Seed Synergy Policy Vision Autumn 2018

Where We Are Today Today we are finalizing Seed Synergy White Paper which defines the Synergy Partners’ position on a range of issues Over 2018 we conducted extensive engagement and research to inform the vision: Regional workshops in six cities, with over 200 participants from across the value chain Extensive online feedback Sessions at member meetings and Annual General Meetings to gather input and test ideas In depth, third-party Economic Impact Assessment and Risk Analysis to evaluate the Synergy vision quantitatively and compare Canada against world-leading jurisdictions Industry governance options analysed and action underway

What is the Vision? The Seed Synergy vision is organized in three broad categories: Stimulating Innovation Modernizing the Seed Regulatory Framework Building the Next Generation Seed Organization The following slides will describe specific proposals for each area, and will describe key changes and progress already underway to make this vision a reality

Stimulating Innovation What is it about? More efficient delivery of novel product regulations | Implementing tiered risk assessments and defined timelines that will make investment decisions more predictable, and will make approval processes streamlined for products similar to those already approved A Value Creation model that drives investment | A trailing contract royalty model that empowers the market to provide a fair return on investment to IP owners – large and small, public and private – while allowing producers choice over the seed they choose New trait approvals today can take 2-3 years. Getting traits reviewed faster can save millions in development costs and create $38M/5yr benefits for farmers for each new novel trait commercialized - Economic Analysis Cereals research is under-resourced, and we have the potential to generate $170M in annual benefits for farmers, and $340M for the economy at large through increasing the use of IP-protected varieties

Stimulating Innovation What can the future look like? More players, especially small and medium sized businesses, bringing more technologies to market, quickly, in Canada Canada viewed as a global investment destination of choice Canadian producers enjoying greater choice of varieties tailored to their needs Benefits throughout the broader agricultural value chain, and particularly enabling Canada to meet the demands of export markets around the world

Stimulating Innovation Progress Industry/Government working group has been formed to address ways to improve how we deliver the novel product regulations – still much work to be done, but the relationships and consensus around a need for change are building The Seed Synergy partners have endorsed the trailing contract royalty model and support this direction Government is leading consultations on value creation this fall, with a view to possible PBR Regulations amendments

Modernizing the Seed Regulatory Framework What is it about? Seed Regulatory Reform| Reforms to the existing seed regulatory model to allow for greater innovation and efficiency through the use of Incorporation by Reference and enhancing the role of seed analysts and accredited labs Industry Delivery of the Seed Certification Program| Following the successful model of world leaders in France and the Netherlands, delegate authority for the delivery of the seed certification program to a single industry organization A Single Window for the Seed Sector| Enhancing the use and adoption of technology to transform business processes, support traceability, and bring a customer-service focus to providing information, including a variety profile Government has withdrawn resources systematically over the last 30 years, without updating the overall model to account for changes in system funding and delivery France and the Netherlands have strong systems that we can learn from

Modernizing the Seed Regulatory Framework What can the future look like? A regulatory scheme that is always up to date, and adapts quickly to changes in technologies and market demands Government resources concentrated and focused on science, strategic policy, and enforcement, where they can make the biggest impact A much better user experience for everyone in the system, eliminating duplicate data entry, outdated paper forms, and more Leveraging technology to ensure that the seed system is both efficient and more easily integrated into global markets and supply chains

Modernizing the Seed Regulatory Framework Progress Inclusion of Seed in the CFIA forward regulatory plan Synergy submission to Treasury Board regulatory review process Phase I of Circular 6 revisions complete, Phase II underway now Next steps in each area will be to dig in and work out specific changes and reforms, and how they might be implemented – this requires strong partnerships and working relationships between industry and government

Building the Next Generation Seed Organization What is it about? A Single Organization | Creation of a single, consolidated seed industry organization that speaks with one voice on behalf of the entire seed sector, delivers the seed certification program, and provides services and support to all of its members Today six different organizations work together to coordinate the various aspects of the system, and seed professionals will often have to access them all for service and support The six organizations have overlapping members and directors and in total create a large draw on member time that could be more efficient

Building the Next Generation Seed Organization What can the future look like? One organization that brings together the entire seed sector value chain Increased engagement with government, and a clear unified voice for the sector Greater efficiency of operation, allowing a future seeds organization to do even more than the sum of the parts does today More effective use of member time in supporting and contributing to one organization

Building the Next Generation Seed Organization Progress CSGA and CSTA have made a multi-year commitment to joint AGMs, which are moving to greater integration on content and logistics CSI and CSAAC are working more closely than ever, and are exploring an amalgamation proposal Oversight Committee formed to explore options and drive the process Draft single organizational values and vision developed Oversight Committee now reviewing more detailed governance issues and options with a view to concrete action in the near term