ANNUAL REPORT - Alberta Pulse Growers · 2019. 7. 4. · ers become directors. APG celebrated 25...

www.pulse.ab.ca

ANNUAL REPORT2013 - 2014

Table of ContentsVision and Mission, Goals, and Values .......................................................................... 3

Federal Minister’s Message ............................................................................................ 4

Provincial Minister’s Message ........................................................................................ 5

President’s Message ...................................................................................................... 6

Executive Director’s Message ........................................................................................ 7

Pulse Canada Highlights ................................................................................................ 9

Message from Grain Growers of Canada .................................................................... 11

Committee Reports

Research ................................................................................................................. 12

Extension ................................................................................................................. 13

Sustainability ........................................................................................................... 14

Zone ......................................................................................................................... 15

Marketing ................................................................................................................. 17

Communications ...................................................................................................... 18

Audit and Finance ................................................................................................... 18

2013-14 Financial Statements ...................................................................................... 19

25 Years of the Alberta Pulse Growers Commission ..................................................... 30

Commissioners and Staff ............................................................................................. 31

2

Vision and Mission

Vision:Have Alberta pulses recognized by consumers as environmentally friendly, healthy, and nutritional, and by all producers as being an essential element in a sustainable cropping system.

Mission:

To provide leadership, increasing the competitiveness, profitability, and sustainability of pulse production as well as promoting the health and environment benefits of pulses.

• Optimism

• Integrity and Professionalism

• Focused

• Build and Maintain Relationships

• Innovative Industry Leaders

• Free Enterprising

Values

Goal 1: Organizational Effectiveness and Governance Renewal• Strengthen relationships and collaborate with other organizations for the benefit of advancing APG initiatives.

• Improve APG’s governance, structure, and policy to carry out strategic blueprint.

• Communicate effectively between and within board, committees, zones and staff.

• Provide leadership training for current board effectiveness and succession planning.

• Build enthusiasm to attract producer involvement and support APG.

Goal 2: Create and Maintain Market Demand• Develop the pulse brand as a healthy food option and promote it to dietitians/health professionals and youth.

• Support research to improve understanding of fractions and their functionality in food products and identify pulse health benefits.

• Support Pulse Canada to create and expand international and domestic markets (including market access).

• Enhance non-traditional value-added markets in Alberta (including niche markets, processing).

• Position APG as an innovative leader in the Canadian pulse industry.

• Promote quality of Canadian/Alberta pulses to domestic and international buyers

Goal 3: Increase Producer Profitability• Fund research to support new varieties (breeding), disease resistance, rotational benefits, and improved quality.

• Ensure research capacity exists to conduct pulse production research in the next five,10, 20 years.

• Develop risk management tools that are equitable with those of other crops.

• Communicate research results to producers on agronomic and varietal information.

Goals

33

Federal Minister’s Message

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Provincial Minister’s Message

As Minister of Agriculture and Rural Development, I am pleased to extend greetings to all of thevalued producers represented by the Alberta Pulse Growers (APG). I offer my sincerecongratulations as you celebrate the APG’s 25th anniversary.

The pulse industry in our province has exhibited significant growth in the past 25 years, withover 5,000 producers now growing crops like field peas, dry beans, lentils and chickpeas. Muchof this success is due to your investment in research and development, enabling Albertagrowers to address emerging challenges and opportunities.

The Government of Alberta shares your vision to have Alberta pulses recognized by consumersas environmentally friendly, healthy and nutritious. We also support your work to increaserecognition for pulse crops among producers, demonstrating the important place and value-added capabilities pulses have in a sustainable cropping system.

The United Nations has declared 2016 as the International Year of Pulses, making this an evenmore exciting time for the pulse industry in Alberta and worldwide. In the current competitiveglobal marketplace, ingenuity is at the heart of our agriculture industry’s ongoing success. Wemust continue to explore new and innovative products to help ensure the industry evolves in asmart, responsible and sustainable manner.

Thank you for your work in promoting the benefits of including pulses in a sustainable croprotation and in a healthy diet. Your research and marketing initiatives are moving this growingcrop forward, and will increase the sustainability and profitability of pulse production in Alberta.

Verlyn Olson, QCMinister

228 Legislature Building, 10800 - 97 Avenue, Edmonton, Alberta T5K 2B6 Canada Telephone 780-427-2137 Fax 780-422-6035

ALBERTAAGRICULTURE AND RURAL DEVELOPMENT

Office of the MinisterMLA, Wetaskiwin-Camrose

MESSAGE FROM THE MINISTER

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President’s Message

It is truly an honour for me to be the Commission’s last president and first chair in my final year as a member of the Alberta Pulse Growers provincial board. In January 2015, I will have served my maximum of two consecutive three-year terms and hand the reins over to one of my worthy and dedicated colleagues. I will continue to be involved at the zone level and, of course, continue to grow pulses on my farm as I have for more than 30 years.

In 2013-14, APG worked on a change to the Marketing Plan Regulation resulting in boundary adjustments for some of its

five zones in order to more closely align them with those of the other crop com-missions. This will make it easier to hold joint meetings in the future and save precious time and travel expenses for our growers. This change was part of the regulatory review that was completed in July 2014. The other most noticeable change that takes effect on the first day of the next fiscal year is that the presi-dent and vice-president will become the chair and vice-chair, and commission-ers become directors.

APG celebrated 25 years as a Commission this year. In recognition of this mile-stone, APG will name the recipient of the first Alberta Pulse Industry Innovator Award at the Annual General Meeting in January. It’s important that we recog-nize the people who have brought us to this point as an industry. If it wasn’t for those individuals, the industry wouldn’t be where it is today.

I was excited to learn that Alberta pulse seeded acres had reached 1.5 million this year. This is the result of strides made in research, extension and mar-keting. I am proud of the effort that APG has made in these areas.

Of course, these amazing crops were harvested in a year when the issues in rail transportation came to a head. The federal and provincial governments both worked toward a solution, but pulse producers are still reporting that

hauling difficulties for specialty crops like ours have not been fully addressed. In the last year, APG has invested check off money through Pulse Canada to help fund a multi-year, multi-commodity ef-fort to develop a rail forecasting and performance measurement program. I am looking forward to seeing a long-term solution to the transportation diffi-culties very soon.

I would like to take this opportunity to thank the staff for stepping up to the plate when we were going through per-sonnel changes. New staff members have now come on board and it has all turned out to be positive.

The board works together very well as we are all good team players who are focused on the issues. In 2013-14, we thanked Zone 4 Commissioner Neil Boyd, and Zone 5 Commissoners Har-old Haugen and Gordon Tuck for their contributions as they left the board. We welcomed Zone 4 Commissioner Fraser Robertson, Zone 5 Commissioner Don Shepert, and Non-Bean Commissioner-at-Large Sarah Weigum at the January AGM and have already benefited from their experience and input.

I would also like to thank the zones for the advice that they put forward to the board. We look forward to receiving these insights from the grassroots mem-bers of the organization.

Richard Krikke, APG President

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Executive Director Report

The 2013-14 fiscal year is a time for Alberta Pulse Growers to celebrate 25 years as a Commission. Regulatory ap-provals creating the organization were passed in 1989. It has been an inter-esting walk down memory lane to see where the industry began and watch its significant growth over time. This spring, Alberta producers planted the largest number of pulse acres in the province’s history. With over 1.5 million acres, it is a far cry from the early years of pulse crops being grown across the province. The expansion of acres is a result of both experienced pulse grow-ers using pulses in rotation as well as new growers trying pulse crops for the first time.

Peas continued to be the largest crop planted and were found in fields across the province. Dry beans continued to have consistent acres, but as the crop year progressed harvest proved chal-lenging. Lentils and chickpeas were flat for production in the province, but faba beans showed a significant jump in acres. Expansion of faba beans was rumoured to be between 71,000 and 100,000 acres planted. Soybeans con-tinued in the Regional Variety Trials pro-gram for pulse producers for another year, but are not quite ready to make a regular contribution to new crop acre-age.

Prices for pulse crops have changed substantially from 2012-13 values. For field peas there was an average of a $2 reduction in prices. However, with the increase in acres seen last year, the reduction in pricing did not change the overall revenue for the organization. In fact, as the fiscal year closed, APG re-corded the largest intake of service fees that the organization has ever experi-enced.

By far, 2013-14 will be remembered by industry for one major issue – transpor-tation. Grower groups came together to discuss what we would do to help farm-ers to move grain backlog in the captive environment that is the Canadian freight logistics system. For Alberta Pulse Growers, the discussion was happening with two groups with which we engage: Pulse Canada, a group engaged for a long time in transportation monitoring and transformation, and Grain Growers of Canada, which is an organization of farmers from across Canada who were vocal in their challenges with the move-ment of product. In both cases, APG’s members were called upon to help pro-vide context surrounding the issue from a farmer’s perspective.

Continuing with policy discussions, APG also began to share and discuss UPOV’91 with members. While the or-ganization declared support for the adoption of the newer regulation some time ago, APG reiterated the organi-zation’s support by joining Partners in Innovation, which is a group of 20 or-ganizations that have come together to improve plant breeders’ rights in Cana-da. After consultation with industry, APG also supported movement from Tier 1 Variety Registration to Tier 3 Variety Registration for pulse crops and contin-ues to provide feedback in discussion of those changes.

On the research side, the year kicked off with APG’s significant investment in Science Cluster funding, which was formally announced in July 2013. Proj-ects are now underway and the indus-try is looking forward to learning the answers to research questions that will help solve issues the industry is inves-tigating. Aside from the Science Clus-ter, APG invested in additional projects through our partnerships with other grower groups and research investment

bodies. Keeping our research and de-velopment strategy on target is a key priority of the organization and a prima-ry objective in our regulations.

APG completed its mandatory five-year review of the four pieces of legislation that guide the organization. Aside from a small amount of wordsmithing, the main change was the repositioning of zone boundaries. The new zone map is on page 8. This was taken under con-sideration to mirror other grower group boundaries as closely as possible in an effort to make it easier for growers to participate in joint meetings.

APG plans for some substantial activi-ties in 2014-15. APG will be undertak-ing a member survey; we want to hear from growers across the province and get feedback on our direction and fo-cus. The information gathered will be presented to the provincial board and incorporated into APG’s new five-year strategic plan, which will help give us a roadmap to follow into the future.

APG is engaged with our grower group partners from across Canada to pre-pare for the United Nations declared In-ternational Year of Pulses in 2016. This opportunity gives industry a chance to share with the world the contribution of pulse crops to health, nutrition and inno-vation, food security, sustainability and production, and help with market de-velopment and consumer awareness. Please watch for activity announce-ments in 2014-15.

Staff are a backbone of a strong orga-nization and Alberta Pulse Growers has assembled a team that is knowledge-able, productive and dedicated to the farmers they serve. While APG under-went shifts in staffing this year with turn-over in three positions, the group has drawn together to achieve the goals of the organization. There is a significant amount of work set out for 2014-15 and staff are ready to aid advisors and di-rectors in the achievement of objectives and help galvanize APG as an effective, focused and innovative organization for another 25 years.

Leanne Fischbuch, Executive Director

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New APG Zone Map

Mackenzie County

County of Northern Lights

Clear HillsCounty

Northern SunriseCounty

MD of Opportunity

Regional Municipalityof Wood Buffalo

MD of Big Lakes MD of LesserSlave River

MD of Greenview

Yellowhead County

Clearwater County

VulcanCounty Cypress

County

Saddle HillsCounty

MD of Fairview

MD ofSmoky River

Birch HillsCounty

County ofGrande Prairie

MD of Peace

MD ofSpirit River

Woodlands County

AthabascaCounty

WestlockCountyCounty of

Barrhead

County ofThorhild

Lac Ste AnneCounty

SturgeonCounty

Leduc County

Parkland County

BrazeauCounty

County of Wetaskiwin County ofCamrose

Beaver County

LamontCounty

StrathconaCounty

Lac La Biche County

MD ofBonnyville

County of St. Paul

Smoky LakeCounty

County of Two Hills

County of Minburn County ofVermilion River

MD of WainwrightFlagstaff County

Countyof

Stettler

County ofPaintearth

MD ofProvost

Special Area 4

Special Area 3SpecialArea 2

StarlandCounty

MD ofAcadia

Countyof Newell

MD ofTaber

Countyof Forty

Mile

County ofLethbridge

MD ofWillow Creek

MD ofFoothills

Ponoka County

Lacombe County

Red Deer County

Mountain ViewCounty

KneehillCounty

MD ofBighorn Rocky View

County WheatlandCounty

MD ofRanchland

MD of PincherCreek Cardston

County

County ofWarner

CrowsnestPass

Zone 1

Zone 2

Zone 3

Zone 4

Zone 5

To learn more about which areas fall into which zone, please consult the Alberta Pulse Growers Marketing Plan Regulation.

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2013-2014 Pulse Canada Highlights

In 2013-14, Pulse Canada continued its work to improve the profitability and viability of Canada’s pulse sector by enhancing value and reducing costs. Over the past year important progress has been made in the areas of transpor-tation, market access, health and nutri-tion, processing and functionality, and sustainability.

Improving Rail Freight Service

Without question, the 2013-14 shipping season will be remembered by all; not just because the ag industry produced a bumper crop and the railways failed to adequately meet demand, but also be-cause the government stepped in and, along impossibly short timelines, intro-duced a number of measures aimed at getting grain moving again. Bill C-30 or the Fair Rail For Grain Farmers Act intro-duced several new measures. The Ca-nadian pulse industry through efforts at Pulse Canada worked hard to influence the development of the legislation, the regulations and the execution of the Or-ders in Council; having a good deal of success in a few key areas. The indus-try was very active for example in the creation of regulations that more clearly define railway service obligations and establish greater structure and clarity

for Service Level Agreements. Compre-hensive and detailed submissions also were filed on the expansion of inter-switching distances and the establish-ment of minimum volume requirements.

Arguably more significant this year, how-ever were the pulse industry’s efforts to establish a coalition of ag industry stakeholders who are prepared to invest into a long term transportation strategy for the ag industry. Pulse Canada joined forces with the Canadian Canola Grow-ers, the Alberta Wheat Commission, the soy growers of the Manitoba Pulse Growers Association, the Western Grain Elevators Association, the Inland Termi-nals Association, the Canadian Oilseed Processors Association and Agriculture and Agri-Food Canada to invest over $3.2 million in a plan aimed at deliver-ing measurable improvements. Work in 2013-14 produced service level agree-ment templates, workshops aimed at educating shippers on the negotiation and arbitration process, as well as the development of a performance mea-surement system that now produces credible and accurate performance data on over 85 per cent of grain indus-try traffic. The coalition isn’t even half-way through its five-year plan and it’s safe to say everyone believes the col-laborative model is working well.

International Year of Pulses

Pulse Canada worked jointly in 2013-14 with CICILS (Global Pulse Confed-eration) to have 2016 declared Interna-tional Year of Pulses (IYOP). The United Nations General Assembly voted in De-cember 2013 to officially declare the year.

IYOP is an opportunity of unprece-dented magnitude for the global pulse sector. It has the potential to draw the attention of governments, international bodies, the food sector, researchers and consumers to pulses and show-case their ability to address food secu-rity, health, nutrition and sustainability issues. It is expected to drive increased demand and utilization of pulses world-wide. IYOP is a substantial opportunity for the Canadian pulse industry as the largest producer of peas and lentils,

and largest global exporter of pulses.

At an international level, five theme ar-eas have been identified for IYOP initia-tives:

1. Production and Food Security2. Trade and Market Access3. Nutrition, Health and Food

Innovation4. Environmental Sustainability5. Consumer Awareness

Closer to home, APG Commissioner Allison Ammeter is chairing the IYOP Canada Working Group which has formed under the Pulse Industry Round Table to lead Canadian initiatives.

An International Pulse “Brand”

In coordination with CICILS, Pulse Canada is leading the development of an international pulse “brand”. A multi-national marketing and communications firm has been engaged, and work is be-ing supported by CICILS, Pulse Canada and the U.S. Dry Pea and Lentil Council/American Pulse Association.

Pulse Research

Research continued on the effects of pulse consumption on health and nu-trition. A meta-analysis of existing re-search showed that people felt 31 per cent fuller after eating on average 160 grams of dietary pulses compared with a control diet.

Published research related to pulses and short-term blood sugar response was evaluated to determine whether a health claim could be substantiated in Canada or the United States. Based on the strength and the consistency of the evidence for lentils and beans and blood sugar response, a claim may be possible for these pulse types however additional studies on peas and chick-peas could be needed. For all pulse types, the magnitude of effect on short term blood sugar control was “physi-ologically relevant” which is defined by Health Canada as less than 20 per cent reduction.

By late 2013-14, Pulse Canada entered the final stages of preparing an ap-plication for a lentils and blood sugar

9

response claim to Health Canada. Pre-submission meetings are set to begin in the fall of 2014. Pulse Canada is also looking at potential for making this claim in the U.S. There is also reason to be-lieve that a claim can be submitted for beans and cholesterol reduction.

Pulse Partnership Task Force

Pulse Canada coordinated a Pulse Part-nership Task Force comprised of food industry players from across the value chain as well as members of the global pulse industry. The Task Force provides strategic advice to pulse industry ini-tiatives including research and market development activities to ensure that investments are strong linkages to the marketplace.

Facilitating Food Research in China

In April 2014, Pulse Canada facilitated the signing of contracts between the Ca-nadian pulse industry (APG and SPG) and the Chinese Cereals & Oilseeds Association (CCOA) that will have food scientists in China test Canadian pulse flours in Asian noodles, biscuits and steam buns.

This agreement marked the initiation of the food research projects, but also the beginning of various technical ex-changes between Canadian and Chi-nese researchers for new pulse food development in China.

Partnerships with associations such as CCOA provide opportunities to connect with major Chinese food companies and offer insights on how pulses can fit into regional food products. Given China’s tradition of using pulses in value added processed foods and increasing interest in formulating healthier foods for their growing population, there is oppor-tunity to increase Chinese demand for Canadian pulses.

New Sustainability Tools

A new resource was created for the Canadian agricultural industry - the Sustainable Business Guide. The Guide is a step-by-step re-source that provides a format to build and market a sustain-ability program for companies marketing agricultural products. The Guide was de-signed as a planning tool for companies that want to start a sustainability program.

During the 2013 grow-ing year, more than 30 farmers across West-ern Canada helped to pilot the Canadian Field Print Calculator. The data that was col-lected represented 87

field-years of information from growers in Alberta, Manito-ba and Saskatchewan. The Calculator allows individual growers to measure their farm’s sustainability perfor-mance. Work also began to extend the Calculator to Eastern Canada.

Keeping Markets Open

Through Pulse Canada’s market access work, the Canadian pulse industry achieved tariff reduction parity with the U.S. under the Canada-Korea Free Trade Agreement. Agree-ment in principle was also

reached on the Canada-Europe Com-prehensive Economic and Trade Agree-ment, which will eliminate or phase out remaining tariffs for pulses and pulse flours/fractions, and will also assist in the development of science-based ap-provals and tolerances in the EU. Pulse Canada also provided input into the Trans-Pacific Partnership, Canada-Tur-key FTA and Canada-CARICOM (Carib-bean countries) FTA.

Several country-specific access issues also required ongoing attention, includ-ing India’s fumigation derogation, soil

detections in Mexico, the implementa-tion of new science that may perma-nently resolve India’s stem and bulb nematode issue, and maximum residue limit challenges – including technical analysis of where desiccant use for the 2014 growing season could result in noncompliance in importing countries.

2013-2014 Pulse Canada HighlightsCont’d

Chinese Cereals and Oilseeds Association (CCOA) researchers attend a pulse technical training program at the Canadian International Grains Institute (Cigi) in Winnipeg for a hands-on demonstration in pulse ingredient functionality and performance (2014).

Canadian Field Print Calculator

Climate

Soils

Farm Practices

Land Use Efficiency

Soil Erosion Risk

Energy Use

Climate Impact

Soil Carbon Release

10

The Grain Growers of Canada are pleased to have this opportunity to con-tribute to the Alberta Pulse Growers An-nual Report, especially as you celebrate the 25th anniversary of the Commission.

This was a year of transition for the GGC, but was made easier by the strong sup-port of the Commission and its excellent staff. A special highlight in this regard was our 2014 summer meeting, which was hosted by APG Vice-President Allison Ammeter at Pigeon Lake. In addi-tion to being an excellent host, Ammeter was also an active participant in the deliberations, along with APG Commis-sioner D’Arcy Hilgartner and Executive Director Leanne Fischbuch.

Below are some other developments at GGC over the past year in policy areas that may be of interest to Alberta Pulse Growers members.

Safety Nets

In December 2013, the federal gov-ernment introduced Bill C-18 (The Ag-ricultural Growth Act), which included amendments to the Agricultural Market-ing Programs Act, such as allowing ad-ministrators to advance on any type of commodity in specific regions designat-ed by the Minister and allowing produc-ers to enter into multi-year repayment agreements with a single administrator.

GGC lobbied Members of Parliament to support the legislation and to increase the cash advance limit. Work on both is ongoing.

Transportation

The majority of our work on this file over the past year has focused on the rail transportation issue and several asso-ciated major events. There were sev-eral formal and informal opportunities for GGC to provide input into shaping the government’s legislative response to the crisis in the Western Canadian grain handling and transportation sys-

tem. This included lobbying of the Prime Minister and the Ministers of Ag-riculture and Transport, appearances before House of Commons and Senate committees, submissions to Transport Canada and the Canadian Grain Com-mission, several news releases on the issue and dozens of media interviews.

Research

GGC focused its work over the past year on UPOV’91 and the Plant Breed-ers Rights Act, monitoring the discus-sions on the government’s proposed variety registration changes, and the continuing evolution of the public re-sources and infrastructure devoted to agriculture research.

Farmer saved seed concept has been a key discussion point in the industry and is being interpreted in various ways. GGC supports UPOV’91 as adopted in Bill C-18, and will be following the dis-cussion throughout the cropping com-munity on the future of variety finishing in Canada.

Trade and Marketing

In addition to participating in trade mis-sions to Singapore, Korea and Japan, along with advocating in favour of the Canada-EU and Canada-Korea free trade deals, the Grain Growers focused on modernization of the Canadian Grain Commission (CGC). We made a formal submission to the CGC’s consultation on Delivery of Export Grain Inspection and Quality Assurance Deduction, sup-porting co-delivery of outward inspec-tion services as the introduction of com-petitive market forces should benefit producers in terms of bringing price discipline to outward inspection. With respect to the quality assurance de-duction, our view is that defaulting to a grower levy is not an option and that the CGC’s costs should be borne equally by all stakeholders who benefit from its services.

Sustainability and Sound Science

GGC’s Sustainability and Sound Science Committee is chaired by Alberta Pulse’s Allison Ammeter, and over the past year issues of focus have included pollinator health (submission to the Pest Manage-ment Regulatory Agency consultation and an appearance before a Senate committee hearing on neonics and bee health), Maximum Residue Limits (GGC is committed financially to Pulse Can-ada’s multi-commodity MRL Market Access Project), and the Grower Re-quested Own Use (GROU) program.

A busy year behind us will carry right over to the year ahead. Among oth-ers, rail transportation will continue to receive significant attention, including a submission to the review of the Cana-da Transportation Act, in which we will recommend that soybeans be added to the list of Schedule II crops. Work on Canadian Grain Commission modern-ization will be ongoing, as will work on bee health to counter growing political pressure to ban neonicotinoids. We will also continue to strengthen and expand our relationships in Ottawa, which is im-portant as the federal parties begin to gear-up for the next election in the fall of 2015.

If there are issues that you would like the Grain Growers of Canada to raise in Ottawa then please do not hesitate to contact your Alberta Pulse Growers rep-resentative to pass them along.

Once again, congratulations to Alberta Pulse Growers for 25 years, and thank you for your ongoing support of the GGC.

Bryan Rogers

Executive Director, Grain Growers of Canada

Message from Grain Growers of Canada

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Research Committee

The Alberta Pulse Growers Research committee is comprised of three com-missioners, two advisors, an Alberta Crop Industry Development Fund rep-resentative, a non-government indus-try member and a government rep-resentative. As a committee, it is our responsibility to instigate and evalu-ate pulse breeding and agronomic research projects that address key is-sues faced by producers across the province. It is at the recommendation of this committee that the provincial board makes decisions on research dollar in-vestments. There is an APG staff mem-ber dedicated to ensuring consistent quality of reporting, networking with the research community, and liaising with growers to ensure communication is maximized.

In the last year, the research commit-tee underwent a few changes. Casey Koomen, Bean Commissioner-at-Large, stepped down from his role as chair after two years, remaining on the com-mittee as a member. Robert Semeniuk, an advisor from Zone 5, joined the com-mittee in November 2013 filling the va-cant advisor position. Sunsetting off the committee was the industry representa-tive Kevin Zaychuk (20/20 Seed Labs), and Rob Dunn has retired from his posi-tion at Alberta Agriculture and Rural De-velopment. These two individuals have provided invaluable insight into project development, knowledge transfer and evaluation of research proposals and reports to ensure that the funding pro-vided by our organization is well uti-lized. We are grateful for the time they gave us and wish them well. We look forward to continued interaction, albeit in different capacities.

Currently, there are 20 agronomic re-search projects being funded by the Al-berta Pulse Growers in partnership with various other funding bodies. Variety development in peas, dry beans, len-tils, chickpeas and faba beans is a key focus of research investments with em-phasis on disease resistance, yield and standability. In the last year, significant efforts were made to further our under-standing and management options for control of Fusarium. This disease has

been shown to be a significant threat to the grower’s ability to utilize peas in a ro-tation. APG was actively involved in the development of this project, and we are excited to see this effort reduce grower risk and protect yield from this disease. Continued efforts are being made to fur-ther our understanding of root rot as re-sults allow us to explore the pathogens and potential ways to mitigate the risk from these diseases. A summary of all APG funded projects is printed in the Pulse Crop News summer edition.

Included in our research portfolio are a number of projects funded through the federal government’s cluster program-ming. Alberta, Saskatchewan, Manitoba and Ontario pulse groups jointly set in-dustry priorities and projects are funded accordingly based on merit. Agreements for this funding have now been signed and work is commencing. Along with being a funding partner, Alberta has an additional role on the Scientific Advi-sory Body to evaluate progress, outcomes and deliverables of the program. Re-search Officer Jenn Walker participates on this committee as the Chair.

The Alberta Pulse Growers prioritized ensuring that as an organization we are aware and connected with research on a global scale. Walker attended the in-augural PAB Australia pulse conference held in Adelaide, Australia in October 2013, and was able to develop valu-able connections and gain insight into several of the production constraints as well as the research challenges and op-portunities.

As always, the research committee strives to set priorities and fund projects that will have a tangible benefit to the pulse industry in Alberta. Challenges are abundant but the opportunities are greater still.

Robert Weisgerber

Chair

Various pulse varieties in the Regional Variety Trial program.

Fusarium root rot symptoms on pea seedlings.

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Regional Variety Trials

This year was busy for APG and for the Extension Committee. The Regional Variety Trials went ahead again with renewed federal support to match APG funding. These independent trials evaluate pulse variety characteristics (yield, days to maturity, height, etc.) across multiple sites in Alberta and are conducted by third-party researchers, such as Alberta Agriculture and applied research organizations. Soybeans and faba beans were part of the trials again, along with peas, lentils, dry beans and chickpeas. Funded soybean sites included Bow Island (irrigated), Brooks (irrigated), Medicine Hat, Lethbridge (irrigated), Oyen, Barrhead, Vegreville and Falher. Funded faba bean sites included Lethbridge, Brooks, Oyen, Forestburg, St. Paul, Vegreville, Barrhead, Lacombe, St. Albert and Falher. Look for the detailed 2014 results in the winter edition of Pulse Crop News, on Alberta Agriculture’s website and in the Alberta Seed Guide. Thank you to all of the partners who worked on these trials.

Provincial Extension Activities

APG supported the extension programs of the active applied research groups for pulse-related components, and a couple of specific field demonstrations. Farming Smarter, Chinook Applied Research, Battle River Research Group, Lakeland Applied Research Association, Gateway Research Organization, Smoky Applied Research Association, North Peace Applied Research Association and Mackenzie Applied Research Association are the active groups in Alberta that received funding.

They play an integral part of extension of pulse crop information to growers, and APG values the work they do through Regional Variety Trials or other pulse-related activities. See the Zone Reports for details on each group specific to the zone in which they are located.

Student Award

The Alberta Pulse Growers Stu-dent Award was presented to five University of Alberta Crop Science students who created the Alberta Faba Bean Producer Manual 1.0. Lindsey Douglas, Diana Laviolette-Brown, Xinyi Ma, Becky Shapka and Zhiyu Yu compiled the manual because they saw a gap in information on faba bean production in Alberta.

The manual cites numerous sources, in-cluding input from Alberta producers, APG, Alberta Agriculture, Grains Research and Development Corporation, Govern-ment of Saskatchewan, Ontario Ministry of Agriculture, Manitoba Agriculture, and more. Check the APG website section on faba bean production to find the manual www.pulse.ab.ca/producers.

Tradeshows

During the winter, Alberta Pulse Growers was represented at four key producer tradeshows around Alberta, including Agri-Trade (Red Deer), FarmTech (Ed-monton), Peace Country Classic (Grande Prairie) and Ag-Expo (Lethbridge). Trade-shows are a great way to engage new or experienced pulse producers and let them know how APG is working for them. For the first year, APG, Alberta Canola Producers, Alberta Barley and Alberta Wheat hosted the All Crops Breakfast

during Agri-Trade as an appre-ciation event for growers. We were excited to be joined by fed-eral Agriculture Minister Gerry Ritz who deliv-ered remarks on current and up-coming oppor-tunities for crop producers dur-ing the breakfast.We would like

to thank outgoing committee mem-bers Linda Schmidt and Gordon Tuck for their contributions to the commit-tee. Also, thanks to current Extension Committee members Sarah Weigum, Joerg Klempnauer, Justin Nanninga, Wendel Befus, Shawn Inge, Robyne Bowness, Randy Saskiw, Jack Payne and JP Pettyjohn for your involvement.

Doug SellChair

Extension Committee

Soybean trials, Barrhead.

Farming Smarter Field School, Lethbridge.

Faba Beans, Vegreville.

13

Sustainability Report

Commissioners Reflect on their First Pulse Crops

Alberta Pulse Growers is actively ad-dressing sustainability issues through participation in the Agri-Environmental Partnership of Alberta (AEPA) and the Crop Sector Working Group (CSWG). It is through the AEPA that the pulse industry participates with all sectors of the agriculture industry - including cropping, livestock, non-government organizations, municipalities and gov-ernments - to discuss key environmen-tal issues that impact our industry. Both Alberta Agriculture and Rural Develop-ment (ARD) and Environment and Sus-tainable Resource Development (ESRD) ministries participate. ARD provides a co-chair alongside industry in the AEPA.

This past year, discussion has focused on the Land Use Framework with the announcement of the North Saskatch-ewan Regional Plan consultations and

the approval of the South Saskatch-ewan Regional Plan. AEPA members provided input to the consultations. This year, AEPA’s Water Advisory Team led a successful tour of the irrigation system in Southern Alberta. This complex sys-tem provides water to many growers in APG’s Zone 1, and Alberta’s dry bean production depends on the delivery of water through the system. In addition, the AEPA has also begun discussions regarding Social License and how it af-fects the environmental aspects of the agriculture industry. The AEPA met six times last year.

The CSWG has worked in the back-ground on various projects contributing to the discussion at the AEPA. Sharon McKinnon, Policy and Program Coor-dinator, led the CSWG on behalf of the cropping sector. This year, the CSWG

focused on the work of the Bow River Phosphorous Management Plan, the Alberta Water Council, and monitoring pollinator health. Work continues re-garding feedback on recycling of grain bags. The CSWG met twice last year.

Neil Boyd, APG Commissioner from Zone 4, retired from the board in Janu-ary 2014. He provided a strong envi-ronmental voice for pulse growers in his work with the AEPA and CSWG dur-ing his time as an APG board member. Sarah Weigum, Non-Bean Commission-er-at-Large, has taken over from Boyd and is APG’s new representative at both AEPA and CSWG. Member Relations Coordinator Sydney Vos and Executive Director Leanne Fischbuch also partici-pate with AEPA and CSWG.

“Michael’s father had hogs and crops in the 1970’s, and mid-decade soy meal prices spiked to a point where he de-cided to try planting some peas for hog feed. He inter-cropped them with oats on a small field. This was not an experi-ment that was repeated, as it took all day to swath and combine 10 acres- lots of green straw and ‘beaver huts’. Keep in mind this is before desiccation and crop lifters were available.

Michael next planted peas (Radleys) in 1990, and they have been part of our rotation most years since. Our difficul-ties have been harvesting, but we have learned how to use land rolling, desic-cation, crop lifters, and straight combin-ing to mitigate these issues.

We first tried fabas in 2013. We have ex-perienced hail, excessive spring mois-ture, and early frost, and we are still learning.”

Allison Ammeter, Vice-PresidentZone 2, Sylvan Lake

“My first pulse crop was Pinto beans in 1988. We traded or rented equipment from the neighbours then we bought our own equipment the next year. The crop provided a good return. The way the pooling system worked for the Alberta Wheat Pool Bean Plant we didn’t have to worry about marketing.

We realized after the first year of grow-ing beans that it was a good fit (rotation) for our sugar beets. For the next 20+ years we would grow dry beans, wheat, sug-ar beets, and wheat, which worked well for the re-quired four-year rotation for our sugar beets.”

Jack Van Tryp, APG Commissioner Zone 1, Burdett

“My first pulse crop was dry Pinto beans. I think it was 1986 and I was still just renting some land. The 1988 bean crop helped us buy our home-place in the spring of 1989. First impression, and still goes today: ‘high risk and possibly high return crop.’ Great for anyone who likes a challenge!”

Casey Koomen, Commissioner-at-Large (Bean)

Taber

14

Zone 1 Zone 1 supported the Farming Smarter Southern Alberta Extension Program this year, including a conference in Decem-ber and several crop walks. The Field School in June featured night spray-ing trials, soybean demonstrations and faba bean demonstrations. It was at-tended by approximately 300 people. In August, Manjula Bandara, Alberta Agriculture Research Scientist, hosted

a Special Crops Tour at CDC Brooks which included variety trials (some irri-gated) of mung beans, soybeans, faba beans, chickpeas, lentils, peas and dry beans. Pulse Regional Variety Trials were located near Brooks, Lethbridge, Bow Is-land and Medicine Hat this year. Results will be available in the winter 2014 Pulse Crop News. APG completed a manda-tory regulatory review this past year. As of the beginning of the next fiscal year Zone 1 no longer includes the counties of Wheatland, Vulcan or Foothills due to regulatory changes in an effort to better align zones with other commission re-gional boundaries.

Zone 2

As noted in the Zone 1 comments re-garding the regulatory review, this zone now includes producers from Wheat-land, Vulcan and Foothills counties which

were previously part of Zone 1. Zone 2 hosted a faba bean meeting on April 1 in Lacombe to address increased acres, contracting and agronomics. It had ap-proximately 70 attend-ees. Zone 2 supported the Chinook Applied Research Association (CARA) extension pro-gram this year, which included a fungicide efficacy project, pulse diagnostic demonstra-tion, and Field School hosted July 23 near Chinook. The diagnostic demonstration featured multiple pulse varieties, seeding rates, and fertilizer applications. Region-al Variety Trials in Zone 2 were located near Lacombe, Oyen and Consort this year. Root rot in peas was a ‘hot button’ issue, particularly around the Three Hills and Drumheller areas and some grow-ers experienced substantial losses. This prompted Zone 2 to host a great discus-sion in an infected field near Orkney Hall which had approximately 60 attendees. Researchers who are working on a four-year root rot project discussed the goals of the project, symptoms and incidence of root rot in Alberta at the meeting. More information on the project is available in the research report.

Zone 3 As noted in the Zone 1 comments re-garding the regulatory review, produc-ers located in the County of Wetaskiwin are now part of Zone 3 due to regula-tory changes. Zone 3 has remained ac-tive and interested in doing research in the zone. The Zone 3 board always welcomes new mem-bers, and is interested in the new ideas that new members bring. Supported research projects in the zone include a Red Lentil Variety Trial, a Foli-ar Fungicide Decision Making Trial and a Precision Seeding Peas trial. Thanks to Alberta Agriculture staff for doing re-search and for being avail-able at the many tours in the area to answer the questions producers have about pulse

crops. There were five tours in Zone 3 and a total of 150 participants were in-volved. There was also an evening in-dustry-led tour which was well attended by Alberta Agriculture staff and produc-ers, 100 participants were involved and lots of questions answered while stand-ing in the middle of a faba bean field. Zone 3 would also like to thank their summer student Kim Farion for her work this season. Farion has now decided to change her degree to Agriculture from Communications.

Zone 4

This zone includes growers from the MD of Opportunity and the MD of Lesser Slave River since the APG Marketing Plan Regulation was amended during 2013-14. The Smoky Applied Research and Demonstration Association (SAR-DA) held a Field School on July 8, 2014. The Field School was well attended with more than 60 registrants. Topics includ-ed canola fertility, research on standabil-ity and nutrient management on wheat,

Root rot discussion near Drumheller.

Chickpea trials at CDC Brooks Special Crops Tour.

Zone Reports

SARDA Field School.

15

barley and peas, seedling success, economics and marketing. SARDA also prepared a pre-seed herbicide applica-tion demo which included herbicide drift and residual injury. Mackenzie Applied Research Association and North Peace Applied Research Association also put on pulse demonstrations and featured them during their annual tours this sum-mer. Zone 4 participated in the Peace Country Classic Tradeshow in Grande Prairie and contributed to the Keg Riv-er School fundraising auction. Troels Hansen, Zone Vice-Chair, worked with Pioneer to test short season soybean varieties in the Peace. The Peace Coun-try Regional Variety Trials were located near Dawson Creek, Fort St. John, Big Lakes County, Northern Sunrise County, Manning and Fort Vermilion.

Zone 5

Pulse growers lo-cated in the coun-ties of Stettler and Paintearth are now part of Zone 5 due to regula-tory changes. The zone sup-ported crop tours hosted by the Lakeland Applied Research As-sociation. These included the Di-agnostic School held on July 9 in Fort Kent which showcased pulse trials (soybeans, lentils) and seedling suc-cess demonstrations with 20/20 Seed Labs. Other zone activities included supporting the Lakeland College Stu-dent-Managed Farm demonstration of faba beans, and the Brownfield 4-H Club, which started a soybean crop project this year. Michael Bury, Zone Vice-Chair, intercropped faba beans with his pea crop to determine if this would improve standability. Battle River Research Group hosted crops tours which included a faba bean fungicide demonstration and Regional Variety Tri-

als. Regional Variety Trials were located near Killam, Forestburg, Viking, St. Paul and Vegreville this year.

Thank you to all the zone directors and advisors for their input and contributions to the zone activities over the past year. Also thank you to Alberta Agriculture and applied research association staff involved with Regional Variety Trials and pulse crop demonstrations across the province.

Zone ReportsCont’d

Pea variety trials, Vegreville.

Troels Hansen’s soybeans.

16

Alberta Pulse Growers Marketing Com-mittee is comprised of three directors, two advisors from the zones, two indus-try and one government representative. The mandate of the committee is to pro-vide oversight to the food and nutrition activities of the organization, support marketing research including the inves-tigation of food and health related initia-tives, and to support activities that help increase processing opportunities. The committee met twice during 2013-14.

Through Marketing Committee review and recommendations, APG support-ed two new projects that look at prod-uct development and access to health claims and an investigation of improved gut health using pea seed coats. These two projects amounted to a $333,000 investment and will be completed by the University of Manitoba – Richard-son Centre in partnership with the Sas-katchewan Pulse Growers, and for the second project, the University of Alberta in partnership with the Western Grains Research Foundation.

Quality Food and Health (QFH) projects, funded two years ago in conjunction with Alberta Innovates Bio Solutions, are be-ing completed on time and with excel-lent information being generated. These projects address fibre supplementation in obesity and the metabolomics syn-drome, substantiating a health claim for pulses and cholesterol lowering, as well as looking at partial germination tech-nologies for pea flour improvement of taste and nutrition. All QFH projects are anticipated to be completed next year. APG has invested $460,000 in support of these efforts.

In conjunction with Saskatchewan Pulse Growers, and through Pulse Canada, APG is now engaged with the Chinese Cereals and Oilseeds Association to study the use of Canadian yellow pea flour in popular Chinese food products. Exciting research is underway with the expectation that the projects will be completed in late 2015. As part of the investment in these projects, Market-ing Committee members along with the funding partners from Saskatchewan will be traveling to China to meet the processors and researchers involved with the project in November 2014.

“We are excited to learn more about the research and build relationships with the Chinese food industry to pro-mote Canadian pulse ingredients,” said D’Arcy Hilgartner, Chair of the Market-ing Committee. “Farmers can learn a lot about where their product goes on these trips and it can provide perspec-tive to how important it is to continue to produce high quality food to feed the world.”

APG said goodbye to Wendy Benson, Registered Dietitian, in December 2013. She worked with the organization for more than five years in the role of Food and Nutrition Coordinator. The vacancy has not been filled as yet but the work continued with activities under this area picked up by other staff and by con-tracted assistance.

A key element to the Food and Nutrition work plan is Mission: IMPULSEIBLE – the student food project development competition. Registered Dietitian Debra McLennan led the successful 2014 edi-tion of Mission: IMPULSEIBLE for APG. Alongside her steering committee, she planned and hosted the provincial com-petition at NAIT in March. A team from the University of Alberta took first prize with a chickpea, black bean, pulse treat on a stick. The students also competed nationally in July and took home the top prize there as well. This competi-tion shows the creative abilities of the new generation of food professionals and also demonstrates the versatility of pulses as ingredients. Next year’s event is already being planned with the na-tional competition to be held in Calgary during the Canadian Special Crops As-sociation Conference in June.

The international pulse conference was held in South Africa this year. This annu-al event brings together the trade from across the globe to discuss issues and opportunities for the betterment of the pulse industry. Pulse Canada attends the event and APG sends a representa-tive each year. For 2013-14, APG sent Vice-President and Marketing Commit-tee Member Allison Ammeter to repre-sent the industry.

Among marketing discussions and out-looks, the most significant event during the conference was the announcement and discussion of the International Year of Pulses (IYOP) in 2016. The United Nations declared the International Year in December 2013 after significant work behind the scenes led by Pulse Canada and other national organizations in con-junction with CICILS IPTIC. Five key ar-eas are the focus: Market Access and Stability, Food Security, Creating Aware-ness, Productivity and Environmental Sustainability, as well as Health, Nutri-tion and Food Innovation. Ammeter ac-cepted the position of Chair of the IYOP Canada steering committee leading up to the celebratory year and will be sup-ported by APG staff to enable national celebrations to be championed.

Next year, the APG Marketing Com-mittee plans on investing in additional projects that look at addressing gaps in industry nutrition labelling, continuing to build on the evidence in support of functional and health claims for pulses, extending pulse information to health care providers and teachers and look-ing at new projects that support the goals and objectives of the organization relevant to our marketing objectives.

APG wishes to recognize the following members of the Marketing Committee for their work this past year: Harold Haugen (former Marketing Committee Chair), D’Arcy Hilgartner, Allison Ammeter, Richard Krikke, Ken Rewerts, Rodney Volk, Jay Han (ARD), Julianne Curran (Pulse Canada), Fraser Robertson, and staff members Jenn Walker and Leanne Fischbuch.

Marketing Committee Report

17

Communications Committee Report

The focus for the Communications Com-mittee in 2013-14 was on the discussion and development of plans to celebrate the Alberta Pulse Growers turning 25 in 2014, and leading up to the United Na-tions designated International Year of Pulses in 2016.

APG’s quarter century was marked by reflections on how the industry has changed for the better in Pulse Crop News, as well as the creation and pro-motion of the first annual Industry Inno-vator Award. Plans to make the most of the International Year of Pulses are still in the development stage.

APG’s Communications Committee had the benefit of being able to pro-mote APG utilizing several new tools that were developed the previous year, including the rebranding of APG and a new website.

APG’s new brand was nominated for a Canadian Agri-Marketing Association Award in 2013-14. That new image was extended during this past year to APG’s tradeshow displays, including eye-catching new banners tailored to each of the consumer and producer sides.

In 2013-14, the website was made even more useful to producers and other stakeholders with the addition of a Calendar of Events just in time for the busy crop walk season. Work continued through the year on other projects to complement the new website, and will be launched in the near future. APG also ramped up its engagement on Twit-ter over the last year.

During the year, APG became a part-ner in Taste Alberta, which represents a wide variety of organizations within the Alberta food industry that have come together to encourage consumer loyalty

to locally produced food. Taste Alberta uses communication, education and en-gagement to connect consumers with the facts about Alberta food and help them to explore the amazing range of products available right here at home.

The Communications Committee is comprised of Allison Ammeter (Zone 2 Commissioner), Chris Allam (Zone 3 Vice-Chair and Advisor), Sarah Weigum (Commissioner-at-Large, Non-Bean), Ex-ecutive Director Leanne Fischbuch and Communications Coordinator Rachel Peterson.

The APG Audit and Finance Committee is comprised of three commissioners and the APG President. The committee met five times during the year. Highlights of 2013-14 included the review of finan-cial statements, investments, budget, and APG financial policies. The commit-tee also made recommendations to the Board regarding the financial institutional review, which was completed in Novem-ber. The objectives of the committee in-clude significant financial oversight, en-gagement with the APG auditors, policy advice and recommendations, as well as providing detailed feedback to staff and the board regarding the financial health of the organization.

At the end of 2012-13, APG embarked on a review of financial institutions with the goal of seeking out the best invest-ment, service and banking options for the organization. Led by staff, five insti-tutions provided proposals for review and two proposals were forwarded to the Audit and Finance Committee for discus-

sion. The final decision was rendered by the provincial board and APG now has a new financial partner.

This process provided an opportunity to assess the market. APG’s investment policies are very conservative in nature and a goal was to seek out the best rates that could benefit pulse grower invest-ments over time. ATB is now the bank of choice for the organization. In addition, the zone bank accounts that APG over-sees will also benefit from the agreement with the provincial board.

Policy information relating to APG’s fi-nancial workings was also reviewed and brought up to current standards with the changes that have taken place within the organization.

APG wishes to thank the members of the Audit and Finance Committee for their oversight in 2013-14: Gordon Tuck, D’Arcy Hilgartner, Ryan Kubinec (Chair) and Richard Krikke.

Audit and Finance Report

18

2013 - 2014 Financial StatementsManagement’s Responsibility

Independent Auditors’ Report

To the Members of the Alberta Pulse Growers Commission:

We have audited the accompanying fi-nancial statements of the Alberta Pulse Growers Commission, which comprise the statement of financial position as at July 31, 2014, and the statements of revenue and expenditures, changes in members’ equity, cash flows and schedules 1 to 8 for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the prepa-ration and fair presentation of these finan-cial statements in accordance with Cana-dian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial state-ments that are free from material misstate-ment, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accor-dance with Canadian generally accepted auditing standards. Those standards re-quire that we comply with ethical require-ments and plan and perform the audit to obtain reasonable assurance about wheth-

er the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assess-ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess-ments, the auditor considers internal con-trol relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of account-ing estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Basis for Qualified OpinionThe Alberta Pulse Growers Commission derives the majority of its revenue from levies submitted on behalf of producers of pulse crops. The recognition of this rev-enue is initiated by the registered dealer

at the time of delivery and reported to the Commission. Since it is not possible for the Commission to ensure that all revenue is re-ported, the completeness of revenue is not susceptible to satisfactory audit verifica-tion. Accordingly, our verification of this rev-enue was limited to the amounts reported by registered dealers to the Commission and we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expendi-tures, assets or surplus.

Qualified Opinion

In our opinion, except for the possible ef-fects of the matter described in the ba-sis for qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Alberta Pulse Growers Commission as at July 31, 2014 and the results of its opera-tions, changes in members’ equity and its cash flows for the year then ended in ac-cordance with Canadian accounting stan-dards for not-for-profit organizations.

Leduc, Alberta

November 4, 2014

Chartered Accountants

To the Members of the Alberta Pulse Growers Commission:

Management is responsible for the prep-aration and presentation of the accom-panying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This respon-sibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measure-ment of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financial state-ments, management designs and main-tains the necessary accounting systems and related internal controls to provide

reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly main-tained to provide reliable information for the preparation of financial statements.

The Board of Directors and Audit Com-mittee are composed entirely of Directors who are neither management nor employ-ees of the Commission. The Board is re-sponsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the fi-nancial information included in the annual report. The Board fulfils these responsibili-ties by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors. The Committee is also responsible for recommending the ap-

pointment of the Commission’s external auditors.

MNP LLP is appointed by the members to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Committee and manage-ment to discuss their audit findings.

November 4, 2014

Executive Director

19

20

Alberta Pulse Growers CommissionStatement of Financial PositionAs at July 31, 2014

Head Office Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 2014 2013

Assets

Current

Cash 3,260,480 40,535 19,694 55,832 9,045 15,438 3,401,024 3,648,155

Guaranteedinvestmentcertificates 2,796,899 - 45,210 - 9,780 42,397 2,894,286 1,136,363

Accounts receivable 206,692 - - 35 - - 206,727 402,680

Prepaid expenditures 171,617 - - - - - 171,617 156,715

Total current assets 6,435,688 40,535 64,904 55,867 18,825 57,835 6,673,654 5,343,913

Capitalassets (Note 4) 51,195 7,875 - - - - 59,070 82,046

Total assets 6,486,883 48,410 64,904 55,867 18,825 57,835 6,732,724 5,425,959

Liabilities

Current

Accounts payableand accruals 84,463 800 - - 4,500 - 89,763 86,993

Research payable 391,398 - - 1,447 - 1,500 394,345 144,970

Deferred revenue(Note 5) - - - - - - - 80,038

Total liabilities 475,861 800 - 1,447 4,500 1,500 484,108 312,001

Commitments(Note 7)

Member’s Equity

Accumulated surplus 1,187,818 39,735 64,904 54,420 14,325 56,335 1,417,537 1,095,591

Equity in capital assets 51,195 7,875 - - - - 59,070 82,046

Reserves(Note 7) 4,772,009 - - - - - 4,772,009 3,936,321

6,011,022 47,610 64,904 54,420 14,325 56,335 6,248,616 5,113,958

6,486,883 48,410 64,904 55,867 18,825 57,835 6,732,724 5,425,959

Approved on behalf of the Board

Commissioner Commissioner

21

Alberta Pulse Growers CommissionStatement of Revenue and Expenditures

For the year ended July 31, 2014

2014 2013

Revenue

Communication and Extension – Schedule 1 37,099 60,572

Market Development – Schedule 2 5,525 18,765

Research – Schedule 3 31,697 20,638

Grant Projects – Schedule 6 789,914 543,404

Zones – Schedule 7 70,701 74,802

Administration – Schedule 8 3,871,773 3,800,593

Less: Zone revenue transferred from operations (Note 3) (31,500) (31,000)

Less: Transfer to deferred revenue – Schedule 6 - (80,038)

4,775,209 4,407,736

Committee expenditures

Communication and Extension – Schedule 1 204,405 178,002

Market Development– Schedule 2 1,114,121 728,517

Research – Schedule 3 719,994 377,811

Risk Management – Schedule 4 36,210 40,665

Sustainability and Trace – Schedule 5 2,975 16,515

Grant Projects – Schedule 6 785,885 463,366

Zones – Schedule 7 60,593 48,635

Administration – Schedule 8 716,368 716,022

3,640,551 2,569,533

Excess of revenue over expenditures 1,134,658 1,838,203

Alberta Pulse Growers CommissionStatement of Changes in Members’ Equity


Accumulated surplus Reserves

Equity in capital assets 2014 Totals 2013 Totals

Opening 1,095,591 3,936,321 82,046 5,113,958 3,275,755

Excess of revenue over expenditures 1,134,658 - - 1,134,658 1,838,203

Amortization 27,956 - (27,956) - -

Additions to capital assets (4,980) - 4,980 - -

Transfer to reserve (835,688) 835,688 - - -

Ending 1,417,537 4,772,009 59,070 6,248,616 5,113,958

22

Alberta Pulse Growers CommissionStatement of Cash FlowsFor the year ended July 31, 2014

2014 2013

Cash provided by (used for) the following activities

Operating activities

Cash receipts 4,995,304 4,442,015

Cash paid to suppliers (3,113,815) (2,271,827)

Cash paid to employees (400,296) (394,799)

Interest paid (1,351) (856)

Interest received 31,430 37,474

1,511,272 1,765,007

Investing activities

Proceeds on disposal (purchase) of guaranteed investment certificates (1,757,923) 417,498

Additions to capital assets (4,980) (66,162)

Proceeds on disposal of capital assets 4,500 -

(1,758,403) 351,336

Increase (decrease) in cash resources (247,131) 2,116,343

Cash resources, beginning of year 3,648,155 1,484,812

Cash resources, end of year 3,401,024 3,648,155

23

1. Incorporation and purpose of the organization

The Alberta Pulse Growers Commission (the “Commission”) is an incorporated not-for-profit organization, exempt for income tax purposes, established through the Alberta Marketing of Agricultural Products Act. The Commission’s purpose is to pro-mote marketing and research of pulse crops in Alberta. The Commission is comprised of five zones and the head office.

2. Significant accounting policies

The financial statements have been prepared in accordance with the Canadian accounting standards for not-for-profit orga-nizations and include the following significant accounting policies:

Capital assets

Capital assets are recorded at cost. Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimated useful lives. The Commission’s capitalization policy is for items costing $1,500 and above.

RateAutomotive and farm equipment 5 or 10 yearsComputer equipment 2 or 5 yearsOffice equipment 5 yearsLeasehold improvements 4 yearsTrade show booth 5 years

Long-lived assets

Long-lived assets consist of capital assets with finite useful lives. Long-lived assets held for use are measured and amortized as described in the applicable accounting policies.

The Commission performs impairment testing on long-lived assets held for use whenever events or changes in circumstanc-es indicate that the carrying value of an asset, or group of assets, may not be recoverable. Impairment losses are recognized when undiscounted future cash flows from its use and disposal are less than the assets’ carrying amount. Impairment is measured as the amount by which the assets’ carrying value exceeds its fair value. Any impairment is included in revenue and expenditures for the year.

Financial instruments

At initial recognition the Commission may irrevocably elect to subsequently measure any financial instruments at fair value. The Commission has not made such an election and consequently all financial instruments, unless otherwise disclosed, are subsequently measured at amortized cost.

Revenue recognition

The Commission uses the deferral method of accounting for contributions. Externally restricted contributions and grants are recognized as revenue in the year in which the related expenditures are incurred and appropriate reporting has been submit-ted. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.

Service fee revenue is recognized monthly as the commission is earned.

Contributed services

Volunteers contribute significant hours per year to assist the Commission in carrying out its service delivery activities. Be-cause of the difficulty in determining their fair value, contributed services are not recognized in the financial statements.

Alberta Pulse Growers CommissionNotes to the Financial Statements


24

2. Significant accounting policies (Continued from previous page)

Use of estimates

The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and dis-closure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures during the reporting period. Actual results may vary from current estimates.

Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated useful lives of capital assets.

These estimates and assumptions are reviewed periodically and, as adjustments become necessary they are reported in excess of revenue and expenditures in the periods in which they become known.

3. Zone revenue transferred from operations

A portion of zone revenue consists of amounts transferred from operations. These amounts are reported as revenue in the zones with an offsetting deduction from revenue in operations.

4. Capital assets

Cost Accumulated amortization

2014 Net book

value

2013 Net book

value

Automotive and farm equipment 55,255 47,380 7,875 15,776

Computer equipment 90,024 47,909 42,115 55,369

Office equipment 19,921 14,741 5,180 4,088

Leasehold improvements 10,829 6,929 3,900 6,813

Trade show booth 13,830 13,830 - -

189,859 130,789 59,070 82,046

5. Deferred revenue

2014Opening Revenue

receivedRecognizedas revenue

Contributionsrepaid

Closing

Grant projects:

CAAP - Improved field pea production 8,540 1,974 (10,514) -

CAAP - Pea ingredient supply capacity 38,214 - (38,214) -

CAAP - Prevention of abiotic stress 33,284 675,598 (708,882) -

Total 80,038 677,572 (719,396) (38,214) -

Deferred revenue includes grants and other amounts received for various programs and research projects, less the related expenditures. Under the terms of the grants, the Commission is required to either spend the funds on approved activities or return them to the appropriate funding body.

Alberta Pulse Growers CommissionNotes to the Financial StatementsFor the year ended July 31, 2014

25

6. Commitments

The Commission has signed research grant agreement and marketing project agreements committing to the following pay-ments over the next four years:

2015 2016 2017 2018 2019 Total

Research 537,567 552,658 332,157 226,768 20,000 1,669,150

Marketing 291,778 61,081 - - - 352,859

829,345 613,739 332,157 226,768 20,000 2,022,009

Pulse CanadaCore funding 750,000 750,000 750,000 - - 2,250,000

Total 1,579,345 1,363,739 1,082,157 226,768 20,000 4,272,009

The Commission has entered into a lease agreement for the office space with minimum lease payments, including common costs, of $3,297 per month ($39,564 per year) to November 2014 and then $3,310 per month ($39,720 per year) to Novem-ber 2015.

7. Reserves

The Commission has appropriated $2,022,009 (2013 - $549,353) from accumulated surplus to sponsor future research proj-ects and $2,750,000 (2013 - $3,386,968) from accumulated surplus for future support for Pulse Canada and operations.

8. Financial instruments

The Commission, as part of its operations, carries a number of financial instruments. It is management’s opinion that the Commission is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments except as otherwise disclosed.

Credit concentration

Accounts receivable from three customers (2013 - two customers) in connection with pulse crop service fees represents 44% (2013 - 31%) of total accounts receivable as at July 31, 2014. The Commission believes that there is minimal risk associated with the collection of these amounts. The balance of accounts receivable is widely distributed among the remainder of the Commission’s large customer base. The Commission performs regular credit assessments of its customers and provides allowances for potentially uncollectible accounts receivable.

9. Contingencies

These financial statements are subject to review by the Commission’s funding agents. It is possible that adjustments could be made based on the results of their reviews.

Alberta Pulse Growers CommissionNotes to the Financial Statements


26

Alberta Pulse Growers CommissionSchedule 1 - Communication and Extension Revenue and ExpendituresFor the year ended July 31, 2014

2014 2013

Revenue

Pulse Crop News 37,099 39,272

Project funding - 21,300

37,099 60,572

Expenditures

Projects 85,774 55,562

Pulse Crop News - postage and printing 67,870 75,678

Travel and administration 23,702 20,350

Marketing channels 10,303 8,547

Sponsorships 9,809 7,669

Trade fair and extension initiative 6,947 10,196

204,405 178,002

Net expenditures (167,306) (117,430)

Alberta Pulse Growers CommissionSchedule 2 - Market Development Revenue and ExpendituresFor the year ended July 31, 2014

2014 2013

Revenue

Provincial government revenue 5,000 11,065

Feed Pea Benchmark 525 7,700

5,525 18,765

Expenditures

Pulse Canada 762,942 434,334

Marketing project funding 204,853 133,000

Food and nutrition initiatives 63,004 101,774

Administration and travel 23,060 30,917

Mission ImPULSEible 22,320 13,833

CSCA membership and convention 11,323 5,210

Promotion 11,021 2,344

International travel 10,712 6,962

CAAP project expenditures 4,886 143

1,114,121 728,517

Net expenditures (1,108,596) (709,752)

27

Alberta Pulse Growers CommissionSchedule 3 - Research Revenue and Expenditures


2014 2013

Revenue

Zone research contribution 25,947 20,638

Decommitted research funding 5,750 -

31,697 20,638

Expenditures

Research project funding 654,406 324,592

CAAP project expenditures 44,086 30,659


Prairie Pest Minor Use Consortium membership 5,643 5,250

CPRW Sponsorship - 2,185

Sponsorships - 1,100

719,994 377,811


Alberta Pulse Growers CommissionSchedule 4 - Risk Management Revenue and Expenditures


2014 2013

Expenditures

Memberships 25,000 25,000



Alberta Pulse Growers CommissionSchedule 5 - Sustainability and Trace Revenue and Expenditures


2014 2013

Expenditures


Projects - 15,333


28

Alberta Pulse Growers CommissionSchedule 6 - Grant Projects Revenue and ExpendituresFor the year ended July 31, 2014

2014 2013

Revenue

Canadian Agriculture Adaptation Program (CAAP) 704,004 409,941

APG CAAP Contributions 48,972 30,802

APG research contributions - 20,218

APG administered research funding - 6,387

Excess CAAP - (80,038)

Excess CAAP contributions repaid (43,100) -

Deferred revenue - prior year excess CAAP 80,038 66,940

Deferred revenue - prior year excess APG - 9,116

789,914 463,366

Expenditures

CAAP - Prevention of abiotic stress 750,598 256,591

CAAP - Plant growth regulators (Chickpea) 15,000 26,515

CAAP - Evaluating the competitive ability of semi-leafless pea cultivars 13,311 107,132

CAAP - Improved field pea production 6,976 -

CAAP - Opportunities for public-private investment in plant breeding for Western

Canadian pulse growers - 36,108

APG administered research funding - 35,721

CAAP - Pea ingredient supply capacity - 1,299

785,885 463,366

Net revenue 4,029 -

29

Alberta Pulse Growers CommissionSchedule 7 – Zones Revenue and Expenditures


Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 2014 2013

RevenueAllocation from operations (Note 3) 7,500 5,500 7,500 5,500 5,500 31,500 31,000Projects 19,636 - - - - 19,636 32,297Annual general meeting 2,300 3,250 250 250 1,293 7,343 7,950Decommitted project funding - - - - 5,860 5,860 -Gain on disposal of assets - 4,500 - - - 4,500 -Interest 4 884 - 104 870 1,862 2,385Equipment sales - - - - - - 1,170

29,440 14,134 7,750 5,854 13,523 70,701 74,802Expenditures

Projects 3,500 15,432 1,447 10,000 4,000 34,379 25,043Amortization 7,900 - - - - 7,900 8,300Zone annual meeting 3,439 956 215 562 1,043 6,215 7,076Office and postage 3,809 - 21 - - 3,830 2,621Insurance 2,818 - 262 - - 3,080 3,131Repairs and maintenance 1,328 - - - - 1,328 -Tours and seminars 300 658 - - 334 1,292 331Travel and meetings 998 - 148 - - 1,146 956Promotional materials 600 - 230 - - 830 750Bank charges and interest - 89 48 125 81 343 427Bad debts - 250 - - - 250 -

Total expenditures 24,692 17,385 2,371 10,687 5,458 60,593 48,635

Net revenue (expenditures) 4,748 (3,251) 5,379 (4,833) 8,065 10,108 27,667

Alberta Pulse Growers CommissionSchedule 8 – Administration Revenues and Expenditures


2014 2013

RevenueService fees 3,966,604 3,891,950 Less: Services fees refunded (147,561) (128,831) Interest 52,730 37,474 Transfers to zones (31,500) (31,000)

3,840,273 3,769,593

Expenditures Salaries, wages and benefits 405,665 394,799Travel and meetings 99,980 99,789Annual general meeting and FarmTech 47,739 40,540Office lease and services 44,588 35,928Professional fees 27,481 31,146Amortization 20,055 15,399Office and supplies 19,661 28,899Professional development 17,113 -Zone administration and travel 8,074 8,065Telephone, fax and internet 7,558 7,349Bad debt 7,451 42,421Insurance 6,886 6,501Advertising 2,266 4,330Bank charges and interest 1,351 856Student awards 500 -

716,368 716,022

Net revenue 3,123,905 3,053,571

Former APG Presidents at 1995 Convention (L to R)

Frank Spanbauer, Craig Shaw, Lud Prudek, Renald Lamoureux, and Jerry Bartosek.

Current APG Board BACK ROW (L to R)

Fraser RobertsonZone 4Fairview

Casey KoomenCommissioner-at-LargeBeanTaber

Doug SellZone 2Strathmore

Richard KrikkePresident & Zone 3 Neerlandia

Robert WeisgerberZone 1 Schuler

Ryan KubinecZone 3 Westlock

FRONT ROW (L to R)

D’Arcy HilgartnerZone 5 Camrose

Sarah WeigumCommissioner-at-LargeNon-BeanThree Hills

Allison AmmeterVice President & Zone 2 Sylvan Lake

Don ShepertZone 5 St. Brides

Nick SekulicZone 4 Rycroft

Jack Van TrypZone 1 Burdett(missing)

of theAlberta Pulse

GrowersCommission

25 Years

30

Commissioners

Staff

Richard KrikkePresident

Zone 3 Commissioner

Allison AmmeterVice-President

Zone 2 Commissioner

Jack Van Tryp Third Executive Member Zone 1 Commissioner

Robert Weisgerber Zone 1 Commissioner

Doug Sell Zone 2 Commissioner

Ryan Kubinec Zone 3 Commissioner

Nick Sekulic Zone 4 Commissioner

Fraser Robertson Zone 4 Commissioner

D’Arcy Hilgartner Zone 5 Commissioner

Don Shepert Zone 5 Commissioner

Casey Koomen Commissioner-at-Large, Bean

Sarah Weigum Commissioner-at-Large, Non-Bean

Jenn Walker Research Officer

Sydney Vos Member Relations Coordinator

Rachel Peterson Communications Coordinator

Rhonda Lafreniere Office Manager

Jolene Watson Finance & Planning Assistant

Leanne Fischbuch Executive Director

www.pulse.ab.ca

5007B - 49th Avenue, Leduc, Alberta T9E 6M6

P: 780-986-9398 F: 780-980-2570

TF: 1-877-550-9398

ANNUAL REPORT - Alberta Pulse Growers · 2019. 7. 4. · ers become directors. APG celebrated 25...

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