Accountability Repor t - Nova Scotia...Department of Agriculture Accountability Report 2017-2018 1...

AccountabilityReport2017–2018

Department of Agriculture

© Crown copyright, Province of Nova Scotia, July 2018

Accountability Report 2017–2018

ISBN: 978-1-55457-867-2

Contents

Accountability Statement .......................................................................................................................... 1

Message from Minister .............................................................................................................................. 2

Financial Results ........................................................................................................................................ 3

Measuring Our Performance ..................................................................................................................... 4

Developing our agricultural industries ................................................................................................. 4

Grape and wine industry .................................................................................................................... 4

Wild blueberry industry ...................................................................................................................... 4

Apple industry ..................................................................................................................................... 5

Nova Scotia farm cash receipts ........................................................................................................ 5

Trade development ............................................................................................................................. 6

Minister’s Advisory Board on Horticulture ....................................................................................... 7

Perennia partnership .......................................................................................................................... 7

Canadian Agricultural Partnership (CAP) ......................................................................................... 8

Labour issues ...................................................................................................................................... 8

Key core functions ...................................................................................................................................... 8

Growing Forward 2 ............................................................................................................................. 8

AgriRecovery, AgriInvest, AgriStability programs ........................................................................... 8

Crop and Livestock Insurance ........................................................................................................... 9

Dykeland renewal and marshland conservation ............................................................................. 9

Pan-Atlantic Agricultural Research Innovation Research Initiative (AARII)............................... 10

THINKFARM ...................................................................................................................................... 10

Select Nova Scotia ............................................................................................................................ 10

Veterinary services ........................................................................................................................... 11

Laboratory Services .......................................................................................................................... 11

Animal and Crop Services ................................................................................................................ 11

Nova Scotia Farm Loan Board ........................................................................................................ 11

Annual Report under Section 18 of the Public Interest and Wrongdoing Act ................................... 13

Department of Agriculture Accountability Report 2017-2018

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Accountability Statement The Accountability Report of the Department of Agriculture for the year ended March 31, 2018 is prepared pursuant to the Finance Act and government policies and guidelines. These authorities require the reporting of outcomes against the Department of Agriculture Business Plan for the fiscal year just ended. The reporting of the Department’s outcomes necessarily includes estimates, judgments and opinions by Department of Agriculture management.

We acknowledge that this Accountability Report is the responsibility of Department of Agriculture management. The report is, to the extent possible, a complete and accurate representation of outcomes relative to the goals and priorities set out in the Department of Agriculture 2017-18 Business Plan.

Honourable Keith Colwell, E.C.N.S. Minister of Agriculture Frank Dunn Deputy Minister


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Message from Minister

I am pleased to present the Department of Agriculture Accountability Report for 2017-18.

During 2017-18, we continued to collaborate with industry stakeholders and government to achieve progress and build on the strengths Nova Scotia has developed in wine, wild blueberries and value-added products.

Nova Scotia is connected to a food culture that benefits our producers through exports, promotes our food security and supports tourism by providing unique experiences for our visitors. During this past year, we continued our work to open new markets for our quality products, helping to build our reputation in the global marketplace.

Industry has worked hard to increase exports. Wild blueberries are our biggest agri-food export with a value of $75 million, or one quarter of our total agri-food exports. Additional value-added export successes include a 21 percent increase in exports of bread and baked goods and an 18 percent increase in sales of frozen vegetables.

Our support for the wine industry continued with the strategic investments through our Vineyard and Wineries Investment Program and support for research and development at the region’s only wine analysis lab at Acadia University. Working with industry, we are seeing success through the expansion of the quantity of grapes being cultivated and the increasing recognition of the expertise of our winemakers who continue to receive awards for excellence at the regional, national and international level.

Select Nova Scotia continues to share the story of the importance of buying local. Through its digital and social media channels and collaboration with farmers markets and major grocery retailers, this marketing program is raising public awareness of the many ways to add quality locally-grown and made products to household grocery lists. In the process, we’re helping to secure the future of our farms and the jobs and opportunities they create for rural communities across the province. We need strong and successful producers to ensure that in an emergency we have the means to feed our own population. Food security touches each of us personally.

For agriculture to continue to succeed we all need to be choosing quality Nova Scotia products for our tables. That supports the jobs and economic benefits that agriculture brings to our rural communities and it helps Nova Scotia succeed on the international stage.

Honourable Keith Colwell, E.C.N.S. Minister of Agriculture


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Financial Results

2017-2018 Estimate

2017-2018 Actuals

2017-2018 Variance

Program & Service Area ($ thousands) Departmental Expenses: Senior Management 697 552 (145) Policy and Corporate Services 27,853 38,795 10,942 Agriculture and Food Operations 13,442 13,448 6 Total Gross Departmental Expenses 41,992 52,795 10,803 Additional Information: Revenues 30 1,537 1,507 Fees and Other Charges 2,244 2,380 136 Ordinary Recoveries 5,991 5,129 (862) Total: Revenue, Fees and Recoveries 8,265 9,046 781 TCA Purchase Requirements 2,000 3,261 1,261 Provincial Funded Staff (FTEs) 169.6 163.1 (6.5) Departmental Expenses Variance Explanations: Increase in allowance for bad debts at the Farm Loan Board and increase in AgriStability Program expenses. Revenue, Fees and Recoveries Variance Explanation: Increase is a result of TCA cost shared recovery and Crown Lending revenues. Ordinary recoveries decrease is a result of lower recoveries from federal government for Programs and Business Risk Management. TCA Purchase Requirements Variance Explanation: Increase in Flood Mitigation spending (offset by recovery) and increase Lab purchases: Autoclave. Provincial Funded Staff (FTEs) Variance Explanation: Miscellaneous vacancies across the department.


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Measuring Our Performance

Developing our agricultural industries

Grape and wine industry Nova Scotia has a long tradition of growing grapes for wine. Varieties such as the widely known white L’Acadie Blanc have been touted for their important flavor contribution to the Tidal Bay appellation wine. Our wines and winemakers have been internationally recognized for quality and innovation. In 2017-18, the Department provided $2.9 M in financing for vineyard and grape development and continued to focus on growing the grape and wine sectors by investing $3.5 M in year two of the four-year, $12 M Vineyard and Wineries Investment Program.

The Vineyard Development and Expansion Program funded projects for over $1.1 M. Just over 263 acres in various stages of development have been planted to date under this expansion program, mainly in the varieties of L’Acadie Blanc, Chardonnay and Riesling. Other initiatives included projects related to quality enhancement ($1.6 M), international and local marketing initiatives ($201 K), and research and development ($521 K).

In 2017-18, the Minister’s Wine Development Board, and with support through its operational committees, continued its work in the areas of market development, research and development, and wine quality standards development. For example, the Market Development Committee partnered with the Wine Association of Nova Scotia (WANS), Taste of Nova Scotia, Select Nova Scotia and the NSLC with the aim to expand markets for Nova Scotia wines domestically, nationally and internationally. The Board supported the development of the Nova Scotia Wine Marketing Strategy to deliver a series of market development and promotional activities.

Market statistics indicate that grape harvest increased from 1,986 metric tonnes in 2016 to 2,132 metric tonnes in 2017, a 7.4% increase representing almost 1.5 million liters of production. Sales of Nova Scotia wine from NSLC retail outlets and farm gate sales increased from $19.8 M in 2016 to $20.7 M in 2017, representing a 4.5% increase.

Wild blueberry industry Wild blueberries were Nova Scotia’s largest agricultural export at $76.3M in 2017. The Minister’s Nova Scotia Wild Blueberry Advisory Board was established in November 2017 to address wild blueberry oversupply, declining prices and increased global competition. The main objective of the Board is to provide a regular forum for government and industry to come together to identify development opportunities and initiatives to guide the growth of our wild blueberry sector. To date, these initiatives include:

• Supported a series of market development activities internationally with a focus on China by:

o Working with Nova Scotia companies to establish new distribution channels


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o Providing government support at targeted business meetings with key influencers, buyers and state owned companies

o Supporting in-store promotions at key retail supermarkets and on e-commerce platforms

o Supporting Canadian wild blueberry education and health seminars in Beijing and Shanghai in partnership with the Wild Blueberry Producers Association and the Wild Blueberry Association of North America

o Participating in the Food Hotel China Expo; the Bakery China Show; Asia’s largest Food Innovation Exhibition, called SIAL China; and Canadian Export Cafes in Shanghai, Beijing and Guangzhou with Nova Scotia companies featuring value-added wild blueberry products

• Worked with industry, provinces, federal government and our Chinese partners to profile market access issues such as high tariffs and trade classification codes on frozen Canadian wild blueberries entering China

The Department provided support to the sector in 2017-18 by funding a total of $83.5 K through the Lowbush Blueberry Development Program. This three year, $1 M program facilitates improved production techniques like harvesting and pruning and expands cultivation by bringing more land into production. The Pollination Expansion Program funded over $156 K to increase the number of honey bees available for pollination.

Apple industry The Department developed the Apple Industry Growth and Efficiency Program in partnership with the Nova Scotia Fruit Growers Association to encourage orchard renewal of higher value varieties of apples such as Honeycrisp, Gala and Ambrosia. The value of the apple industry in the Province is at its highest yet, with Farm Cash Receipts reaching $21.5 M in 2017, a 14.8% increase from last year, and international exports reaching $15.9 M in 2017.

In 2017-18, $1.435 M was invested in year four of this six-year, $2.2 M program. Just under 327,000 new apple trees of higher varieties have been planted since the Program started, of which 110,976 trees were planted in 2017-18.

Nova Scotia farm cash receipts Farm cash receipts shows the combined cash receipts for all farming operations in Nova Scotia, excluding government payments. Values can vary based on several factors, including the growing and economic conditions of a given year and the value of the Canadian dollar. There was a decrease in the overall total in 2017 to $537.8 M, a decline of $20.4 M from the previous year. This can be largely attributed to challenges facing the wild blueberry and mink sectors. However, those declines were partially offset by increases in dairy ($10 M), field vegetables ($2.7 M) and apples ($2.8 M).


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Trade development The Department is active in working to ensure that international trade issues and market access opportunities are being pursued in alignment with industry priorities. Canada has been active in negotiating new and modernizing existing trade agreements with international partners as well as domestically through the Canada Free Trade Agreement. Nova Scotia, through the Department of Intergovernmental Affairs, is continuously engaged in pursuing trade opportunities alongside our provincial and federal colleagues. Tariff reductions, access to new markets, reduction of non-tariff barriers and modern and fact-based dispute settlement mechanisms will help Nova Scotia achieve the goal of doubling agriculture and fishery exports. The Department of Agriculture is a partner in these efforts, advocating for industry priorities and collaborating with industry to ensure that Nova Scotia businesses understand the opportunities when exporting to external markets, that they are prepared for an increasingly competitive trading environment, and that Nova Scotia complies with obligations under trade agreements.

Departmental Initiatives in 2017-18 to support trade development included: • Participation in the March 2018 ProWein International Trade Fair for Wines and Spirits in

Dusseldorf, Germany • Trade mission to Shanghai, Guangzhou and Beijing, China, August/September 2017 • Participation in Food Hospitality Show in Shanghai, China, November 2017


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Agri-food products are Nova Scotia’s third largest export category accounting for 7% of the province’s exports in 2017. Overall, agri-food exports decreased in 2017 to $314 M, down 9% from 2016.

Wild blueberries topped agri-food exports with a value of $75 M, comprising 24% of all agri-food exports. Miscellaneous food preparations followed with a value of $47 M and vegetables with a value of $37 M. Mink fur was reported in 2017 with a value of $29 M, showing continued declines in recent years, due to reduced global pricing. Blueberry exports in 2017 decreased by $12.9 M (14%) over the previous year, contributing to the decline in overall agri-food exports.

Minister’s Advisory Board on Horticulture This year saw the establishment of the Minister’s Advisory Board on Horticulture. The Board includes representation from both industry and the Department and was established to plan for sector growth and address horticulture challenges. In 2017-18, industry and the Departmental staff participated in investigative travel to the Netherlands to learn more about advanced greenhouse technologies and practices to produce large quantities of food in innovative ways.

Perennia partnership

The Department provided an operating budget of $2.5 M in 2017-18 to Perennia Food and Agriculture Inc. (Perennia) to support its mandate to farmers, seafood producers and food processors for the delivery of food safety, product development and commercialization programs. Perennia also facilitates collaborations between industry, the Department, and universities to provide opportunities for research, knowledge and technology transfer. Specific projects in 2017-18 totaling over $2.2 M included:

• An investment of $438 K for an automated mobile bottling line that assists with the demand for extra bottling capacity due to present and future increases in grape acreage and wine production volumes

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326.2

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314.0

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2013 2014 2015 2016 2017

Nova Scotia International Exports ($ millions)


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• An investment of $317 K for a terroir analysis to evaluate what wine varieties can best be produced in Nova Scotia and what types of wine are demanded by the market

• An investment of $86 K in an apiculture project to support the growth of the pollination industry as well as research development and innovative technology transfer needed to sustainably grow the blueberry sector

Canadian Agricultural Partnership (CAP) This five-year agriculture policy and priorities multilateral framework was finalized this year. The agreement supports the agricultural sector in six priority areas: markets and trade; science, research and innovation; environmental sustainability and climate change, risk management; value-added agriculture and agri-food processing; and public trust. The new cost-shared programming includes a budget of $37 M over five years. CAP, the successor agreement to Growing Forward 2, includes programming aimed to increase competitiveness, productivity and profitability; increase environmental sustainability of agriculture and agri-food sectors; and expand domestic and international markets.

Labour issues In 2017-18, the Department initiated an inter-departmental group comprising of Fisheries and Aquaculture, Agriculture, Labour and Advanced Education, Community Services, and Immigration to discuss issues, potentially including skills shortages and training needs in agriculture and the seafood industries.

Key core functions Central Departmental functions advanced in 2017-18 that supported its mandate, strategic themes and overall government priorities include the following:

Growing Forward 2 In its final year of the five-year cost-shared federal-provincial agreement, the Department’s Programs and Business Risk Management Division administered over $6 M in funding and approvals for Growing Forward 2, including projects and initiatives in the following categories:

• Homegrown Success with an investment of $1.9 M • Market Development and Investment Attraction with an investment of just over $875 K • Business Development and Industry Capacity with an investment of almost $235 K

AgriRecovery, AgriInvest, AgriStability programs The Department supported industry access to the federally-delivered AgriRecovery, AgriInvest and AgriStability programs. These programs help protect agricultural producers against income loss during times of uncertainty and/or disasters.

There were no AgriRecovery applications funded in 2017-18. In 2016, Nova Scotian farmers protected over $245 M in revenue through the AgriInvest program and over $197 M in revenue


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through and AgriStability program. These figures represented declines of 9.6% and 12.6% respectively from 2015.

Other programs administered by Programs and Business Risk Management Division in 2017-18:

• FarmNext – is a program to encourage new farmers to establish commercial farming ventures in Nova Scotia. In 2017-18, program participants benefitted from $466 K in interest relief on loans.

• Limestone Trucking Assistance – is a program to help Nova Scotia farms defray the cost of trucking limestone. Limestone neutralizes acidity and improves production. The application of limestone also has positive impacts to the environment and fish habitat by counteracting the effects of acid rain. In 2017-18, $326 K was invested.

Crop and Livestock Insurance The Crop and Livestock Insurance Commission supported 12 commodity sectors through various insurance and premium support plans totaling just over $3.1 M. These sectors included a range of commodities from high and low bush blueberries and other ground fruit to tree fruit, vegetables, winter grain and livestock.

Dykeland renewal and marshland conservation The Department continues to modernize the management and protection of 43,000 acres of marshland and 241 kilometers of dykes to respond to climate change pressures and rising sea levels. In 2017-18, the Department completed the final year of a five-year, $10 M, Tangible Capital Asset (TCA) funded Flood Mitigation Program. The Department completed $3.2 M in dykeland upgrade projects by leveraging the capital asset funding with funding from Public Safety Canada’s National Disaster Mitigation Program (NDMP), including: $1.4 M on aboiteau upgrades; $1.3 M on three dyke realignment pilot projects; $402 K on dyke topping and dyke land formation throughout the province; and $100 K in erosion repair and protection.

Other work includes:

• Completion of a two-year, $403 K NDMP project in partnership with New Brunswick’s Department of Transportation and Infrastructure. The Fundy Dyke Risk Assessment provided engineering guidelines for dyke construction and guidelines for determining risk of failure of the Fundy dykes. This will enable both provinces to make more informed strategic decisions to better protect provincial assets in the future.

• Completion of a one-year, $130 K NDMP project to provide up-to-date Flood Mapping along the Bay of Fundy. This Project was completed in partnership with New Brunswick’s Department of Transportation and Infrastructure and St. Mary’s University’s Department of Geography. Scientific research on sea-level rise, tides and predictions of storm events were used to provide up-to-date mapping of flood boundaries. The updated flood mapping will be used by Nova Scotia and New Brunswick for future decision making around marshland boundaries and dyke alignments.


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Pan-Atlantic Agricultural Research Innovation Research Initiative (AARII) Through pan-Atlantic collaborations, the Department provided funding for research and innovation projects of regional benefit, to improve the profitability, competitiveness and sustainability of the agriculture and agri-food sectors. In 2017-18, six projects were funded supporting four different entities for a total commitment of just under $300.

Research projects covered the following areas:

• Focused grain and oilseeds research to increase yield and limit disease in priority crops for the region followed by technology transfer to producers

• Extended on-farm agronomy research and knowledge transfer in the grains and oilseeds industry

• Expansion of honey bee research and pollination capacity in Atlantic Canada through a technology transfer team approach

• Identification of best management practices to reduce production-limiting diseases in the Atlantic dairy sector

• Lighting technology in combination with sanitization methods with antimicrobial proteins to benefit chick growth during and after hatch

• Economical feed ingredients utilizing marine-based products to minimize prevalence of pathogens associated with eggs to improve health of chicks

THINKFARM This new entrant program for farmers wrapped up its final year, although it will continue with an online presence in the future. THINKFarm supported initiatives that nurtured entrepreneurial capacity, attracted new participants to agriculture and food-related ventures, and accelerated their competitive position in the marketplace. THINKFARM activities in 2017-18 included:

• Responding to 68 direct client inquiries and hosting seven workshops with 198 participants on a range of topics

• Supporting 7 organizations and 1205 participants through the Department’s External Training Partnership

• Hosting two Small Farm Expo events with 19 presenters and 220 participants • Supporting Perennia to launch an online collection of production information for new

entrants to agriculture in Nova Scotia

Select Nova Scotia This buy local program uses strategic partnerships to raise consumer awareness regarding locally made food and goods, and helps consumers understand the importance of buying local. In 2017-18, $250 K was committed in the Program, funding multiple projects such as: research; consumer attitudes toward buying local products; retail initiatives such as Air Miles promotions with Sobeys Inc., and the Nova Scotia Liquor Commission; promotional initiatives with the Farmers’ Markets of Nova Scotia; and sponsorship of local events and programs. Select Nova Scotia also partners with Communications Nova Scotia in a comprehensive buy local marketing campaign.


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In 2017-18, Select Nova Scotia sponsored 27 regional events and 7 larger provincial events focused on consumer awareness for the buy local program. The Program also partnered with Communications Nova Scotia on a series of print advertisements reinforcing the message “Ask for Local”; the production of a video series for the Farmers’ Markets of Nova Scotia; and on sponsorship of a province-wide school fundraiser promoting farm local produce.

Veterinary services Veterinary services provide diagnostic services to agricultural clients, veterinarians and members of the public. In 2017-18 the Pathology Lab completed 391 post-mortems on several different species, primarily agricultural in nature. This provides scanning surveillance information for industry. For example, in 2017-18, the lab identified an increased incidence of pneumonia in dairy herds due to a bovine respiratory viral infection. Veterinarians were notified about the occurrence and recommended testing.

Efforts were made in 2017-18 to promote the use and value of the lab to veterinarians and producers given an increased awareness of new diseases or changing prevalence of disease in Nova Scotia.

Livestock Health Services Program spent $1 M in 2017-18 to support veterinarians providing Herd Health and Livestock Health Services to registered farms.

Laboratory Services Laboratory Services supported industry growth and protection through the many laboratory tests conducted. Results from Laboratory Services allows the agriculture industry to make sound decisions to support sustainable agriculture production from supporting plant production, environmental protection and supporting the health of animals and protection of our food systems as in the case of dairy testing. In 2017-18 Laboratory Services initiated the development of a client service survey and conducted 59,721 overall number of laboratory tests.

Animal and Crop Services The Department continued to offer services related to the safety and security of food production by supporting the honey bee and blueberry industries and by supporting traceability and biosecurity. In 2017-18:

• 620 bee keeper registrations and 692 premise identifications (PIDs) issued • 432 honey bee colonies designated for blueberry pollination were inspected for import • 377 colonies were inspected in Nova Scotia to support sales and disease surveillance • 14 traceability projects were supported through GF2

Nova Scotia Farm Loan Board The Nova Scotia Farm Loan Board (NSFLB) is a Crown lending agency that continued to provide support to agriculture and timber businesses in Nova Scotia through financing and credit counselling. In 2017-18, the NSFLB worked to update regulations, enhancing the Board’s ability to meet industry requirements, improve service quality, address risk issues and allow for


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sustainable funding options. The NSFLB approved 63 new applications with total funds authorized exceeding $27.7 M. Compared to 2016, loans to grapes and wines, apple and greenhouse producers showed increases.


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Annual Report under Section 18 of the Public Interest and Wrongdoing Act

The Public Interest Disclosure of Wrongdoing Act was proclaimed into law on December 20, 2011.

The Act provides for government employees to be able to come forward if they reasonably believe that a wrongdoing has been committed or is about to be committed and they are acting in good faith.

The Act also protects employees who do disclose from reprisals, by enabling them to lay a complaint of reprisal with the Labour Board.

A Wrongdoing for the purpose of the Act is:

a) a contravention of provincial or federal laws or regulations

b) a misuse of gross mismanagement of public funds or assets

c) an act or omission that creates an imminent risk of a substantial and specific danger to the life, health or safety of persons or the environment, or

d) directing or counseling someone to commit a wrongdoing.

The following is a summary of disclosures received by the Department of Agriculture:

Information Required under Section 18 of the Act Fiscal Year 2017-2018 The number of disclosures received 0 The number of findings of wrongdoing 0 Details of each wrongdoing N/A Recommendations and actions taken on each wrongdoing

N/A

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