Ministry of Agriculture Overview BC Council of Market Boards Interior Governance Session November 24, 2016 Expected Outcomes: Understanding of SGP implementation, delivery on actions and performance indicators; and, Determination of MAAC involvement in SGP implementation.

Context for the New Growth Plan Drivers for the future of BC agriculture: Leveraging opportunities to realize significant economic growth Preparing for the challenges and opportunities of climate change Ensuring BC’s food supply security The Plan provides us with a detailed map on the ways we can work together to build B.C.’s agriculture sector and increase agrifoods sales locally, across Canada, and around the world. Building on success: Agricultural Land Commission reforms Trans Pacific Partnership negotiations, creating certainty for supply management sector 25% tax credit for donating produce

Agrifood & Seafood Strategic Growth Plan Continued vision: To be an innovative, adaptive and globally competitive agrifood and seafood sector valued by all British Columbians. Increase the BC agrifood and seafood sector revenues to $15 billion per year by 2020 New Action Plan to 2020: Revised 5-year Goal: Higher goal and extended to 2020 New performance targets 20 action items including: Seafood Strategy Focus on labour issues (e.g. leveraging labour partnerships) Attention to the entire value chain [production - processing – retail] Responds to climate change and food supply security Increase Production Revised target to $15B per year in annual revenues across the three key priorities of Increasing Production, Driving Competitiveness, and Building Markets supports. Increasing Production Targets: - Increase farmland in production by 91,000 hectares (3 percent) and increase production yields - Increase aquaculture production by 13,000 tonnes (14 percent) - Increase the wholesale value of wild fishery by $102 million (13 percent) Driving Competitiveness Targets: - Increase the agrifood and seafood profit margin by 3.5 percent (from 10.5 to 14 percent) - Increase agrifood and seafood labour productivity by $3.70 per hour worked (11 percent) - Increase agrifood and seafood sector investment in research development by $6 million (20 percent) Building Markets Targets: - Build the domestic market by increasing domestic purchases of BC products by $2.3 billion (43 percent) - Break down interprovincial barriers and increase interprovincial purchase of BC products by $1.1 billion (27 percent) - Build international markets through increased exports of BC products by $0.8 billion (29 percent) With 20 new action items, the action plan is more focused and impactful than the 2011 strategy. We have six actions that will increase production including the Seafood Strategy and implementing the legislative and regulatory changes that affect the ALR and help protect valuable farmland, better support farming families by strengthening regional decision-making, assist the ALC in providing better service to the farming community and assist in long term planning for municipalities. We have six actions that will drive competitiveness, encouraging growth and promoting efficient and innovative programs in the sector. We have eight actions that will build our markets and encourage growth at home, across Canada, and internationally. Four actions promote domestic growth, one action promotes interprovincial growth, and three actions promote growth internationally.   Seafood Strategy actions include: The Seafood Strategy outlines seven actions to achieve its targets (above) and is reflective of government’s approach to aquaculture. Initiatives approved by cabinet in 2014 such as the development of the seafood secretariat; Implementation of the Fish and Seafood Act which was approved in Spring, 2015; and, Executing the three implications of the announced “pause” on aquaculture Labour issues: The plan addresses labour issues through labour market initiatives and actions that support succession planning, new entrants, youth and First Nations. Action #3: Participate in and support labour market initiatives: Promote the sector’s interests and encourage industry to leverage labour partnerships, labour training, youth employment, seasonal agriculture workers and temporary foreign worker programs. Identify and implement opportunities to support the success of new entrants, youth, and First Nations in the agrifood and seafood sector, including succession planning. Whole Value Chain approach: Action #13: Work with industry to promote local agrifood and seafood through the buy local initiatives. The plan focuses on the entire value chain through buy local, access to retail, maximizes commercialization of products, and development of an international strategy. Support industry led e-commerce website opportunities. Action #18: Support access to retail for local producers and processors, including commercial kitchen space, cold chains and distribution necessities. Encourage the use of BC inputs in food and beverage processing. Increase awareness of using BC agrifood and seafood products, including pairing with products from local wineries, cideries, distilleries, breweries and meaderies. Climate change and food supply security responses: Promoting opportunities throughout the value chain to create a strong local agricultural system Improved access to land and water for agriculture and aquaculture Action #1: Identify options for increasing and intensifying production on unused or underutilized land. Providing support and services for the piloting and demonstration of innovative adaptation practices on BC farms and ranches and promote resource sharing and collaboration. Supporting succession planning and encouraging new entrants Action #9: Encourage innovations that reduce the environmental impact of agrifood and seafood production and processing, such as by reducing air emissions, improving management and utilization of by-products. Action #8: Promote industry adoption of initiatives to enhance biosecurity in British Columbia. Action #4: Encourage and enable industry to identify, reduce, and manage risk to enable production and improve access to capital: Action #11: Work with industry, local governments and other partners to increase the capacity of BC farmers to adapt to climate change and weather related production risks and impacts. Drive Competitiveness Build Markets

Progress to Growth Plan Goal The over arching goal of the Strategic Growth Plan is for Agrifood and Seafood revenues to reach $15 billion a year by 2020. The agrifood and seafood industry total revenues combine three key sectors of: Agriculture; Seafood; and Food and Beverage processing. 2014-2015 growth: Combined sector revenues for BC Agrifood and Seafood increased 7.6% to $13 billion (up from Statistics Canada revised 2014 value of $12.1 billion) Agriculture revenues include crop and livestock sales and program payments paid to producers. Revenues for agriculture increased 4.5% (up $132 million) to $3.076 billion (up from $2.9 billion in 2014) Crops: Up 5.5% ($79 million) to $1.51 billion Livestock: Up 3.2% ($47 million) to $1.53 billion Seafood revenues includes sales from wild commercial fisheries and from farmed salmon, shellfish and marine plant operations Revenues for seafood increased 4.7% ($39 million) to $867 million (up from $828 million in 2014) Food and Beverage processing revenues include sales from food, beverage and tobacco manufacturing. Revenues for food and beverage processing increased 9.1% ($755 million) to $9.086 billion (up from $8.331 billion in 2014)

Growing Forward 2 - Overview Growing Forward 2 (GF2) is a $3 billion federal, provincial and territorial government investment to support agriculture from 2013-2018 In BC, estimated total shared investment is $375M Focus on innovation, competitiveness, and market development Cost-shared 60:40 GF2 represents approximately 2/3 of the Ministry’s budget GF2 is comprised of two program areas: Business Risk Management Strategic Initiatives

Strategic investments in B.C. Innovation (26%) Research & Development Pilot/Demonstration Projects Commercialization & Adoption Competitiveness & Market Development (52%) Market Intelligence Market Development Food Safety Biosecurity & Surveillance Traceability & Premises ID Farm Animal Welfare Adaptability & Industry Capacity (22%) Business Knowledge & Strategic Adaptation Industry Capacity Building Sustainable Agriculture Management

Calgary Statement Update Policy Priority Areas Markets and Trade Science, Research, and Innovation Risk Management Environmental Sustainability and Climate Change Value-Added Agriculture and Agri-Food Processing Public Trust

Ministry Planning Process Overview Review the achievements and areas for improvement in GF 2 program suite to build on successes. Set the planning framework outlining ministry existing priorities (SGP) and the NPF policy priorities. Identify and confirm high-level program suite including performance measures. Develop logic model(s) showing alignment between policy priorities and outcomes. Consult with internal and external stakeholders. Finalize the model in preparation for bilateral negotiations.

Ministry Planning Timeline June 2016 Risk Management Advisory Committee Meeting October 2016 Strategic Initiatives Project Board Established April 2017 Design Framework Completed July 2017* Multilateral Agreement Signed Jan 2018* Detailed Program Designs Complete June 2016 -> Risk Management Advisory Committee Consults with primary agriculture about BRM programs. July 2016 BC Stakeholders Consultation Nov 2016 MAAC Committee Meeting Mar 2017* Federal Budget May 2017 BC Election September 2017* Bilateral Agreement Signed April 2018 Launch * Dates dependent on external factors