1998/99 Strategic and Business Plan


	1998/99 Strategic and Business Plan Introduction The Ministry of Agriculture and Food has published several major strategic plans in the past, and develops ongoing branch and divisional business plans on an annual basis. These documents identify core business goals, clarify priorities and guide the overall direction of ministry operations. From time to time, our strategic plans require updating as the ministry responds to changes in the agri-food sector. The industry is currently facing profound changes, such as freer trade, increasing competition, higher costs and changing consumer demands The ministry is working with food producers, processors, retailers and distributors this year to develop an agri-food policy that will be the cornerstone of sustainable growth for the agri-food industry in British Columbia. The development of the agri-food policy will lead to changes in the ministry's strategic plan as it refines its strategic objectives, adjusts its priorities and improves the delivery of its services. In the interim, this plan provides an updated strategic outline for the 1998/99 business year, as the agri-food policy unfolds. The Evolution of Our Priorities The Ministry of Agriculture and Food has served British Columbia's agri-food sector for more than 100 years. During that time, the roles and mandate of the ministry have changed many times - evolving from keeping statistics in the early years to providing a range of services for the sector. More recently, as a result of the 1997/98 restructuring, the ministry consolidated its efforts and resources in order to focus on two key strategic objectives: industry development to support value-added initiatives, competitiveness, investment and job creation; and resource management to support management and stewardship programs to maintain and protect land and water resources for agriculture and food. These strategic objectives will continue to guide the ministry during this transition year. However, they will become more sharply focused to reflect the challenges and opportunities currently facing the agri-food industry, and the increased provincial emphasis on job creation, investment and economic development. Agri-Food Sector Challenges and Opportunities The agri-food sector in British Columbia is facing three fundamental changes: the continuing shift to a global economy; changing consumer preferences; and increased urban pressure. Each of these presents both opportunities and challenges. After World War II, there was an increase in protectionism, particularly for food production. This protectionism affected some commodities more than others. Some commodities operated for several decades in a closed economy, while others operated in a freer trade environment. Recent trade agreements have removed or reduced many of the trade barriers, leading to new opportunities for export, but also to increased competition for domestic markets. Consumer choices have changed considerably in British Columbia and the rest of Canada as a result of an aging population, greater ethnic diversity, and shifting lifestyle and health preferences. Consumers are demanding a wider diversity of food products, different packaging sizes, and improved information about production practices and product composition. All resource sectors are facing public pressure for greater environmental and social accountability, including the agri-food sector. That pressure has already resulted in changes in farm and food processing practices, and in regulatory requirements. New regulatory requirements impose additional costs on industry, and absorb management time when the industry is already challenged by major economic changes. However, some of these public concerns provide opportunities for unique market niches such as organic and Integrated Pest Management (IPM) food products and for diversification into agri-forestry and agri-tourism. Towards an Industry Strategy In order for the agri-food industry to move forward in the next century, it must develop a strategy. The actions of numerous commodity sectors and agri-food managers and industry input provided into the agri-food policy suggest three main strategic directions for industry growth and development: building on the natural resource strengths (land, water and climate); building consumer and customer loyalty through product quality; and using business and competitive strengths in the province. British Columbia has a high-quality, natural resource base, from which we produce a wide range of high-quality commodities. Although much of our economy springs from our natural resources, a significant portion of this resource is not being used to its full potential - or is not being used for agricultural production. Several factors are limiting improved productivity, including urban pressures, local government bylaws, rural estates, wildlife damage, public land and water allocation processes, and speculative ownership. British Columbia is also a relatively high-cost production environment. BC's agri-food sector, which is relatively small by international standards, needs to focus on its competitive strengths, market location, and natural resource advantage to improve productivity, expand the sector and ultimately succeed in an increasingly global economy. Ministry Planning Activities: Strategic Plan Due to changes in government over the last several years, the Ministry of Agriculture and Food has re-evaluated its mandate. During the 1997/98 restructuring, the ministry transferred some services to industry, and consolidated its efforts around industry development and resource management. Although the development of an agri-food policy will lead to new initiatives, it is not expected to change the ministry's strategic objectives. The primary outcome of the objectives has already shifted to job retention, job creation and industry investment. These are expected to be the key outcomes for the next several years. The two strategic objectives largely complement the key strategies seen for industry success in the future. The broad direction for each of these strategic objectives is discussed below. Industry Development The British Columbia agri-food sector currently provides less than half of the food consumed in the province. Furthermore, approximately 20 per cent of our farm production and about 25 per cent of our processed products are sold in other provinces or countries. Given our relatively high costs, and the relatively small scale of our farms and food processors, our industry needs innovative strategies in order to remain profitable and grow. BC has a small food processing and value-added sector. In recent years, some food processing firms have relocated operations to other regions because of corporate strategies to consolidate operations to achieve economies of scale and to take advantage of cost advantages. The food distribution sector has also consolidated operations and is accessing products worldwide in large quantities. This poses special challenges for British Columbia, particularly for agriculture in regions outside the Lower Mainland and for commodities produced in smaller quantities. Industry development strategies will vary by sector, ranging from developing new products and processes to targeting new markets. With increasing differentiation of consumer markets and heightened concerns about food quality and safety, quality assurance will be integral to retaining consumer and customer loyalty. Ministry activities will focus on improving industry competitiveness by: creating a positive business climate for investment, by assisting with regulatory and taxation issues which the industry cannot readily manage itself. supplementing private risk management options with government-based programs that reduce major fluctuations in income and assist with major adjustment. supporting high quality products through maintenance of animal and plant health laboratory and regulatory systems, support for on-farm quality control, promotion, and development of a regulatory framework that allows the industry to target specific markets such as organic, Integrated Pest Management and other quality attributes. reinforcing consumer and customer loyalty through promotion of BC products (Buy BC). assisting industry in improving competitiveness and profitability by facilitating industry-led efforts to identify opportunities and constraints, and to deal with factors such as training and skills development, market development, technology, and access to capital which are priorities within the industry strategic plans. The focus will be twofold: helping industry to become more self-reliant in accessing and/or developing the infrastructure to improve these factors; and helping industry develop new products, new markets, and new processes that will maintain and enhance consumer and customer loyalty. encouraging high value and value-added production and processing, and innovative marketing (including direct marketing) to strengthen opportunities throughout the food chain. The strategic objectives and supporting activities provide the direction for ministry operations. The Ministry of Agriculture and Food has established programs that are consistent with this direction, such as the Right to Farm Program, which was introduced to gain local government support for a wider range of agricultural enterprises and to remove constraints that limit agricultural productivity on farms. The ministry also offers animal and plant health programs that continue to provide disease monitoring and support for on-farm livestock and crop quality assurance. In 1998/99, some ministry programs will shift in focus, as new programs and initiatives are developed to achieve broader objectives. For example, the Whole Farm Insurance Program is being piloted to develop better mechanisms to deal with major drops in farm income due to weather-related and other causes. The Roberts Bank initiative is aimed at returning some publicly-held land back to private ownership and to encourage increased productivity. *Resource Management* While only five per cent of British Columbia's land base is suitable for agriculture - and most of this is protected by the Agricultural Land Reserve (ALR) - much of it is not currently in agricultural production, or is not being used to its full agricultural potential. In fact, less than half of the ALR is in agricultural use, and more than half of that is underutilized. This is the result of a variety of factors including intense competition for land for other uses including rural estates, rural/urban conflicts, restrictive municipal by-laws, forestry, access to water and infrastructure for water (both irrigation and drainage), and aboriginal land claims. Under the resource management objective, the ministry will direct its efforts and resources to creating opportunities and removing constraints that will enable an expansion of agriculture within the ALR, and an increase in productivity of land that is farmed. Key activities will include: resource planning - to ensure that agriculture is well represented in land use and water allocation decision making, and that options for agriculture are not constrained unduly. resource-use regulation - to influence local and provincial regulations so that they encourage a full range of agricultural and agri-food uses. resource management - to encourage improved Crown land allocation and management decisions, enabling expansion and sustainable intensification of agriculture. taxation policy development - to ensure that the taxation system encourages the productive use of agricultural land. Business Plan Priorities This section reviews the progress of the ministry's 1997/98 priorities and features the 1998/99 priorities and supporting core business. Review of Progress on 1997/98 Priorities Resolution of Roberts Bank back-up lands - Most of the Crown-held back-up lands around Roberts Bank will be sold or given long-term leases, following an agreement with the Tsawwassen First Nation, which allows the sale to proceed without undermining future treaty discussions. Municipal zoning in Delta - Delta is developing new bylaws to support agriculture development in that municipality; the ministry is working with Delta to resolve issues around further development of the greenhouse sector; it is expected that the new bylaws will be completed in 1999. Boiler regulations - The ministry is working with the greenhouse industry and regulatory officials to develop boiler regulations that will accommodate the specialized equipment which is required in this industry; the regulations will ensure safe operation of boilers used to heat greenhouses. Farmland taxation - An information base on several options has been developed; consultations with farm groups and local government are required. Refocus Buy BC - Delayed due to multi-year commitments; awaiting development of agri-food policy. Value-added strategy - Initial study completed. Other achievements include: Langley bylaw review process was initiated, and several bylaws were re-profiled to reduce restrictions on agriculture. The draft provincial standards to guide local bylaw development were completed. A review of land-use issues affecting the cattle industry was completed. The pilot Whole Farm Insurance Program was established to deal with wet weather in the Peace River region and the Lower Coast, and with hail damage in the Okanagan. The Sterile Release Program was enhanced. The ministry's application was approved for federal funding of road infrastructure for handling grain, and for extension of the Peace River agreement with Alberta (jointly with the BC Ministries of Transportation and Highways, and Employment and Investment). Animal health laboratory equipment was upgraded. The ministry completed its program restructuring and its local area computer network. Farm fuel taxes were removed. Priorities and Supporting Core Business for 1998/99 *Agriculture Division* 1. Implement improvements to risk management programs: increase uptake through enhanced marketing of crop insurance and NISA; implement changes to the crop insurance program based on program review; and streamline administrative process and put in place evaluation framework for Whole Farm Insurance Program. 2. Create a positive business climate for industry investment and development: resolve environmental issues to industry satisfaction through implementation of 10 Point Action Plan; and support other regulatory improvements (e.g., employment standards MOU, streamlining of licensing, etc.). 3. Remove resource constraints to industry expansion and intensification: extend local planning provisions of Municipal Act to additional local governments; negotiate changes to local bylaws that restrict intensive operations for mushroom and greenhouse operations; and develop guidelines for on-farm processing and direct marketing through agri-food policy process. 4. Focus industry sectoral and regional development efforts on key opportunities and constraints: strengthen commodity strategies through industry consultation and analysis; identify key opportunities and constraints and facilitate implementation of priorities; complete Vancouver Island strategy and work on key opportunities and constraints; and improve management of financial resources, both internal and external, for industry development. 5. Support high quality production and products through animal and plant health programs: maintain strong animal/plant health diagnostic and monitoring services; encourage public agencies, local governments, and farmers to conduct adequate weed control programs; maintain necessary mandatory inspection services at critical control points to ensure food safety and support voluntary industry quality assurance programs; and support initiatives such as animal care guidelines, Integrated Pest Management, SIR, and organics, to help industry capture consumers that make specialized food choices. Food Industry Branch 1. Lead the agri-food policy consultation process: plan and oversee regional and provincial workshops; and consolidate information from the workshops. 2. Identify and act on key food processing sector opportunities and constraints: finalize studies on comparative competitiveness and value-added opportunities; coordinate responses for businesses experiencing difficulties; identify incentives for improved vertical relationships throughout the food chain; and improve industry access to business information through piloting of an agri-food business information centre. 3. Support development of emerging industries: identify and work on opportunities and constraints in agri-forestry, organics and other emerging sectors. 4. Market development: strengthen and target Buy BC; and encourage shift to industry-led quality standards and voluntary labeling targeted to capture consumer and customer support. Policy and Legislation Services 1. Lead federal-provincial negotiations: negotiate transitional and long-term safety net agreements - gain a larger share of federal funding; negotiate a new federal-provincial agriculture chapter and an investment code of conduct as part of the Internal Trade Agreement; influence the development of the national position for the next round of World Trade Organization negotiations; and provide analysis and support for resolution of trade barriers and disputes. 2. Support and coordinate major ministry policy initiatives: develop policies to guide performance of regulated marketing systems; support review of "provincial interest" definition regarding the ALR and process for implementation; and provide policy and statistical support to other priorities. 3. Lead and coordinate aboriginal and resource planning initiatives: develop information base and undertake analysis to support stronger resource planning efforts by the ministry and the agriculture industry; gain inter-agency support for access to land and water for agriculture, and for increased multiple resource use, in order to increase opportunities for expansion and intensification of the sector; develop information base, carry out analysis, and coordinate ministry role in aboriginal negotiations; and support negotiation of interim agreement for Roberts Bank back-up lands and subsequent plan for sale and long-term lease, in order to increase the agricultural productivity of these lands. 4. Lead on inter-ministry legislative and regulatory initiatives: coordinate development of new food safety and food quality legislation for the province to support public safety and enhance market development opportunities for the agri-food sector; address farm worker and other labour issues, through a joint agreement with the Ministry of Labour and the BC Horticulture Coalition and a secondment to the Agriculture Workforce Policy Board; and undertake selective consultations and supporting analysis on tax issues that limit productivity of agriculture and investment in the agri-food sector. 5. Improve program evaluation and performance measures by the ministry: support comprehensive program evaluation within the ministry; and finalize performance standards for the performance measures identified by the ministry at the corporate level, and support development of performance measures and standards at the program level. Conclusion These plans provide the overall direction to the ministry during the 1998/99 fiscal year. The success of these plans will be assessed against several key outcomes, including the agri-food policy and the government-wide progress in creating jobs and stimulating investment. Other outcomes will be defined for the two strategic objectives - industry development and resource management - based on proposed measures submitted to Treasury Board. Performance measures and standards will be also be developed for 1998/99 at the program level, both for final outcomes as well as for intermediate outcomes (measures of our contribution to the industry outcomes). In 1998/99, these will be focused on two program areas, crop insurance and one other program. We have an opportunity to contribute to strengthening the agri-food sector in this province, and simultaneously to the achievement of provincial objectives: job creation and industry development. If we are successful, we will also build more public awareness and appreciation for the sector as a major contributor to the economy and an industry which offers family-supporting, sustainable, regionally-based jobs. For More Information We invite your enquiries and comments. For more information on the Ministry of Agriculture and Food's programs and activities, please contact your nearest regional office, or visit us on the Internet. Ministry of Agriculture and Food North Central Region Headquarters RR #8, RMD #7, Experimental Farm Site Prince George, BC V2N 4M6 Phone: (250) 963-2501 Fax: (250) 963-2520 Ministry of Agriculture and Food Southern Interior Region Headquarters 200 - 1690 Powick Road Kelowna, BC V1X 7G5 Phone: (250) 861-7211 Fax: (250) 861-7490 Ministry of Agriculture and Food South Coastal Region Headquarters Abbotsford Agriculture Centre 1767 Angus Campbell Road Abbotsford, BC V3G 2M3 Phone: (604) 556-3001 Fax: (604) 556-3075 Ministry of Agriculture and Food Victoria Office 808 Douglas St. Victoria, BC V8W 2Z7 Phone: (250) 387-5121 Fax: (250) 356-7279 Internet: http://www.agf.gov.bc.ca