WORKING WITH THE VA LUE C H A IN CANADIAN INTERNATIONAL GRAINS INSTITUTE ANNUAL REPORT 2016-2017

1 OUR VISION

GLOBAL RECOGNITION OF CANADIAN GRAIN AND FIELD CROPS AS THE PREFERRED CHOICE FOR END-USE PRODUCT APPLICATION.

OUR MISSION

TO INCREASE UTILIZATION OPPORTUNITIES FOR CANADIAN GRAIN AND FIELD CROPS THROUGH SUPERIOR KNOWLEDGE, TECHNICAL EXPERTISE, INDUSTRY LEADERSHIP AND COLLABORATION, INNOVATIVE PROCESSING SOLUTIONS AND TARGETED TRAINING.

Cover Photo: Indonesia Technical Exchange Program participants visit Pitura Seeds farm in Manitoba, July 2016.

2 ABOUT US

Canadian International Grains Institute is a not-for-profit organization that was established in 1972 in Winnipeg, Manitoba, Canada. We work with the grain and field crop value chain throughout Canada and internationally to drive development and utilization of Canadian agricultural products.

OUR PURPOSE

• Promoting Canadian grain to global processors • Providing Canadian and international participants with training in Canadian grain and field crop production, marketing, distribution and processing • Providing Canadian industry participants with training to build knowledge of market characteristics and requirements • Identifying unique end-use for Canadian grain and field crops through applied research • Operating facilities used to provide practical, commercially oriented knowledge to support a competitive Canadian grain and field crop value chain

STRATEGIC FOCUS

Cigi's work with the value chain is focused on four strategic areas:

• Market Support • Innovation • Collaboration • Communication

OUR FUNDERS

WESTERN CANADIAN FARMERS (15 cents/tonne of wheat)

GOVERNMENT OF CANADA (Agriculture and Agri-Food Canada)

INDUSTRY PARTNERS

3 MESSAGES FROM OUR CHAIR AND CEO

MURDOCH MACKAY JOANNE BUTH Chair Chief Executive Officer (CEO)

Cigi is a present-day example of the ancient Staying the course and preparing for change. For philosophy that the only thing constant in life is change. Cigi both were a reality in 2016-17. Since becoming board chair in 2012, the Board of Directors has worked to ensure that Cigi is well We sharpened our focus on market analysis, ensuring positioned to respond to the changing needs of the our program resources and technical expertise were industry and deliver value to its stakeholders. directed to regions where our efforts will provide the greatest return to the Canadian wheat value chain. This effort has seen an evolution in how Cigi is governed For each region a detailed plan identified technical and funded. During the past five years we’ve broadened support priorities and program opportunities. the cross section of industry representatives at the board Together these plans provide a glimpse into the depth table and benefitted greatly from their perspectives and of knowledge Cigi staff have about the processing expertise. A transitional check-off enabled farmers to and end-product requirements in key markets built support Cigi’s work with customers of Canadian wheat over decades of experience working with customers. during the change to an open market. We’ve challenged ourselves as board members and staff to better Multi-year research projects involving wheat and articulate the value Cigi delivers. pulses were ongoing and continued to uncover new knowledge that will contribute to the value chain’s Together we have laid the groundwork for an exciting understanding of how to optimize the processing and future for Cigi as evidenced by the frank and productive utilization of these crops. These projects draw upon discussions that have taken place during the past year Cigi’s unique ability to bring a customer focus to its with industry stakeholders. investigations.

It’s a great time to be involved in the grain industry and it As we stayed the course and delivered on our market has been an honour to be a member of the board during support and research priorities, Cigi was also such a transformational time in Cigi’s history. engaged in discussions to chart its future. From these meetings with the provincial wheat commissions and grain exporters/handlers, I am confident that we are well on our way to ensuring Cigi remains a core asset to the industry.

4 OUR BOARD OF DIRECTORS

(As at March 31, 2017) (L to R): Brent Watchorn, Director, Executive Vice President, Marketing, Richardson International Limited; Kevin Bender, Director, Farmer, Red Deer, Alberta; Murdoch MacKay, Chair; Henry Van Ankum, Vice Chair, Farmer, Alma, Ontario; Jim Wilson, Secretary, Farmer, Darlingford, Manitoba; Randy Johner, Director, Farmer, Estevan, Saskatchewan; JoAnne Buth, Chief Executive Officer (CEO), Canadian International Grains Institute; Lawrence Yakielashek, Director, General Manager, Farmlink Marketing Solutions.

5 MARKET SUPPORT

PROMOTING HIGH QUALITY CANADIAN WHEAT TO INTERNATIONAL CUSTOMERS

BUILDING CUSTOMER UNDERSTANDING CUSTOMER RELATIONSHIPS QUALITY NEEDS IN KEY EXPORT MARKETS IN MILLING, BAKING, PASTA AND NOODLE PROCESSING

IMPROVING CUSTOMER GATHERING MARKET KNOWLEDGE INTELLIGENCE OF CANADIAN WHEAT TO HELP THE CANADIAN FUNCTIONALITY GRAIN INDUSTRY RESPOND TO CURRENT AND FUTURE CUSTOMER NEEDS

TARGETED CUSTOMIZED INVESTIGATIVE NEW CROP HARVEST TECHNICAL SUPPORT TRAINING PROGRAMS MISSIONS ASSESSMENT AND SEMINARS

6 MA RKE T SUP P OR T OUR KEY MESSAGES

IN 2016-17 CIGI MET WITH CUSTOMERS FROM 35 MARKETS. HERE ARE KEY MESSAGES CIGI STAFF DELIVERED ON BEHALF OF THE VALUE CHAIN.

KRISTINA PIZZI, HEAD, ANALYTICAL SERVICES JUAN CARLOS ARRIOLA, HEAD, MILLING TECHNOLOGY

“I want customers to know they can expect quality, “As head miller at Cigi it is important that I help customers consistency and cleanliness from Canadian wheat understand that Canadian wheat classes provide great because of our grading and varietal registration milling characteristics and excellent flour yield. I make sure systems. I talk about how our registration system is that they know our wheat delivers a complete quality and rigorous, that there are requirements that must be met consistency package supported by strict grading and variety not only for quality, but also agronomy and disease registration systems used in Canada.” resistance and that the industry keeps an eye on how varieties are performing.”

ESEY ASSEFAW, HEAD, ASIAN PRODUCTS AND YVONNE SUPEENE, HEAD, BAKING TECHNOLOGY PASTA TECHNOLOGY

“I like to tell customers that Canadian wheat classes such as “It is important for customers to know that Canada delivers CWRS and CWAD have unique attributes you won’t find in high-quality wheats and other field crops for export to meet competitors which allows for differentiation in end products. any processing demand. CWRS is a high-protein wheat that Most of our Asian customers blend CWRS wheat so instead produces high-quality end products and, while it is our of using 25%, increasing it even to 27% can make a better principal wheat for export, Canada also offers a number of product. I have the quality data to back it up and compare it different wheat classes for other applications. We look for to the qualities of competitor wheat.” customer feedback on crop quality and end-use applications, and relay this information back to the value chain.”

MA RKE T SUP P OR T 7 CIGI PROGRAMS AND MISSIONS: PARTICIPATING MARKETS 2016-17

ALGERIA BAHRAIN BANGLADESH BRAZIL CANADA CHILE CHINA COLOMBIA CUBA DOMINICAN REPUBLIC ECUADOR GHANA INDONESIA IRAQ ITALY JAPAN UNITED ALGERIA KOREA (SOUTH) STATES OF KUWAIT AMERICA MALAYSIA MEXICO MOROCCO MOROCCO NIGERIA VENEZUELA OMAN MEXICO PERU PHILIPPINES COLOMBIA PUERTO RICO GHANA QATAR NIGERIA SRI LANKA ECUADOR SUDAN TAIWAN TUNISIA PERU UNITED ARAB EMIRATES UNITED KINGDOM UNITED STATES OF AMERICA VENEZUELA CHILE

8 MA RKE T SUP P OR T ITALY

BANGLADESH JAPAN

TUNISIA CHINA UNITED ARAB EMIRATES

GHANA SRI LANKA NIGERIA INDONESIA

Markets importing > 200,000 MTs Wheat (2015-16)

Markets importing > 50,000 MTs Durum (2015-16)

Source: Canadian Grain Commission

MA RKE T SUP P OR T 9 PROGRAMS AND MISSIONS 2016-17 QUARTER 1 (APRIL 1 TO JUNE 30, 2016) Grain Industry Program (private company training program) Canada, USA Practical Use of Pulse Ingredients in Healthy Foods Workshop Canada, USA Indonesia Technical Exchange Program Indonesia Gulf Countries Technical Mission Bahrain, Kuwait, Oman, Qatar, United Arab Emirates Africa Technical Exchange Program Nigeria Iraq-Canada Grain Industry Program Iraq Canadian Grain Industry Overview Program Canada Saudi Grains Organization Millers Training Program Saudi Arabia Philippines Technical Exchange Program Philippines China Technical Exchange Program China

QUARTER 2 (JULY 1 TO SEPTEMBER 30, 2016) Sri Lanka Technical Exchange Program Sri Lanka 49th International Grain Industry Program Bangladesh, Brazil, Canada, Chile, Colombia, Indonesia, Iraq, Italy, Japan, Malaysia, Nigeria, Oman, Peru, Philippines, South Korea, Taiwan Grain Grading Seminars for Growers-Saskatchewan (x2) Canada (with Sask Wheat and CGC) Africa Technical Mission Ghana, Sudan Making the Grade Workshop-Alberta (with AWC and CGC) Canada Indonesia Technical Exchange Program Indonesia North Africa Technical Exchange Program Algeria, Morocco, Tunisia Latin America Durum Wheat Program Chile, Colombia, Cuba, Ecuador, Peru, Venezuela Grain Industry Program (private company training program) Saudi Arabia Japan Durum Technical Exchange Program Japan Bangladesh and Sri Lanka Technical Mission Bangladesh, Sri Lanka Algeria Executive Program Algeria Europe Durum Investigative Mission Italy Latin America-Canada Grain Industry Program Chile, Colombia, Cuba, Dominican Republic, Ecuador, Mexico, Peru, Puerto Rico, Venezuela Gulf Countries Technical Exchange Program Bahrain, Kuwait, United Arab Emirates Bangladesh Technical Exchange Program Bangladesh

10 MA RKE T SUP P OR T QUARTER 3 (OCTOBER 1 TO DECEMBER 31, 2016) Mexico Technical Exchange Program Mexico Industry New Crop Seminar/Webinar Canada CNMA New Crop Seminar Canada Canadian New Crop Missions Asia: China, Indonesia, Japan, Philippines, Singapore, South Korea Europe: Italy, United Kingdom Gulf: United Arab Emirates Latin America: Chile, Colombia, Ecuador, Mexico, Peru North Africa: Algeria, Morocco West Africa: Nigeria Canadian New Crop Webinars Tunisia, Venezuela Canadian Grain Industry Overview Program Canada Canada's Crops: From Field to Fork Canada (private company training program) QUARTER 4 (JANUARY 1 TO MARCH 31, 2017) Combine to Customer Programs (x4) Canada Wheat: Quality, Traits and International Markets Canada (private company training program) Mexico Investigative Mission Mexico Canadian Grain Industry Overview Program Canada Morocco Milling and Pulse Training (x2) Morocco CWAD North Africa Investigative Mission Algeria, Morocco Global Affairs Canada (GAC) Morocco Pulse Program Morocco

2016-17 SUMMARY: 62 PROGRAMS AND MISSIONS INVOLVING 35 MARKETS AND 1373 PARTICIPANTS.

MA RKE T SUP P OR T 11 COLLABORATION

CIGI COLLABORATES WITH MANY ORGANIZATIONS THROUGHOUT THE CANADIAN VALUE CHAIN, PROVIDING TECHNICAL AND MARKET SUPPORT; ACCESSING FUNDING FOR PROGRAMS, APPLIED RESEARCH AND OPERATIONS; ENGAGING RESOURCES FOR CIGI PROGRAMS; AND EXCHANGING INFORMATION AND EXPERTISE TO INCREASE THE USE OF CANADIAN WHEAT AND OTHER FIELD CROPS WORLDWIDE.

PROGRAM SUPPORT

TECHNICAL & MARKET SUPPORT INFORMATION EXCHANGE

AGRICULTURE AND AGRI-FOOD CANADA CEREALS CANADA PULSE CANADA CANADIAN GRAIN COMMISSION

WINTER CEREALS MANITOBA INC. MANITOBA PULSE & SOYBEAN GROWERS MANITOBA WHEAT & BARLEY GROWERS ASSOCIATION SASKATCHEWAN WINTER CEREALS DEVELOPMENT COMMISSION

SASKATCHEWAN WHEAT DEVELOPMENT COMMISSION

SASKATCHEWAN PULSE GROWERS ALBERTA WHEAT COMMISSION ALBERTA PULSE GROWERS GRAIN HANDLERS SEED DEVELOPERS UNIVERSITIES COMMODITY GROUPS PROVINCIAL GOVERNMENTS

12 COLLABORATION COLLABORATION IN ACTION

CANADIAN WHEAT NEW CROP MISSIONS: 5 CONTINENTS, 18 COUNTRIES, 7 WEEKS OF ENGAGING WITH CUSTOMERS.

“Some of our competitors, like the U.S. Wheat Associates, also “This collaborative effort demonstrates the put on new crop seminars. But Canada is unique because we commitment of Canada’s value chain to supporting deliver the entire value chain including representation from our customers and providing them with the farmers, exporters, Canadian Grain Commission, Canadian opportunity to optimize the value and performance International Grains Institute and Cereals Canada.” of Canadian wheat.”

The CGC's Bin Xiao Fu (r) with a customer attending Canadian New Crop team in Italy. a seminar in Japan.

"When customers have a question on Canadian production, we have a farmer in the room to answer. When there are questions on supply or logistics, an exporter is there to provide the right information. Cigi and CGC provide unbiased technical information on the grading factors and the technical milling, baking, and pasta- and noodle-making properties." Alberta farmer Trevor Peterson discusses Mission team members John Peterson (l), Richardson farming in Western Canada in Lima, Peru. International, and Cam Dahl, Cereals Canada.

Yvonne Supeene, Head of Cigi Baking Technology, presents on new crop baking quality.

Text excerpts from December 2016 op-ed, “Off to Market New Crop Mission Seminar in Beijing, China. We Go” by Cam Dahl, Cereals Canada; Murdoch MacKay, CGC; JoAnne Buth, Cigi.

COLLABORATION 13 INNOVATION

THROUGH ANALYSIS OF CROP QUALITY AND FUNCTIONALITY AND APPLIED RESEARCH ON PROCESSING METHODS AND PRODUCTS, CIGI EXPLORES INNOVATIVE SOLUTIONS ON BEHALF OF THE VALUE CHAIN. RESEARCH ACTIVITY IS DETERMINED ACCORDING TO INDUSTRY NEED AND IS CUSTOMER-FOCUSED AND COMMERCIALLY APPLICABLE.

2016-17 HIGHLIGHTS ADVANCING PULSE FLOUR PROCESSING AND APPLICATIONS The four-year project (to 2018) is During 2016-17 the focused on how the inclusion of pulses as ingredients can achieve following Cigi wheat nutrition and health targets in projects (to 2018) were breakfast cereals, instant noodles, funded by AAFC’s bread and pasta. Funded by AgriInnovation Program AAFC’s Canadian Agricultural and the Western Wheat Adaptation Program and and Barley Check-off: Pulse Canada.

DEVELOPMENT OF GLUTEN-FREE PRODUCTS USING PULSE INGREDIENTS WHEAT VARIETY RESEARCH The four-year project (to 2018) is aimed at identifying opportunities Analysis of CWRS, CPSR and in the gluten-free market for CWRW varieties grown in pulse ingredients and develop GROWING THE MARKET Manitoba, Saskatchewan and gluten-free food products using FOR PULSE FLOURS Alberta continued in its fourth pulses. Funded by Alberta The three-year project (to 2019) is year to determine unique quality Innovates Bio Solutions and AAFC’s investigating the effect of genotype characteristics suitable for AgriInnovation Program. innovative food applications. and growing location, pre-milling and post-milling treatments, flour particle size, storage and pre-ferment technology on the characteristics of pulse flours and resulting baked products. This information will be compiled into a database to help the industry develop markets for pulse flours. Funded by Saskatchewan Pulse Growers, Manitoba Pulse and Soybean AGRONOMIC IMPACT OF PRACTICES DOWNGRADING FACTORS Growers, Agri-Food Research and Development Initiative Investigation of the effect of Evaluation of downgrading factors (Manitoba Government) agronomic practices on the quality present in each crop year was and Warburtons. of CWRS varieties grown in various ongoing to establish their effect locations,specifically related to on wheat quality and mitigate gluten strength, carried on in this their impact on milling and multi-year study through end-product processing. analytical testing and milling and baking evaluations.

Wheat Pulses

14 I NNOVATI ON WHEAT VARIETY RESEARCH: Samples of wheat varieties ready for analysis.

ADVANCING PULSE FLOUR PROCESSING AND APPLICATIONS: Corn pop style breakfast cereal processed with yellow pea ingredients.

ADVANCING PULSE FLOUR PROCESSING AND APPLICATIONS: Sensory evaluation of bread in the test bakery.

AGRONOMIC PRACTICES: Lab milling wheat for assessment of quality characteristics.

I NNOVATI ON 15 OUR TECHNICAL FACILITIES

Cigi’s technology facilities feature an extensive range of processing equipment used to generate knowledge in support of the grain value chain. Technical training and support conducted in these facilities focuses on the exploration of commercial uses of grain and field crops through analysis of their quality characteristics and functionality, and applied research in processing and end products.

ANALYTICAL SERVICES ASIAN PRODUCTS BAKING

The Analytical Services laboratory The Asian Products area evaluates Housing a range of equipment, the conducts analytical and rheological the suitability of Canadian wheat, Pilot Bakery can simulate tests on wheat, barley, flour, pulses and other field crops in Asian commercial baking practices from semolina, pulses and special crops. noodles, steamed breads, around the world and the Test Bakery dumplings and other end products uses specialized small-scale on a pilot and laboratory scale. equipment for technical evaluations and investigative studies.

MILLING PASTA AND EXTRUDED PULSE PROCESSING AND PRODUCTS SPECIALTY MILLING Milling Technology provides milling services and expertise on Canadian The Pasta and Extruded Products The Pulse Processing and Specialty wheat classes and field crops on a facility evaluates Canadian durum, Milling facility supports the Canadian pilot and laboratory scale. other wheat classes, pulses and pulse and special crops industries other field crops in pasta on a by determining processing and commercial and small scale and in end-use characteristics on both a extruded products such as snack pilot and laboratory scale. foods and breakfast cereals.

16 I NNOVATI ON COMMUNICATION

COMMUNICATION IS AN INTEGRAL PART OF CIGI’S OPERATIONS. THIS INCLUDES ENGAGING WITH CUSTOMERS WORLDWIDE, OFFERING TECHNICAL SUPPORT AND INDUSTRY INFORMATION, AND DEMONSTRATING TO THE CANADIAN VALUE CHAIN THE BENEFITS OF CIGI’S MARKET SUPPORT AND APPLIED RESEARCH ACTIVITY THROUGH DIRECT COMMUNICATION AND SOCIAL AND CONVENTIONAL MEDIA.

2016-17 HIGHLIGHTS

CIGI WEBSITE AND MEDIA CIGI REVIEW Media outlets focusing on The Cigi website provided data agriculture and food-related and research results and content featured multiple stories information on activities related to highlighting Cigi’s applied work with wheat and pulses. research on wheat and pulses A blog focused on how Cigi’s and work with international research, programs and missions customers, demonstrating how benefit the Canadian value chain Cigi actively supports the and international customers. The marketing interests of producers Cigi Review distributed quarterly and other members of the via email and read predominantly Canadian value chain. by customers and industry featured a compilation of Cigi SOCIAL MEDIA blog stories. AGRICULTURAL SHOWS Via Twitter, Cigi primarily At ag shows in Alberta, engaged producers and industry, Saskatchewan and Manitoba, Cigi keeping followers up-to-date on staff met with producers face-to- programs and applied research face, explaining the importance of and how Cigi’s collaboration with their check-off dollars in supporting industry and with customers helps Cigi’s work with customers in key promote the use of Canadian markets. The Cigi display highlighted grain worldwide. Cigi Facebook how customers use Canadian grain highlighted programs and in different products and provided missions, serving as a means of information about Cigi programs and maintaining contact with Cigi missions. In 2016-17 Cigi attended alumni involving mostly the Farm Progress Show, Western international customers. Canadian Crop Production Show, Manitoba Ag Days and FarmTech 2017.

COMMUNICATION 17 FINANCE

CIGI'S MAIN FUNDING SOURCES ARE THE GOVERNMENT OF CANADA THROUGH AGRICULTURE AND AGRI-FOOD CANADA'S GROWING FORWARD 2 PROGRAM AND WESTERN CANADIAN FARMERS THROUGH THE WHEAT & BARLEY CHECK-OFF. THROUGH THE FARMER CHECK-OFF CIGI RECEIVES 15 CENTS PER TONNE ON WHEAT AND DURUM DELIVERIES TO LICENSED FACILITIES. IN THE 2016-17 FISCAL YEAR CIGI’S TOTAL REVENUE WAS $9.6M. THE THREE TOP REVENUE SOURCES WERE $3.5M IN FUNDING FROM AAFC FOR MARKET DEVELOPMENT AND RESEARCH ACTIVITIES, $3.2M IN FUNDING FROM WESTERN CANADIAN FARMERS, AND $1.1M IN FUNDING FROM VARIOUS INDUSTRY SOURCES FOR APPLIED RESEARCH PROJECTS ON PULSE FLOUR PROCESSING AND APPLICATIONS. A COMPLETE COMPARISON OF REVENUES FOR THE CURRENT AND PREVIOUS FISCAL YEARS IS SHOWN ON THE PIE CHARTS. SOURCES OF REVENUE

CIGI COURSE FEES INDUSTRY CONTRIBUTION CONSULTING & TECHNICAL SERVICES MISC

APPLIED RESEARCH PROJECTS

CUSTOMIZED TRAINING & SUPPORT

AGRICULTURE AND 2017 AGRI-FOOD CANADA

FARMER CHECK-OFF

CIGI COURSE FEES CONSULTING & INDUSTRY CONTRIBUTION TECHNICAL SERVICES MISC

CUSTOMIZED TRAINING & SUPPORT

APPLIED RESEARCH PROJECTS

AGRICULTURE AND 2016 AGRI-FOOD CANADA

FARMER CHECK-OFF

18 FINANCE WORKING WITH THE VA LUE C H A IN

COLLABORATION

MARKET SUPPORT

INNOVATION COMMUNICATION

19 CANADIAN INTERNATIONAL GRAINS INSTITUTE 1000-303 MAIN STREET WINNIPEG, MANITOBA CANADA R3C 3G7

cigi.ca

LIKE US ON FACEBOOK FOLLOW US ON TWITTER: @CIGIWINNIPEG

20