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Canadian International Grains Institute

ANNUAL REPORT2010-2011

TRAINING TECHNOLOGY MARKET DEVELOPMENT

OUR VISIONTo be the recognized leader specializing in offering continuous advances in Canadian field crop products to the world.

CORE OUTCOMECreating a competitive environment for Canadian field crops through our partners using technology and knowledge to capture evolving markets.

36th Canadian Grain Industry ProgramMarch 14-18, 2011

2 | CIGI Annual Report 2010-2011

TABLE OF CONTENTS2010-2011 CIGI ANNUAL REPORT

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 34

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MESSAGE FROM THE CHAIR AND EXECUTIVE DIRECTORIf you asked CIGI board members and staff to list the most notable accomplishments from the 2010–11 fiscal year, it is fair to say the list would be long yet it can be summed up with a single word: progress.

Our 2010–11 annual report captures the many initiatives and activities from the year and the ongoing progress made in fulfilling the goals and objectives set out in CIGI’s five-year strategic plan, approved last year, that provide a path to achieving the continued growth and long-term sustainability of the organization.

The year began on a positive note with the announcement in May of more than $11 million in funding over three years from Agriculture and Agri-Food Canada’s AgriMarketing Program along with an additional investment of over $500,000 from Western Economic Diversification (WD). The funding announcement was made at CIGI by the Hon. Gerry Ritz, Minister of Agriculture and Agri-Food, who described CIGI as a “world class operation that is known around the world.”

It is the strength of this reputation, built in large part through CIGI’s long standing relationship with the Canadian Wheat Board (CWB) and its customers, that has enabled CIGI to broaden the scope of its work with Canada’s field crop industry in recent years.

There was more evidence of this expansion throughout 2010–11 which saw increased activity with Grain Farmers of Ontario, continuing work on behalf of the soybean industry, and funding for two multi-year pulse projects that will keep CIGI at the forefront in its ongoing efforts to support Canada’s pulse industry and their customers around the world. The success of CIGI’s testing and evaluation work on behalf of Warburtons – one of the premier brands in the baking industry – further reinforces the progress made this year on CIGI’s business development plan and strategy to secure new partnerships and relationships.

As noted in last year’s annual report, CIGI’s strategic plan includes a focus on strengthening our strategic partnership with the Government of Canada to support its market development and market access initiatives. Over the course of 2010–11 many senior federal officials visited CIGI to gain a greater appreciation for the potential that exists.

For many, 2010–11 will be remembered as a very challenging year due to the record rainfall and flooding that affected the growing season and harvest, particularly in Western Canada. It is during times like this that CIGI’s work with the CWB and our reputation for technical excellence and expertise helps to support the Canada brand image for quality (i.e. “the best wheat in the world”) as staff were able to demonstrate to customers how to effectively utilize downgraded crops. That CIGI was able to report during technical missions that the inherent functional quality of western Canadian wheat classes like CWRS remained intact into the lower grades this year is testimony to the strength of Canada’s grain industry and its quality control, variety registration and research and development processes and activities.

Through all of its programming, technical, and market development activities CIGI continues to build upon its currency of knowledge about Canadian field crops and the processing and product requirements of customers around the globe. This knowledge is essential to supporting a strong Canada brand in the future and is a key component of CIGI’s sustainability plan going forward. New equipment purchased in 2010–11 with funds from WD, the CWB and Saskatchewan Pulse Growers, particularly in our baking, milling and pulse areas, will also go a long way to ensuring CIGI stays in step with current technologies and trends in the marketplace.


During the year there has also been much discussion about innovation and using CIGI’s experience and expertise to pull the good ideas that exist in our industry into the marketplace and, in doing so, create value for all those involved – the farmer, the researcher, the processor, right through to the end-user. It is a leadership role that the board of directors sees as a natural fit for CIGI's unique position in the global food system and in the year ahead we look forward to continuing to work with industry to create a new innovation pathway for Canadian agriculture.

Thank you to everyone who contributed to the successes and progress achieved at CIGI in 2010–11. The support of our core funders – AAFC and the CWB, the board of directors whose vision is clearly focused on building a strong future for CIGI, our partners in the Canadian field crop industry, the industry resources who engaged with participants during CIGI programs, and of course the CIGI staff who are leaders in offering continuous advances in Canadian field crop products to the world.

As CIGI looks ahead to marking its 40th anniversary in 2012, we will continue to use our knowledge and expertise to contribute to the future success of Canada’s field crop industry and serve as a trusted resource to our partners and customers.

Bill Toews Earl Geddes Chair, Board of Directors Executive Director

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CIGI IN BRIEFThe Canadian International Grains Institute (CIGI) is a centre of excellence offering technical expertise and pilot processing facilities uniquely housed under one roof. It is an industry leader in delivering customized educational programs, ongoing specialized technical support and applied research to customers around the world.

• Establishedin1972.

• Non-profit.

• GovernedbyaBoardof Directorscomposedof representativesfromtheCanadianWheatBoard(CWB),CanadianGrain Commission (CGC), Agriculture and Agri-Food Canada (AAFC), and the Ontario grain industry.

• CorefundingprovidedbyAAFCandtheCWB.Additionalfundsandsupportareprovidedbyothersectorsof theagriculture industry.

• Morethan34,000peoplerepresentinggrain,oilseed,pulseandspecialcropsindustriesfrom115countrieshave participated in CIGI programs and seminars.

• BasedinWinnipeg,Manitoba,Canada.

Facilities • Pilotflourmill,pilotbakery,testbakery,pilotnoodleandAsianproductsplant,pilotpastaandextrusionplant,pulse processing and specialty milling facility, analytical services and food quality testing laboratories, portable biodiesel plant.

Programs • CIGIdeliversover50programsannually.

• Programsarecustom-designedtomeettheneedsof industry

• By field crop: wheat, pulses, barley, soybeans, canola, special crops, forage crops, flax

• By end-use: flour, pasta, noodles, Asian products, bread and bakery products, breakfast cereals, snack foods, animal feed, biodiesel


• By subject: food safety, environmental and trade issues, grain merchandising

• For a specific company, region or country

• At CIGI or offsite (both in Canada and offshore)

• In the language of the customer

• CIGIworkswithmorethan400organizationsandindividualsfromtheCanadiangrainindustrywho,alongwithCIGIstaff, share their expertise through presentations, practical demonstrations, hands-on training and facility tours.

• CIGIprogramsaresponsoredbytheCWB,governmentorganizationsandagencies,andagriculturalandcommoditygroups. CIGI also offers open enrollment courses and customized training on a fee-for-service basis.

Market Development Activities

• CIGItechnologystaff traveltoimportingcountriesprovidingtechnicalinformationtocustomersandgatheringinformation that will help with future exports.

• Appliedresearchactivitiesfocusonevaluatingtheend-useapplicationandperformanceof Canadianfieldcropsinawide variety of products.

• Technologystaff provideconsultationonprocessingmethods,ingredients,testprocedures,equipmentandrespondtoother customer inquiries and requests for practical assistance related to Canadian field crops.

6th Grain Industry Overview CourseJanuary 24-28, 2011

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CIGI BOARD OF DIRECTORS AND STAFF(as at March 31, 2011)

Board of DirectorsBill ToewsChairDirectorCanadian Wheat Board

Murdoch MacKayVice ChairCommissionerCanadian Grain Commission

Ward WeisenselSecretaryChief Operating OfficerCanadian Wheat Board

Susie MillerMemberDirector GeneralFood Value Chain BureauAgriculture and Agri-Food Canada

Henry Van AnkumMemberFirst Vice ChairGrain Farmers of Ontario

StaffExecutive

Earl GeddesExecutive 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 MorganManager, Business Development Larry NentwigChief Financial Officer

Rex Newkirk, PhDDirector, Research and Business Development

Larry TaylorDirector, Technology and Programs

Analytical Services

Elaine Sopiwnyk Head

Rosa DeStefanoTechnician

Kristina PizziTechnologist

Shona Temple Technician Baking Technology

Tony Tweed Head

Chris Lukie Technical Specialist

Yvonne Supeene Technical Specialist Pulses

Lindsay Bourré Technologist

Gina BouxTechnologist


Peter Frohlich Technical Specialist

Heather Maskus Project Manager, Pulse Flour Milling & 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

Ontario Wheat

Michael ReimerTechnical Specialist

Communications and Branding

Dean Dias Information Systems Specialist

Ellen Goodman Communications Specialist

Stephen Hunter Graphic Designer and Audio Visual Coordinator

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

Finance and Administration

Patricia Le Sann Executive Assistant

Linda Patwell Finance Assistant Programs

Pat Byrne Administration Assistant

Shannon Taylor Program Coordinator

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TECHNOLOGY YEAR IN REVIEWCIGI continued to expand its support to customers of Canadian field crops during 2010–11 through technical activities and with the help of $1.1 million in additional equipment funded by Western Economic Diversification, the Canadian Wheat Board (CWB), Saskatchewan Pulse Growers (SPG) and CIGI. This equipment included a new control system for the pilot mill, a durum laboratory mill, whole grains stone grinder, a seasoning line for extruded products, a packaging line, reel and rack ovens, an air classifier for producing flour fractions, final proofer in the pilot bakery, and laboratory equipment such as a glutograph, mastersizer and chroma meter. The equipment allows for more work with a variety of Canadian field crops, some of which will enhance CIGI’s increased activity with pulses and pulse flours.

CIGI conducted market development technical projects for the CWB and its customers, and technical projects in support of industry organizations such as the Grain Farmers of Ontario, SPG, Manitoba Pulse Growers Association, Alberta Pulse Growers, Pulse Canada, and the Canadian Soybean Council. Other projects were carried out in partnership with universities and organizations such as the Food Processing Development Centre and Mustard 21. Work mainly focused on wheat and pulses, as well as mustard oil.

Technical work in support of Ontario wheat continued through activity such as the Ontario Quality Scoop harvest survey and a new project examining the effect of nitrogen and fungicide levels on gluten strength of soft winter wheat. A number of projects were conducted with pulses, involving their milling and evaluation of flours in various foods such as spaghetti, tortillas and extruded snack products. For the first time CIGI also worked with industrial applications of mustard oil, developing several new tests and documenting the results for Mustard 21 which funded the project.

During the year CIGI staff provided ongoing technical support to international and domestic customers by responding to requests for hands-on assistance and technical information. This support was also offered through staff visits to mills and processing facilities as well as technical visits made to CIGI, and 15 technical missions to 25 countries, which is an increase over 2009–10. The number of technical exchanges also grew, concentrating on the customer needs of particular companies through intensive work together in CIGI’s technical facilities.

Costa Rica Technical ExchangeMay 27-28, 2010

Interflour-Canada Technical Exchange ProgramMay 17-21, 2010


CEREALS, SPECIAL CROPS, OILSEEDS AND PULSES

Customer ActivitiesInternational

CIGI milled and analyzed a number of wheat samples for the CWB in support of technical exchanges and missions and also to assess quality concerns of their international customers. Some of the wheat samples were obtained from cargo shipments while in other cases flour samples from the customer were evaluated. Other technical support for international customers involved analysis of specific properties that included work with the farinograph, falling number, wet gluten/gluten index and protein testing. Customer countries included Taiwan, Chile, U.K., U.S. and Russia. CIGI staff also regularly responded to direct requests from international customers for technical information and hands-on assistance.

Domestic

CIGI provided domestic support during the year mainly to milling companies, processors, food development facilities and post-secondary educational institutions through milling, analysis, end-use production and technical information. Hands-on support included milling barley, processing pasta with pulse flour, working with additives in baked goods, and producing a number of different extruded products.

Domestic technical support was also ongoing related to commercial biodiesel production and feed.

Fee for Service

Fee-for-service clients included domestic flour mills, a grain company, agricultural products/services companies, seed companies, a food development centre, food processing and ingredient companies, government and universities. Some requests 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.

Applied ResearchWestern Canadian Wheat Varieties

CIGI carried out milling, analysis and end-use quality evaluation of Canadian wheat during 2010–11 for CWB market development technical projects, technical missions and exchanges, programs, and the annual Quality Scoop survey. Wheat samples tested were from the classes CWRW, CWRS, CPSR, CWHWS, and CWAD. Wheat and wheat blends were evaluated for end-use quality which included some innovative work with CWAD varieties in noodle processing,

and a comparison of performance between Canadian and U.S. varieties. The Quality Scoop survey, which involves the testing of composite grain samples from grain elevators to determine the quality of the crop to assist the CWB and its customers, focused on analysis of wheat and flour samples and extensive evaluation of end-use quality for baking, and steamed bread and noodle processing. In addition, a new CWB Vessel Monitoring Program involved lab milling, analysis and end-use evaluation of CWRS.

Ontario Wheat

Canada Eastern White Winter Wheat Quality Profile for Market Development, a fee-for-service activity, was completed in April 2010. Pilot milling, analysis and test baking was conducted on two crop years and a report was provided on the wheats' strengths and weaknesses as well as target markets.

Quality evaluation of whole grain pasta made from Canada Eastern Amber Durum (CEAD) was completed in May 2010. This fee-for-service project compared whole grain semolina from CEAD to that milled from CWAD in addition to evaluating spaghetti quality.

For the 2010 Ontario Wheat Quality Scoop survey approximately 200 samples of CESRW, CESWW and CEHRW were collected and underwent independent grading and preliminary analysis. Eight

Costa Rica Technical ExchangeMay 27-28, 2010

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• Dehulled red and green lentils were milled into a coarse material and blended with durum semolina to make couscous. Further testing is required to optimize the product.

• A research poster on the effects of genotype and environment on the cooking quality of Manitoba-grown beans was presented at the 8th Canadian Pulse Research Workshop in November 2010 in Calgary AB.

• CIGI participated in a ring test with CGC to measure the firmness of cooked pulses. This goal of this work is to develop a standard method that will be adopted by the American Association of Cereal Chemists International.

• Samples (22) of Saskatchewan-grown peas representing a number of varieties of four different market classes grown in two locations were analyzed for their flavour and odor properties. This was the second and final year of testing for this project. A final report was submitted to SPG on this work which was done in collaboration with the Crop Development Centre in Saskatoon, SK and Agriculture and Agri-Food Canada in St. Hyacinthe, QC. Additional funding for this project was contributed by SPG to undertake this work.

• Pulse samples obtained from domestic processors were pooled into representative samples and tested for their cooking times for a study funded by Pulse Canada at the University of Manitoba to determine protein quality of pulses.

composite new crop samples of CESRW and CEHRW wheat and flour were then lab milled and analyzed at CIGI. Also, 10 composite new crop wheat samples of CESRW and five samples of CEHRW from a domestic food company were lab milled and analyzed also for the Quality Scoop survey.

CIGI began work on the Ontario Managed Field Trial Study – The Effect of Cultivar, Nitrogen Rates and Fungicide Application on Protein Quality in Canada Eastern Soft Red Winter (CESRW) wheat, a project jointly initiated by CIGI and Grain Farmers of Ontario. Work involved examination of the effect of nitrogen and fungicide levels on gluten strength using 96 soft winter wheat samples. By the end of the fiscal year, 60 samples were lab milled, most of the analysis was completed, and the samples were evaluated using a wire cut cookie method developed in the test bakery.

International Wheat

CIGI continued an ongoing study of competitors’ wheats on behalf of the CWB. In the previous fiscal year a number of samples from different countries were milled, analyzed and evaluated. This year, Australian wheat samples were evaluated for noodle processing.

Pulses

For the four-year CIGI Pulse Flour Milling and Utilization Project which began in July 2010, whole and split/dehulled yellow pea samples were milled using various milling technologies including hammer, pin, and roller milling. In addition, milling screens,

feed rates, and mill speed were varied to determine their effect on the resulting flour. Flours were assessed for particle size, composition and functional properties. A study was also initiated with the University of Manitoba on thermal pre-treatment of pulses and its effect on milling and functional properties of pulse flours (see Initiatives with Industry).

For the five-year pulse project funded by Saskatchewan Pulse Growers (SPG) (as of April 1, 2011 Manitoba Pulse Growers Association will also contribute funding), a number of projects were undertaken as follows:

• Pulses were milled into flours, analyzed and incorporated into spaghetti, tortillas and extruded snack products. Sensory analysis was carried out and the data was incorporated into a research poster that was presented at the 5th International Food Legume Research Conference in Antalya, Turkey in April 2010.

• Pasta, extruded snacks and crackers were developed using whole red and green lentil flours. Products were displayed at the Institute of Food Technologist (IFT) Expo, July17–20,2010inChicagoIL.Inaddition, an oat and pea fibre flour blend was extruded into a breakfast cereal at CIGI for a food ingredient supplier for display at their booth at the IFT Food Expo.

• A study was initiated to examine the effect of pea hull fibre and particle size on extrusion properties of yellow pea flour. Peas were split, dehulled and milled into flour, and hulls were reduced in size by grinding. The flour and hull fractions were then analyzed in preparation for extrusion trials.


• Preliminary moisture content of split yellow pea samples was carried out in preparation for a study being done with the Crop Development Centre in Saskatoon SK to examine the relationship between water hydration capacity and rate with cooking time.

For the PureNet Project, which involves use of pulse flours in food products, pulses were milled and shipped to the Food Processing Development Centre in Leduc AB for scale-up processing into a variety of food formulations including meat, tortillas and salad dressing.

Process and Methodology StudiesBaking

During the year work was conducted on an Arabic bread project with the Grain Farmers of Ontario. A method and formulation for preparing the bread was developed and the lab process was scaled up to a commercial level in early 2010. Test baking, process development, scoring and analysis was then carried out and completed by the end of the fiscal year. A final project report is to be finished by the summer of 2011.

Pasta and Extruded Products

A snack food was successfully processed out of durum semolina with the twin screw extruder and used as a handout at a CIGI exhibit at the Western Canada Farm Progress Show in June 2010 in Regina SK.

Tests were conducted using food flavours on extruded wheat flour “poppers.”

Pet food trials were ongoing for a domestic pet food company to determine if it was possible to extrude their raw ingredients.

Barley and corn meal blends were produced and tested with the twin screw extruder.

Strongfield durum wheat was used to process spaghetti and the colour was measured at 15-minute intervals while in a dryer for an hour, and also after drying while in storage over eight weeks.

Noodles and Asian Products

A collaborative study was ongoing with AACC International on instrumental measurement of Asian noodle firmness. Three noodle samples were produced and distributed to all participating labs, and texture measurements were completed.

A collaborative project with the Grain Quality Laboratory in Harbin, China was conducted on the suitability of CWAD wheat for the processing of white salted noodles and dumplings.

A fee-for-service project on the use of CWRW in steamed bread was conducted for the Alberta Winter Wheat Producers Commission. Two samples of CWRW were pilot and lab milled, analyzed, and then evaluated

in steamed bread to complete phase one of the project. There is potential for a second phase.

PresentationsL. Malcolmson presented: •‘CIGI/CSCMarketDevelopment Activities for 2010–11’ at the Canadian Soybean Council Annual Board Meeting, in Winnipeg MB, June 28, 2010.

•‘DevelopingHealthierFoodsUsingCanadian Hulless Barley’ at the 6th Canadian Barley Symposium, in Saskatoon SK, July 25–28, 2010.

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•‘BiodieselProductionasaTeachingOpportunity in High Schools’ as part of a biodiesel demonstration at the University of Manitoba on behalf of the MCGA for the Agriculture in the Classroom program, Winnipeg MB, February 25, 2011.

•‘OpportunitiesforBiofuelsinthePeaceRiver Region’ at a Grower Link meeting in Rycroft AB, March 3, 2011.

•‘Biofuels,thePresentandtheFuture’with a biodiesel demonstration at Red River College in Winnipeg MB, March 9, 2011.

A. Sarkarpresented‘FunctionalFlour– Opportunities for Value Adding,’ co-authored with L. Malcolmson, and ‘QualityAssuranceof FortifiedFlour,’at the IAOM Technical Conference in Phuket, Thailand, August 9–10, 2010.

H. Maskus and M. Subramaniam presented‘ModernTrendsinPulseProcessing and Applications’ and ‘PulseMilling–Fractionation’attheInternational Conference on Food Technology Edition II (INCOFTECH) in Thanjavur, India, October 30–31, 2010.

P. Frohlichpresented‘EnhancingWorldMarkets for Pulses through Secondary Processing and Value Added Research,’ and H. Maskuspresented‘CIGIPulseFlour Milling & Utilization Project’ and participated in a panel discussion, ‘LearningsfromIndia,’atthePulseResearch Development in Manitoba Workshop held at CIGI in Winnipeg MB, November 24, 2010.

• ‘PulseIngredients:FloursandFractions’at the Pulses & Health Conference, Amsterdam, Netherlands, November 10, 2010.

•‘CIGI:AddingValuetoCanadianFieldCrops’ at the CGC Grain Quality Seminar, Tokyo, Japan, November 22, 2010.

•‘ProjectDurum’attheBayerCropScience Meeting, Whistler BC, December 3, 2010.

•‘CIGI:AddingValuetoProducers’ Crops’ at the FarmTech Conference in EdmontonAB,January26–27,2011.

•'PulseFlourMillingandBakedGoods'at the Pulse Ingredient Expo in Toronto ON, February 10, 2011.

•Aspartof theCSCAsiaSeminars,‘Qualityof 2010CanadianSoybeans,’in Tokyo, Japan, March 9, 2011, and ‘QualityAttributesof CanadianSoybeans’ in Bangkok, Thailand,

March 15, 2011 and in Ho Chi Minh City, Vietnam,March17,2011.‘Canada’sCommitment to Developing New Food Grade Soybean Varieties’ was also presented in Tokyo at separate meetings with the Japan Tofu Association and the Federation of Japan Natto Manufacturers Cooperative Society.

R. Newkirk presented: •‘OpportunitiesforCanadianSoybeansin Biodiesel’ at the Grain Farmers of Ontario Market Development Committee meeting in Guelph ON via web conference, April 1, 2010.

•‘CanadianFeedIngredientApplications’at the Standard Nutrition Annual Meeting in Winnipeg MB, May 13, 2010.

•‘FirePreventionStrategiesinBiodieselProduction’ at the Loss Prevention Conference on Biodiesel Production in Canada, in Winnipeg MB (also took group to tour a biodiesel plant in Beausejour MB), May 19, 2010.

•‘ChallengingIngredientLimits–Poultry’at the Western Nutrition Conference in Saskatoon SK, September 22, 2010.

•‘BiodieselasaTeachingToolfor Chemistry Teachers’ as part of SAG 2010 conducted at the request of the Manitoba Canola Growers Association (MCGA) in Winnipeg MB, October 22, 2010.

•‘CanadianFeedIngredientOpportunities in Japan’ for a group of buyers and nutritionists from Japan as part of a CGC-organized mission to Winnipeg MB, November 10, 2010.


Poster PresentationsAt the 5th International Food Legumes Research Conference, Antalya, Turkey, April 26–30, 2010: •P. Frohlichpresented‘Suitabilityof Pulse Flours in Extruded Products,’ co-authored with A-S. Bellido, G.Boux and L. Malcolmson.

•L. Malcolmsonpresented‘Evaluationof the Odour and Flavour Properties of Peas using a Trained Sensory Panel, 'co-authored with P. Frohlich1, T. Warkentin2 and J. Boye3 (1Canadian International Grains Institute,Winnipeg MB, 2University of Saskatchewan, Saskatoon SK, and 3Agriculture and Agri-Food Canada, Ste. Hyacinthe QC).

• G. Boux presented 'Cooking and Canning Quality of Selected Dry Bean Genotypes Grown in Manitoba,' co-authored with A-S. Bellido1, L. Malcolmson1, P. Frohlich1, P. Balasubramanian2, A. Hou3, R. Conner3

(1Canadian International Grains Institute, Winnipeg MB, 2Agriculture and Agri-Food Canada, Lethbridge AB, and 3Agriculture and Agri-Food Canada, Morden MB) at the 8th Canadian Pulse Research Workshop in Calgary AB, November 2-5, 2010.

At Pulse Days, Saskatoon SK, January 10-11, 2011:•P. Frohlich presented 'Value Added Pulse Research at the Canadian International Grains Institute' co-authored with G. Boux and L. Malcolmson.

•H. Maskuspresented‘CIGIPulseFlourMilling and Utilization Project.’

Scientific PublicationsTaylor. C.G.; Noto. A.D.; Stringer, D.M.; Froese, S.; and Malcolmson, L. Dietary Milled Flaxseed and Flaxseed Oil Improve N-3 Fatty Acid Status and Do Not Affect Glycemic Control in Individuals with Well-Controlled Type 2 Diabetes. J. Am. Coll. Nutr.2010,29:72-80.

Fu, B.X. and Malcolmson, L. Sensory Evaluation of Noodles. In: Asian Noodles: Science, Technology and Processing. Edited by G. G. Hou. John Wiley & Sons, Hoboken, NJ, 2010, 251-260.

Azarnia, S., Boye, J.I., Warkentin, T., Malcolmson, L. Sabik, H. and Bellido, A-S. Volatile Flavour Profile Changes in Selected Field Pea Cultivars as Affected by Crop Year and Processing. Food Chem. 2011, 124(1):326-335.

Oomah, B.D., Caspar, F., Malcolmson, L.J. and Bellido, A-S. Phenolics and Antioxidant Activity of Lentils and Pea Hulls. Food Research International 2011, 44:436-441.

Wood, J.A. and Malcolmson, L.J. Pulse Milling Technologies. In: Pulse Foods Processing, Quality and Nutraceutical Applications. Edited by B.K. Tiwari, A. Gowen and B. McKenna, Elsevier Inc., London, 2011, 193-222.

Seneviratne, R.W., Young, M.G., Beltranena, E., Goonewardne, L.A., Newkirk, R.W., Zijlstra, R.T. The Nutritional Value of Expeller-Pressed Canola Meal for Grower-Finisher Pigs. J.Anim.Sci.2010,88:2073-2083.

Newkirk, R.W. Meal Nutrient Composition. In: Canola Chemistry, Production, Processing and Utilization. Edited by James K. Daun, N.A. Michael Eskin, and Dave Hickling. AOCS Press, Urbana IL, 2011, 229-244.

External PublicationsCIGI co-wrote, edited and produced the Soybean Feed Industry Guide which was released by the Grain Farmers of Ontario (GFO) and Soy 20/20 in September 2010 (also see Feed section, page 16).

M. Reimer authored two articles for Ontario Grain Farmermagazine–‘Qualityin Every Scoop’ for the July/August 2010 issueand‘MakingtheGrade’fortheSeptember 2010 issue.

Design, editing and printing was completed for the Ontario Wheat Quality Scoop 2010 Report, a joint effort between GFO and CIGI that detailed their harvest survey results. An electronic copy of the report is also available on the CIGI web site.

CIGI completed editing and production of the fourth edition of the annual Canadian Soybean Dispatch in English and Japanese for the Canadian Soybean Council. Copies were shipped to Japan, Thailand and Vietnam for distribution during a Canadian soybean industry mission to Asia in March.

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FEED

Soybean Feed Industry Guide

CIGI completed a Soybean Feed Industry Guide that was released by the Grain Farmers of Ontario (GFO) and Soy 20/20. The guide aimed to help soybean, livestock and poultry farmers adopt value-adding practices. It is available in both English (print and electronic) and French (electronic). Electronic versions of the guides were also provided to the Western Canadian Feed Innovation Network for distribution on their web site.

Wheat Dried Distillers Grains with Solubles (DDGS) GuideA feed industry guide examining the use of byproducts from the wheat ethanol industry in Canada was written and sent for external approval in March 2011. The guide was developed for, and funded by, the Feed Opportunities from Biofuel Industry (FOBI) Network.

Feed Industry Consultation

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.

SO

YB

EAN

MEA

L IN P

OU

LTRY

DIETS

3

CONTEN

TS

SOYBEAN BACKGROUND AND MARKET

4

SOYBEAN PROCESSING

7

SOYBEANS IN POULTRY DIETS

18

SOYBEANS IN SWINE DIETS

22

SOYBEANS IN RUMINANT DIETS

26

SOYBEANS IN SPECIALTY DIETS

36

ECONOMICS OF FEEDING SOYBEAN PRODUCTS

40

REFERENCES

44

SOYBEAN MEAL NUTRIENT COMPOSITION TABLES

46

Introduction

Soybean products are the most commonly used vegetable protein source worldwide. Soybeans are an important

crop in Canada often favoured by farmers due to their low nitrogen fertilizer requirements and high economic

returns. Processed soybeans are a high-quality source of protein for livestock species of all types and the oil is

a high-quality vegetable oil. The objective of this publication is to provide a reference guide for users of soybean

products that includes current information on the processing and applications of soybeans in a wide range of diets.

Table Of Contents

SOYBEAN Feed Industry Guide 1st Edition, 2010


BIOFUELS TECHNOLOGY

Industry EventsCIGI’s portable biodiesel plant, housed in an 8 x 20-foot trailer, was on-hand for demonstrations in biodiesel production at 10 different industry events in 2010–11: •CalgaryStampede,CalgaryAB,July9–18,2010 •Threshermans’Reunion,AustinMB,July27–August1,2010 •AltonaLegendsAirportRace,AltonaMB,August20–22,2010 •MorrisStampede,MorrisMB,July22–25,2010 •ScienceTeachersAssociationof ManitobaConference,WinnipegMB,October22,2010 •AgintheClassroom,WinnipegMB,February5,2011 •RedRiverCollege,WinnipegMB,March9,2011 •AgricultureintheCity,WinnipegMB,March18–20,2011 •MRACAnnualMeeting,BrandonMB,March17,2011 •ManitobaRoyalWinterFair,BrandonMB,March28–April2,2011

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 (see Programs). CIGI thanks the Manitoba Canola Growers Association, Calgary Stampede, and Science Teachers Association of Manitoba Conference for their support.

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Industrial Applications Projects

Mustard Oil Products for Industrial Applications As a project for Mustard 21, products were created from mustard oil and tests were set up to determine its potential use in industrial applications by evaluating its efficiency as a penetrating oil, solvent, cleaner/degreaser and concrete release agent. The tests demonstrated that the methyl esters of mustard oil make an excellent feed stock for use in biodegradable, non-toxic solvents, penetrating oils, lubricants, cleaners and concrete form release agents. However, the study also concluded mustard biodiesel does not meet ASTM specifications due to its distillation point. A final report on the project was submitted to Mustard 21 in March 2011.

Defining Methyl Ester-Based Product Formulations

CIGI was involved in a project to develop definitions of methyl ester-based product formulations with pertinent use descriptions, product performance criteria and material safety data sheets for industrial and consumer applications. The objective of this project was to assist with label requirements, product testing and formulation, and development of MSDS sheets for Canadian vegetable oil derivatives for use in industrial applications. The project was conducted on behalf of Eastern Greenway Oils Ltd., a producer-based company located in New Brunswick.


INITIATIVES WITH INDUSTRYCIGI was involved with new and ongoing initiatives and in numerous discussions regarding potential work with industry, as well as with universities and government, during 2010-11. The following are some highlights.

Ontario WheatCIGI continued work with Grain Farmers of Ontario (GFO), testing Ontario wheat varieties for end-use quality. CIGI is in the third year of a five-year service contract with the GFO featuring ongoing wheat quality evaluation and market development work. This includes CIGI co-ordinating an annual Ontario Wheat Quality Survey and a joint project that began during the year called the Ontario Managed Field Trial Study – The Effect of Cultivar, Nitrogen Rates and Fungicide Application on Protein Quality in Canada Eastern Soft Red Winter (CESRW) Wheat (also see Ontario Wheat, page 11). In addition, CIGI has also been undertaking an Ontario Wheat Arabic Bread project focused on the use of Canada Eastern Soft Red Winter wheat in the processing of traditional Arabic flatbreads.

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PulsesThe four-year CIGI Pulse Flour Milling and Utilization Project project, a partnership between CIGI and Pulse Canada, was announced in April 2010 and is funded by the Government of Canada, Saskatchewan Pulse Growers (SPG), Alberta Pulse Growers, and the Canadian Special Crops Association. The project got underway in July with the hiring of a project manager and a pulse technologist. During the year work was undertaken to determine the effect of milling technologies on the properties of pulse flours with particular emphasis on yellow peas. In addition, project staff met with pulse processors and speciality millers regarding their potential involvement with the project. A collaborative project with the University of Manitoba on the effect of pulse pre-treatments prior to milling was also initated.

In August 2010, SPG renewed their contract with CIGI to undertake a five-year project to enhance world markets for Canadian pulses through secondary processing and value-added research. In March 2011, Manitoba Pulse Growers Association announced that they would also contribute funds to this project. As part of this project, CIGI has undertaken a number of activities working with pulses and their flours in food formulations (see Pulses, page 12 ).

Biodiesel Training and ConsultationIn addition to attending industry events and conducting courses on biodiesel production, CIGI worked with the biodiesel industry in a consulting capacity, providing technical and marketing support especially to new biodiesel plants. CIGI also worked together with industryonbiodiesel-relatedprojects(seeBiodieselsection,page17).

SoybeansAn AAFC AgriMarketing Program contribution agreement for $168,238 for CIGI to work with the Canadian Soybean Council (CSC) and the Canadian Soybean Exporters’ Association (CSEA) was signed in July 2010. CIGI was involved in the design and coordination of incoming and outgoing programs as well as producer programs which supported the marketing of Identity Preserved (IP) food grade soybeans. An industry publication targeting international customers, the Canadian Soybean Dispatch, was produced in English and Japanese on behalf of the CSC. CIGI also continues to house the Canadian Food Grade Soybean Database on the CIGI website. In addition, CIGI worked with Soy 20/20 to complete a soybean feed industry guide. Other international and domestic activities took place to support the marketing of Canada’s soybeans around the world, including participation in an exhibit at the Soy Summit in Minneapolis MN.


FOODTECH Canada CIGI continued as a member of the FOODTECH Canada Board of Directors, working together with a network of technology centres with pilot plant facilities across Canada as part of a food system aimed at moving innovative ideas through to commercial success.

Joint Business and Training Ventures

CIGI discussed various fee-for-service opportunities throughout the year with industry organizations, government, and universities both domestically and internationally. The potential opportunities ranged from research projects related to food, feed and biodiesel to marketing-related work and training, covering wheat, food barley, pulses, soybeans, and canola. This also included continued discussion with the Russian Federal Grain Quality and Phytosanitary Organization in Moscow resulting in plans for a group to train at CIGI in 2011, and with the Chinese Academy of Agricultural Engineering (CAAE) in Beijing, China resulting in plans for a CIGI staff member to meet with CAAE in China at their expense to discuss fee-for-service work. CIGI’s response to an RSP for the Grain Silos and Flour Mills Organization in Riyadh, Saudi Arabia to train a group of their staff over six months was accepted with a program expected to start at CIGI in July 2011. During the year CIGI also provided ongoing fee-for-service work for Warburtons, U.K., and gave a fee-for-service training session to staff of the South African Department of Agriculture, Forestry and Fisheries, supported by AAFC and CIDA.

DAFF Export Preparedness Program in Canada September 15-18, 2010

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Saudi Arabia Canola Meal MissionApril 11–15, 2010R. Newkirk, CIGI; D. Scothorn, Daniel Scothorn Nutrition Services Ltd.Mission members visited importers and conducted seminars to promote the use of canola meal in animal rations for representatives from feed and dairy companies in Saudi Arabia.

TaiwanCWB Wheat Technical MissionApril 25–30, 2010A. Sarkar, Y. Supeene, M. Wang, CIGI; D. Bushuk, J. Yin; CWB.Organized by the Taiwan Flour Millers Association, the representatives conducted a seminar and visited customers at flour mills in Tainin, Taichung and Taipei. Discussion focused on wheat quality and their use of CWRS and CPSR in baked products.

BangladeshCWB Wheat Technical MissionA. Sarkar, Y. Supeene, CIGI; D. Bonner, CWB.May1–7,2010Mission members held a seminar and visited flour mills and baking facilities mainly to discuss the quality and suitability of CWRS compared to wheats used from other countries.

Italy, France, Belgium, GermanyCWB Durum Wheat Technical Mission June 2–9, 2010E. Sopiwnyk, CIGI; L. Nemeth, CWB.The representatives visited pasta manufacturers in Italy, France, Belgium, and Germany to determine how customers are evaluating the quality of durum, semolina and pasta to ensure similar methods are being used in Canada. The quality of the two newly registered extra strong durum varieties Eurostar and Brigade was also discussed and potential demand was determined.

Brazil/Guyana CWB Wheat Technical Mission July24–August7,2010L. Taylor, M. Bresslauer, Y. Supeene, CIGI; L. Nemeth, CWB. In Brazil, the group visited various milling companies in São Paulo, Fortaleza, and bakeries in Boa Vista (customers of Namilco) to gather technical information and discuss any quality concerns. In Georgetown, Guyana, a formal seminar and baking demonstration were held for Namilco’s key customers. The mission focused on the application of CWRS in these markets.

AsiaCWB Wheat Technical MissionJapan, Singapore, Indonesia, ThailandJuly 30–August 12, 2010A. Sarkar, CIGI; G. Worden, D. Sliworsky, CWB.Mission members visited a milling company where they discussed CWRS quality, and presented a formal seminar to the Japan Flour Millers Association in Tokyo which focused on the application of CPSR, CWRW and CWHWS. The members also met with a milling company each in Singapore and Chilacap, Indonesia and attended the IAOM Technical Conference in Phuket, Thailand where they met with Asian customers.

Western EuropeCWB New Crop MissionNovember27–December8,2010U.K., Italy, GermanyA. Tweed, L. Taylor, CIGI; C. Gillen, L. Nemeth, M. Grenier, CWB.The mission presented new crop quality information with a focus on CWRS and CWAD in seminars held for customers in London, Bologna, Foggia, and Frankfurt. The group also met with customer companies that included a bakery in the U.K. and a pasta processing company in Italy.

TECHNICAL MISSIONSDuring 2010–11 CIGI staff participated in 15 technical missions to 25 countries.


Latin AmericaCWB New Crop MissionFebruary 13–25, 2011Venezuela, Ecuador, ChileM. Bresslauer, CIGI; E. Ordonez, CWBMission members visited milling companies and grain facilities in Caracas, Maracay, Quito, Guayaquil, and Santiago and other centres in the three countries. Discussion of new crop quality focused on CWRS, CPSR, CWRW and CWAD.

Latin AmericaCWB Wheat Technical MissionFebruary27–March5,2011Colombia, EcuadorM. Bresslauer, C. Lukie, CIGI; G. Swanson, CWBMission members made technical visits to bakeries and milling companies and their customers in Bogota, Quito, and Guayaquil to get firsthand information on requirements of their baking and milling industries. Discussion of Canadian wheat mainly focused on CWRS.

Southeast AsiaCWB New Crop MissionDecember5–17,2010Indonesia, Malaysia, Singapore, South Korea, ThailandE. Assefaw, A. Sarkar, Y. Supeene, CIGI; D. Sliworsky, G. Worden, CWB.Formal seminars on new crop quality with a focus on CWRS were presented and members also discussed CWAD, CPSR, CWRW, and CWHWS in Seoul, Jakarta, and Bangkok. Informal visits and presentations were made at other milling and baking customer companies in Seoul, Singapore, and Jakarta; and also in Kuala Lumpur, Penang and Kuantan, Malaysia.

JapanCSC Technical MissionNovember 23–24, 2010L. Malcolmson, CIGI, and M. McMullen, CSC.The representatives met with Japanese soy food processors in Nagoya and Osaka where discussion focused on Canadian food grade soybeans.

CSC Soybean Technical MissionMarch 7-18, 2011

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AsiaCWB Wheat Technical MissionFebruary17–March2,2011Bangladesh, Vietnam, Philippines A, Sarkar, Y. Supeene, CIGI; D. Bonner, D. Sliworsky (Vietnam), J.Yin, (Bangladesh and Vietnam), CWB.New crop seminars were held in Manila and Ho Chi Minh City to discuss new crop quality of Canadian wheat with a focus on CWRS and lower grades. Technical visits were made to milling companies in Manila, Ho Chi Minh City and Dhaka. Mission members were also invited by the Bangladesh Canadian Embassy Trade Commissioner to participate in a booth showcasing western Canadian wheat classes at Canada Showcase 2011, the first Canadian trade exhibition in Bangladesh.

AsiaCSC Soybean Technical MissionMarch7–18,2011Japan, Thailand, VietnamL. Malcolmson, CIGI; J. Gowland, M. McMullen, M. Froebe, CSC.Industry seminars on Canadian food grade soybeans were presented in Tokyo, Bangkok, and Ho Chi Minh City and meetings were held in each location with Canadian Embassy representa-tives and soyfood processors. While in Japan the group visited a tofu and natto plant and met with the Japan Tofu Association and the Federation of Japan Natto Manufacturers Cooperative Society. EuropeCWB Organic Wheat Technical MissionMarch 12–24, 2011U.K., Holland, Belgium, Switzerland, and ItalyT. Tweed, CIGI; D. Youngdahl, C. Gauthier, CWBMission members visited milling companies and importers to gain firsthand knowledge on the organic wheat markets in Europe and the quality needs of millers and secondary processors in order to understand what is required to expand market opportunities. Discussion also focused on CWRS and CWAD wheats.

AsiaCWB Wheat Technical Mission — FFM-WilmarMarch 13–24, 2011China, MalaysiaL. Taylor, A. Sarkar, M. Bresslauer, E. Sopiwnyk, CIGI; G. Worden, L. Nemeth, T. Koberstein, J. Yin, H. Shu (Beijing), I. Lee (Beijing), CWB.The mission provided detailed technical information on milling technology, analytical testing, flour quality and testing, and baking technology to staff of FFM and Wilmar. Discussion on the quality of Canadian wheat covered a number of varieties with a focus on CWRS. Technical visits were made to a noodle plant, bakery and mills in China. A seminar was presented for 100 FFM-Wilmar staff in Klang, Malaysia.


PROGRAMS: YEAR IN REVIEWThe participation of more than 1800 individuals in CIGI programs in 2010–11 provided an important opportunity to reinforce the strength of the Canada brand with customers and industry contacts from 42 countries.

Feedback from international and domestic program participants was positive overall with many acknowledging that their CIGI experience reinforced their perceptions of the safety and quality of Canada’s field crops. In the words of one participant, “I can now recommend Canadian wheat to my customers with full confidence.” Similar success was achieved during offshore programs where seminars in key markets provided an opportunity to share technical information, and in some instances offer practical sessions with customers in their facilities to demonstrate the end-product functionality of Canadian field crops.

Equally important were those programs offered to domestic participants, providing them a means to stay current with industry developments and to position themselves for future opportunities. Whether targeted to soybean producers interested in learning more about IP production, wheat producers looking to improve their understanding of the infrastructure used to market western Canadian grain, canola growers participating in risk management training, or federal government staff focused on the grain business as an economic driver, all shared a common interest in the future growth and prosperity of Canada’s field crop industry.

During the year, programs were held on behalf of the Canadian Wheat Board, Canadian Soybean Council, Grain Farmers of Ontario and Manitoba Canola Growers in addition to a number of other fee-for-service and open enrollment CIGI courses. Program details and statistics are provided on pages 26-29. In summary, CIGIheld70programsin2010–11:20offshoreprograms,19domesticprograms,13bilateralprogramstargeted to a specific country, region or company, 9 open enrollment courses, 6 fee-for-service, and 3 international programs. Program participants were from 42 countries, including for the first time a participant from Grenada.

CIGI’s ability to deliver a wide range of programs to meet the diverse needs of industry participants and sponsoring organizations is made possible by the expertise and knowledge of CIGI staff in addition to the insights and information shared by more than 300 industry resources. It is this collective commitment to providing participants with an inside look at different facets of Canada’s grain industry that contributes to the currency and relevance of the program content CIGI offers. Thank you to everyone who contributed to the success of this year’s programs.

Al Ghurair Foods Technical Exchange ProgramMay 3-7, 2010

68th Combine to Customer CourseFebruary 7-11, 2011

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PROGRAM STATISTICS 2010-11Course Name Dates International Canadian Total Participants ParticipantsFIRST QUARTER 2010

Saudi Arabia Canola Meal Seminars April 11–15 30 0 30CIGI–AAFC Technical Exchange Program April 13–15 0 3 3Taiwan Milling & Baking Seminar April 28 42 0 42AlGhurairFoodsTechnicalExchangeProgram May3–7 6 0 6Bangladesh Milling & Baking Seminar May 5 95 0 95Tunisia–Canada Milling Program May 9–16 8 2 10Interflour–CanadaTechnicalExchangeProgram May17–21 2 0 2QatarFlourMill–MillingTrainingProgram May24–27 16 0 16CostaRicaTechnicalExchangeProgram May27–28 1 0 1Bogasari Senior Executives Program May 31–June 2 5 0 5Latin America–Canada Durum Program May 31–June 4 8 0 85th Grain Industry Overview Course May 31–June 4 0 13 13GuatemalaBakingSeminars June6–9 75 0 75CIGI Biodiesel Course (Introductory and Level II) – Winnipeg MB June 8, 9 & 10 0 5 5Caribbean–Canada Milling Program June 12–18 14 1 153rd Russian FSI Program June 12–26 12 0 12Sri Lanka Baking Seminar June 23–24 50 0 5013thCanadianMillingExecutivesSeminar June25 2 27 29FirstQuarterTotals:18programs 366 51 417 SECOND QUARTER 2010 43rd International Grain Industry Program July 3–18 20 3 23China Study Tour for Canadian Producers July 24–August 5 0 13 13Japan CWB Wheat Technical Seminar August 2 60 0 60Guyana CWB Baking Seminar August 5 40 0 40Seaboard Premier Technical Exchange Program August 16–18 4 0 45th Japan–Canada Durum Wheat Program August 22–September 1 20 2 224thCSCJapan–CanadaSoybeanProgram August23–27 9 2 11


Politics Aside: An Inside Look at Western Canada’s GrainIndustry September9–10 0 17 178th CIGI Milling Technology Short Course September 13–15 0 4 4DAFF Export Preparedness Program in Canada September 15–18 3 0 3SecondQuarterTotals:10programs 156 41 197

THIRD QUARTER 2010 Pangamas Technical Exchange Program October 4–8 3 0 3Grain Industry 101 for Federal Employees October 26 0 24 24Kazakhstan Quality Evaluation Training Seminar November 8–9 30 0 306thGrupoAltexTechnicalExchangeProgram November17–19 4 0 464th Combine to Customer Course November 22–26 0 31 312010WesternCanadianWheatQualitySeminars– November27– 216 0 216 Europe (4) – United Kingdom, Italy (2), Germany December 865th Combine to Customer Course November 29– 0 31 31 December 3 SoutheastAsiaNewCropSeminars(3)–Korea, December5–17 91 0 91 Indonesia, Thailand 35th Canadian Grain Industry Course December 6–10 0 23 23CWB Quality Overview Program December 21–22 0 14 14ThirdQuarterTotals:15programs 344 123 467 FOURTH QUARTER 2011 66thCombinetoCustomerCourse January17–21 0 26 26MaltBarleyGrowersProgram January19–21 7 17 246th Grain Industry Overview Course January 24–28 0 18 18CSCProducerPrograms(3)–Woodstock January24–27 0 58 5 Walkerton, Chesterville ON 67thCombinetoCustomerCourse January31– 0 28 28 February 4 1st Grains in Action Course February 1–3 0 29 29PundiKencana–IndonesiaTEProgram February7–10 4 0 468thCombinetoCustomerCourse February7–11 0 31 31CSC Producer Program (Winnipeg) February 8 0 12 122ndGrainsInActionCourse February15–17 0 25 25

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2ndAsiaNewCropMission(2)–Philippines,Vietnam February17– 75 0 75 March 269th Combine to Customer Course February 21–25 0 32 323rd IEAP Program February 22–23 0 16 16GrainWorldExecutiveProgram February27– 6 5 11 March 2CWB Suppliers of the Year Program February 28– 0 9 9 March 29thCIGIMillingTechnologyShortCourse March7–9 0 10 10Manitoba Canola Growers Risk Management Training March 8 & March 15 0 12 12 (Dauphin) CSCAsiaSeminars(3)– March9–17 210 0 210 Japan, Thailand, VietnamManitobaCanolaGrowersRiskManagementTraining March10&March17 0 11 11 (Selkirk) 36th Canadian Grain Industry Course March 14–18 0 16 16South America Study Tour for Canadian Producers March 16–April 2 0 10 10FFM-Wilmar China-Malaysia Mission March 21–23 100 0 100FourthQuarterTotals:27programs 402 365 767 2010–11 TOTALS: 70 programs 1268 580 1848

South America Study Tour for Canadian Producers March 16-April 2, 2011


PARTICIPATING COUNTRIES, 1973 TO 2011AlgeriaArgentinaAustraliaBahrainBangladeshBarbadosBelgiumBermudaBoliviaBrazilBulgariaBurkina FasoCameroonCanadaChileColombiaCosta RicaCôte d’IvoireCubaCyprusCzechoslovakiaDenmarkDominican RepublicEcuadorEgyptEl SalvadorEritreaEthiopiaFinlandFranceGermanyGhanaGreeceGrenadaGuatemalaGuyanaHaitiHondurasHong Kong

HungaryIndiaIndonesiaIranIraqIrelandIsraelItalyJamaicaJapanKazakhstanKenyaKorea (South)KuwaitLebanonLibyaMalaysiaMaliMaltaMauritaniaMexicoMonacoMoroccoMozambiqueNamibiaNepalNetherlandsNew ZealandNicaraguaNigerNigeriaNorwayOmanPakistanPanamaParaguayPeople’s Republic of ChinaPeru

PhilippinesPolandPortugalPuerto RicoQatarRomaniaRussiaSt. VincentSaudi ArabiaSenegalSingaporeSouth AfricaSpainSri LankaSudanSwedenSwitzerlandSyriaTaiwanTanzania

ThailandTogoTrinidad & TobagoTunisiaTurkeyUgandaUkraineUnited Arab EmiratesUnited KingdomUnited States of AmericaUruguayUzbekistanVenezuelaVietnamYemenYugoslaviaZambiaZimbabwe

The 42 countries represented in the 2010–11 fiscal year are in bold.

TOTAL PARTICIPATING COUNTRIES TO DATE: 115 (including Canada)

TOTAL PARTICIPANTS TO DATE: 34,404

2045

1486

1220

13,372 2567

1737

1238

11,716

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South America Study Tour for Canadian Producers March 16-April 2, 2011

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PUBLIC AND INDUSTRY RELATIONSIndustry EventsIn addition to the CIGI biodiesel trailer being on-site at agriculture-related events to demonstrate the production of biofuels (see BiofuelsTechnologysection,page17),CIGIwasinvolvedindisplaysatanumberof events.

Western Canada Farm Progress Show

CIGI was an exhibitor at the Western Canada Farm Progress Show in Regina SK, June 16–18, 2010. The display focused on CIGI’s work with lentils and durum flour. Samples of an extruded snack and bread made from durum flour were given along with a limited number of bags of durum flour for baking. Pasta made with lentils along with related handout materials and recipes were also made available.

IFT (Institute of Food Technologists) Food Expo

AnSPG/CIGIexhibitwassetupattheIFTFoodExpo,July17–20,2010inChicagoIL.CIGIpulsetechnicalstaff coordinatedtheexhibit, and were on hand to answer technical questions mainly related to Saskatchewan-grown lentils.

Soy Summit

CIGI participated in a CSC exhibit, along with AAFC, at the Soy Summit in Minneapolis MN, October 4–6, 2010.

AACC International Annual Conference

CIGI participated with the CWB in a Food Barley Exhibit at the AACC International Annual Conference in Savannah GA, October 24–26, 2010.

Manitoba Ag Days

CIGI’s exhibit at Manitoba Ag Days from January 18–20, 2011 in Brandon MB focused on CIGI’s work with crops grown in Manitoba. 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.

Pulse Ingredient Expo

CIGI staffed a display at the Pulse Ingredient Expo in Toronto ON, February 10–11, 2011.


Canada Showcase 2011

The first Canadian trade exhibition in Bangladesh called Canada Showcase 2011 was held February 20, 2011 in Dhaka. CIGI and the CWB, who were there for a CWB Wheat Technical Mission, were invited to participate in a booth that showcased western Canadian wheat classes.

Communications ActivitiesOnline Promotion

CIGI launched a Facebook page in February 2010 which was used during the year to promote CIGI courses, activities and news as well as to provide a means for past program participants to reconnect. A link appears on CIGI’s web site.

CIGI launched its new quarterly e-publication CIGI.CA in August 2010. Distributed via email to over 4,000 recipients, including CIGI alumni and industry organizations, it features audio and video clips along with written stories and photos in a user-friendly format. Media Coverage

CIGI received significant international and domestic coverage by print, broadcast and online media during 2010–11. Subjects included technical work done with pulses and food barley, and biodiesel demonstrations at industry events. Program-related coverage ranged from a wheat mission in Bangladesh/Guyana and a food soybean mission in Japan to a Canadian farmers’ tour of Brazilian soybean production areas and domestic interviews with international program participants. CIGI as an organization was also covered, with articles appearing in publications such as Ontario Grain Farmer magazine, Canadian Seed Growers magazine, and the GAFTA newsletter. In addition, CIGI provided the Manitoba Co-operator newspaper with video of a Combine to Customer Course for use on their web site and MRAC shot footage of the CIGI biodiesel trailer for a video on their 15th anniversary featuring projects they had funded.

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GROUP TOURS AND VISITORS

During 2010–11, 49 international and domestic groups totalling 530 people toured CIGI. They included producers, teachers, students, and representatives from governments, universities, industry organizations, and grain and food processing companies. International representatives were from countries that included Belgium, China, Colombia, Cuba, Estonia, Germany, Hungary, Iceland, India, Ireland, Japan, New Zealand, Spain, Switzerland, Russia, Ukraine, United Arab Emirates and the U.S. CIGI also had 74visitorsfromAlgeria,Canada,China,Japan,Germany,France,Morocco,SouthKorea,Switzerland,andUruguay.Theyrepresented universities, industry organizations, governments, and various companies.

INQUIRIES AND ASSISTANCE

During2010–11,CIGIstaff respondedtomorethan740domestic,internationalandgovernmentinquiries.Of those,approximately75percentof thecontactsweredomestic,15percentwereinternational,andalmost10percentcamefromgovernmentagencies.Anumber were also from the Canadian Wheat Board on behalf of international customers. Requests covered a variety of areas including food-related technical information or direct hands-on assistance, testing, biofuels, feed, marketing, CIGI programs, publications, audiovisuals, media inquiries and employment. Inquiries also involved a range of more general subjects such as those related to commodities, tours or industry. Some were referred to external individuals or organizations for information.

COFCO tour and researchers from the Grain Quality Laboratory, Harbin, China

September 17, 2010


Agriculture and Agri-Food Canada (AAFC) Industry Value Chain Roundtables for Pulses

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 • Engineering and Processing Division, Executive Committee

Barley Development Council

Canola Council of Canada Utilization Committee

Feed Opportunities From Biofuels Industries, Advisory Committee

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

Western Canadian Feed Innovation Network, Advisory Board

University of Saskatchwan Research Chair in Feed Processing, Advisory Board

Manitoba Institute of Agrologists

FOODTECH Canada, Board of Directors

Ontario Cereal Crop Committee, Quality Subcommittee

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

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

Western Canadian Feed Innovation Network, Advisory Board

2012 Western Nutrition Conference Organizing Committee

TECHNICAL AND PROFESSIONAL ASSOCIATION COMMITTEESDuring 2010–11, CIGI staff were active in the following committees/organizations:

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FINANCE REPORT

Year in Review

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, 2011 and the statements begin on page 39.

CIGI’s operating expenses were partially funded by Agriculture and Agri-Food Canada up to 50 percent of eligible expenses as defined under the AgriMarketing Program to a maximum of $3,603,421. The Canadian Wheat Board provided $2,166,667 in funding. Additional contributions and support were provided by other sectors of the agriculture industry.

Revenue from operations totaled $8,253,829 and expenses totaled $8,007,581 resulting in a surplus of $246,248 for the 2010–11 fiscal year. This operating surplus is included in the Statement of Changes in Net Assets which has a deficiency balance of $488,485 at year-end. The net asset deficiency arose as a result of an actuarial review of the Institute’s liability for post-retirement benefits, other than pension, conducted in 2005. The deficiency balance of $734,733 at March 31, 2010, when combined with the results of operations and purchase of capital assets as detailed on page 40, produced a net asset deficit of $566,363 as at March 31, 2011.

Total revenue for 2010–11 increased $854,106, or 11.5 percent from the previous year. This positive change was distributed among all revenue sources. Amounts received from CIGI’s core funding contributors, Agriculture and Agri-Food Canada and the Canadian Wheat Board increased by $233,366 and $200,000 respectively, compared to the previous year. Combined increases in course registration fees, program specific and sundry revenues added a further $338,915. The rest of the revenue categories accounted for the balance of the increase of $81,825.Total expenses for 2010–11 increased $455,468 or 6.0 percent from the previous year. The largest differences were in salaries and benefits which rose $250,426 and program costs which increased by $265,881. The remaining expense accounts had a combined net decline in costs of $60,839.

The increase in salary and benefits was due in part to the full staffing of a number of senior positions in 2010–11 that were vacant for periods of time in 2009–10 or filled on a contract basis. As well, a number of positions received increases as a result of job revaluations and a number of temporary positions were hired to deal with increased workloads.

The majority of the increases in program costs were due to CIGI-initiated courses and programs sponsored by industry companies and farm organizations; not including the Canadian Wheat Board. The cost of CIGI-organized courses increased $79,663 compared to 2009-10. This net increase was due in large part to two farm tours to China and South America with a combined cost of $111,786. Other programs sponsored by industry organizations were $155,306 higher than the previous year. As well, there was an increase in program expenditures and activities undertaken on behalf of the Canadian Soybean Council and the Canadian Soybean Exporters' Association in the amount of $65,591 and an offsetting decline in CWB costs of $35,850.

Capital purchases totaled $913,650 in 2010–11. Of this amount $309,448 was funded by the Canadian Wheat Board, $95,449 by the Saskatchewan Pulse Crop Development Board and $508,753 by Western Economic Diversification Canada.


2010-2011 FINANCIAL STATEMENTS

Canadian International Grains InstituteMarch 31, 2011

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MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS

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 16, 2011


INDEPENDENT AUDITOR’S REPORTTo 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, 2011, 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 the overall 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, 2011 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

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TABLE OF CONTENTS2010-2011 FINANCIAL STATEMENTS

Statement of Operations 39

Statement of Changes in Net Assets 40

Statement of Financial Position 41

Statement of Cash Flows 42

Notes to the Financial Statements 43-51

Schedules 52-54


Canadian International Grains Institute STATEMENT OF OPERATIONS Year Ended March 31, 2011

2011 2010 REVENUE Agriculture and Agri-Food Canada $ 3,440,325 $ 3,206,959 Agriculture and Agri-Food Canada - Soybeans 136,693 120,591 CanadianWheatBoard 2,166,666 1,966,667Technical marketing support - in kind (Schedule 1) 582,000 529,000 Courseregistrationfees 231,966 131,744Programspecificrevenue 354,173 236,446Sundry(Schedule2) 873,846 752,880Amortization of deferred contributions 468,160 455,436 8,253,829 7,399,723 EXPENSES Salariesandbenefits(Schedule3) 3,076,371 2,825,945Officeandadministration(Schedule4) 598,755 608,309Occupancy 632,565 647,540Technical marketing support - in kind (Schedule 1) 582,000 529,000 Programs (Schedule 5) 2,491,865 2,225,984 Feed trials - 24,000 Otherprojectexpenditures 134,721 205,281Amortization of fixed assets 491,304 486,054 8,007,581 7,552,113 EXCESS OF REVENUE OVER EXPENSES (EXPENSES OVER REVENUE) $ 246,248 $ (152,390)

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Canadian International Grains Institute STATEMENT OF CHANGES IN NET ASSETS Year Ended March 31, 2011

2011 2010 Invested in Unrestricted Fixed Assets Total Total NETASSETS,BEGINNINGOFYEAR $ (835,755) $ 101,022 $ (734,733) $ (582,343)EXCESS OF EXPENSES OVER REVENUE 269,392 (23,144) 246,248 (152,390)INVESTMENTINFIXEDASSETS(Note7) - - - - NET ASSETS, END OF YEAR $ (566,363) $ 77,878 $ (488,485) $ (734,733)


Canadian International Grains Institute STATEMENT OF FINANCIAL POSITION March 31, 2011 2011 2010ASSETS Cash $ 354,117 $ 1,122,608Accountsreceivable 723,047 298,375DuefromAgricultureandAgri-FoodCanada 644,947 232,894DuefromCanadianWheatBoard 25,671 5,070Depositsandprepaidexpenses 57,551 89,375 1,805,333 1,748,322 INVESTMENTS (Note 3) 510,639 - SEPARATION BENEFIT ASSET (Note 10) 6,900 - FIXED ASSETS (Note 5) 2,913,234 2,490,888 $ 5,236,106 $ 4,239,210 LIABILITIES CURRENT Accountspayableandaccruedliabilities $ 738,185 $ 351,348Unearnedrevenue 17,600 31,815 755,785 383,163 LIABILITY FOR SEPARATION BENEFITS (Note 10) - 41,263 POST-RETIREMENT BENEFITS LIABILITY (Note 10) 2,098,151 2,159,651 DEFERRED CONTRIBUTIONS (Note 6) 2,870,655 2,389,866 5,724,591 4,973,943COMMITMENTS (Note 9)

NET ASSETS Investedinfixedassets(Note7) 77,878 101,022Unrestricted (566,363) (835,755) (488,485) (734,733) $ 5,236,106 $ 4,239,210 APPROVED BY THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director

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Canadian International Grains Institute STATEMENT OF CASH FLOWS Year Ended March 31, 2011

2011 2010CASH FLOWS FROM OPERATING ACTIVITIES Excess of revenue over expenses (expenses over revenue) for the year $ 246,248 $ (152,390)ITEMS NOT AFFECTING CASH Post retirements benefits expense (61,500) (29,013)(Provision) recovery for separation benefits (48,163) 33,535 Amortization of fixed assets 491,304 486,054 Amortization of deferred contributions (468,160) (455,436)Accrued investment interest (10,639) -Technical marketing support - in kind revenue (582,000) (529,000)Technical marketing support - in kind expense 582,000 529,000 149,090 (117,250) CHANGES IN NON-CASH WORKING CAPITAL ITEMS (452,880) 215,405 (293,151) 98,155 CASH FLOWS FROM FINANCING ACTIVITY Deferred contributions received 948,949 62,867 CASH FLOWS USED IN INVESTING ACTIVITIES Purchases of fixed assets (913,650) (83,469)Purchases of investments (500,000) - (1,424,289) (83,469) NET INCREASE IN CASH (768,491) 77,553 CASH POSITION, BEGINNING OF YEAR 1,122,608 1,045,055 CASH POSITION, END OF YEAR $ 354,117 $ 1,122,608


Canadian International Grains Institute NOTES TO THE FINANCIAL STATEMENTS March 31, 2011

1. PURPOSE OF THE ORGANIZATIONThe 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 CanadianWheatBoardandCanadianGrainCommission,onJuly24,1972asacorporationwithoutsharecapitalundertheCanadaBusiness Corporations Act. As a not-for-profit organization it holds a tax exempt status under the Income Tax Act.

2. SIGNIFICANT ACCOUNTING POLICIESThe 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, 2011. 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 recognition

The 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.

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c) Supplies

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

d) Contributed services

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

e) Foreign currency translation

Foreign 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 instruments

Financial 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 for tradingAccounts 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 other income.


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.

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 $510,639 (2009 - $nil).

g) Employee future benefits

Pension 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.

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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 estimates

The 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.

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 I of the CICA Handbook) and Accounting Standards for Not-for-Profit Organizations (Part III of the CICA Handbook), whichever suits them best. The Institute currently plans to 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, 2011 from 1.10% to 1.25% and 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, 2011.

4. FUNDING OF OPERATIONSTheInstitute'soperatingexpensesarefundedbyAgricultureandAgri-FoodCanadaupto$7,811,680overthenexttwoyears.


5. FIXED ASSETS 2011 2010 Accumulated Net Book Net Book Cost Amortization Value Value Term Building modifications $ 336,238 $ 336,238 $ - $ - 10 yearsPilotflourmill 2,124,167 1,264,238 859,929 598,493 5-20yearsPilot bakery 385,044 204,510 180,534 115,881 5-10 yearsQuality control laboratory 789,949 502,318 287,631 323,034 5-10yearsPilotpastaplant 1,775,095 913,115 861,980 824,320 10-20yearsTestbakinglaboratory 247,357 172,781 74,576 88,573 5-10yearsPulseprocessingplant 613,306 279,454 333,852 181,423 10yearsAudio-visual equipment 206,142 182,130 24,012 11,919 5 yearsOfficefurniture 402,302 331,688 70,614 85,420 10yearsOfficeequipment 196,494 183,790 12,704 26,905 5yearsPilotnoodleplant 1,117,918 945,587 172,331 188,592 5-20yearsBiodieselplant 74,253 39,182 35,071 46,328 3-10years

$ 8,268,265 $ 5,355,031 $ 2,913,234 $ 2,490,888

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

2011 2010 Purchased Future Fixed Fixed Asset Assets Purchases Total Total

Balance, beginning of year $ 2,389,866 $ - $ 2,389,866 $ 2,782,435Currentyearcontributions 913,650 35,299 948,949 62,867Amortization (468,160) - (468,160) (455,436)BALANCE, END OF YEAR $ 2,835,356 $ 35,299 $ 2,870,655 $ 2,389,866

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7. INVESTMENT IN FIXED ASSETSa) Investment in fixed assets is calculated as follows: 2011 2010

Fixed assets $ 2,913,234 $ 2,490,888Amounts financed bydeferred contributions (2,835,356) (2,389,866) $ 77,878 $ 101,022

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

2011 2010

NET CHANGE IN FIXED ASSETSAmortization of deferred contributionsrelated to fixed assets $ 468,160 $ 455,436Amortization of fixed assets (491,304) (486,054) $ (23,144) $ (30,618)

c) Net change in investment in fixed assets 2011 2010

Purchase of fixed assets $ 913,650 $ 83,469Future purchase of fixed assets 35,299 - Increaseindeferredcontributions (948,949) (62,867) $ - $ 20,602


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:

2011 2010

Registration fees $ 25,300 $ 26,400 Canadianparticipantcostrecoveries 21,097 18,702Sundryrevenue 5,729 6,394Reimburse Insurance/Payroll expense (4,200) (6,696)Programexpensereimbursements (333,721) (140,632)Human resource services (1,392) (26,250) ii) Transactions with Agriculture and Agri-Food Canada, a principal funding entity which exercises significant influence over the operations of the Institute include:

2011 2010

Registration fees $ 11,110 $ 13,200Canadian participant cost recovery 1,494 425Staff travel expense recovery 1,588 - Fee for service - Training - 4,500

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:

2011 2010

Registrationfees $ 27,500 $ 20,800Canadian participant cost recovery 2,613 3,456Director salary recovery 3,530 12,041Miscellaneous expense recoveries 12,116 - Commissionaire’sservice (10,426) (9,697)Rebate – Embassy (1,354) -

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

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9. COMMITMENTSThe Institute leases space for their operations under an operating lease that expires March 31, 2012. The annual operating lease payments during the next year are $538,822.

10. EMPLOYEE FUTURE BENEFITS

Pension plan

TheInstitute’stotalplanexpenseandpaymentsrelatedtothepensionplanwas$325,879(2010–$232,000).Thesecontributionsrepresent 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. 2011 2010 Accrued benefit obligation $ (466,000) $ (393,000)Fair value of plan assets 449,000 345,000Fundedstatus–plandeficit (17,000) (48,000)Balanceof unamortizedamounts 23,900 6,737Separation Benefits Asset (Liability) $ 6,900 $ (41,263)

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

2011 2010

Discount rate 5.50% 6.00%Expectedlong-termrateof returnonplanassets 3.75% 3.75%Rate of compensation increase 4.50% 4.50%

2011 2010

Other information about the Institute’s post-retirement benefits plan:Benefits paid $ - $ 12,000 Employer contributions 96,000 12,000Employee contributions - -


Post-retirement benefits

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

2011 2010Accruedbenefitobligation $ 1,299,700 $ 1,165,300Fair value of plan assets - - Fundedstatus–plandeficit 1,299,700 1,165,000Balanceof unamortizedamounts 798,451 994,351Post Retirement Benefits Liability $ 2,098,151 $ 2,159,651

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

2011 2010Discount rate 5.50% 6.00%Expected long-term rate of return on plan assets 0.00% 0.00%Rate of compensation increase 4.50% 4.50%

2011 2010Other information about the Institute’s post-retirement benefits plan:Benefits paid $ 38,000 $ 40,100Employer contributions 38,000 40,100Employee contributions - -

11. CAPITAL MANAGEMENTThe 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. 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, 2011 Schedule 1Technical Marketing Support - in kind

2011 2010INDUSTRY SUPPORT CanadianWheatBoard $ 283,500 $ 172,500Canadian Malting Barley Technical Centre 33,000 36,000 Pulse Canada 1,000 1,500 Canola Council of Canada 5,000 1,500 Other 99,500 144,000 $ 422,000 $ 355,500 GOVERNMENT SUPPORT Canadian Grain Commission $ 142,500 $ 163,000 Governmentof Canada 17,500 10,500 160,000 173,500 $ 582,000 $ 529,000

Schedule 2

Sundry Revenue

2011 2010Grants $ 15,446 $ 31,000 Interest 16,039 922 Mill product recoveries 864 1,664 Feeforservicerevenue 150,577 182,594 Staff travel 15,371 2,969Miscellaneous revenue 140 2,441 Otherprojectrevenue 675,409 531,290 $ 873,846 $ 752,880


Schedule 3Salaries and Benefits Expenses

2011 2010Salaries $ 2,505,426 $ 2,319,890 Staff benefits 538,796 437,990Provision for separation benefits - 33,535 Manitoba payroll tax 32,149 34,530 $ 3,076,371 $ 2,825,945

Schedule 4Office and Administration Expenses

2011 2010Advertising $ 36,242 $ 54,442 Audit and legal 18,409 14,333 Books and subscriptions 2,848 2,126 Computer network 12,186 14,499 Computer software and upgrades 24,560 34,266 Consulting and professional fees 88,853 49,905 Equipmentrepairandmaintenance 39,756 31,242Freightandstorage 34,578 48,938 Generaloffice 67,836 105,553 Graphics and photography 3,814 3,968 Hospitality 4,896 3,778Insurance 35,105 34,973Materialandsupplies 47,945 40,570Office supplies 11,136 15,840 Postageandcourier 1,303 3,475Printing 32,233 34,638 Professional dues and course registrations 45,222 58,088 Staff travel 58,576 21,822Telephoneandtelecommunications 31,207 30,490Translation 2,050 5,363 $ 598,755 $ 608,309

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Schedule 5

Programs

2011 2010Participantsupport $ 2,471,018 $ 2,235,498Otherprogramexpenses(recoveries) 20,847 (9,514) $ 2,491,865 $ 2,225,984


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