Total Cost

Agricultural Research and Extension Council of Alberta
Alberta Barley Commission
Alberta Beekeepers
Alberta Canola Producers Commission
Alberta Natural Health Agricultural Network
Alberta Pulse Growers Commission
Alberta Safflower Growers Association
Alberta Soft Wheat Producers Commission
Alberta Sugar Beet Growers
Alberta Winter Wheat Producers Commission
Council of Alberta Horticulture Industries
Irrigated Alfalfa Seed Producers Association
Prairie Oat Growers Association
Vision:
A Globally Competitive Crop Industry in Alberta
Mission:
ACIDF will provide resources to increase the competitiveness of
Alberta farmers through leadership in industry research,
innovation and marketing initiatives.
Cover Theme: Flowers and Fruit.
Photo courtesy of Lee Townsend
Top left: Bonnie Spragg (Chairperson), Kequan Xi (Field Crop
Development Centre), Craig Shaw (board member), Peter Pepneck
(Western Grain Research Foundation).
Centre row: Connie Phillips, (board member) Tom Machacek
(Secretary/Treasurer) , Doug Walkey (Executive Director), George
Yeaman (board member), Alan Hall (new initiatives), Clarence
Assenheimer (Vice Chairman), Murray Hartman (board member)
2
1.
Signatory Organizations
Vision and Mission
2.
Board Members and Staff
3.
Table of Contents
Table of Figures
4.
Chairperson’s Letter
6.
Strategic Development
7.
Report on Activities
 Fund 2001 – Industry Development Initiative p 9.
 Biopolymer Development Initiative p 12.
 Fund 2005 – Three Priorities That Became Four p 13.
 Fund 2006 – Crop Research & Development Initiative p 18
 Fund 2008 - Competitive Crop Production Initiative p 20
 Competitiveness Initiative p 20
 Triticale Bio-refinery Initiative (CTBI) p 21
 Barley/Triticale Royalty Initiative p 22
10.
Projects Approve Summary
16.
Management Discussion and Analysis
19.
Investor's Commentary on the Market Environment
7.
Table 1: Business Position Summary to March 31 2009 (Simplified)
8.
Table 2: Analysis by ACIDF Goal (inception to 2008/9)
10. Table 3: Industry Matching Summary by Initiative
12. Table 4: Biopolymer Initiative Simplified Statement
14. Table 5: 2008/2009 Approved Projects
16. Table 6: Fund 2005 Feed Grain Quality & Supply Initiative - Investment Summary
17. Table 7: Automation Investments by Industry to Date
19. Table 8: Fund 2006 Matching By Source (since inception)
Table 9: Fund 2006 Matching by Crop (since inception)
21. Table 10: Competitiveness Initiative Final Summary
22. Table 11: Royalty Initiative Commitments to Date
24. Table 12: Investment Position by Vehicle Class (3/31/09)
8.
Figure 1: Past and Future Disbursements by Initiative
Figure 2: Approved Grants by Crop Sector Since Inception
9.
Figure 3: Fund 2001 Investments by Company Goal
25. Figure 4: Total Project Investments by Source (%)
3
FLOWERS AND FRUIT
In the cycle of plants and crops we expect seeds to
germinate and sprout, for roots to grow and for
strong plants to be established. As farmers we do
many things to make sure we establish strong
plants. However, it is not the strong plants in and
of themselves that make us money. We have to see
flowers and fruit; it is generally the seed and the
fruit that we harvest. If a plant continues simply to
be vegetative we as farmers wouldn't need our
combine harvesters.
As an organisation, ACIDF cannot be satisfied simply with starting research or
committing money to good programs. We need to monitor those programs, make sure
things are growing right, and to see the fruit or the results of those investments. We have
spent a large amount of time in the past year assessing our harvest from 2001 investments
and sharing the story of the harvest with interested parties. Every signatory has received
that story over the past few months in the Fund 2001 Summation Report.
The investments that generate the strongest returns then need to be replanted. We don't
want to drop the work that has been done in promising areas; rather we want to build on
those initial investments with new research. ACIDF is using this philosophy as a tool for
planning and allocating its resources. We have just received the $5.5 million that was
announced by Minister Groeneveld last year, we have 50% of Fund 2006 or $9 million
left to commit, and we have $4 million to invest across our 2005 initiatives. As we look to
invest these funds; we are assessing a number of different phase 2 projects to increase the
benefits of the initial investments. We want to make sure we bring efforts in near infrared
reflectance spectroscopy (NIRS), nitrogen use efficiency, and in bio-products to fruition
and to the point of a beneficial harvest for the Alberta Crop Industry.
4
We are excited as a board to have this new Fund 2008 to work with over the next few
years. It does not require the 50% matching requirement that Fund 2006 did. Though
matching is a good indicator of industry priority. This will allow us to meet the research
needs of smaller crops and crop industries in the areas of production and protection; with
the goal of bringing direct producer benefit in this research.
A highlight of the past year has been the implementation and funding of food processing
automation in the province. Although we have not yet allocated the entire fund, we have
already seen new ties being created between crop industry and crop food processing within
the province. As board and staff, we are seeing new possibilities in bringing benefits to the
crop industry by funding automation at the processing level.
Board Rotation
We are becoming accustomed to changing one board member per year. The ACIDF board
is functioning well with a five year term for directors which provides continuity of
leadership in our work. This does require ACIDF staff to have a continual role in board
training and assisting new directors in their positions. My term (Bonnie Spragg) as forage
sector director is complete this year. A new term for five years begins.
Signatory Rotation
ACIDF changes as the industry landscape changes. We welcomed new signatories in this
fiscal year with the addition of Landscape Alberta Nursery Trades Association (LANTA),
Potato Growers of Alberta (PGA) and Alberta Greenhouse Growers (AGGA). While these
organisations have all been represented in the past though the umbrella organisation of the
Council of Alberta Horticulture Industries (CAHI), we welcome them now as individual
members. We want to continue to represent the Alberta Crop sector and this will mean
changes over time to our list of signatory organisations.
Thank you
As chairperson of ACIDF I would like to thank the staff of ACIDF for taking our plans and
ideas and working to bring them to fruition. We want to recognize Doug, Alan and Coleen
for all the work and time they have committed to bringing benefit to the crop industry.
Bonnie Spragg, Chairperson
South American Store owner and Bonnie Spragg discuss consumer buying patterns.
5
The year 2008/9 has been a year of transition across Alberta's agriculture industry. Two major
changes in the industry investment structure were the Horner review of government-based
research funding and the creation of the Alberta Livestock and Meat Agency. While these had
lesser effects on crop sector activities, their development did have its impacts on information
flows and some research agency participation.
ACIDF, having a firm foundation in formal strategy development events over the past three
years, has focussed on individual and organization-to-organization information collection.
ACIDF staff targeted a minimum of three contacts with each of the signatory organizations and
other key industry groups, a target that was exceeded in many cases.
The priority areas for investment have been consistent across the crop sectors. Priorities in
common are:
 Genetic improvements for yield and production stability



Development of water and nitrogen use efficiency
Disease and pest management, including integrated crop management
Weed and agronomy technologies, including minor use registration for some crops
This list of priorities is narrower than past years, with the development of value-added and
industrial products notably absent from the list. This is not an indication that these topics are no
longer important. Rather it is an indication that significant investment has been made in these
areas, and that work is currently underway that engages most of the capacity in the province.
Continuity of Development
A growing concern in strategic discussions is how to continue research and development efforts
that have been initiated. Major investments have been made in NIRS (Near Infrared Reflectance
Spectroscopy) and NUE (Nitrogen Use Efficiency) technologies. Both are good beginnings to
important work, yet both will need future support to provide the greatest benefit to Alberta.
Similarly, the entire investments in crop genetics for feed grain energy, a major backbone of the
Fund 2005 investments, are long term programs that cannot survive on five-year money
support. Ultimately these beginnings will need continual support through direct investments to
the research programs or to new investment into the industry development funds.
6
The major activities for ACIDF within fiscal 2008/9 are defined within the five largest
funds. Table 1, developed in advance of the annual audit, is designed to show cash flow
and residual holdings for each envelope of investment ACIDF controls.
Table 1: Business Position Summary to March 31 2009 (Simplified)
Fund
2001
Scale-up
Fund 2005
Fund 2006
Fund 2008
Company
11,400,000
2,000,000
23,000,000
18,000,000
5,550,833
59,950,833
2006/7
2007/8
1,556,826
209,645
163,703
96,833
0
702,593
756,086
931,160
0
0
0
540219
0
0
1
2
2008/9
41,836.37
3472
26,074
2,868
32,744
32181.18
818,276.65
521,421.54
0.00
1,560,298
938,312
922,658
1,600,958
1,413,716
13,468,843
2,097,339
26,208,116
19,061,641
5,550,836
66,386,775
4,417,166
2,849,815
1,727,281
1,179,580
708,918
0
926,344
666,446
0
32,181
0
25,000
1,337,411
3,055,069
2,336,157
0
0
0
1,351,130
758,149
0
0
0
0
0
4,417,166
3,801,159
3,731,138
5,585,779
3,835,405
10,882,760
1,624,971
6,753,637
2,109,279
0
21,370,647
911,880
104,558
118,004
85,334
130,565
0
1,084
4,789
680
10,687
0
217,996
385,313
319,214
191,530
0
0
0
128,940
192,927
0
0
0
0
0
911,880
323,638
508,106
534,168
525,709
1,350,341
17,240
1,114,053
321,867
0
2,803,501
0 13,605,596
7,582,619
30,000
22,504,643
4,734,830
9,047,875
5,520,836
19,707,983
2009/10
2011/12
Initial Grant
Investme nt Income
Pre 2005/6
2005/6
Total Resources
Spent on projects
Pre 2005/6
2005/6
2006/7
2007/8
2008/9
Total Disbursed
Operating Costs
Pre 2005/6
2005/6
2006/7
2007/8
2008/9
Total expenditures
Outstanding Commitment
Uncommitted resources
Completion date
1,286,428
-50,686
2007
455,129
2009/10
2011/12
March 2014
7
Figure 1 : Past and Future Disbursements by Initiative
Figure 2: Approved Grants by Crop Sector Since Inception
34%
17%
2%
5%
3%
39%
Cereals
Forage
Horticulture
Oilseeds
Special Crops
Overarching
Projects Funded = 224
Projects Funded = 224
Table 2: Analysis by ACIDF Goal (inception to 2008/9)
$ Total Cost
$ Awarded
Goal
1
Manage risk
21,395,615
50.7%
83,000,210 52.6%
2
New business/markets
9,632,784
22.8%
41,174,928 26.1%
3
Diversification
3,941,560
9.3%
16,565,724 10.5%
4
Technology Thru RD&C
5,625,581
13.3%
11,275,936
7.1%
5
Consumer confidence
1,589,691
3.8%
5,710,742
3.6%
42,185,231
157,727,540
8
Fund 2001 – Industry Development Initiative
Fund 2001 was officially fully committed in 2007. ACIDF has published “Blue Sky –
Green Fields – Healthy People” to celebrate the successful completion of the first initiative
entrusted to ACIDF. Rather than repeat the content of that book here, please contact the
ACIDF office or access the information directly from the website.
A Research-Proven Success
To quantify the success achieved with the Fund 2001 investment, ACIDF supported the
research project involving two Master of Science students from the faculty of Agriculture,
Life and Environmental Sciences. Under the expert guidance of Dr. Ellen Goddard, these
students were challenged to measure the value of research from Fund 2001 projects, and to
quantify that investment into the foreseeable future. This research was to be of publishable
quality, and to withstand the rigors of peer reviewed science.
The results of the study were a resounding success. Even as Fund 2001 was being closed,
the economic analysis showed the value of the returns to the investment was already
greater than the investment itself. Projections into the future shows this value will likely
continue to increase for 8 to 10 years, with benefits progressing into the future. ACIDF
extends its thanks to recent graduates James Benkie and Curtis Boyd for their hard work
and persistence, and wishes them well on their new careers.
An Initiative Winding Up
Though the final report has been tabled Fund 2001 will continue to appear in ACIDF
annual reporting for at least two more years. A number of the projects, through careful
management by the lead investigators, have come in under budget allowing creation of a
few additional, smaller projects. Those still remaining active will likely continue into 2010.
As per Ministry agreements, ACIDF will continue to report the financial status of this
initiative.
As of this writing Fund 2001 has approved 123 projects of which 92 are fully complete.
These projects have ranged from simple extension events through to the most basic of
sciences. The large bulk of investments have centered on applied research closely tied to
the established needs of crop producers.
Figure 3: Fund 2001 Investments by Company Goal
19%
11%
Increase capability of farmers to manage risk.
Develop new business and new markets.
7%
13%
50%
Increase diversification in the crop sector.
Adapt and develop new technology through
improved research, development and
commercialization capability.
Increase consumer confidence in food production.
9
FUND 2001 Analysis (inception to 2008/9)
Goal
1 Manage risk
2 New business/markets
3 Diversification
4 Technology Thru RD&C
5 Consumer confidence
$ Awarded
6,132,388
872,147
2,292,784
1,282,179
1,589,691
50.4%
7.2%
18.8%
10.5%
13.1%
Projects Funded = 123 Complete: 92
$ Total Cost
31,394,482
56.2%
2,369,773
4.2%
11,913,180
21.3%
4,457,199
8.0%
5,710,742
10.2%
12,169,188
55,845,375
Industry Matching
Industry matching of ACIDF investments was not a requirement of Fund 2001. Matching was
not specifically sought, yet has proven to be highly significant. Without doing an exhaustive
analysis there was approximately $4.77 million in direct industry matching using Fund 2006
rules and nearly $8.3 million in industry investment across the projects in total.
Table 3: Industry Matching Summary by Initiative
Awarded
Industry
Federal
Total
Unused
Industry
Unused
Federal
Fund 2006
9,691,898
9,338,047
314,762
9,652,809
2,222,751
115,808
Fund 2001
12,169,188
4,772,789
0
4,772,789
3,568,354 0
Scale Up
1,624,971
0
0
0
0
0
Bioproducts
(2005)
3,989,284
665,825
0
665,825
491,125
0
Environment
(2005)
4,188,000
203,000
0
203,000
992,540
0
Feed (2005) 10,171,530
1,605,200
0
1,605,200
253,975
0
Competitiveness
90,000
0
90,000
64,000
0
Royalty Fund 150,000
- Barley
0
0
0
0
0
Royalty Fund 75,000
- Triticale
0
0
0
0
0
95,360
10
Some Good Work From Fund 2001
Project: Managed Pasture Systems that Reduce Risk – 2002C031R
Lead: Dr V. Baron, AAFC, Lacombe
ACIDF Investment: $220,000 over 5 years
Partner: AARI
This project shows a modified grazing system can increase profitability and reduce risk to
cattle producers. Since the cattle industry is one of Alberta's largest, even small cost
advantages to producers can result in significant returns to the provincial economy.
Gross margins per hectare for meadow brome and alfalfa pastures using summerstockpiled
systems were 330% greater than those from conventional pastures, and tentimes larger than
for annual pastures.
So what is the value to the industry? Even if only 1% of calves were backgrounded with the
recommended system, the annual savings are estimated at $932,000. Given ACIDF's
original investment, the return on investment (ROI) is 323%.
Dr. Ampong-Nykaro’s test plots at CDCN
Some Good Work From Fund 2001
Project: Identification of development path to standardized natural health products from
Alberta-grown herbs Echinacea angustifolia and Rhodiola rosea 2005F131D
Lead: Dr. Susan Lutz
ACIDF Investment: $50,000 over 1 year
Partner: AAFRD, Alberta Natural Health Agricultural Network
This project looked into the possibilities of successfully growing natural health plants in
Alberta. The result was Rhodiola rosea which is known internationally for its adaptogen,
which helps the body to adapt to physical and psychological stress. In 2007 the Alberta
Rhodiola Rosea Growers Organization (ARRGO ) was formed by nine growers of
Rhodiola rosea. Today they have over 75 growers and are working on traceability, good
agricultural collection practices, guaranteeing a minimum standard of rosavin levels and
have attracted European interest in the marketplace.
11
Biopolymer Development Initiative
Known internally as the Scale-up initiative, the challenge was to establish a small-scale
biopolymer processing capacity in concert with the research initiatives in Alberta. The program
began as a $1 Million investment by the Minister of Agriculture and Rural Development and
linkages to the Alberta Lipid Utilization Program.
As announced in 2007-8 this scale-up equipment is now installed and functional. Control of the
unit is entrusted to a steering group and operations are under the control of the Bio-Technology
Division of the Ministry.
Canada Alberta Biopolymer Initiative
Through the Agriculture Policy Framework, ACIDF was given a second $1 million tranche of
funding to replenish the Biopolymer Development Initiative. With $2 million in total funding
available ACIDF was able to complete the installation, and some of the commissioning for this
project.
In 2008 ACIDF had this initiative audited to provide a milestone for the scale of development.
At that point this project was on budget albeit several years behind schedule. The delays are
well documented, and closely tied to the issues around the completion and functionality of AgriFood Discovery Place. ACIDF would like to thank the staff of the Bio-Technology Division for
their hard work and investment in bringing both building and scale of facility up to speed.
Table 4: Biopolymer Initiative Simplified Statement
Totals
Grants
2005
2006
Agriculture & Rural Dev.
Ag Policy Framework
Interest (estimated)
Revenue
$
$
1,000,000
1,000,000
97,339
2,097,339
Expenditures
2005
2006
2007
2008
Equipment
Equipment
$
Commissioning
Revenue
$
926,344
666,446
32,181
1,624,971
Remaining for investment
$
472,368
Asset: Biopolymer Equipment
March 31 2009.
$
1,592,790
As of fiscal year end this program still holds approximately $472,000. By agreement this money
remains tied to investment in the scale of facilities associated with bio-industrial research in
Alberta. The ACIDF board of directors has begun to collect priorities from industry and
proposals for possible investment. It is expected this initiative will be completely invested
within the coming physical year.
12
Fund 2005 – Three Priorities That Became Four
Originally $23 million Fund 2005 was divided into three separate areas of investment.
These areas were $5 million for bio-product development, $10 million to increase feed
grain energy production, and $8 million to work on manure and soil related issues.
All of these initiatives are well along in investment. ACIDF expects to complete the
committing of these resources within fiscal 2009/2010.
During 2008 the Environment and the Nutrient Management Initiative was reviewed, and
half of the original allocation was moved into the Automation Pilot Initiative. This change
was done to address the serious labour shortage issues within the agri-food processing
industry. This is the first time that ACIDF has had resources reallocated, and would like to
thank the Minister and his staff for their hard work ensuring that these investments are of
the greatest possible value to the crop industry.
2005 Bio-products Initiative
This initiative was to develop new products from existing crop components. It follows in a
long tradition of ACIDF investments in component research, mining for industrial
chemicals and bio-plastic developments. Of the original $5 million there is still
approximately $1.4 million remaining for investment.
The largest investment here has been program support for the University of Alberta's
Alberta Lipid Utilization Program. This program has been slow to develop and will be
undergoing revision in coming years. This is a partnership between the Alberta Canola
Producers Commission, AARI, ACIDF, and Bunge Inc. There a research advisory
committee to oversee the program directions.
Other investments in bio-products have focussed on industrial product development. The
major projects here have been through TTS Laboratories and Pildysh Technologies Ltd.
The former has been developing scale-up fibre processing facilities for the development of
new commercial products and has attracted significant support through AVAC Ltd as well.
Pildysh Technologies have developed both a lightweight structural concrete mix and land
stabilization matting from agricultural products.
Future investments are likely to partner with government agencies. Agriculture and Rural
Development through a grant from Advanced Education and Technology will be
developing an agricultural fibre scale-up capacity in Alberta. ACIDF is well positioned to
partner on the project level activities that will follow the new capacity.
2005 Feed Grain Quality & Supply Initiative
Originally $10 million, there is about $700,000 remaining in this initiative. This initiative
will be fully committed by May 2009. Focussed primarily on increasing livestock feed
energy per acre of crop produced, this initiative has invested heavily in crop genetics with
a smaller investment in crop production security issues.
There are three ways to increase energy production:
 Increase energy in each bushel at the same yield level


Increase yield at the same food energy level, and
Increase the amount of energy harvested from each bushel
13
Table 5: 2008/2009 Approved Projects
Initiative
Years File no.
Title
F2006
F2006
05Bio
F2006
F2001
Comp
F2006
F2006
F2006
05Feed
05Feed/F2006
F2006
Comp
RoyBly
05Feed
F2006
F2006
RoyTrit
RoyBly
F2006
F2006
F2006
F2006
05Env
F2008
F2006
F2006
F2006
F2001
F2006
F2006
05Feed
F2006/F2001
F2006
F2006
F2006
F2006
05Feed
3
4
2
1
1
1
1
3
3
5
4
4
1
5
4
3
3
5
5
3
4
3
3
3
1
2
3
2
3
2
3
3
2
2
2
3
1
2
2008C001R
2008F108R
2008C003R
2008C005D
2008C009D
2008C010C
2008C011D
2008C004D
2008C015D
2008C012R
2008C019R
2008C028R
2008C032D
2008C040Y
2008C043R
2008C044R
2008C017R
2008C041Y
2008C042Y
2009-06 CARP
2009-08 CARP
2009-19 CARP
2009C002R
2009C004R
2009C005D
2009F018R
2009F028R
2009F034R
2009F040R
2009F049R
2009F074R
2009F075R
2009F087R
2009F092R
2009F093R
2009F111R
2009F127R
2009F129R
Automation Projects File no.
2008C020A
2008C021A
2008C022A
2008C023A
2008C025A
2008C033A
2008C034A
2008C035A
2008C036A
2008C037A
2008C038A
2008C039A
2008C042A
2008C044A
2008C046A
2008C048A
2008C049A
SuperGro - Greenhouse trials and commercial applications
Oat grain factors that influence the extrusion processing of oat flour into expanded breakfast cereal foods
Alberta cereals as raw materials for antioxidant peptides production
Stuffed Potato Automated Shell Project
Comparing Potential Health Characteristics of Alberta Honeys with International Honeys
Processing Alberta Pulses – Identifying a Process and Product for Commercialization
Gulfood 2009 sponsorship for AB Barley
Alberta Pest Surveillance System
Wonderville
Developing wheat and agronomic strategies for new wheat for the animal feed and ethanol industry in Alberta
Development of spring wheat with attributes specific for the bio-ethanol and livestock feeding industries
Deriving maximum benefits from the winter wheat breeding investment in Alberta
Feed Grain Coalition support
CMBTC Quality screening Western Canadian Barley Breeders.
Soft Wheat and CPS Wheat agronomy in 5 soil/climate zones
Effect of the midge resistance8m] gene on durum wheat end use quality
Midge resistant wheat cultivars for Alberta
CIMMYT Triticale Germplasm Development and Disease Screening
ICARDA Barley Germplasm Development and Disease Screening
Evaluation of potential flee beetle species composition shift in prairie canola fields
Developing canola lines with reduced pod shattering
Advancing the "hairy canola" trait in Brassica napus and Brassica carinata
Precision Tools for On Farm Research
Alberta Crop Sector Working Group Environmental Project Coordinator
A proposal to investigate the reopening of the Canadian border to imported honey bee packages from the USA
BMP Adoption - Direct Farm Cost/Benefit Tradeoffs
Evaluation of dry bean germplasm and cultivars for partial field and physiological resistance to white mould
Optimization of a semiochemical-based attracticide to attract and kill female ash leaf cone rollers
Development of a pheromone-based monitoring program for the red clover casebearer on clover in Alberta
Conversion of barley proteins to bioactive food ingredients.
Developing Root Maggot-Resistant Canola
Managing the Cereal Leaf Beetle: A New Threat to Alberta Cereal Crops
Alberta Weed Survey
Evaluation of Biocides and Disinfection Procedures for the Effective Sanitation of Potato Storages
Evaluating Physical and Chemical Methods for Cleaning/Disinfesting Equipment Contaminated with Clubroot
Improving stand establishment in canola by integrated control of seedling blight
Study of induced resistance to Fusarium Head Blight in barley using a detached leaf assay method
Control of downy brome in fall-seeded cereals.
Applicant
Tom Young
Paul Flesher
Lee Gleim
Barbara Hanoski
Karen Erin
Sal Dakala
Louis Bontorin
Sarah Kennedy
Stephen McDonnell
Jim Rideout
Petra Klempnauer
Brian Hinton
Blair Roth
Lyle Aleman
Jim Matthews
Gilbert Wolfe
Ian Yeung
Organization
Sunrise Bakery Ltd.
Crust Craft Inc.
Maple Leaf Potatoes
Fife n' Dekel (853854 Alberta Ltd)
ARD Food Processing Development Ctr.
Byblos Bakery
Calgary Italian Bakery
DPB bakery
Sakai Spice
McCain Potatoes
Columbia Seeds
Lakeview Bakery
Viterra
Red Hat Coop
Little Potato Company
Honey Bunny
Weston Bakeries
ACIDF Award
$
108,900
$
187,900
$
33,623
$
2,000
$
250,000
$
45,460
$
90,419
$
8,000
$
12,300
$
80,995
$
37,620
$
19,400
$
425,205
$
9,460
$
195,340
$
34,578
$
469,219
Total Project
$ 544,500
$ 939,500
$ 168,114
$
8,000
$ 1,300,000
$ 227,203
$ 452,097
$
40,000
$
61,500
$ 404,976
$ 209,000
$
97,000
$ 2,126,027
$
47,300
$ 984,700
$ 172,891
$ 2,346,096
Applicant
Organization
Prop. Request
Nick Savidov
Thava Vasanthan
Lingyun Chen
Alan Stuart
Susan Lutz
Sheri Strydhorst
Mike Leslie
Paul Laflamme
Arlene Ponting
Dean Spaner
Harpinder Randhawa
Robert Graf
Ronald J. Pidskalny
James Helm
Ross McKenzie
Danny Singh
Ron DePauw
James Helm
James Helm
Juliana Soroka
Saleh Shaw
Margaret Gruber
Ty Faechner
Ward Toma
Ron Pidskalny
Scott Jeffrey
Parthiba Balasubramanian
Maya Evenden
Maya Evenden
Ganzle Michael
Dosdall Lloyd
Lloyd Dosdall
Chris Neeser
Ron Howard
Ron Howard
Sheau-Fang Hwang
Pat Juskiw
Chris Neeser
ARD
UofA
UofA AFNS
Bassano Growers Ltd.
ARD
APGC
AB Barley
ARD
AB Science Foundation
UofA AFNS
AAFC
AAFC - Lethbridge
Coalition members
ARD
ARD
AAFC
AAFC
ARD
ARD
AAFC Saskatoon
ARC
AAFC Saskatoon
ARECA
ACPC
Alberta Beekeepers
UofA Rural Econ
AAFC
UofA BioSci
UofA BioSci
U of A
U of A
UofA AFNS
ARD
ARD
ARD
ARD
ARD
ARD
$170,000.00
$130,001.00
$125,580.00
$15,000.00
$20,000.00
$90,000.00
$5,000.00
$487,500.00
$100,000.00
$900,000.00
$548,000.00
$560,000.00
$5,359.76
$75,000.00
$400,000.00
$194,181.00
$686,000.00
$75,000.00
$75,000.00
$36,570.00
$60,000.00
$258,750.00
$104,250.00
$315,000.00
$30,000.00
$57,500.00
$33,000.00
$25,007.00
$61,631.76
$99,820.00
$443,325.00
$248,400.00
$150,000.00
$60,000.00
$40,000.00
$283,500.00
$25,000.00
$40,400.00
Total Project
$610,000.00
$725,002.20
$238,080.00
$38,397.00
$29,000.00
$244,000.00
$10,000.00
$18,000,000.00
$900,000.00
$1,198,740.00
$2,425,600.00
$5,359.76
$75,000.00
$400,000.00
$1,028,323.00
$4,730,292.00
$75,000.00
$75,000.00
$500,000.00
$253,500.00
$501,000.00
$30,000.00
$57,500.00
$110,000.00
$107,323.40
$84,136.76
$174,820.00
$797,025.00
$696,075.00
$375,000.00
$328,000.00
$120,000.00
$529,500.00
$95,000.00
$80,400.00
Industry
investment
$60,000
$110,002
$0
$23,397
$1,000
$154,000
$5,000
$727,500
$100,000
$150,000
$257,400
$617,000
$0
$0
$0
$194,181
$343,000
$0
$0
$36,570
$60,000
$129,375
$149,250
$186,000
$0
$20,000
$33,000
$24,708
$18,734
$5,000
$221,663
$143,175
$48,000
$238,000
$70,000
$66,000
$25,000
$10,000
Industry Federal
ACIDF Award Matching Matching
$60,000.00
$55,250.00
$125,580.00
$15,000.00
$20,000.00
$90,000.00
$5,000.00
$487,500.00
$100,000.00
$900,000.00
$548,000.00
$509,100.00
$5,359.76
$75,000.00
$400,000.00
$194,181.00
$585,570.00
$75,000.00
$75,000.00
$18,400.00
$60,000.00
$129,375.00
$104,250.00
$315,000.00
$30,000.00
$20,000.00
$33,000.00
$24,600.00
$61,600.00
$5,000.00
$221,660.00
$124,200.00
$120,000.00
$27,500.00
$20,000.00
$63,600.00
$25,000.00
$40,400.00
$60,000
$55,250
$0
$15,000
$500
$90,000
$5,000
$487,500
$100,000
$75,000
$257,740
$509,100
$0
$0
$0
$194,181
$343,000
$0
$0
$18,400
$60,000
$129,375
$104,250
$153,000
$0
$20,000
$33,000
$23,508
$18,734
$5,000
$221,660
$124,200
$43,000
$27,500
$20,000
$63,000
$25,000
$9,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$242,570
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
15
ACIDF's approach has been to invest in all three methods. Emphasis has been on crop-related
(as compared to livestock feeding) methods that have the highest probability of quick payback
to the industry. Specifically these are agronomy sciences which can provide a rapid increase in
yield or quality with a very quick adoption rate, and pest/disease research which can prevent
volatile production patterns. The company has also taken a longer term approach through
investment in feed grain yield research, genetics and nutrient use efficiency.
In improving energy harvest from feeds, ACIDF's investments in near infrared reflectance
spectroscopy (NIRS) are critical. This technology has the ability to analyze specific qualities of
samples within moments and can be calibrated to specific uses. In other words, a livestock
producer can purchase feeds with qualities directly linked to his species of livestock, age, type
of production and potential market. This creates a market signal to crop producers to optimize
inputs to maximize their crop production for specific purposes. This is a win-win scenario that
supports competitive livestock production without depending on a low value bulk commodity
feed market. The NIRS program in Alberta is recognized as one of the leading programs in the
world. And ACIDF is one of their primary supporters in this work.
Table 6: Fund 2005 Feed Grain Quality &Supply Initiative - Investment Summary
Competitiveness
Feed Quality
Feed Security
Genetics/Varieties
Totals
Projects:
ACIDF Grant
$ 47,700
4,539,864
1,215,956
4,368,010
$ 10,171,530
19
Total Project
$ 78,800
10,577,500
2,211,943
10,798,990
$ 23,667,233
Industry
Investment
$ 12,000
158,175
1,800,000
$1,970,175
2005 – Environment and Nutrient Management Initiative
Intended to invest in manure and animal waste usage issues this project has proven problematic
for a crop-based industry fund since the beginning. There is a large amount of work already
done in this area both locally and internationally. Other organizations such as the Alberta
Livestock Industry Development Fund Ltd., the Canada/Alberta Beef Industry Development
Fund, and AARI have invested strongly over many years in this line of research. As well there
is considerable work done on municipal waste system and energy generation systems that have
direct application on the manure issues.
To date, ACIDF has invested approximately $3.87 million of the $8 million originally
available. This investment has included:
 Crop genetics to affect nutrient use efficiency. This technology will potentially reduce fertilizer
use, and hence runoff on one hand; and increase nutrient harvest off of heavily manured fields
on the other.
 Beneficial management practices in watersheds. This is a holistic look at broad farming
practices, including crop management affecting water quality. ACIDF board members will take
an active role in steering research and technology transfer efforts.
With interest from investments, there is approximately $400,000 remaining in this initiative.
This money will be fully committed by May 2009.
Through negotiation, $4 million from this initiative has been transferred to the Automation and
Productivity Pilot Initiative. ACIDF would like to thank the Minister and staff of Agriculture
16
and Rural Development for their hard work and cooperation in making sure the funding
resource could be used to the greatest advantage of Alberta producers.
2005 - Automation and Productivity Pilot Initiative
Created with funds transferred from the Environment and Nutrient Management Initiative,
ACIDF supports Alberta food processors in increasing productivity per unit of labor. This
addresses both Alberta's high cost of available labour and competitiveness within the
market place.
This initiative came into effect in November 2008, and has already invested half of the
total $4 Million available. The program is also designed to seamlessly integrate with
ARD's Growing Forward Automation programs to begin in 2009/10.
Given limited funding for the ACIDF program, the company has focussed on automation
and production line improvements directly linked to labour efficiency. There is also a
requirement to increase use of Alberta produced crops and crop products.
To date there have been 19 companies approved for support. This is an ACIDF
commitment of $2.1 million matched with $12.1 million of industry investment in the
improvements. The response from both the businesses themselves and the Alberta Food
Processors Association (AFPA) has been enthusiastic.
There are two other points of note about the ACIDF Automation Initiative. First, ACIDF
has partnered with ARD's business development officers to deliver this program. ARD
staff has provided much of the front-line work with the companies in both awareness and
in managing the applications. An additional number of experts from ARD specialist ranks
have joined the ACIDF technical committee to review each application before it is
considered for funding. ACIDF extends thanks to these individuals for their assistance,
and would like to make special mention of Nicola Stevens for her work with ACIDF staff
in developing the terms of the program itself.
The second point is that the ACIDF program can look beyond individual businesses.
ACIDF partnered with ALIDF to fund an innovative packaging system to be placed in the
Food Processing Development Centre in Leduc. This benefits a number of companies by
having state-of-the-art technology available for short runs, product development and
experimental use.
Table 7: Automation Investments by Industry to Date
Industry
Total Project Cost
ACIDF Commitment
$ 5,508,613
$ 950,778
Capacity Development
1,300,000
250,000
Other
5,050,500
475,125
Processors
808,255
149,196
Vegetables
1,626,728
278,160
$14,294,096
$ 2,103,259
Bakery
Totals
17
At year end there is approximately $2.0 million remaining in this initiative. At current
disbursement rates, this program will be fully committed by November 2009, and will be closed
in time for the 2010 annual report. In this new program all projects are either underway or in
contract development. For the next annual report we will have actual productivity gains to
industry from these investments.
Fund 2006 – Crop Research & Development Initiative
The Matching Fund, as it is known to ACIDF clients and signatories has been an interesting
experiment. The intent was to draw industry and federal investment into Alberta crop-related
research and development activities. The result has been exactly that.
On the positive side, this initiative has some very strong points to commend it:
 Strong industry direction on investments through required co-investment




Attraction of private business innovation
Strong leverage of ACIDF funding and resources
Creation of new linkages between business and the research sector
Clear incentive for research/development providers to attract federal funding
On the negative side there are other issues:
 Strong segregation between have and have-not industries
Strong segregation between industries with established business sectors
Reduced ability of ACIDF to address overarching industry priorities
 No opportunity for ACIDF to react to industry emergencies (ie: advent of clubroot)


Industry Involvement
With a focus on industry dollars comes increased engagement of private companies. Two
companies make excellent examples for this report, and have provided ACIDF with excellent
and well executed projects.
The first company is Pildysh Technologies Ltd. from Calgary. An Albertan SME, this company
manufactures specialty cement products for the oil and construction industries. ACIDF made
contact with the research arm of the organization through ARD's biotechnology officers. Pildysh
has had two projects with ACIDF. One project, 2005F166D - R&D of Alberta Agricultural BioMaterials and By-Products in Bio-Based Composite Materials for Oil & Gas Well-Cementing”
developed an agriculture-based concrete extender that reduced weight by 30% without
compromising strength properties. This material, currently being protected as intellectual
property so it can't be named here, provides a premium-priced, contract grown agriculture
market that offsets an expensive, imported glass product. Certainly this project is a win-win
scenario for Alberta's industry and agriculture.
A second company, TTS Inc. of Edmonton, received support from both AVAC Ltd and ACIDF
for project 2007C027D - Structural Insulated Panel Commercialization Project. The ACIDF
investment was focussed at development of research capacity specifically installation of
equipment, workspace and functionality that allowed TTS to provide scale-up services to both
private sector and research organizations. The work is coordinated with the larger-scope AVAC
investments to build a strong industrial presence in agricultural fibre processing as well as
forestry.
18
Measuring Industry Investment as Matching
The matching requirement for Fund 2006 is defined in the Investment Agreement with the
Ministry. For the purpose of this fund, matching is defined as one dollar of industry (nongovernment) money for each dollar of ACIDF investment. Monies from line budgets of
delivery organizations, other funders, governments and like sources are not included in the
calculation.
There is a second clause that may increase ACIDF investment. Given industry investment,
ACIDF may invest a second dollar IF there is federal government contribution from
sources not allocated to or controlled by Alberta. The intent again is to attract federal
contributions, and this encourages applicants to engage national funding sources. To date
this second clause has not been a major factor in investments (only 3.4% of total
matching), though it has attracted some federal investments.
In the tables that illustrate the level of matching, it may appear that ACIDF has fallen short
of matching the industry investment. This is the result of the requirement to match on a
project-by-project basis. A number of projects have more than 50% industry investment.
Because of matching rules, no project is planned to have less than 50%. In summary of the
entire initiative ACIDF will not necessarily be able to match all industry investments.
Table 8: Fund 2006 Matching By Source (since inception)
Investment
Percent of
ACIDF
ACIDF dollars invested
$ 9,691,898
100%
Industry Funds Matched
$ 9,338,047
96%
Industry Funds Unmatched
$ 2,222,751
23%
Industry Funds TOTAL
$11,560,798
119%
Federal Funds Matched
$
314,762
3%
Table 9: Fund 2006 Matching by Crop (since inception)
Crop
Projects ACIDF Grants Total Industry (includes in-kind)
Barley
5
$1,545,000
$ 1,547,000
Canola
19
$1,730,012
$ 2,113,807
Greenhouse
1
$
60,000
$
60,000
Horticulture
1
$
24,600
$
24,708
Oats
1
$
55,250
$
110,002
Overarching
9
$3,857,822
$ 5,229,155
Potato
3
$
55,625
$
290,522
Pulses
8
$ 585,999
$
904,778
Wheat
6
$1,777,591
$ 1,915,491
Totals:
53
$9,691,898
$12,195,462
19
Fund 2008 - Competitive Crop Production Initiative
Announced in March 2008, the $5.5 million grant to ACIDF became a reality in March 2009.
Designated Fund 2008, following past naming patterns, this initiative is aimed at solving farmbased problems.
Projects will support crop development, feed production, production security, bio-refining
technologies and health-related product development.
The Focus Areas for this initiative are:
Enhance crop industry competitiveness through improved genetics, integrated crop management
and supporting market development and access.
 Add value to bio-refining and bio-industrial development through increasing research capacity
and supporting selected research technologies.
 Assist with development of Health and Wellness products and supporting research.

Fund 2008 was not completed in time for the 2009 Funding Consortium Round Table decision
process. One project was approved before the fiscal year end.
Given recent ACIDF investments in cereal genetics and variety development, it is expected this
fund will focus on specific problem solving within an ACIDF-relevant timeframe. Projects are
expected to be small to medium in size. Applications are expected from across the crop sectors
reflecting the relaxed rules on matching of funding. It is also likely there will be a number of
projects “split” between Fund 2006 and Fund 2008 to make use of matching monies available and
to address overarching issues that may affect a number of crops.
Competitiveness Initiative
The Competitiveness Initiative is a small envelope entrusted to ACIDF in 2007. The intent of this
initiative is to assist with industry competitiveness reviews and assessments, focused at the
development of potential actions and options designed to improve the long-term competitiveness
of Alberta's crop industry. ACIDF is to consider the recommendations of ARD's Competitiveness
Initiative Steering Group when assessing potential areas for study.
ACIDF has fully committed this tranche of money for the purposes intended. The work supported
includes:
 Support in establishment of the Feed Grain Coalition. This is a working group of livestock and
crop commissions and associations dedicated to improving Alberta's agricultural competitiveness.
This work enabled a consultant to facilitate the working group and key commonalities between
the organizations.
 Support for the study of competitiveness of Alberta Pulses. Initiated by the Alberta Pulse
Growers Commission and in concert with other provincial associations as well as Pulse Canada,
this study looks at market access, processing issues and expanded productions of peas and
selected other pulses. Feed markets are considered as well as secondary markets for feed
components of processed pulses. This work was initiated in 2008 and will be completed by 2010.
This is a stage-gated process and successive studies are modified based on current work.
 Emerging Analytical Technologies for Crop-Based Agriculture – This is a report commissioned by
ACIDF on traceability technologies to guide development and investment. This report is available
to the public and partner organizations.
Contractual deliverables for this project were: “to assist with industry competitiveness reviews
and assessments, including analysis, focused at the development of potential actions and options
designed to improve the long-term competitiveness of Alberta's crop industries.”
20
Table 10: Competitiveness Initiative Final Summary
Initial Allocation
Interest (estimated)
Total Resources
$100,000
3,912
$103,912
Feed Grain Coalition Initiation
Competitiveness of Pulses
Emerging Analytical Technologies
Operations
Total Expenditures
5,360
90,000
13,565
2,040
$110,965
Shortfall to company operations
This obligation will be fully
met on completion of the
above activities. As of year
end only one activity (pulses)
is still underway. This
initiative will be closed by
the end of the coming fiscal
year.
-$ 7,053
Triticale Bio-refinery Initiative (CTBI)
CTBI is a 10 year research and industry development program to develop triticale as an
industrial crop for Canada. Working with industry, investors, governments and research
organizations, the CTBI will engage Canadian farmers in the largest new crop and bioproducts initiative for Canada since canola in the 1970's and pulse crops in the 1980's.
The CTBI is a large network of organizations with strong initial emphasis on research and
development ranging from genetic traits to end use industrial and consumer products.
Commercial interests have clearly indicated an interest but require more in-depth technical
and economic analysis coupled with development of improved technologies prior to
making serious investments in manufacturing and product development. This is focused on
whole crop use – both triticale grain and triticale straw and the various ingredients and
industrial/consumer products that can be profitably derived from each.
With funding support from Agricultural Policy Framework and ACIDF, CTBI has
developed core technology as well as economic, market and business case analysis. A
series of detailed and in-depth reports have been completed in the areas of:
 Science and Engineering Road Map
Industrial Development and Investment Attraction
Manufacturing Competitiveness
 Opportunities for Value Extraction
 Producer Value Proposition
 Market Research and Competitiveness Analysis


With the leadership of an Industry Advisory Group, CTBI has also:
 Developed a business plan and is proceeding with implementation
Incorporated as a legal entity: CTBI Inc
 Begun evolving the Industry Advisory Group to a competency-based Board of Directors
 Undertaken significant promotional and awareness activities focused on product
manufacturers, farmers and investors
 Secured over $20 million in new research funding

CTBI also develops plans to attract commercial investment and partners to commercialize
technology, ingredients and products emerging from the initial research results, and to
drive future research development efforts.
21
The commercial focus is the use of triticale ingredients in renewable energy, platform
chemicals, biomaterials, bio-composites, manufacturing technologies and processes, and
improved qualities and yield of triticale grain, triticale straw, and their component ingredients.
ACIDF has provided some funding along with project and financial management services for
over $7 million of Ag Policy Framework and Agricultural Bio-products Initiatives Program
funding that was granted to the initiative.
A long term deliverable for CTBI is 3 million acres of triticale in Canada whose grain and straw
is primarily being used for non food ingredients and products. Manufacturing will be through
multiple factories producing multiple products through various business cluster and value chain
arrangements. Farmers will have several markets and multiple contract growing opportunities
for triticale. Very strong relationships and co investment of commercial interests with a national
network of research capability is seen as critical to improving competitiveness and generating
significant economic value for farmers, manufacturers, and livestock feeders.
ACIDF is pleased to be able to facilitate this important work.
Barley/Triticale Royalty Initiative
This new initiative has a long history. The money entrusted to ACIDF was collected from Plant
Breeders' Rights royalties collected through the development of barley and triticale varieties.
The fund was established quite a number of years ago by ARD's Field Crop Development
Centre, the Alberta Barley Commission, and Agriculture & Agri-Food Canada.
These funds were originally housed with AARI when that organization was a crown
corporation. Changes in AARI's status through its move to Advanced Education and
Technology necessitated a new arrangement, and the funds were passed to ACIDF for
safekeeping in February 2009.
In essence there are two Royalty Funds, one for barley and one for triticale. Each reflects the
royalties from the respective crop. Investments from each fund are also to go to the
development of that respective crop. This initiative will focus on incremental additions to
existing breeding programs and projects that develop these two crop industries.
The Barley/Triticale Royalty Initiative will meet the following objectives:
1.
2.
3.
4.
Further develop Alberta's barley and triticale primary production capacity
Increase research capacity related to barley and triticale primary production in the province
Enhance existing research efforts through short-term targeted investment
Leverage these investment monies where possible
By fiscal year end three grants have been committed under this initiative. Remaining
uncommited funds at year end, including accumulated interest and less committed amounts
were $570,576 for the Barley Royalty Fund and $48,478 for the Triticale Royalty Fund.
Table 11: Royalty Initiative Commitments to Date
Project
CMBTC Quality screening Western Canadian Barley Breeders.
CIMMYT Triticale Germplasm Development and Disease
Screening
ICARDA Barley Germplasm Development and Disease
Screening
Initiative
Amount Years
Barley
$75,000
5
Triticale
$75,000
5
Barley
$75,000
5
22
More so than any of the past seven years, this year has seen many milestones on ACIDF's
highway. This year we've closed more projects than ever before. We've closed the entire
Fund 2001 Initiative. We've said goodbye to our longstanding partner organizations: CAHI,
ALIDF and DLFOA. We even had some staff turnover this past year. Perhaps most keenly
felt was the retirement of long-time chairman and co-founder, Cam Klapstein in June 2008.
Of course, milestones are merely markers showing change. ACIDF was designed to
change, having both a short-term focus with our funding envelopes and the expectation that
ACIDF will create change in the process. Looking at the science-tested results of Fund
2001 we have really created change, and will for some years to come.
Changing Economic Environment
If 2008 is known for nothing else it will be the “boom to bust” cycle of the economy.
Managing a financially-based company like ACIDF proved to be interesting to say the
least. The question we get most often is “how much did you lose?” and considering the
market swings, that's a good question.
To find an answer you can't follow the news media and compare a market high with a
market low and assume the difference is your loss. Investments of the type ACIDF uses,
while not complex in any way, are numerous enough that you need to look at them in
specific calendar spans, not arbitrary highs and lows.
So how did the investments fare? Very well, though they still show a loss.
We need to compare the investment performance that is the change in value of the holding
plus interest and dividends earned, with similar investments elsewhere. Picking the year to
December 31 2008, the TSE index dropped a full 35%. The three ACIDF investments
dropped 4%, 1% and 7% respectively.
And how did we get off so lightly? We attribute this to 3 things:
1. A solid investment plan based on conservative principals
2. A high quality team of investment advisors who look for investment opportunities based
on market driven businesses
3. A well developed plan, then follow the plan strategy
What is the bad news? Solid investments that don't fall dramatically in a down-market
won't zoom upward in a rising market either. Stability works both ways, and that isn't
entirely bad news.
23
Table 12: Investment Position by Vehicle Class (3/31/09)
Market Value
%
2008/9
2007/8
2006/7
2005/6
Fund 2001
Cash
Fixed Income
Equity instruments
Money Market
Total Value
2,576
1%
3,393
12,689
43
0
0%
501,753
2,998,564
4,150,749
390,600
99%
650,885
383,500
0
0
0%
107,370
1,784
396,236
1,263,400
3,396,537
4,547,028
100%
1032744
0
1,029,527
524,976
3%
107,296
7,777
15,674
12,989,762
68%
13,679,693
14,448,135
11,638,722
5,498,335
29%
6,516,437
7,340,865
7,227,575
89,436
0%
876037
0
4,450,788
21,179,463
21,796,777
23,332,758
393,176
Biopolymer Dev.
Fixed Income
0
Fund 2005
Cash
Fixed Income
Equity instruments
Money Market
Total Value
19,102,510
Fund 2006
Cash
545,380
5%
30,471
Fixed Income
8,511,381
74%
5,362,783
Equity instruments
2,483,775
22%
4,139,820
0
0%
5,073,232
Money Market
Total Value
11,540,536
14,606,306
Competitiveness
Fixed Income
0
100%
100,000
Fund 2008/Royalty
Cash
8,455
0%
1,498,748
44%
807,450
24%
Money Market
1,063,526
31%
Total Value
3,378,179
Fixed Income
Equity instruments
24
Evolving Partnerships
Crop industries across Canada are moving toward national partnerships and supporting
national interests. ACIDF strongly supports this trend.
Some excellent examples exist. The Canola Council of Canada, involving the entire value
chain for the crop, has become a consistent partner in development investment with
ACIDF. Pulse Canada with investment from APF, is an important player in developing
national market strategies and coordination of efforts across the provinces. Similar linkages
are developing in potatoes, honey, sugar beets and other crops.
Cross-commodity linkages are developing as well. ACIDF provided some initial support to
the Feed Coalition, an organization consisting of commissions and associations across the
feed grains and livestock as well as across western Canada.
ACIDF is also assisting with the development of an environmental crop sector working
group to address water and soil issues within the province.
ACIDF extends congratulations to those organizations making this important step.
Agricultural problems are almost never limited to small regions, nor are they constrained
by provincial boundaries. This type of collaboration is essential to moving Alberta's
agriculture industry forward.
Wide Sources of Project Support
ACIDF is a member of a diverse team that brings resources to the research and
development efforts. The table below shows where the money comes from across the
projects that ACIDF has contributed to. Government contribution, particularly the Alberta
Government is hugely significant. Within that please note the special roles played by AARI
and the Agriculture and Food Council programs. Their investment alone is large enough to
deserve their own “slice of the pie.” They make an important, considered investment in
Alberta's crop industries.
Figure 4: Total Project Investments by Source (%)
ACIDF Award
Industry In-Kind
Industry Cash
Government In-Kind
Government Cash
AARI Award
Ag & Food Council Award
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Business Operations
The ACIDF corporate philosophy has been “Efficient, Effective and Economical.” We've not
been able to find more “E” words that mean ”professional” and “fair” to add to that list, but these
characteristics are important to us as well.
Applicants from all quarters deserve fair and equitable treatment. One of the ways ACIDF tries
to level the field is with high quality, knowledgeable reviews done before, during and after
projects. This gives the team of funders a good view of the strategic value of the work, the
quality of work done, and the efforts of the project team themselves.
The number of peer reviews conducted varies with the project and the subject matter involved.
This year external reviewers' honoraria totalled $11,000 nearly evenly split between Fund 2005
and Fund 2006. This is money well spent, and belies the number of actual reviews completed as
many reviewers will do the review voluntarily or through their employment.
Evolving Application Process
In early days, as much as 85% of successful proposals to ACIDF came through the Agriculture
Funding Consortium call. Today that number is closer to 40% with the remainder being either
direct applications to the company, or direct applications through partner funders.
The year-round acceptance of applications serves to meet ACIDF's commitment to “use
reasonable efforts to make decisions in a timely manner.” More importantly it reflects ACIDF's
increasing role in:
1. initiating specific projects to meet industry identified priorities, and
2. working with researchers and companies to develop proposals with purpose.
Electronic Application System
At the time of this report ACIDF has managed the Agriculture Funding Consortium electronic
application system. This year we added an electronic review system to facilitate the 500+
technical reviews associated with each Consortium call.
For 2009/10 there will be only minor modifications to the system required. The full system from
LOI through full application to technical reviews is in place, and there is a small system to
manage applicant's CVs as well.
A Long List of Thanks
As always, ACIDF thanks its partners in supporting Alberta's crop industries. First and foremost
are the Ministry of Agriculture and Rural Development, and Agriculture and Agri-Food Canada.
Without their financial support our company would not exist, nor would any of this work be
supported.
We would particularly like to recognize our sister organizations, the Alberta Livestock Industry
Development Fund Ltd. and the Diversified Livestock Fund of Alberta with whom we have
shared many challenges and some notable successes. We also need to thank our long-time
partners: AARI, Agriculture & Food Council, and AVAC Ltd. We also look forward to working
with the Alberta Livestock and Meat Agency as it enters the research and development support
area.
26
Partnerships on the industry side have grown and continue to expand. The Alberta Canola
Producers Commission, Alberta Barley Commission and Alberta Pulse Growers
Commission have been active and generous contributors to their industry. We enjoy a solid
and open working relationship with each. We could easily list all of our signatory members
here. On a more national scale are the Canola Council of Canada, and Pulse Canada, with
whom we share both priorities and projects.
Thanks to our growing list of customers. The research providers supported by ACIDF
investments stretches across the Northern Hemisphere and the list is a tribute to scientific
cooperation. Important customers closer to home are the University of Alberta and the
Alberta Research Council. And again we need to thank Alberta Agriculture and Rural
Development for providing some excellent researchers in key areas within Alberta.
ACIDF thanks its enthusiastic staff: Alan Hall, Coleen Walkey, and Carol Dyson who work
hard to keep ideas and the never-ending paperwork flowing. Carol has joined us in April
2009 to replace Natasha Zittlau who worked with us for a few months early in 2008. The
Triticale Biorefinery Initiative staff is Darrell Penner, accountant, and Patricia McAllister,
program manager.
And certainly not least we extend our appreciation to the Corporate Team members:
Carolyn Tulloch (Tulloch Law Office, Innisfail), Wendy Righi (BDO Dunwoody LLP,
Lacombe), and Doug Mair and Maryanne McIntyre (Richardson Partners Financial Ltd.,
Calgary). These professionals bring expert knowledge to the company.
On the Horizon for 2009/10
We enter the new fiscal year with 120 projects underway and a brand new Fund 2008
program to develop. This initiative will focus on crop-related short to medium term
problem solving. With the relaxation on the requirement of matching, we look forward to
greater engagement of the smaller and developing crop sectors.
Capacity for research is a problem on the horizon as well. With significant investments by
ACIDF, AARI and AAFC in the crop sectors in the past 18 months, many of our tried-andtrue researchers are fully committed in their work. Finding people to take on new tasks
may be difficult or require funding of personnel to assist.
The year 2009/10 will be an interesting challenge. We look forward to working with you to
create new opportunities in the crop sector.
On behalf of all of ACIDF, best wishes for the coming fiscal year.
Doug Walkey
Executive Director
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The Year in Review
2008 is a year to remember. It was extreme, and it is only with hindsight that we now see the
magnitude of what occurred. Many professionals try to reduce market motivations to two words
– greed and fear. At the start of 2008, greed was the motivation behind the incredible growth in
perspective and expectations. From September on, fear caused it all to unravel.
A significant root cause of this bubble can be traced back to the early years of this decade. The
U.S. government deregulated key portions of the financial services sector, focusing on the
perceived need to open new markets and expand global trade.
Unfortunately, the inability of the regulators to understand many of the financial instruments that
were then being created increased the risks of a financial meltdown. In addition, the lack of
transparency related to many derivative investments made it difficult to determine the risks borne
by individual companies or the entire financial system. Personal greed and a lack of
accountability exacerbated the problem. Some would suggest that the market for derivatives is
broken, irretrievably so. Currencies, which are the foundation of almost every economy,
transported the problem throughout the world. As the crisis unfolded, there did not appear to be
any safe harbours. Every asset class and every commodity was under pressure. The fear was
that deflation or stagflation would strangle the world.
The first half of 2008 was filled with glowing reports of growth and expansion. The second half
was the opposite: irrational and incomprehensible. Professional's from around the globe were
confounded, and had no answers. No one had seen such behaviour before. Ontario Teachers'
Pension Fund, The Caisse du Populaire and other large Canadian pension / retirement funds, saw
portfolios reduced, in some cases by over 45%. Given the conservative nature of the Canadian
banking system, and low level of national debt, Canada should not have suffered to the same
extent as the U.S. and most other developed countries.
ACIDF, and the fund manager, Richardson Partners Financial Ltd. adhered to the investment
policy statement that guides the investment management of the funds. The portfolio adhered to a
prudent, diversified, conservative strategy with limited exposure to risk. There was, and is, no
exposure to Asset Backed Commercial Paper, nor is there any exposure to subprime mortgages.
While the value of the equity sectors is diminished, the portfolio continues to pay strong income.
The Investment Policy Statement continues to emphasize safety of principal and income.
The decline in global financial services is perhaps the worst financial setback since the
depression of the 1930's. Conditions today are not as severe as they were then. Canada's
balance sheet looks extremely strong. This feature, combined with its vast resource base and
agricultural industry make Canada remarkably attractive to the rest of the world. A potential risk
going forward is one of excessive growth. Inflation, even hyper-inflation, may become a serious
concern for the future. Never has there been such a concerted effort by central banks all over the
world to restore order and financial health, albeit with a staggering cost. Today's growth is being
financed with a mortgage on the future. Never in living memory have we seen such an
accumulation of money waiting to be invested. It is difficult to see how such spending will not
gain traction and stimulate strong growth.
Richardson Partners Financial Ltd
Maryanne McIntyre
Doug Mair
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Corporate Office:
Alberta Crop Industry Development Fund Ltd.
Agriculture Building
5030 - 50 St., LACOMBE AB T4L 1W8
Ph. (403) 782 8034, Fax: (403) 782 5514
Doug Walkey
Executive Director
E-mail: [email protected]
Board Membership
Bonnie Spragg (Chairperson)
Forage Sector
Box 323
ROSEMARY, AB. T0J 2W0
Ph. (403) 378-3277, Fax: (403) 378-3280
E-mail: [email protected]
Craig Shaw
Cereal Sector
53 Heritage Drive
Lacombe, AB. T4L 1N8
Ph: (403) 782-6618
E-mail: [email protected]
Clarence Assenheimer (Vice Chair)
Oilseed Sector
RR3
Barrhead, AB. T7N 1N4
Ph. (780) 674-4505
E-mail: [email protected]
George Yeaman
Horticulture Sector
Box 1402
THREE HILLS, AB. T0M 2A0
Ph: (403) 443-7197, Fax: (403) 443-5885
E-mail: [email protected]
Tom Machacek (Secretary/Treasurer)
Special Crops Sector
PO. BOX 4192
TABER, AB. T1G 2C7
Ph: (403) 223-1265, Fax: (403) 223-1265
E-mail: [email protected]
Murray Hartman
Oilseed Specialist
Food and Bio-Industrial Crops
Agriculture Building
5030 - 50 Street
LACOMBE, AB. T4L 1W8
Ph: (403 ) 782-8024, Fax: (403) 782-5514
E-mail: [email protected]
Connie Phillips
Director
Bio-Industrial Technology
Building F-83, 6004 -118 Street
EDMONTON, AB. T6H 2V8
Ph: (780) 492-0896 Fax: (780) 492-4346
E-mail: [email protected]
Copyright 2009
Alberta Crop Industry Development Fund Ltd.
June 2009