the standard for audits of internal control over financialreporting set out in the CICA Handbook Assurance. This standard requires that we plan and performthe audit to obtain reasonable assurance as to the effectiveness of Canaryseed Development Commissionof Saskatchewan’s control related to the objectives stated above. An audit includes obtaining anunderstanding of the significant risks related to these objectives, the key control elements and controlactivities to manage these risks and examining, on a test basis, evidence relating to control.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

Control can provide only reasonable and not absolute assurance of achieving objectives reliably for thefollowing reasons. There are inherent limitations in control including judgement in decision making,human error, collusion to circumvent control activities and management overriding control. Cost/benefitdecisions are made when designing control in organizations. Because control can be expected to provideonly reasonable assurance, and not absolute assurance, the objectives referred to above may becomeineffective because of changes in internal and external conditions, or that the degree of compliance withcontrol activities may deteriorate.

(continued on next page)

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(continued from previous page)

OpinionIn our opinion, based on the limitations noted above, Canaryseed Development Commission ofSaskatchewan’s control was effective, in all material respects, to meet the objectives stated above as ofJuly 31, 2014 based on the CICA’s criteria of control framework.

We have also audited, in accordance with Canadian generally accepted auditing standards, the financialstatements of the Canaryseed Development Commission of Saskatchewan, which comprise the statementof financial position as at July 31, 2014, and the statements of operations, change in net assets, and cashflows for the year then ended, and a summary of significant accounting policies and other explanatoryinformation. We have issued our report dated January 12, 2015 which is the same date as the date of thereport on the effectiveness of internal controls.


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Budget 2015/2016CDCS Draft Budgets.xls

2015 2016*Draft

Projected RevenuesProducer check off fees

Fees $275,000.00Refunds $15,000.00Net $260,000.00

ADOPT Revenue $25,000.00Interest and other income $4,000.00

Total Projected Income $289,000.00

Projected ExpendituresResearch projectsCDC Breeding (Hucl) $90,000.00ADOPT Project $25,000.00Agronomy (May) $30,000.00Total Research Expenses $145,000.00

New Use Promotion $20,000.00

CommunicationsNewsletter $15,000.00Annual Meeting $6,000.00Website $2,000.00Total Communications Expenses $23,000.00

Director ExpensesDirector Per Diem $10,000.00Director Expenses $10,000.00Total Director Expenses $20,000.00

AdministrationMemberships / Subscriptions $700.00Legal and Audit Fees $6,000.00Insurance $1,700.00Bank Charges $500.00Board Meeting Expenses $1,500.00Election $500.00Management $47,000.00Management Expenses $1,500.00Office Expense $3,000.00Bookkeeping $7,500.00Service Contract Levy Central $12,000.00Total Administration Expenses $81,900.00

Total Expenditures $289,900.00

Surplus (Deficit) for the year ($900.00)

*Note to 2014 2015 Budget: CDCS has an Agriculture Development Fund Project with theSaskatchewan Ministry of Agriculture that involves funding for food use research. A total of upto $343,315 is expected to be received and this will match the amount expended over severalfiscal years. The amount received and expended in any particular year is unlikely to match andis difficult to accurately predict in advance. Rather than including projections in the budget, thisexplanatory note is being included with the budget document.

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Payee List August 1, 2013 - July 31, 2014

CDCSPayee List

August 1, 2013 - July 31, 2014

Personal Services (Threshhold $2,500)Nobbs, D Honorariums 150$Frisky, L Honorariums 300$Lahey, G Honorariums 450$Byrnes, G Honorariums 150$Stockbrugger, L. Honorariums 900$Clancy, K Honorariums 600$Walker, V Honorariums 150$Podhorodeski, B Honorariums 675$Sutherland, L Honorariums 300$

Total Honorariums 3,675$

Nobbs, D Reimbursement for Expenses 164$Frisky, L Reimbursement for Expenses 802$Lahey,G Reimbursement for Expenses 661$Byrnes, G Reimbursement for Expenses 180$Stockbrugger, L. Reimbursement for Expenses 882$Clancy, K Reimbursement for Expenses 1,388$Walker, V Reimbursement for Expenses 180$Podhorodeski, B Reimbursement for Expenses 824$Sutherland, L Reimbursement for Expenses 659$

Total Reimbursements 5,740$

Total Personal Services 9,415$

Research and Development (Threshold $5,000)Agriculture and Agri Food Canada 23,420$B Magnuson Consulting 51,454$J Tox Inc. 5,248$Indian Head Ag Research Foundation 5,100$Northeast Agricultural Research Foundation 5,100$Pathfinders Research and Management 12,321$Saskatchewan Food Industry Development Centre 15,175$South East Research Farm Inc. 5,100$University of Saskatchewan 82,000$Wheatland Conservation Area Inc. 5,100$Western Applied Research Corporation 5,100$Misc. payments under $5,000 13,929$

229,047$

Extension (Threshold $5,000)Saskatoon Fastprint 8,283$Misc. payments under $5,000 3,015$

11,298$

Supplier Payments (Threshold $20,000)Hursh Consulting & Communications 43,767$Misc. payments under $20,000 29,081$

72,848$

Other Payments (Threshold $20,000)Refunds 14,532$Misc. payments under $20,000 $

14,532$

337,140$

State of the IndustryJanuary 12, 2015

DaVID NObbS, Chair

KEVIN HUrSH, Executive Director

In their final crop report of 2014, the Saskatchewan Ministry of Agriculture estimated average canaryseed yields in the province at 1,174 pounds per acre. This is less than the 1,300 pound average estimated for 2013, but yields of all crops are down from the record crop produced in 2013.

Canaryseed prices are similar to last fall. An FOB farm price of 24 cents a pound seems quite readily available. Unlike many other crops that suffered from disease, sprouting, bleaching and mildew, canaryseed quality does not generally have these issues despite the difficult harvest season.

Canaryseed returns per acre look good when compared to crops like spring wheat, barley and yellow peas. However, prices for durum and lentils have increased dramatically. Anyone able to grow a good crop of durum or lentils and achieve a reasonable grade will likely have a net return that exceeds the net return from canaryseed.

While Statistics Canada still provides estimates of canaryseed acreage, production and carryover, there is less and less confidence in these numbers.

Producers who have been storing canaryseed and waiting for a price explosion are still waiting. For those able to achieve average or better yields, canaryseed has provided profitability and cash flow at prevailing price levels.

Each year, some producers report canaryseed yields that are disappointing relative to the crop stand. Many producers also note a significant yield shortfall in the glabrous (hairless) varieties relative to the older itchy varieties. That’s why the itchy varieties still dominate the acreage.

The newest variety of glabrous canaryseed is CDC Calvi which should be better yielding than CDC Togo and CDC Bastia. It was hoped that some commercial seed of CDC Calvi would be available for the 2015 growing season, but unfortunately seed will not be available until 2016.

At this juncture, it’s difficult to predict the canaryseed acreage that will be seeded in 2015. Will Saskatchewan growers gravitate to canaryseed because of low prices for wheat or will the high price of durum attract acres that would otherwise have gone to canaryseed? Stay tuned.

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Management Report 2015

KEVIN HUrSHHursh Consulting & Communications, CDCS Executive Director

aDELE bUETTNErAgriBiz Communications, CDCS General Manager

It has taken a long time and a lot of money from canaryseed growers and from government, but human food approval for canaryseed is making progress. Health Canada wants more evidence showing that specific canaryseed proteins are not similar to wheat allergenic proteins. Canaryseed is gluten-free, but people can be allergic to wheat proteins irrespective of gluten intolerance.

The original protein data will be re-examined to see if it holds the required information. Otherwise, some amino acid sequencing may be required. This issue seems to be the only significant barrier to human food approval from Health Canada.

CDCS was formed in 2006 and human food approval was the first focus of the newly formed commission. Health Canada received our huge submission in March 2013, so these things certainly do take time.

Dr. Carol Ann Patterson of The Pathfinders Research and Management Ltd. continues to spearhead the process. In the past year, the commission has received approval for up to $343,000 from Saskatchewan’s Agriculture Development Fund (ADF) and Carol Ann is using this new funding to benchmark the nutritional composition of new canaryseed varieties as well as doing extrusion work at the Saskatchewan Food Industry Development Centre to develop innovative canaryseed-based foods.

Other than administering the project, CDCS has no direct costs for the ADF project.

The commission continues to work closely with Bill May at Agriculture and Agri-Food Canada, Indian Head. Bill has projects on micro and macro nutrient response and is working to get more information on fungicide use and the economic threshold for aphid control.

The commission also continues to support the breeding work by Dr. Pierre Hucl at the University’s Crop Development Centre. Pierre continues to make progress in closing the yield gap that exists between glabrous (hairless) and itchy varieties. He also has promising lines of yellow-seeded canaryseed. (When the hull is removed, the seed is yellow rather than grey.)

Yellow-seeded glabrous canaryseed may have a special role to play after human food approval is granted because the seed will be more aesthetically pleasing for many food applications.

We will keep you posted. When we finally get human food approval, we’ll be telling the world about it.

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