Grainswest - Spring 2019

Spring 2019 Grains West 42 Establishing a value creation system is anything but simple VALUE CREATION HILE DISCUSSIONS ABOUT value creation in the form of alternative variety research funding models have been ongoing for a decade in Canada, wheat and barley acres continue to decline. For many in the industry, this trend gives the issue increasing urgency. Though there may be widespread agreement that a problem exists, opinions are mixed as to the best solution. PUTTING THE CARDS ON THE TABLE Established in 2016 and led by Agriculture and Agri-Food Canada (AAFC), the Grains Round Table (GRT) was tasked with investigating value creation models. “The current system of variety development relies heavily on government investment and producer funding through check-offs, which do not cover the full cost of breeding programs,” said Tom Steve, joint general manager of Alberta Wheat and Barley commissions and co-chair of the GRT value creation working group. “There is limited private investment because at 20 to 30 per cent certified seed use, companies have no business case [or] ROI for investing in cereal breeding.” The GRT aimed to identify opportunities to expand the investment pool in cereal variety development research in Canada, with a major focus on wheat, but including other cereals such as barley and oats. “Canada is known for producing some of the best wheat in the world and we want to maintain that competitive edge,” said Steve. “What will it take to remain the supplier of choice in the international marketplace? The issue at hand is whether we can create a system where there is a competitive environment with a mix of public and private varieties. Public funding will not go away, but it may move upstream over time into longer-term research as opposed to commercialization of new varieties.” MODEL BEHAVIOUR To address the issue, the GRT forwarded two models for consideration. One W Working toward consensus