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ANNUAL REPORT 2011-2012

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ANNUAL REPORT2011-2012

2 40 and Forward / Cigi Annual Report 2011-2012

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Creating Opportunities for Canada's Field CropsO

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To Create Profitable Opportunities For Canada’s Field Crops.

40 and Forward / Cigi Annual Report 2011-2012 3

Message from the Chair and Executive Director / 4

Cigi in Brief / 6

Technology / 10

Initiatives with Industry / 19

Technical Missions / 22

Programs / 25

Public and Industry Relations / 30

Finance Report / 35TAB

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4 40 and Forward / Cigi Annual Report 2011-2012

Forty and Forward. This is the theme Cigi created to mark its 40th anniversary in 2012 and in a year that has brought with it significant changes to both Cigi and the Canadian grain industry, it has come to symbolize both our history of success and our focus on the future.

Accomplishments during the 2011-12 fiscal year are the result of staying true to the priorities identified in the five-year strategic plan approved by the board of directors in March 2010. That plan recognized the importance of putting Cigi on a path to become a sustainable, independent institute that could withstand change and prosper in an evolving industry environment. The current board and staff appreciate the foresight and wisdom shown during that planning period and have worked hard to implement the priorities that were set in place.

The importance of this plan was underscored with the changes to the Canadian Wheat Board’s single desk mandate following passage of Bill C-18 in December 2011. This move led to a number of initiatives to position Cigi for the transition to a new marketing environment for western Canadian wheat, durum and barley. These activities included the establishment of two advisory committees, one comprising seven farmers from Western Canada and the other a group of marketers formed by the Western Grain Elevators Association, to provide advice and direction on Cigi’s programming activities for these crops.

As part of a continued focus on securing new partnerships and relationships with domestic and international customers and industry members, Cigi successfully delivered 21 fee-for-service programs in 2011-12, more than three times the number completed the previous year. These programs, customized to meet the needs of a diverse number of companies and organizations, demonstrate the scope of Cigi’s knowledge and its relevance to the industry. Among them was a six-month training course for 12 representatives from the Grain Silos and Flour Mills Organization in Saudi Arabia and several programs in the final quarter focusing on topics related to the transition to an open wheat and barley market. More details about our program activities for the year appear on pages 25 to 29.

The value customers place upon Cigi’s knowledge of how Canadian field crops are used in food processing and industrial applications in different regions of the world was also evident in the interest expressed by many of them to continue to work with Cigi in the future. As the year drew to a close we were engaged in discussions with some major international customers of Canadian grains who are interested in building longer term business relationships with Cigi. In many cases, these are the same customers we have worked with in the past but going forward our relationships will be different as we work to establish research and training agreements that will ensure that our knowledge remains current and relevant.

Building knowledge is the driving force behind Cigi’s work on the four-year Pulse Milling and Utilization Project. At year end the project was nearing the completion of its second year and with the progress made on the milling phase, Cigi is gaining a better understanding of how milling methods can change pulse flour functionality and how to optimize the end quality of new products using pulse flours as ingredients. Cigi staff are now poised to focus on working with food and ingredient companies in developing product prototypes. With each phase comes a new set of knowledge that will enable Cigi to play a very important role in the promotion of Canadian pulses in collaboration with our partners in the pulse industry.

Our work in pulses, coupled with our collaborations with Grain Farmers of Ontario on projects involving Ontario wheat and the Canadian Soybean Council promoting food grade soybeans, points to Cigi’s commitment to build and maintain relationships across the Canadian grain industry. Further information about these projects and other new and ongoing initiatives with industry are featured throughout this report.

The conclusion of the 2011-12 fiscal year also marked the end of the long-standing strategic partnership between Cigi and the CWB. As a founding partner and core funder of Cigi for the past 40 years, the CWB has been an integral part of Cigi’s growth and success. Much of the knowledge gained throughout Cigi’s history is the result of the work done on behalf of the CWB and its customers around the world. As we

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Murdoch MACKAY

Earl GEDDES

move forward we will build on that legacy as western Canadian farmers begin directly funding Cigi’s market development and promotion activities through a check-off starting August 1, 2012.

In Cigi’s first annual report in 1972-73, then Executive Director Vic Martens wrote, “During the past year the Canadian International Grains Institute progressed from concept to reality.” Over the past 40 years many have been entrusted to continue to bring that concept to life. Thank you to all the board members, staff and industry resources for your involvement and commitment and to AAFC for their continued funding and support. You have all contributed to Cigi’s accomplishments over the past four decades.

With the wisdom of our predecessors and the vision of the current board and staff as a foundation, Cigi is well on its way to a very full and engaged future working with and on behalf of farmers and industry to create profitable opportunities for Canada’s field crops.

6 40 and Forward / Cigi Annual Report 2011-2012

Cigi is an independent market development institute established in 1972. Its mission is to create profitable opportunities for Canadian field crops through the delivery of technical expertise, support, applied research and customized training to the domestic industry and customers around the world. Cigi is funded by farmers, the Government of Canada (AAFC) and industry partners. It is based in Winnipeg, Manitoba, Canada.

Customized Agricultural Training & Learning and Development Programs

Cigi programs are custom-designed to meet the needs of industry.

Areas of Expertise

Asian noodles, steamed bread Baking Biofuels Feed Grain industry overview Grain marketing Grain quality testing and evaluation Industrial applications Milling Pasta processing Pulse processing Programs can be developed for a specific company, region or country by field crop, end use, or subject. Cigi programs are delivered at Cigi or offsite (both in Canada and offshore) and can be offered in the language of the customer.

Cigi works with more than 400 organizations and individuals from the Canadian grain industry, who along with Cigi staff, share their expertise through presentations, practical demonstrations, hands-on training and facility tours.

Market Development, Technical Support and Applied Research Activities

Cigi technology staff travel to importing countries providing technical information to customers and gathering information that will help with future exports.

Applied research activities focus on evaluating the end-use application and performance of Canadian field crops in a wide variety of products.

Technology staff provides consultation on processing methods, ingredients, test procedures, equipment and respond to other customer inquiries and requests for practical assistance related to Canadian field crops (wheat and durum, pulses, barley, oilseeds, special crops).

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Our Facilities:

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CPilot Mill

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Legend

A. Analytical Services Laboratory

B. Pilot Pasta and Extrusion Plant

C. Portable Biodiesel Trailer

D. Classrooms

E. Pilot Mill

F. Noodle and Asian Products Facility

G. Pilot Bakery

H. Test Bakery

I. Pulse Processing Facility

Noodle and Asian Products Facility

Pilot Bakery

Test Bakery

Main Floor

8 40 and Forward / Cigi Annual Report 2011-2012

Peter Frohlich, Technical Specialist

Heather Maskus, Project Manager, Pulse Flour Milling and Food Applications

Milling Technology

Ashok Sarkar, Head

Frank Bergen, Technologist

Max Bresslauer, Technical Specialist

Myl Subramaniam, Technical Specialist

Asian Products and Extrusion Technology

Esey Assefaw, Head

Da (Anne) An, Technician

Paul Ebbinghaus, Technologist

Communications and Branding

Dean Dias, Information Systems Specialist

Ellen Goodman, Communications Specialist

Stephen Hunter, Graphic Designer and Audio Visual Coordinator

Board of Directors

Murdoch MacKayChairCommissionerCanadian Grain Commission

Ward WeisenselSecretaryChief Operating Officer, OperationsCanadian Wheat Board

Susie MillerMemberDirector GeneralFood Value Chain BureauAgriculture and Agri-Food Canada

Henry Van AnkumMemberChairGrain Farmers of Ontario

Staff

Earl Geddes, Executive Director

Heather Johnson, Director, Communications and Branding Linda Malcolmson, PhD, Manager, Special Crops, Oilseeds and Pulses

Holly Marchak, Manager, Human Resources and Program Administration

Rick Morgan, Manager, Business Development

Larry Nentwig, Chief Financial Officer

Rex Newkirk, PhD, Director, Research and Business Development

Technology

Analytical Services

Elaine Sopiwnyk, Head

Christey Allen, Technician

Shona Fraser, Technician

Kristina Pizzi, Technologist

Baking Technology

Tony Tweed, Head

Rosa DeStefano, Technician

Yvonne Supeene, Technical Specialist

Pulses

Lindsay Bourré, Technologist

Gina Boux, Technologist

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Lee Huscroft, Senior Graphic Designer Amanda Medwid, Graphic Designer and Audio Visual Coordinator

Finance and Administration

Charity Banquerigo, Finance Assistant Patricia Le Sann, Executive Assistant

Programs

Pat Byrne, Administration Assistant

Anna Mora, Program Coordinator

Shannon Taylor, Program Coordinator

10 40 and Forward / Cigi Annual Report 2011-2012

During 2011-12, Cigi continued to provide marketing and technical assistance to customers of Canadian field crops and facilitate opportunities for improved end uses and innovation. Market development technical projects were carried out on behalf of the CWB as well as activities in support of other industry organizations such as the Grain Farmers of Ontario, Saskatchewan Pulse Growers, Manitoba Pulse Growers Association, Pulse Canada, and the Canadian Soybean Council.

Technical work to help promote eastern wheat continued through activity such as the Ontario Quality Scoop harvest survey, a project examining the effect of nitrogen and fungicide levels on gluten strength of soft winter wheat, and completion of a project investigating the use of eastern wheat in traditional Arabic flatbreads. A number of projects were also conducted with pulses, including the milling and evaluation of flours and fibres in various baked goods, pasta and extruded snack products and various sensory and lab analyses of cooked pulses. Cigi also continued work with industrial applications, formulating and testing penetrating oils and gelled hand cleaners for an eastern Canadian company for commercial purposes.

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Cigi pilot milled yellow peas for the first time, for the Pulse Milling and Utilization Project.

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International

Cigi milled and analyzed a number of wheat samples for the CWB on behalf of their international customers. Some of the samples were from cargo shipments while others were obtained from the customer then milled, analyzed and evaluated for end-use quality. Samples of semolina also were analyzed and processed into spaghetti for evaluation. Customer countries included Chile, China, Guatemala, Japan, U.K., and the U.S. In addition, Cigi staff regularly responded to direct requests from international customers for technical information and support.

Domestic

Cigi provided domestic support during the year to milling companies, food processors, food development and research facilities, grain companies and post-secondary educational institutions through milling, analysis, end-use production and technical information. Hands-on support included milling wheat and flax, test baking, processing pasta with oat flour, and testing extruded products. Domestic technical support was also ongoing related to commercial biodiesel production and feed.

Fee for Service

Extensive fee-for-service work was conducted for international and domestic clients that included flour mills,

bakeries, grain companies, agricultural products/services companies, seed companies, wheat breeders, food development centres, food processing and ingredient companies, producers, and producer organizations. Some requests for testing were from the domestic branches of international corporations. Activity included milling and analysis of wheat and barley, analysis of flours, and processing and end-use quality evaluation of pasta, baked goods and extruded products. Pasta, tortillas, pita bread, extruded snacks and gluten-free pizza crust were also developed using whole pulse flours.

Applied Research

Western Canadian Wheat Varieties

Cigi carried out milling, and flour and end-use quality evaluations of Canadian wheat varieties for CWB market development technical projects, technical missions and exchanges, programs, and the annual Quality Scoop survey. Samples of wheat from the CWRW, CWRS, CPSR, CWHWS, and CWAD classes were milled, analyzed and evaluated for end-use quality in baking, and noodle and pasta processing. Some of the work also involved testing for a CWB cargo monitoring project.

Ontario Wheat

Cigi conducted work on the SMART Plot Trials: Wheat Quality, a managed field trial project in conjunction with the Ontario Ministry of Agriculture, Food,

and Rural Affairs, University of Guelph, and Grain Farmers of Ontario. The study involved examination of the effect of nitrogen and fungicide applications on gluten strength, using CESRW wheat samples. A final report was completed for phase one which examined 96 samples. By the end of the fiscal year, milling and analysis of the flour had been conducted on approximately 40 percent of the 101 samples for phase two.

Wheat and flour samples of CESRW, CEWW, CEHRW, CESWW, CERS and CEHWW were lab milled, analyzed and evaluated for baking quality as part of the Ontario Quality Scoop program.

A sample of CEAD was lab milled, the wheat and flour were analyzed, and the flour was evaluated for baking quality in durum bread.

Cigi also conducted grain quality assessments in association with Grain Farmers of Ontario for processing and seed companies.

International Wheat

Cigi continued studying competitors’ wheats on behalf of the CWB. In the previous fiscal year a number of samples from different countries were milled, analyzed, and evaluated for end-use quality. During the past year, wheat and flour/semolina samples from France, Argentina, Russia and Ukraine were evaluated.

12 40 and Forward / Cigi Annual Report 2011-2012

• Protocols for the sensory analysis of peas and lentils were completed for a collaborative study on the effects of minor components on the sensory characteristics of cooked pulses.

• For a study in collaboration with the Crop Development Centre, University of Saskatchewan, red lentils were dehulled and sent for iron bioavailability testing.

Pulses

At the start of the second year of Cigi’s four-year Pulse Flour Milling and Utilization Project, yellow pea samples were lab milled and the flour analyzed. Cigi staff met with pulse and ingredient processors and food companies regarding their involvement in the project as well as commercial millers and food development centres on joint activities. Yellow pea samples were then commercially milled by industry partners. Other pulse types (lentils, beans) were subsequently lab milled at Cigi. Commercial and lab-milled flours were analyzed for composition and functional quality, and the data was used to produce technical data sheets. Yellow pea flours were also analyzed at Cigi for baking quality.

A number of projects were undertaken as part of the pulse project funded by Saskatchewan Pulse Growers and Manitoba Pulse Growers Association, including: • Extrusion trials were completed for a study on the effect of fibre addition and fibre particle size on extrusion properties of split yellow pea flour.

• Evaluation of the hydration capacity and rate, and cooking time of dehulled and split yellow and green peas was completed as part of a project related to developing a rapid method to determine cooking time for split peas in collaboration with the Crop Development Centre, University of Saskatchewan.

• The effect of moisture content on the dehulling efficiency of degraded red lentils was measured as part of a project determining whether dehulling and splitting properties of poor quality lentils can be improved.

• Statistical analysis of data on the cooking time, hydration capacity, and hydration rate of low-phytate split yellow pea varieties was completed. The work was conducted in collaboration with the Crop Development Centre, University of Saskatchewan.

• One sample of roasted red lentil flour was processed into spaghetti to determine quality and feasibility of production.

• Assessment of hydration rates of Canadian and Australian split yellow and green peas for use in the production of Indian snack food was completed.

• Development of a high-fibre cracker formulation using Canadian pea fibre was completed.

• Cigi participated in an AACC International ring test which involved the development of a method to measure the texture of cooked pulses.

• Split yellow pea flour was extruded into small crisps and sent to a food company for evaluation in a nutrition bar.

Red lentils were dehulled at Cigi as part of a study.

40 and Forward / Cigi Annual Report 2011-2012 13

Process and Methodology Studies

Baking

A final report was completed on an Arabic bread project with the Grain Farmers of Ontario. The two-year project aimed to determine what levels of CESRW wheat could be used in wheat blends to produce flours for two-layer Arabic flatbreads, or pita bread, while improving on the processing and quality parameters. Wheat samples were milledand flour samples were analyzed at Cigi

and commercial trial testing was conducted at a bakery in Calgary. Project results were favourable as far as blending CESRW with hard wheat to produce a good quality flour and end product. Cigi staff also developed a lab-scale test baking method for the project that can be used by investigators to evaluate wheat flours for this type of bread production.

Water absorption of flour predicted by the FOSS NIRS (instrumental system) was compared to actual absorption determined by the farinograph (reference method) so adjustments can

be made when processing customers’ baked products, especially when requiring a specific baking method. Similarly, flour from the same wheat milled on the pilot mill and the laboratory-scale mill were compared for any differences in quality.

Noodles and Asian Products

Cigi had previously initiated a collaborative study with AACC International on instrumental measurement of Asian noodle firmness for the Asian Products Technical Committee. During this fiscal year, Cigi processed and distributed noodle samples to eight participating labs in which each conducted texture measurements. Final results were presented to the committee during the AACC International Annual Meeting held in Palm Springs CA in October 2011.

Pasta and Extruded Products

Extrusion testing involving the processing of liquorice with flour was ongoing as well as an investigation into the effect of extrusion pressures on spaghetti quality. A new drying temperature profile for pasta was also tested in collaboration with the CGC Grain Research Laboratory.

Cigi completed a project on behalf of GFO examining the use of CESRW wheat in Arabic flatbreads.

14 40 and Forward / Cigi Annual Report 2011-2012

• ‘SMART Plots: The Effect of Nitrogen and Fungicide Applications on the Quality of Canada Eastern Soft Red Winter,’ as part of the CGC Seminar Series, Winnipeg MB, December 5, 2011. • ‘Marketing Opportunities for Varieties and Classes of Soft Wheat’ at the Alberta Soft Wheat Producers Association annual meeting, Vauxhall AB, February 15, 2012.

At the AACC International Annual Meeting, Palm Springs CA , October 16-19, 2011: • L. Bourré presented ‘Addition of Grain Legume or Pulse Flours on the Quality of Dried Asian White Salted Noodles,’ co-authored by S. Arntfield, University of Manitoba, and L. Malcolmson, Cigi. • E. Assefaw presented results of a collaborative study on Asian noodle firmness to the Asian Products Technical Committee.

At the 2nd Annual IAOM Southeast Asian Conference, Bali, Indonesia, October 31, 2011: • A. Sarkar presented the paper ‘Evaluation of Milling and End-Use Quality Potential Through Testing.’ • E. Geddes presented ‘Cigi’s Role in Conducting Technical Projects and Targeted Training for the Flour Milling Industry.’

Presentations

E. Geddes presented: • ‘Cigi’s Approach to Innovation Pathways’ at the Grow Canada Conference, Winnipeg MB, November 30, 2011. • ‘Cigi in a New Grain Marketing Environment: What Does the Future Hold for Creating Profitable Opportunities for Farmers and Canada’s Field Crops?’ at a Manitoba Farm Writers and Broadcasters Association luncheon, Winnipeg MB, March 22, 2012.

L. Malcolmson presented: • ‘CSC-Cigi Market Development Activities’ at the CSC Board of Directors meeting in Ottawa ON, April 14, 2011. • With H. Maskus, ‘Cigi Pulse Milling Project’ at the Food Development Centre, Portage la Prairie MB, November 14; at the Food Processing Development Centre, Leduc AB November 18; and at the Food Centre, Saskatoon SK on November 22, 2011.

R. Newkirk presented: • ‘Biodiesel as a Teaching Tool’ (with hands-on demonstration) at the Special Area Group Conference for Manitoba Teachers Association, sponsored by Manitoba Canola Growers Association, Winnipeg MB, October 21, 2011.

• ‘Understanding Grain Variability and its Interaction(s) with Processing for Food, Malt, Feed and Industrial Markets’ with Dr. Tom Scott by webinar, hosted by the Farm Leaders Council, December 7, 2011.

M. Reimer presented: • ‘Cigi/GFO Wheat Market Development Activities’ at the GFO Market Development Committee Meeting, Guelph ON, June 29, 2011. • ‘SMART Plot: Wheat Quality’ at C&M Seeds Industry Day in Pike Lake ON, June 30, 2011. • ‘2011 Ontario Quality Scoop Update’ via web conference to the Ontario Cereal Crop Committee, August 23, 2011. • ‘Markets and End-Use Characteristics for Canadian Wheat’ at the 1st Canadian Wheat Symposium, Winnipeg MB, December 2, 2011.

40 and Forward / Cigi Annual Report 2011-2012 15

Poster Presentations

At the AACC International Annual Meeting in Palm Springs CA, October 16-19, 2011, the following poster presentations were given:

• ‘Suitability of Pulse Flours in Extruded Products,’ P. Frohlich, A-S. Bellido, G. Boux and L. Malcolmson.

• ‘The Effect of Flour Milling Variables on the Functional Properties of Whole and Split Yellow Pea Flour,’ H. Maskus, L. Bourré and L. Malcolmson.

At the SPG Pulse Days Meeting, Saskatoon SK, January 9, 2012, ‘Cigi Pulse Flour Milling and Utilization Project,’ H. Maskus, L. Bourré and L. Malcolmson.

Scientific Publications

Azarnia, S., Boye, J.I., Warkentin, T. and Malcolmson, L. 2011. Changes in volatile flavour compounds in field pea cultivars as affected by storage conditions. International Journal of Food Science and Technology, 46:2408-2419.

Azarnia, S., Boye, J.I., Warkentin, T., and Malcolmson, L. 2011. Market class, cultivar, location, and crop year effects on the volatile flavour composition of field pea cultivars. In Peas: Cultivation, Varieties and Nutritional Uses. Nova Science Publishers, Inc.

Ma, Z., Boye, J.I., Simpson, B.K., Prasher, S., Monpetit, O., Malcolmson, L. 2011. Thermal processing effects on the functional properties and microstructure of lentils, chickpeas and pea flours. Food Research International 44(8):2534-2544.

S.D. Arntfield and H.D. Maskus, 2011. Peas and Other Legume Proteins. In Handbook of Food Proteins, edited by G. O. Phillips and P. A. Williams, Glyndŵr University, UK. Woodhead Publishing Series in Food Science, Technology and Nutrition, No. 222.

R.W. Seneviratne, E. Beltrana, R.W. Newkirk, L.A. Goonewardene, and R.T. Zijlstra, 2011. Processing conditions affect nutrient digestibility of cold-pressed canola cake for grower pigs. J. Animal Sci. 89:2452-2461.

R.W.Newkirk, J.I. Ram, P. Hucl, C.A. Paterson and H.L. Classen, 2011. A study of nutrient digestibility and growth performance of broiler chicks fed hairy and hairless canary seed (Phalaris canariensis L.) products. Poult. Sci. 90:2782-2789.

External Educational Activity

As an education committee member of the IAOM, A. Sarkar edited, reviewed and wrote several lessons for the new release of the IAOM correspondence course for millers.

As a global strategies committee chair of the IAOM, A. Sarkar helped prepare the program for the 2nd Annual IAOM Southeast Asia District Conference and Expo in Bali, Indonesia.

University of Manitoba Faculty of Graduate Studies Electronic Thesis and Dissertations: L. Bourré. ‘Incorporation of selected pulse flours into dried Asian white salted noodles.’ Advisory committee: S. Arntfield (U of Manitoba), L. Malcolmson (Cigi), M. Scanlon (U of Manitoba). http://mspace.lib.umanitoba.ca/handle/1993/5225

16 40 and Forward / Cigi Annual Report 2011-2012

Bomill Project

Cigi is collaborating with the University of Saskatchewan to test a unique technology that sorts wheat and barley based on individual kernel characteristics. Potential use includes removing material that causes grain to be classified as feed grade so it becomes viable as milling wheat which has greater value. The Bomill Project is sponsored by the Alberta Crop and Industry Development Fund and Cigi. As part of the project, Cigi conducted site visits and meetings in Saskatoon and North Battleford SK. The system was installed in March 2012 at the University of Saskatchewan in North Battleford and initial testing was completed.

Wheat DDGS Feed Guide

Design, layout and printing of 1,000 copies of the Wheat DDGS Feed Guide were completed in December 2011. Developed in conjunction with the FOBI Network and edited by Cigi’s R. Newkirk, the guide provides information on wheat DDGS as a feeding option in Canadian livestock production. Print copies were distributed to industry members and an electronic copy is available at cigi.ca.

Feed Industry Support

Cigi provided technical information in response to industry inquiries and also technical assistance on feed wheat, canola meal, and feed peas to the CWB, Canola Council of Canada, and Pulse Canada, respectively. Activity included participation on a panel discussing the future for innovation in feed manufacturing organized by the Western Canadian Feed Innovation Network and funded by the Alberta Crop Development Fund. Consultation was also provided to AAFC and members of the Animal Nutrition Working Group.

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Industry Events

Cigi’s portable biodiesel plant, housed in an 8 x 20-foot trailer, offered demonstrations in biodiesel production at the following industry events in 2011-12:

• Calgary Stampede, Calgary AB, July 8-17, 2011

• SAG (teacher training) event, Winnipeg MB, November 21, 2011

• Ag in the City, Winnipeg MB, March 16-19, 2012

• Manitoba Royal Winter Fair, Brandon MB, March 25-April 1, 2012

During the year sponsors covered the cost of transporting the trailer from location to location as well as to promote biodiesel courses and workshops in various communities including Mississauga ON, Manning AB, and High River AB (also see Programs Statistics, page 26). Thank you to the Manitoba Canola Growers Association, Calgary Stampede, Regional Municipality of Peel, and Peace Country Beef and Forage Association for their support.

Industrial Applications and Consultation

Cigi offered technical and marketing assistance to industry during 2011-12 including:

• Providing consultation to a company in New Brunswick on mustard oil in the formulation of products and for another company in Manitoba regarding some business aspects of their biodiesel plant operation.

• Meeting with the University of Alberta to discuss industrial applications of Canadian oil and protein meal products and potential new applications.

• Working on the behalf of the Canola Council of Canada to provide technical support to a major canola oil buyer in the U.S. regarding an issue with biodiesel production. Cigi helped identify the issue and recommended tests to prevent this type of product being delivered in the future. As a result the company is continuing to use Canadian canola oil for biodiesel production.

• Leading an initiative involving a fee-for-service contract with the Roundtable on Sustainable Biofuels involving examination of the overlap of Canadian regulations and requirements for certified production, and generating guidance documents for certification.

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• Formulating and testing penetrating oils and gelled hand cleaners for a Canadian company. A study was conducted to test formulations of penetrating oils as compared to commercial materials. Hand cleaners were also formulated into gel formats for industrial applications. The effectiveness of the plant-based penetrating oils was successfully demonstrated and a stable gel hand cleaner was produced that could be marketed.

Cigi tested its formulation for a biodegradable industrial hand cleaner with successful results.

40 and Forward / Cigi Annual Report 2011-2012 19

Cigi was involved with new and ongoing initiatives and in numerous discussions regarding potential work with industry, universities and government, both domestically and internationally. The following are some highlights for the 2011-12 fiscal year.

Pulses

Cigi completed the second year of a four-year Pulse Flour Milling and Utilization Project, a partnership between Cigi and Pulse Canada, funded by the Government of Canada, Saskatchewan Pulse Growers, Alberta Pulse Growers, and the Canadian Special Crops Association. During the year Cigi met with Pulse Canada about the project as well as with the project advisory committee and industry steering committee – groups composed of pulse secondary processors, specialty grain millers and research and development specialists from the food industry. Other discussions were held during the year with food development centres, food processors, commercial millers and university representatives in Manitoba, Saskatchewan and Alberta to discuss pulse prototype development. By the end of the fiscal year Cigi also met with commercial millers regarding the scale-up production of pulse flours. Arrangements also proceeded for food development centres to start flour testing work.

Cigi was also into the second year of a five-year project with SPG to undertake secondary processing and value-added research. In 2011, Manitoba Pulse Growers Association also began contributing funds. As part of this project, Cigi has conducted a number of activities with pulses and pulse flours in food formulations (also see Pulses, page 12).

Biofuels Training and Consultation

Cigi attended agricultural events with the biodiesel trailer and held courses on biodiesel production, in addition to serving the biofuels industry in a consulting capacity, providing technical and marketing support mainly to biodiesel plants. Cigi also worked with the FOBI (Feed Opportunities from Biofuels Industries) Network to produce the first Wheat DDGS Feed Guide which focuses on the value-added use of by-products from ethanol production (also see Biofuels Technology, page 17).

Ontario Wheat

During 2011-12, Cigi was in the fourth year of a five-year contract with the Grain Farmers of Ontario involving the evaluation of Ontario wheat for end-use quality and market development activity. Cigi co-ordinated the annual Ontario Wheat Quality Scoop, and completed phase one and started phase two of the SMART Plot Trials: Wheat Quality, a managed field trial project in conjunction with the Ontario Ministry of Agriculture, Food, and Rural Affairs (OMAFRA), University of Guelph, and GFO. The ongoing study has involved examination of the effect of nitrogen and fungicide applications on the gluten strength of soft winter wheat. In addition, Cigi completed the Ontario Wheat Arabic Bread project on the use of Canada Eastern Soft Red Winter wheat in the processing of traditional Arabic flatbreads (also see Ontario Wheat, page 11).

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Soybeans

Cigi, in partnership with the Canadian Soybean Council, received funding through the AAFC Agri-Marketing Program to undertake market development activities on behalf of CSC. Cigi was involved in the design and coordination of an incoming program from Asia and an outgoing program to Asia which supported the marketing of Identity Preserved (IP) food grade soybeans. In addition, an investigative mission to Europe was undertaken to learn more about the market for soybeans in the EU. Cigi was also responsible for the production of the 5th edition of the annual publication Canadian Soybean Dispatch which was published in both English and Japanese for distribution to international customers.

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Joint Business and Training Ventures

Cigi discussed various fee-for-service opportunities, innovation strategies and other joint ventures throughout the year with industry organizations, private companies, government, and universities both domestically and internationally. The potential opportunities ranged from research activities related to food, feed, biodiesel and industrial applications to marketing-related work and training that covered a number of commodities. This also included continued discussion with the Russian Federal Grain Quality and Phytosanitary Organization in Moscow resulting in another group training at Cigi, and a fee-for-service agreement made with the Grain Silos and Flour Mills Organization in Riyadh, Saudi Arabia to train a group of their staff over six months at Cigi which ran from August 2011 to January 2012. Further arrangements were confirmed with the GSFMO for another group to train for six months, starting in August 2012. In February 2012, Cigi held discussions with COFCO in China regarding Cigi working with their Wheat Processing Division to develop an agreement for research, development and training with China Agri-Industries Holdings, a flagship company of the COFCO Group. Also, during the year Cigi provided ongoing technical work for Warburtons, U.K. and held a number of fee-for-service programs for groups that included domestic grain companies, industry organizations, and international customers.

FOODTECH Canada

As a member of FOODTECH Canada, Cigi worked with the other technology centres with pilot plant facilities across Canada to better position the centres to move innovative ideas into commercial successes.

GSFMO Saudi Arabia Flour Milling Program, August 16, 2011-January 26, 2012

22 40 and Forward / Cigi Annual Report 2011-2012

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14 technical missions to 25 countries.

EcuadorCWB Canada-Ecuagran Wheat Technical MissionMay 4-6, 2011Y. Supeene, M. Subramaniam, Cigi; E. Ordonez, CWB.A milling and baking seminar with a focus on CWRS was held in Quito for customers from milling companies. Part of the seminar was held at a major milling company where mission members met with representatives to discuss their operation, their use of CWRS, and quality concerns. They also investigated local baked and pasta products.

EuropeEU Pasta Processing and Equipment MissionSpain, Italy, Switzerland, GermanyMay 14-25, 2011E. Geddes, A. Sarkar, P. Ebbinghaus, Cigi; B.X. Fu, CGC.Mission members went to Barcelona, Spain; Foggia, Parma, and Galliera Veneta, Italy; Uzwill, Switzerland; and Birkenfeld, Germany where they visited pasta processors, flour mills, pasta equipment manufacturers and a cereal research centre to gain more knowledge on customer needs and the latest technology in pasta manufacturing.

AsiaCWB Noodle Technical Investigative MissionJapan, Korea, TaiwanJune 13-24, 2011E. Assefaw, M. Bresslauer, D. An, Cigi; L. Nemeth, CWB.Mission members visited milling companies and noodle processing plants in Tokyo and Tsurumi, Japan; Bussan, Korea; and Taipei and Yangmei, Taiwan where they presented information on seeding and the quality of CWRS, CWHWS and CPSR. The representatives also promoted the use of CPSR in noodle production.

ChileCWB Wheat Technical Mission – La EstampaJune 1-3, 2011A. Sarkar, E. Sopiwnyk, Cigi.Technical assistance with a focus on CWRS was provided to a Chilean milling company.

BrazilCWB Wheat Technical Investigative MissionY. Supeene, C. Lukie, Cigi.July 16-28, 2011Mission members met with key technical staff at mills and bakeries in Fortaleza and São Paulo to understand the baking practices and quality expectations in the production of traditional Pao Frances breads and to demonstrate that CWRS can be used successfully under varying commercial conditions and processes.

AsiaCWB New Crop MissionNovember 2-11, 2011Indonesia, Malaysia, Singapore, KoreaE. Geddes (Bali only), A. Sarkar, E. Assefaw, Y. Supeene, Cigi; G. Worden, L. Nemeth, D. Sliworsky, M. Lackmanec, CWB.New crop quality information was presented with a focus on CWRS, CPSR, CWRW and CWHWS through visits to milling companies and at industry seminars in Bali, Jakarta, and Seoul. Some mission members also attended the annual IAOM conference in Bali (see Industry Events, page 30).

Latin AmericaCWB New Crop MissionNovember 19-26, 2011Guatemala, MexicoM. Bresslauer, Y. Supeene, E. Sopiwnyk, K. Pizzi, Cigi; G. Worden, M. Grenier, M. Lackmanec, CWB.New crop quality information with discussion of CWRS, CPSR, CWRW and CWAD was presented through visits to milling companies in La Antigua, Guatemala; and Mexico City, Mexico and a seminar in Toluca, Mexico. Members also attended the 35th Annual IAOM Latin America District Meeting and the 2011 ALIM Assembly in La Antigua.

40 and Forward / Cigi Annual Report 2011-2012 23

North AfricaCWB New Crop MissionDecember 9-16, 2011Algeria, Morocco, TunisiaM. Subramaniam, Cigi; G. Worden, A. Coudiere, J.-B. Gauthier, CWB.New crop quality information with discussion of CWRS and CWAD was presented through visits to milling companies and formal seminars in Algiers, Algeria; Tunis, Tunisia; and Casablanca, Morocco.

Malayan Flour Mills Technical MissionDecember 12-16, 2011MalaysiaE. Assefaw, Y. Supeene, Cigi.Cigi staff provided on-site technical assistance on behalf of the CWB to Malayan Flour Mills related to the production of noodles, steamed buns, and baked products.

AsiaCWB New Crop Mission January 7-21, 2012China, Thailand, Vietnam, Philippines, BangladeshA. Sarkar, Y. Supeene, Cigi; G. Worden, D. Bonner, D. Sliworsky, CWB.New crop quality information was presented in this follow-up mission, with a focus on CWRS as well as discussion of other wheat classes. Visits were made to milling companies in Shunde, China; and Dhaka, Bangladesh and presentations were given at industry seminars in those cities as well as Ho Chi Minh, Vietnam; Bangkok, Thailand; and Manila, Philippines.

ChinaCOFCO Investigative Mission February 18-23, 2012E. Geddes, E. Assefaw, M. Bresslauer, Cigi.This mission was designed to improve Cigi’s understanding of COFCO’s milling division and to identify possible new areas where Cigi might work with them. In addition to meeting with COFCO in Beijing, mission members visited flour mills in Qinhuangdao and Shenyang. The mission led to discussions on increased activity between Cigi and COFCO’s China Agri.

Brazil CWB Wheat Technical Investigative Mission,July 16-28, 2011

24 40 and Forward / Cigi Annual Report 2011-2012

Asia 3rd CSC Soybean MissionFebruary 17- March 1, 2012Japan, Singapore, MalaysiaL. Malcolmson, Cigi; N. Mackellar, M. Haerle, CSC; M. Harry, SeCan; L. Anderson, CGC.The mission aimed to promote Canadian food grade soybeans to existing and potential new buyers, and establish and/or maintain relationships with industry associations, government officials and soyfood processors. Information was also gathered from end users and government officials on soybean market trends and on characteristics sought by processors not currently using Canadian soybeans. Mission members conducted formal seminars and made industry visits to a number of soyfood processing companies and importers.

JapanCWB Technical MissionMarch 3-10, 2012 A. Sarkar, E. Assefaw, Y. Supeene Cigi; L. Nemeth, S. Morita, CWB.The mission provided customers with an update on milling, baking, noodle and pasta processing and market trends with a focus on CWRS, CWAD and CWHWS. Mission members visited a bakery, noodle and pasta processing facilities, flour mills, and the Japan Institute of Baking. Follow-up included pasta sensory evaluation, sending durum samples to customers, and obtaining feedback on the end-use application of CWHWS.

EuropeCSC Investigative Mission to EuropeMarch 24 - April 1, 2012The Netherlands, BelgiumL. Malcolmson, Cigi; B. Senft, GFO; M. Huston, CSC; R. Dennis, CGC; K. Hester, AAFC.Mission members met with industry organizations and several soybean processors. A number of objectives were achieved including understanding the dynamics of the European soybean market and determining additional opportunities for Canadian soybeans, establishing contact with relevant associations to understand issues that may affect soybean demand,

understanding current import requirements and factors related to biotechnology and other regulations and policies. The mission also provided the opportunity to establish a link with Trade Commissioners in Amsterdam and Brussels to discuss possible future market development activities and market access issues.

40 and Forward / Cigi Annual Report 2011-2012 25

Cigi’s program calendar in 2011-12 showed the beginnings of the institute’s transition to an open market in Western Canada. While the number of programs delivered by Cigi on behalf of the CWB remained strong, particularly in the first three quarters of the year, the final three months were dominated by fee-for-service programs delivered to a wide cross section of representatives from the domestic andinternational industry. These included companies seeking Cigi’s knowledge of world markets and what customers in various regions of the world want from Canadian wheat and durum. There was also heightened interest in Cigi’s Grain Industry Overview Course and its focus on the objectives and operations of key players in the industry.

The list of programs from 2011-12 also reflected Cigi’s work with a diversity of field crops and industry organizations including incoming and outgoing soybean programs and seminars for the Canadian Soybean Council, marketing courses coordinated for the Manitoba Canola Growers Association and Grain Farmers of Ontario’s Grains in Action courses for Ontario producers.

With the arrival of 2012 came the opportunity to mark Cigi’s 40th anniversary and reflect on the vision first set out by Cigi’s founding partners the CWB, AAFC, CGC and other industry members, “to build a facility that could teach Canadians and customers alike about the Canadian grain industry, promote the export of Canadian grains and provide a forum for information exchange between Canada and its trading partners.” Participant feedback throughout the year reflected how that vision has moved from concept to reality.

A Chilean participant attending the 44th International Grain Industry Program noted, “Cigi courses give us newer tools and influence our decision to purchase Canadian grains rather than grains of other origins. Specifically, when prices are very competitive between many suppliers all the mentioned factors are weighed and Canadian wheat is usually taken for this reason.”

Another participant from Thailand attending the same program commented that “the training and technical advice (at Cigi) has a major impact on our buying decision. We definitely continue to use Canadian wheat as one of our primary quality grains.”

The more than 300 industry resources who contributed their time and expertise to the programs held throughout the year are a key factor in Cigi’s continuing ability to teach, demonstrate and promote the quality of Canadian grain and the industry’s commitment to responding to customer needs. Thank you to everyone who helped Cigi complete another successful slate of programs in 2011-12.

Program details and statistics are provided on pages 26-28. In summary, Cigi delivered 70 programs to 1648 participants. Of the total number of programs, 23 were held offshore, 21 were fee-for-service, there were 14 bilateral, 6 domestic, 3 international and 3 open enrolment courses.

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Course Name Dates International Canadian Total Participants Participants

FIRST QUARTER 2011

10th Latin American-Canada Milling Program April 11–15 12 0 12Biodiesel Workshop – Manning AB April 12 0 13 136th Asian Noodle Technology Short Course April 18–20 4 2 6CWB Understanding Quality Technical Program April 27–28 0 7 7Canada-Ecuagran Milling & Baking Seminar May 4–6 19 0 19South Korea Technical Exchange Program May 9–13 5 0 5Prima Ceylon Technical Exchange Program May 16–20 8 0 87th Grain Industry Overview Course May 30–June 3 0 7 7Harivasa Spain Technical Exchange Program May 31–June 3 2 0 2Biodiesel Courses (2) – Mississauga ON June 13–16 0 30 3014th Canadian Executive Millers Program June 24 7 28 35First Quarter Totals: 12 programs 57 87 144

SECOND QUARTER 2011 Russian Altan Durum Program July 2–9 4 0 444th International Grain Industry Program July 4–17 21 7 28Japan-Canada Technical Exchange Program July 11–15 9 0 9Canada Media Trip (CropLife Canada) July 25–27 9 1 1013th International Durum Wheat Program August 14–19 10 4 14GSFMO Saudi Arabia Flour Milling Program August 16-January 26 12 0 12COFCO China-Canada Technical Exchange Program August 22–25 4 0 4China Green Food Program September 5–9 2 0 2Japanese Executive Program September 5–9 7 0 72nd Bogasari Indonesia Technical Exchange Program September 11–16 5 0 5EDC-Resource Sector Team Training September 12–14 0 18 182nd CSC Asia-Canada Soybean Program September 18–23 14 0 14Malayan Flour Mills Technical Exchange Program September 19–21 15 0 15Syngenta Training Program September 20–21 13 5 18Louis Dreyfus Training Program September 22 0 10 10Groupe Metidji-Algeria Technical Exchange Program September 26–30 3 1 4Second Quarter Totals: 16 programs 128 46 174

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THIRD QUARTER 2011 Bangladesh-Canada Technical Exchange Program October 16–20 5 0 5Canadian National Millers Association New Crop Seminar October 27–28 2 30 32Asia New Crop Seminars (3) – Indonesia (2), South Korea November 2–11 85 0 85Latin America New Crop Seminar November 19–26 20 0 2037th Canadian Grain Industry Overview Course November 21–25 0 10 10Europe New Crop Seminars (5) – United Kingdom, Spain, Italy (2), Germany November 28–December 5 212 0 212North Africa New Crop Seminars (3) – Algeria, Tunisia, Morocco December 9–16 170 0 170Viterra Marketing Program December 20–21 1 12 13Third Quarter Totals: 16 programs 495 52 547

FOURTH QUARTER 2012 Asia New Crop Seminars II (5) – China, Philippines, Vietnam, Thailand, Bangladesh January 6–20 185 0 185Biodiesel Workshop – High River AB January 23 0 15 1538th Canadian Grain Industry Overview Course January 23–27 2 22 243rd Grains In Action – Guelph ON January 30–February 2 0 29 29Cuba (Alimport) Canadian Wheat Quality Seminar January 31–February 1 27 0 27Inland Terminals Association of Canada – Marketing Canadian Wheat & Durum to the World Program January 31–February 1 0 11 112nd Inland Terminals Association of Canada – Marketing Canadian Wheat & Durum to the World Program February 7–8 0 11 11Paterson GlobalFoods Wheat and Durum Program February 14–15 0 8 8Asia Soybean Seminars (3) – Japan, Singapore, Malaysia February 19–29 240 0 2404th Grains in Action – Guelph ON February 21–24 0 30 30Manitoba Canola Growers Association Marketing Courses (2) – Brandon, Starbuck MB March 2 & 5, March 6 & 8 0 63 63Latin American AAFC Grain Quality Program March 5–9 12 2 144th Russian FSFI Centre for Grain Quality Assurance Program March 5–16 10 0 10Agricultural Sustainability Program March 6–8 10 4 14Viterra World Grain Markets – A New Era March 11–14 0 43 4339th Canadian Grain Industry Overview Course March 19–23 0 26 26

28 40 and Forward / Cigi Annual Report 2011-2012

3rd Morocco-Canada Durum Wheat Program March 19–23 12 1 13CSTA/ASTA FuSE Program March 22 3 11 143rd Bogasari Wheat Program March 26–30 6 0 6Fourth Quarter Totals: 26 programs 507 276 783 2011-12 TOTALS: 70 programs 1187 461 1648

COFCO China-Canada Technical Exchange Program, August 22-25, 2011

3rd Morocco-Canada Durum Wheat Program,March 19-23, 2012

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2012AlgeriaArgentinaAustraliaBahrainBangladeshBarbadosBelgiumBermudaBoliviaBrazilBulgariaBurkina FasoCameroonCanadaChileColombiaCosta RicaCôte d’IvoireCubaCyprusCzechoslovakiaDenmarkDominican RepublicEcuadorEgyptEl SalvadorEritreaEthiopiaFinlandFranceGermanyGhanaGreeceGrenadaGuatemalaGuyanaHaitiHondurasHong KongHungary

IndiaIndonesiaIranIraqIrelandIsraelItalyJamaicaJapanKazakhstanKenyaKorea (South)KuwaitLebanonLibyaMalaysiaMaliMaltaMauritaniaMexicoMonacoMoroccoMozambiqueNamibiaNepalNetherlandsNew ZealandNicaraguaNigerNigeriaNorwayOmanPakistanPanamaParaguayPeople’s Republic of ChinaPeruPhilippinesPoland

PortugalPuerto RicoQatarRomaniaRussiaSt. VincentSaudi ArabiaSenegalSingaporeSouth AfricaSpainSri LankaSudanSwedenSwitzerlandSyriaTaiwanTanzaniaThailandTogoTrinidad & TobagoTunisiaTurkeyUgandaUkraine

United Arab EmiratesUnited KingdomUnited States of AmericaUruguayUzbekistanVenezuelaVietnamYemenYugoslaviaZambiaZimbabwe

The 41 countries represented in the 2011-12 fiscal year are in bold.

TOTAL PARTICIPATING COUNTRIES TO DATE: 115 (including Canada)

TOTAL PARTICIPANTS TO DATE: 36,052

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Industry Events

Cigi had a number of displays at agricultural and food-related events in addition to the biodiesel trailer being set up to demonstrate the production of biofuels (also see Biofuels Technology, page 17).

IFT (Institute of Food Technologists) Food ExpoA Saskatchewan Pulse Growers/Pulse Canada/Cigi exhibit was set up at the IFT Food Expo, June 11-14, 2011 in New Orleans LA. Cigi representatives staffed the exhibit, mainly to answer technical questions related to Canadian pulses. Cigi also prepared promotional pulse food products made with Canadian pulses as part of the exhibit.

Western Canada Farm Progress ShowCigi’s exhibit at the Western Canada Farm Progress Show, June 15-17, 2011 in Regina SK, focused on the diversity of Cigi’s work with Canadian field crops and industry members. The display included a variety of commercial product samples from domestic and international customers using Canadian field crops as well as examples of products made in Cigi’s facilities. Samples of fresh bread using a variety of different flour blends (e.g. durum, barley, lentil) were baked daily.

AACC International Annual MeetingPulse flours and food products made with pulse flours were processed and displayed at a Cigi booth set up at an exhibition as part of the 2011 AACC International Annual Meeting in Palm Springs CA, October 16-19, 2011.

2011 IAOM Conference and ExpoA Cigi booth was set up at the IAOM Conference and Expo in Bali, Indonesia, October 30-November 1, 2011. Cigi materials were handed out and information related to courses, training programs, and project activities was shared with visitors.

Manitoba Ag Days and FarmTechCigi was on-hand with displays at Manitoba Ag Days in Brandon MB, January 17-19, 2012, and at FarmTech in Edmonton AB, January 24-26, 2012. The exhibits focused on Cigi’s work on behalf of farmers and included a variety of commercial product samples from domestic and international customers using Canadian field crops as well as examples of products made in Cigi’s facilities. Visitors were offered samples of instant noodles processed with CWRS to take home.

Ag in the CityCigi participated in Ag in the City in Winnipeg, March 16-19, 2012 with an exhibit that focused on Cigi’s work with field crops from a consumer perspective. A hand mill was set up so visitors could mill various crops including hard and soft wheat and lentils.

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Communications Activities

Cigi PromotionA branding strategy focusing on three brand values: knowledge, expertise and Canadian experience was introduced in September 2011. The strategy developed by Cigi communications staff included the introduction of a Cigi tag line: ‘Creating Opportunities for Canada’s Field Crops’ and an update to the Cigi logo to give it a more contemporary look while still retaining some of the elements from the previous logo which has become a familiar symbol to Cigi participants and industry members worldwide. The new logo was transitioned onto Cigi materials.

Two issues of ‘Cigi.ca,’ which highlights Cigi activities related to projects, innovation, programs and customer support, were published on the Cigi web site and also distributed via email to over 4,000 domestic and international industry members, including past program participants.

Cigi’s new web site launched in March 2012 is designed to focus on Cigi’s work with Canadian field crops, providing the opportunity for staff to blog about their activities and site visitors to comment on individual posts. It also is used to promote Cigi’s upcoming programs and its training, technical and testing expertise.

Media CoverageDuring 2011-12, Cigi received continuous press coverage from print, broadcast and online media outlets. Subjects included work conducted on grains and pulses, biofuels, Ontario wheat, profiles on training capabilities and Cigi facilities, programs, Cigi’s role after the end of the CWB single-desk monopoly, participation at agricultural events, and soybean and wheat missions overseas (international stories). Cigi was covered by media outlets such as the Western Producer, Manitoba Co-operator, Golden West Radio, CBC Radio (French), Portage Online, Country Guide, Ontario Farmer, Marketwatch-Wall Street Journal, Winnipeg Free Press, Crops Guide, The Furrow, World Grain, World Grain Biofuels Business Quarterly, Grainews, Saskatoon Star Phoenix, and The Daily Star (Bangladesh) in addition to several smaller rural and online sources. Articles submitted by Cigi were also published in newsletters for the Canadian Agri-Food Policy Institute and Winter Cereals Canada.

The Cigi logo has evolved since Cigi began in 1972. The most recent logo, left, was created in 2011 as part of the Cigi branding strategy.

(1972-83)

(1983-90)

(1990-2011)

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During 2011-12, 36 international and domestic groups totalling 361 people toured Cigi. They included producers, post-secondary students, and representatives from governments, universities, a bank, a professional association, producer and commodity organizations, and grain and food processing companies. International representatives were from countries that included Argentina, Australia, Bangladesh, China, Germany, India, Japan, Norway, and the U.S. Cigi also had 89 visitors from Australia, Canada, China, India, Japan, Germany, Lesotho, Sri Lanka, the Netherlands, Switzerland, U.K. and the U.S. Representation included agribusiness, millers, universities, industry organizations, an equipment manufacturer, governments, and media.

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A group of students from Assiniboine Community College, Brandon MB, visited Cigi, February 14, 2012

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34 40 and Forward / Cigi Annual Report 2011-2012

During 2011-2012, Cigi staff were active in the following committees/organizations:

Agriculture and Agri-Food Canada (AAFC)Industry Value Chain Roundtables for: • Pulses • Special Crops

American Association of Cereal Chemists International (AACCI): • Approved Methods Technical Committee • Asian Products Technical Committee • Bread Baking Methods Committee • Enhancement Review Committee • Methods for Grain and Flour Testing Committee • Physical Testing Methods Committee • Pasta Products Analysis Committee • Pulse and Legume Committee

Barley Development Council

Canola Council of Canada Utilization Committee

Flour Fortification Initiative

FOODTECH Canada, Board of Directors

International Association of Operative Millers (IAOM): • Education Committee • Global Strategies Committee

Manitoba Food Development Centre Advisory Board

Manitoba Institute of Agrologists

Ontario Cereal Crop Committee, Quality Subcommittee

Western Canadian Feed Innovation Network, Advisory Board

Prairie Grains Development Committee for: • Oats and Barley • Pulses and Special Crops • Wheat, Rye and Triticale

Standards Council of Canada, Canadian Advisory Committee onthe International Organization for Standardization

University of Saskatchewan Research Chair in Feed Processing, Advisory Board

2012 Western Nutrition Conference Organizing Committee

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Deloitte & Touche LLP, an independent firm of auditors appointed by Cigi’s Board of Directors, has audited the statement of financial position of the Canadian International Grains Institute as at March 31, 2012 and the statements begin on page 40.

Cigi’s operating expenses were partially funded by Agriculture and Agri-Food Canada up to 75 percent of eligible expenses as defined under the AgriMarketing Program to a maximum of $3,790,922. The Canadian Wheat Board provided $2,106,664 in funding. Additional contributions and support were provided by other sectors of the agriculture industry.

Revenue from operations totaled $8,572,690 and expenses totaled $7,886,580 resulting in a surplus of $686,110 for the 2011-12 fiscal year. This operating surplus is included in the Statement of Changes in Net Assets. The opening deficiency balance of $488,485 at March 31, 2011, when combined with the results of operations and purchase of capital assets as detailed on page 41, produced a net asset surplus of $197,625 as at March 31, 2012.

Total revenue for 2011-12 increased $318,861 or 3.9 percent from the previous year. The majority of the increase was attributed to contributions from Agriculture and Agri-Food Canada which increased $350,597 or 10.2 percent over the previous year. Sundry revenue rose $238,828 compared to 2010-11 on increased earnings of $108,541 from fee for service activities and higher project revenue of $159,112. These positive changes were offset to some extent by decreases in course registration fees and in-kind contributions of $140,586 and $108,500 respectively, as well as lower contributions of $51,613 from Agriculture and Agri-Food Canada toward expenses incurred by the Canadian Soybean Council Agri-Marketing Program administered by the Institute.

Total expenses for 2011-12 decreased $121,001 or approximately 1.5 percent from the previous year. The majority of the declines occurred in program costs and technical marketing support which recorded reductions of $182,281 and $108,500 respectively. Salaries and benefits increased $148,994 over the previous year. The remaining expense accounts had a net increase in costs of $20,786.

The decrease in program costs was due in large part to a reduction in Canadian Wheat Board program expenditures of $38,770, a decline of $110,389 in expenses related to programs and activities undertaken on behalf of the Canadian Soybean Council and a net reduction in other program expenses of $33,122. The decrease in marketing support expense was due to a decline in number of industry presentations made to program participants in 2011-12. The increase in salaries and benefit costs in 2011-12 was due to a number of factors which included severance and retiring allowances in the amount of $54,139 and merit, pay equity adjustments and a special staff recognition payment that together totaled approximately $94,855.

Capital purchases totaled $179,549 in 2011-12. Of this amount $147,137 was funded by the Canadian Wheat Board and $27,763 by Western Economic Diversification Canada.

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The accompanying financial statements of the Canadian International Grains Institute and all information in this annual report are the responsibility of the Institute’s management and have been reviewed and approved by the Board of Directors.

The financial statements have been prepared in accordance with Canadian generally accepted accounting principles. Financial information presented elsewhere in the annual report is consistent with that contained in the financial statements.

In order to meet its responsibility and ensure integrity of financial reporting, management maintains financial and management control systems and practices designed to provide reasonable assurance that transactions are authorized, assets are safeguarded and proper records are maintained.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Board exercises this responsibility by meeting with management and external auditors on a regular basis.

Deloitte & Touche LLP, an independent firm of auditors appointed by the Board of Directors, is responsible for auditing the transactions and financial statements of the corporation and for issuing their report as follows.

Earl Geddes Larry NentwigExecutive Director Chief Financial Officer Canadian International Grains Institute Canadian International Grains Institute

June 25, 2012

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To the Directors ofCanadian International Grains Institute

We have audited the accompanying financial statements of Canadian International Grains Institute, which comprise the statement of financial position as at March 31, 2012, and the statements of operations, changes in net assets, and cash flows for the year then ended, and the notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether 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 auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control 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 accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Canadian International Grains Institute as at March 31, 2012 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered Accountants

June 5, 2012Winnipeg, Manitoba

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Winnipeg MB R3C 3Z3Canada

Tel: (204) 942-0051Fax: (204) 947-9390

www.deloitte.ca

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Statement of Changes in Net Assests / 41

Statement of Financial Position / 42

Statement of Cash Flows / 43

Notes to the Financial Statements / 44-53

Schedules / 54-56

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Canadian International Grains InstituteStatement of OperationsYear Ended March 31, 2012

2012 2011 REVENUE Agriculture and Agri-Food Canada $ 3,790,922 $ 3,440,325 Agriculture and Agri-Food Canada - Soybeans 85,080 136,693 Canadian Wheat Board (Note 12) 2,106,664 2,166,666 Technical marketing support - in kind (Schedule 1) 473,500 582,000 Course registration fees 91,380 231,966 Program specific revenue 418,726 354,173 Sundry (Schedule 2) 1,112,674 873,846 Amortization of deferred contributions 493,744 468,160 8,572,690 8,253,829 EXPENSES Salaries and benefits (Schedule 3) 3,225,365 3,076,371 Office and administration (Schedule 4) 581,215 598,755 Occupancy 638,686 632,565 Technical marketing support - in kind (Schedule 1) 473,500 582,000 Programs (Schedule 5) 2,309,584 2,491,865 Other project expenditures 145,145 134,721 Amortization of fixed assets 513,085 491,304 7,886,580 8,007,581 EXCESS OF REVENUE OVER EXPENSES $ 686,110 $ 246,248

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Canadian International Grains InstituteStatement of Changes in Net AssestsYear Ended March 31, 2012 2012 2011 Invested in Unrestricted Fixed Assets Total Total NET ASSETS (DEFICIT), BEGINNING OF YEAR $ (566,363) $ 77,878 $ (488,485) $ (734,733)EXCESS OF REVENUE OVER EXPENSES (EXPENSES OVER REVENUE) 705,451 (19,341) 686,110 246,248INVESTMENT IN FIXED ASSETS (Note 7) (4,650) 4,650 - - NET ASSETS (DEFICIT), END OF YEAR $ 134,438 $ 63,187 $ 197,625 $ (488,485)

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Canadian International Grains Institute Statement Of Financial Position March 31, 2012 2012 2011ASSETS Cash $ 1,358,774 $ 354,117 Accounts receivable 662,406 723,047Due from Agriculture and Agri-Food Canada 416,636 644,947Due from Canadian Wheat Board - 25,671 Deposits and prepaid expenses 26,173 57,551 2,463,989 1,805,333 INVESTMENTS (Note 3) 508,160 510,639 SEPARATION BENEFIT ASSET (Note 10) 3,900 6,900 FIXED ASSETS (Note 5) 2,579,698 2,913,234 $ 5,555,747 $ 5,236,106 LIABILITIES CURRENT Accounts payable and accrued liabilities $ 562,498 $ 738,185Unearned revenue 223,162 17,600 785,660 755,785 POST-RETIREMENT BENEFITS LIABILITY (Note 10) 2,055,951 2,098,151DEFERRED CONTRIBUTIONS (Note 6) 2,516,511 2,870,655 5,358,122 5,724,591COMMITMENTS (Note 9)

NET ASSETS (DEFICIT) Invested in fixed assets (Note 7) 63,187 77,878 Unrestricted 134,438 (566,363) 197,625 (488,485) $ 5,555,747 $ 5,236,106 APPROVED BY THE BOARD

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Canadian International Grains Institute Statement Of Cash Flows Year Ended March 31, 2012

2012 2011CASH FLOWS FROM OPERATING ACTIVITIES Excess of revenue over expenses for the year $ 686,110 $ 246,248ITEMS NOT AFFECTING CASH Post retirements benefits expense (42,200) (61,500)Recovery (provision) for separation benefits 3,000 (48,163) Amortization of fixed assets 513,085 491,304 Amortization of deferred contributions (493,744) (468,160)Accrued investment interest 2,479 (10,639)Technical marketing support - in kind revenue (473,500) (582,000)Technical marketing support - in kind expense 473,500 582,000 668,730 149,090 CHANGES IN NON-CASH WORKING CAPITAL ITEMS 375,876 (452,880) 1,044,606 (303,790)CASH FLOWS FROM FINANCING ACTIVITY Deferred contributions received 139,600 948,949 CASH FLOWS USED IN INVESTING ACTIVITIES Purchases of fixed assets (179,549) (913,650)Purchases of investments - (500,000) (179,549) (1,413,650) NET INCREASE (DECREASE) IN CASH 1,004,657 (768,491) CASH POSITION, BEGINNING OF YEAR 354,117 1,122,608 CASH POSITION, END OF YEAR $ 1,358,774 $ 354,117

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Canadian International Grains Institute Notes To The Financial Statements March 31, 2012

1. Purpose Of The Organization

The Canadian International Grains Institute (the “Institute”) is a not-for-profit educational organization which functions in a market development role providing information about Canada's grain, oilseed, pulse and special crops industries to international and domestic participants. In addition, the organization provides technical information and support regarding the proper utilization of Canadian grains, oilseeds, pulse, special crops and their products. The Institute was incorporated, on the recommendation of the Canadian Wheat Board and Canadian Grain Commission, on July 24, 1972 as a corporation without share capital under the Canada Business Corporations Act. As a not-for-profit organization it holds a tax exempt status under the Income Tax Act.

2. Significant Accounting Policies

The Institute has elected to use the exemption provided by the Canadian Institute of Chartered Accountants (“CICA”) permitting not for profit organizations not to apply Sections 3862 and 3863 of the CICA Handbook which would otherwise have applied to the financial statements of the Institute for the year ended March 31, 2012. The Institute applies the requirements of Section 3861 of the CICA Handbook. The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include the following significant accounting policies:

a) Revenue recognitionThe Institute follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonable assured. Course fees are recognized as revenue when the courses are held.

b) Fixed assets

Purchased fixed assets are recorded at acquisition cost. Contributed fixed assets are recorded at fair value at the date of contribution. Amortization is provided on a straight-line basis over the assets’ estimated useful lives as disclosed in Note 5.

c) SuppliesThe cost of all supplies, program materials and textbooks are expensed in the year of acquisition.

d) Contributed servicesContributed services are recorded at their estimated fair value. Contributed services consist of technical marketing support – in kind.

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e) Foreign currency translationForeign currency accounts are translated into Canadian dollars on the following basis:

Monetary assets and liabilities are translated at the exchange rate in effect at the statement of financial position date.

Non-monetary assets and liabilities and revenue and expenses are translated at the exchange rate in effect at the original transaction date. Exchange gains or losses on translation of foreign currency balances are included in results of operations.

f) Financial instrumentsFinancial assets and financial liabilities are initially recognized at fair value and their subsequent measurement is dependent on their classification as described below. Their classification depends on the purpose, for which the financial instruments were acquired or issued, their characteristics and the Institute’s designation of such instruments.

Classification

Cash Held for tradingAccounts receivable Loans and receivablesDue from Agriculture and Agri-Food Canada Loans and receivablesDue from Canadian Wheat Board Loans and receivablesInvestments Held to maturityAccounts payable and accrued liabilities Other liabilities

Held for trading

Held for trading financial assets are financial assets typically acquired for resale prior to maturity or that are designated as held for trading. They are measured at fair value at the balance sheet date. Fair value fluctuations including interest earned, interest accrued, gains and losses realized on disposal and unrealized gains and losses are included in sundry revenue.

Financial liabilities designated as held for trading are those non-derivative financial liabilities that the Institute elects to designate on initial recognition as instruments that it will measure at fair value through other interest expense. These are accounted for in the same manner as held for trading assets.

Held-to-maturity

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and a fixed maturity, other than loans and receivables that the Institute has the positive intention and ability to hold to maturity. These financial assets are measured at amortized cost using the effective interest method.

46 40 and Forward / Cigi Annual Report 2011-2012

Loans and receivables

Loans and receivables are accounted for at amortized cost using the effective interest method.

Other liabilities

Other liabilities are recorded at amortized cost using the effective interest method and include all financial liabilities, other than derivative instruments.

Effective interest method

The Institute uses the effective interest method to recognize interest income or expense which includes transaction costs or fees, premiums or discounts earned or incurred for financial instruments.

Fair Value

The fair value of the accounts receivable, due from Agriculture and Agri-Food Canada, and due from Canadian Wheat Board and accounts payable and accrued liabilities approximate their carrying values due to the short term to maturity. The fair value of the investment is $508,307 (2011 - $510,639).

g) Employee future benefitsPension plan

The Institute, together with other related and unrelated parties, is part of a defined benefit pension plan (Public Service Superannuation Act pension plan) that satisfies the definition of a multi-employer plan. The costs of the benefit plan are not allocated to the individual entities within the group. As a result, individual entities within the group are not able to identify their share of the underlying assets and liabilities. Therefore, the plan is accounted for as a defined contribution plan in accordance with the requirements of the Canadian Institute of Chartered Accountants’ Handbook section 3461.

Post-retirement benefits The post-retirement benefits liability is actuarially determined using the projected benefits method prorated on service and best estimates assumptions. Plan assets are valued at fair value. The excess of any cumulative actuarial gain (loss) over 10% of the greater of the benefit obligation and the fair value of plan assets is deferred and amortized over the average remaining service period of active employees.

h) Use of estimatesThe preparation of the financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenue and expenses during the reporting period. Significant estimates include the liability for separation benefits and post-retirement benefits and the useful lives of fixed assets. Actual results could differ from these estimates.

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i) Future accounting changes In September 2010, the Accounting Standards Board approved the accounting framework choices for not-for-profit organizations in the private sector. Effective for fiscal years beginning on January 1, 2012, not-for-profit organizations in the private sector will have to choose between International Financial Reporting Standards (Part of the CICA Handbook) and Accounting Standards for Not-for-Profit Organizations (Part III of the CICA Handbook), whichever suits them best. The Institute will adopt Accounting Standards for Not-for-Profit Organizations for its fiscal year beginning on April 1, 2012; however, the impact of this transition has not yet been determined.

3. Investments Investments include a 36 month cashable GIC in the amount of $500,000, issued on October 22, 2010 and maturing on October 22, 2013, plus accrued interest. The interest rate increases on October 23, 2012 from 1.25% to 1.40%. The Institute currently does not intend to cash the GIC within the next 12 months and so it has been recorded as a long-term asset as at March 31, 2012.

4. Funding Of Operations

The Institute's operating expenses are funded by Agriculture and Agri-Food Canada up to $4,020,758 over the next year.

48 40 and Forward / Cigi Annual Report 2011-2012

5. Fixed Assets

2012 2011

Accumulated Net Book Net Book Cost Amortization Value Value Term Building modifications $ 340,886 $ 336,238 $ 4,648 $ - 10 yearsPilot flour mill 2,141,600 1,382,346 759,254 859,929 5-20 yearsPilot bakery 389,032 235,364 153,668 180,534 5-10 yearsQuality control laboratory 797,361 567,462 229,899 287,631 5-10 yearsPilot pasta plant 1,782,542 1,020,494 762,048 861,980 10-20 yearsTest baking laboratory 247,357 191,823 55,534 74,576 5-10 yearsPulse processing plant 623,732 341,823 281,909 333,852 10 yearsAudio-visual equipment 263,171 185,165 78,006 24,012 5 yearsOffice furniture 427,455 357,025 70,430 70,614 10 yearsOffice equipment 223,560 181,105 42,455 12,704 5 yearsPilot noodle plant 1,117,918 1,000,837 117,081 172,331 5-20 yearsBiodiesel plant 74,253 49,487 24,766 35,071 3-10 years

$ 8,428,867 $ 5,849,169 $ 2,579,698 $ 2,913,234

6. Deferred Contributions

Deferred contributions represent unamortized externally restricted contributions received for the acquisition of fixed assets. Changes in the deferred contributions balance are as follows:

2012 2011

Purchased Future Fixed Fixed Asset Assets Purchases Total Total

Balance, beginning of year $ 2,835,356 $ 35,299 $ 2,870,655 $ 2,389,866Current year contributions 174,899 (35,299) 139,600 948,949Amortization (493,744) - (493,744) (468,160)BALANCE, END OF YEAR $ 2,516,511 $ - $ 2,516,511 $ 2,870,655

40 and Forward / Cigi Annual Report 2011-2012 49

7. Investment In Fixed Assets

a) Investment in fixed assets is calculated as follows: 2012 2011

Fixed assets $ 2,579,698 $ 2,913,234Amounts financed bydeferred contributions (2,516,511) (2,835,356) $ 63,187 $ 77,878

b) Change in net assets invested in fixed assets is calculated as follows:

2012 2011

NET CHANGE IN FIXED ASSETSAmortization of deferred contributionsrelated to fixed assets $ 493,744 $ 468,160Amortization of fixed assets (513,085) (491,304) $ (19,341) $ (23,144)

c) Net change in investment in fixed assets 2012 2011

Purchase of fixed assets $ 179,549 $ 913,650Future purchase of fixed assets (35,299) 35,299 Increase in deferred contributions (139,600) (948,949) $ 4,650 $ -

50 40 and Forward / Cigi Annual Report 2011-2012

8. Related Party Transactions

During the year, the Institute entered into transactions with certain related parties. The related parties, the nature of the relationship and the nature of those transactions which are not separately disclosed elsewhere in the financial statements are as follows:

i) Transactions with the Canadian Wheat Board, a principal funding entity which exercises significant influence over the operations of the Institute include:

2012 2011

Registration fees $ 14,400 $ 25,300Canadian participant cost recoveries 23,399 21,097Sundry revenue 501 5,729Program expense reimbursements (430,193) (333,721)Ceridian Lifeworks Premiums (1,365) -Reimburse Insurance/Payroll expense - (4,200)Human resource services - (1,392) ii) Transactions with Agriculture and Agri-Food Canada, a principal funding entity which exercises significant influence over the operations of the Institute include: 2012 2011

Registration fees $ 12,000 $ 11,110Canadian participant cost recovery 14,043 1,494Staff travel expense recovery - 1,588

iii) Transactions with the Canadian Grain Commission, a department of the Government of Canada, reporting to Parliament through the Minister of Agriculture and Agri-Food: 2012 2011

Registration fees $ 13,200 $ 27,500Canadian participant cost recovery 4,018 2,613Commissionaire’s service (8,008) (10,426)Director salary recovery - 3,530Miscellaneous expense recoveries - 12,116 Rebate – Embassy - (1,354)

All transactions were conducted at fair value at the time of the transaction.

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9. Commitments

The Institute leases space for their operations under an operating lease that expires March 31, 2013. The annual operating lease payments during the next year are $571,992.

10. Employee Future Benefits

Pension plan

The Institute’s total plan expense and payments related to the pension plan was $333,371 (2011 – $325,879). These contributions represent the total pension obligations of the Institute. The Institute is not required under present legislation to make contributions with respect to any actuarial deficiencies of the plan.

Separation benefits

In accordance with the Institute's personnel policy, separation benefits which include certain vested sick leave benefits for employees still on staff, are accrued based on actuarial estimates. The current portion of the liability for separation benefits is included in accounts payable and accrued liabilities. 2012 2011 Accrued benefit obligation $ (527,000) $ (466,000)Fair value of plan assets 457,000 449,000Funded status – plan deficit (70,000) (17,000)Balance of unamortized amounts 73,900 23,900Separation Benefits Asset $ 3,900 $ 6,900

The following significant actuarial assumptions adopted in measuring the Institute’s accrued benefit obligation are as follows:

2012 2011

Discount rate 4.75% 5.50%Expected long-term rate of return on plan assets 3.75% 3.75%Rate of compensation increase 4.50% 4.50%

2012 2011

Other information about the Institute’s post-retirement benefits plan:Benefits paid $ 30,000 $ - Employer contributions 38,000 96,000Employee contributions - -

52 40 and Forward / Cigi Annual Report 2011-2012

Post-retirement benefits

The Institute’s post-retirement benefits plan includes the payment of health and insurance premiums for employees after retirement.

2012 2011

Accrued benefit obligation $ 1,497,300 $ 1,299,700 Fair value of plan assets - - Funded status – plan deficit 1,497,300 1,299,700Balance of unamortized amounts 558,651 798,451Post Retirement Benefits Liability $ 2,055,951 $ 2,098,151

The following significant actuarial assumptions adopted in measuring the Institute’s accrued benefit obligation are as follows:

2012 2011

Discount rate 4.75% 5.50%Expected long-term rate of return on plan assets 0.00% 0.00%Rate of compensation increase 4.50% 4.50% 2012 2011

Other information about the Institute’s post-retirement benefits plan:Benefits paid $ 38,000 $ 38,000Employer contributions 38,000 38,000Employee contributions - -

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11. Capital Management

The Institute relies on funding from Agriculture and Agri-Food Canada and the Canadian Wheat Board, as well as program and sundry revenue to finance its operations. The funds available are allocated to the various programs based on the priorities identified by the Board of Directors.

Capital management objectives, policies and procedures are unchanged from the prior year.

12. Canadian Wheat Board

The passage of Bill C18 on November 28, 2011 removed the Canadian Wheat Board’s marketing monopoly on wheat and durum effective August 1, 2012. As a result of this change, the CWB advised the Institute that effective April 1, 2012 it would no longer be providing the level of committed funding that it had in previous years.

However, in place of this revenue source, the Government of Canada is implementing a farmer funded check-off in the amount of $.15 per tonne on all wheat and durum delivered to licensed facilities in Western Canada beginning August 1, 2012. The check-off should equate to roughly the same level of funding as previously received from the CWB.

While this will leave a revenue short fall of seven months’ income in the 2012-13 business year, it is management’s belief that the check-off together with the Institute’s other sources of revenue will be sufficient to meet operating costs.

13. Comparative FiguresCertain comparative figures have been reclassified to conform to the current year’s presentation.

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Canadian International Grains Institute Schedules Year Ended March 31, 2012 Schedule 1Technical Marketing Support - in kind

2012 2011INDUSTRY SUPPORT Canadian Wheat Board $ 142,500 $ 283,500 Canadian Malting Barley Technical Centre 9,000 33,000 Pulse Canada 3,000 1,000 Canola Council of Canada 2,500 5,000Other 205,000 99,500 $ 362,000 $ 422,000 GOVERNMENT SUPPORT Canadian Grain Commission $ 93,000 $ 142,500 Government of Canada 18,500 17,500 111,500 160,000 $ 473,500 $ 582,000

Schedule 2

Sundry Revenue

2012 2011

Grants $ 11,500 $ 15,446 Interest 5,909 16,039 Mill product recoveries 691 864 Fee for service revenue 259,118 150,577 Staff travel 935 15,371 Miscellaneous revenue - 140 Other project revenue 834,521 675,409 $ 1,112,674 $ 873,846

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Schedule 3Salaries and Benefits Expenses

2012 2011

Salaries $ 2,622,040 $ 2,505,426Staff benefits 603,325 570,945 $ 3,225,365 $ 3,076,371

Schedule 4Office and Administration Expenses

2012 2011

Advertising $ 38,850 $ 36,242 Audit and legal 37,025 18,409 Books and subscriptions 2,414 2,848 Computer network 8,446 12,186 Computer software and upgrades 22,156 24,560 Consulting and professional fees 16,957 88,853 Equipment repair and maintenance 35,329 39,756 Freight and storage 47,487 34,578 General office 89,661 67,836 Graphics and photography 5,066 3,814 Hospitality 4,191 4,896 Insurance 37,216 35,105 Material and supplies 37,751 47,945Office supplies 15,192 11,136 Postage and courier 2,183 1,303 Printing 23,123 32,233 Professional dues and course registrations 68,341 45,222 Staff travel 52,048 58,576 Telephone and telecommunications 34,651 31,207 Translation 3,128 2,050 $ 581,215 $ 598,755

56 40 and Forward / Cigi Annual Report 2011-2012

Schedule 5

Programs

2012 2011

Participant support $ 2,315,640 $ 2,471,018 Other program (recoveries) expenses (6,056) 20,847 $ 2,309,584 $ 2,491,865

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