CanaryseedDevelopment Commission of Saskatchewan

2016 - 2017 Annual ReportAnnual General Meeting

January 8, 2018Saskatoon Inn, Saskatoon

Mandate

The Canaryseed Development Commission of Saskatchewan was established in 2006 under the Agri-Food Act, 2004 to represent Saskatchewan’s canaryseed growers.

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 stakeholders.

canaryseed.ca

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2017 Board and Staff

DaviD NobbsChairSaskatoon, SKT: 306.460.9272david@canpulsefoods.com

GENE LaHEYvice-ChairLacadena, SKT: 306.962.7415genelahey@yourlink.ca

KEN CLaNCYCarrot River, SKT: 306.768.7762clancyseeds@sasktel.net

CHaD HasKEYWadena, SKT: 306.338.9580chadhaskey@sasktel.net

LaNCE sToCKbRUGGEREnglefeld, SKT: 306.231.9638lance@ldsfarms.ca

LUCas sUTHERLaNDEston, SKT: 306.962.7279 lucas_sutherland@hotmail.com

DaRREN YUNGMaNNSt. Gregor, SKT: 306.231.8733 djyungmann@sasktel.net

aDvisoRs

piERRE HUCL51 Campus DriveSaskatoon, SK S0H 2J0 T: 306.966.8667 pierre.hucl@usask.ca

biLL MaYPO Box 760 Indian Head, SK S0G 2K0 T: 306.695.5225 william.may@agr.gc.ca

EXECUTivE DiRECToR

KEviN HURsH566 Adilman Drive Saskatoon, SK S7K 7H5 T: 306.222.0238 kevin@hursh.ca

CDCs oFFiCE

aGRibiZ CoMMUNiCaTioNs CoRp.

aDELE bUETTNER, General ManagerBay 6A – 3602 Taylor Street EastSaskatoon, SK S7H 5H9T: 306.975.6624F: 306.244.4497office@agribiz.ca

canaryseed.ca

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

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AgendaCanaryseed Development Commission of Saskatchewan Annual General Meeting

January 8, 2018Canadian Room, Saskatoon Inn, Saskatoon, SK

8:30 a.m. Registration

8:50 a.m. opening Remarks and announcements

9:00 a.m. aphids, Fungicides and Micronutrients Bill May and Tyler Wist, AAFC

9:40 a.m. varietal development and wild oat control Pierre Hucl, Crop Development Centre

10:10 a.m. Coffee

10:30 a.m. Canaryseed research and promotion initiatives Kevin Hursh, CDCS Executive Director

11:00 a.m. CDCs annual business Meeting

11:30 a.m. Market outlook: Canaryseed and competing crops Chuck Penner, Leftfield Commodity Research

12:15 p.m. Lunch

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AgendaCDCS Annual Business Meeting, January 8, 2018 Canadian Room, Saskatoon Inn & Conference Centre Saskatoon, SK

10:30 a.m.

Call to order and opening Remarks

approval of agenda

approval of Minutes

Financial Review Kevin Hursh, Executive Director

approval of budget

annual Report 2016-2017 and proposed activities 2017-2018 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 8, 2018 Canadian Room, Saskatoon Inn & Conference Centre Saskatoon, SK

• ThattheagendaoftheJanuary8,2018AnnualBusinessMeetingbeapproved as presented.

• ThattheMinutesoftheJanuary9,2017meetingbeapproved as presented.

• ToappointanAuditChair.

• ThattheCDCSauditedfinancialstatementsfortheyearended July 31, 2017 be approved as presented.

• ThattheCDCSappointsTwigg&Companyasauditorfortheyearending July 31, 2018.

• ThattheStateoftheIndustryreportbeapprovedaspresented.

• ToadjourntheJanuary8,2018AnnualBusinessMeeting.

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2017 MinutesCDCS Annual Business Meeting, January 9, 2017 Canadian Room, Saskatoon Inn and Conference Centre Saskatoon, SK

1. Meeting called to order by Chair David Nobbs at 10:32 aM

2. approval of the agenda

Motion #1 To approve the agenda as presented. Yungmann / Lahey / Carried

3. approval of the Minutes

Motion #2 That the minutes of the January 11, 2016 meeting be approved as presented. Sutherland / Haskey / Carried

4. Financial Review Hursh presented the audited financials and the 2017-2018 budget.

Motion #3 That Gene Lahey be appointed audit chair for 2017-2018. Lindsey / Lee/ Carried

Motion #4 That the Canaryseed Development Commission of Saskatchewan’s audited financial statements for the year ended July 31, 2016 be approved as presented. Frisky / Mickleborough / Carried

Motion #5 That the Canaryseed Development Commission of Saskatchewan appoint Twigg & Company as auditor for the year ending July 31, 2017. Lindsey / Lee / Carried

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

Motion #6 That the State of the Industry report be approved as presented. Frisky / Lahey / Carried

7. Resolutions None

8. New business No new business was brought forward.

8. adjourn Meeting

Motion #8 To adjourn the January 9, 2017 annual business meeting. Clancy

Management’s Responsibility

To Saskatchewan Canaryseed Producers:

Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financial

statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.

The Board of Directors (the “Board”) is composed entirely of Directors who are

neither management nor employees of the Organization. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors.

Twigg & Company, an independent firm of Chartered Professional Accountants,

is appointed by the Board to audit the financial statements and report directly to the members, their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings. January 8, 2018 _________________________ __________________________ Management Management

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Budget 2018/2019

Canaryseed Development Commission of SaskatchewanDraft Budget 2017-2018

DRAFT BUDGET 2018 2019Projected RevenuesProducer check off fees

Fees 250,000Refunds 15,000Net 235,000

AMP Funding 20,000Interest and other income 4,000Total Projected Income 259,000

Projected ExpendituresResearch projectsCDC Breeding (Hucl) 90,000Agronomy (May) 30,000AMP Project 40,000MRL work 20,000Diverse Field Crop Cluster CAP 20,000Starch and Dehulling (2 projects) 15,000Total Research Expenses 215,000

CommunicationsAnnual Meeting 12,000Newsletter 12,000Website 2,000Total Communications Expenses 26,000

Director ExpensesDirector Expenses 6,500Director Per Diem 7,000Total Director Expenses 13,500

AdministrationBank Charges 500Board Meeting Expenses 2,000Bookkeeping 7,500Election 500Insurance 1,500Legal and Audit Fees 6,000Management 52,000Management Expenses 2,000Memberships / Subscriptions 700Office Expense 4,000Office Rent 6,600Service Contract Levy Central 14,000Total Administration Expenses 97,300

Total Expenditures 351,800

Surplus (Deficit) for the year 92,800

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Payee List August 1, 2016 - July 31, 2017

Canaryseed Development Commission of SaskatchewanPayee List

August 1, 2016 - July 31, 2017

PAYEE LISTAugust 1, 2016 July 31, 2017

Personal Services (Threshold $2,500)Haskey, C Honorariums 600Lahey, G Honorariums 1,200Stockbrugger, L. Honorariums 1,350Clancy, K Honorariums 900Sutherland, L Honorariums 900Yungmann, D Honorariums 1,200Total Honorariums 6,150

Haskey, C Reimbursement for Expenses 731Lahey,G Reimbursement for Expenses 1,159Stockbrugger, L. Reimbursement for Expenses 764Clancy, K Reimbursement for Expenses 872Sutherland, L Reimbursement for Expenses 1,235Yungmann, D Reimbursement for Expenses 817Total Reimbursements 5,578

Total Personal Services 11,728

Research and Development (Threshold $5,000)Agriculture and Agri Food Canada 20,000Food Focus 14,963Pathfinders Research and Management 14,175Saskatchewan Food Industry Development Centre 36,743Synthesis Network 35,960University of Saskatchewan 110,996Misc. payments under $5,000 4,478Total Research and Development 237,315

Extension (Threshold $5,000)Saskatoon Fastprint 7,752Misc. payments under $5,000 2,394Total Extension 10,146

Supplier Payments (Threshold $20,000)Agribi Communications 26,544Hursh Consulting & Communications 49,056Misc. payments under $20,000 32,238Total Supplier Payments 107,838

Other Payments (Threshold $20,000)Refunds 12,742Total Other Payments 12,742

Total 379,769

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Management Report 2017

by Kevin Hursh and adele buettner

According to Statistics Canada, which is the best estimate available, about 250,000 acres of canaryseed were harvested in 2017, a six per cent increase over the previous year. However, the average yield for 2017 is estimated at 1,026 pounds per acre, a decline of 22 per cent from the big yields experienced in 2016.

The end result is 116,000 tonnes of production, down 17 per cent from the 140,000 tonnes estimated for 2016. The numbers suggest a tight supply forcing reduced exports. However, ending stock estimates from Statistics Canada have traditionally been unreliable.

The Market Analysis Division of Agriculture and Agri-Food Canada is projecting slightly higher canaryseed prices for 2017-18 than the average for 2016-17, but with market prices at the end of October in the 20 to 22 cents per pound range, prices are far from strong.

The Canaryseed Development Commission of Saskatchewan continues to work on the adoption of canaryseed within the human food market, but this still involves very small quantities. The vast majority of canaryseed remains destined for the birdseed market with Mexico, Europe, South America and the U.S. as the main export destinations.

Over the past year, the commission contracted Synthesis Agri-Food Network for a marketing and branding study of canaryseed for human food. The feedback they have received from food companies in Canada and the U.S. will provide valuable insights for how to proceed.

Working with six other smaller acreage crops, canaryseed is part of the Diverse Field Crop Cluster where we are seeking federal and provincial support for further research into canaryseed’s functional food properties, particularly the shelf life of the groats and flour. These are questions the food industry needs answered and food scientist Dr. Carol Ann Patterson is taking the lead role on the commission’s behalf.

We’re pleased that InfraReady Products of Saskatoon is partnering with the commission on that research submission. InfraReady has de-hulled both brown-seeded and the new yellow-seeded canaryseed for a number of food companies wanting to try the product.

continued on next page

On the agronomic front, the commission is contributing to a new research project by Bill May at Agriculture and Agri-Food Canada in Indian Head aimed at determining the economic threshold for aphid control.

Our long-standing agreement with the University of Saskatchewan’s Crop Development Centre for canaryseed varietal development has concluded and plans are underway to revisit breeding objectives and renew that agreement.

From that breeding program, the first yellow-seed canaryseed variety, CDC Cibo (pronounced chee-bo) will be commercially available from Canterra Seeds for the 2018 growing season. All the registered varieties up until now have a brown seed coat when the hull is removed. The yellow colour of CDC Cibo is expected to be more aesthetically pleasing for a number of food uses and it’s a good yielding variety in its own right.

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