Good to Great
“Hedgehog Concept”
for the
Canola Sectors
and
Industry
July 19, 2005
Canola Growers
Participants:
Clarence Assenheimer, Wayne Bacon, Kevin bender, Jim
Bessel ®, Tom Borgen, Brian Chorney, Doug Chorney,
Ernie Doerksen, John Kubin, Kelvin Meadows, Bill
Ross, Ernie Sirski (F), Charles Turcotte, Cherie
Turcotte, Brian Besley, Jim Caughlin, Nolita Clyde,
Bruce Dalgarno, Hugh Drake, Judie Dyck, Steven
Fosty, Greg Fyfe, Stewart Gilroy (F), Andrew Haarsma,
Lorne Henkelman, Will Hill, Tom Kieper, John Mayko
®, Fred Meister, Brian Tischler, Kevin Waslaski, Kenton
Ziegler, Graham Caskey, George Corneil, Dale Gryba,
Brett Halstead, Murray Hartman ®, Max Polon, Greg
Porozni, Ross Ravelli (F), Dave Starner, Dale
Thorenson, Ward Toma, Tim Wiens, Brian Wiley
Canola Growers
Strengths:
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Delivering customer needs through IP/traceability
Producing a low cost product that is highly
differentiated
Innovators and risk takers
“We are the best in the world at risk taking”
Adaptable, Resilient, Responsive to market signals
Quick adoption of new technology (from genetics to
grain trucks)
Production with “top management practises” or
“best management practises”
Agronomic and mechanical expertise
Canola Growers
Strengths:
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Environmentally sensitive
stewardship
Comittment to Food safety
Good research infrastructure
Industry and grower organizations
Geographic location for some
growers - close to US market
Canola Growers
Best in the World at:
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Producing the healthiest edible oil
Producing a quality product with
good quantity for the industry to
ensure continued market
commitment and re-investment in
R&D
Canola Growers
Economic Drivers:
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Profit/acre (unit) relative to other
crops
Net return/acre
Revenue/bu (or tonne)
$ earned/ac of land in operation
Profit/rotation
Time and simplicity
“lives saved per acre”
Seed/Input Sector
Participants:
Scott Chapman, Dave Charne, Brian
DeKock, Dave Dzisiak (F), Mark Empie,
Gary Galbraith, Harley House, Rick
Istead, Brent Jarva, Jim Johnson, Mark
Kidnie, Cory McArthur, Freda
Molenkamp, Trevor Rempel, Roger
Rotariu, Michael Schmidt, Norm
Sissons, Diane Wreford ®, Clare
Stanfield
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Canola Seed/Inputs
Strengths
R&D investments
Innovative
Broad portfolio
Quick response in providing new
technology
Quality assurance
Good farmer knowledge base
Passion and attitude
Technology transfer
Committed to advancing canola
Canola Seed/Inputs
Best in the World at:
Adding value through technical
innovation (new traits,
competitive technology)
Consistent profitable production
Canola Seed/Inputs
Economic Driver:
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Contribution margin/acre
Increased ROI per acre
Contribution margin/bag of seed
Profit/$ of R&D investment
Farm profit/acres
Competition for R&D $ is based on crop
Needs to be a competitive return on
investment/acres
Canola Crushers/Processors
Participants: Tim Chen, Angela
Dansby, Simone Demers Collins,
Thomas Erickson, Brent Fenton,
Kevin Flanagan, Woody Galloway
Carl Hausmann, Dave Hickling ®,
Herb Schafer, Ken Stone, Ernie
Unger, Pat Van Osch (F), Rick
Watson, Jim Wispinski, Chris Wolf
Canola Crushers/Processors
Strengths
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Processing experience compared to other countries
(e.g. chlorophyll)
Excellence in food safety
Ability to bring new innovations to the market
quickly
Product differentiation
Proximity to a large and health conscious market
(U.S.)
Consistent seed supply (year round)
Consumer demand (value driven)
Canola Crushers/Processors
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BITW:
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Marketing and providing a healthy
and functional oil product
Economic Drivers:
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Profit/tonne
Must be balanced with ROI
Exporters
Participants: Chris Beckman, Brenda
Caners, Lach Coburn, Brian Conn,
Paul Erickson, Brad Fowler, Kelly
Funke ®, Brian Hayward, Jill
Klusa, Paul Koltek, Adrian Man (F),
Penny Mah, Dean McQueen, Ichiro
Otani, Dave Parsons, Dan Stirling,
Thorsten Tiedeman, Lawrence
Yakielashek
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Canola Exporters
Strengths
Logistics
Lowest cost seed provider
Consistency – supply and quality (doesn’t always
mean the lowest price)
Reliability
On-time delivery
Volume/quality
Stay in the food channel
Higher quality product on a consistent basis
“Quality first”
Providing information on conditions, marketing
information etc.
Best at providing the customer what they want
Canola Exporters
Economic Drivers:
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Timely delivery
Tonnes delivered
Margin/tonne
Incremental premium
received/tonne
Regulatory Group
Participants: Dale Adolphe Tyler
Bjornson ®, Matthew Cahoon,
Russ Freed, Harold Hedley, Terry
Harasym, Lorne Hepworth, Bob
Ingratta, Yoshinori Komura, Rob
MacDonald, Rob Meijer, Dwight
More, Judy Shaw, Rick Smith,
Brain Treacy, Richard Wansbutter
(F), Rick White
Regulatory Systems:
Question:
What process and structures need
to be changed in Canada's
regulatory system to improve the
ability of the canola industry to
generate profit for its value chain
participants?
Regulatory Systems
Four acts that need to be reviewed to
ensure canola’s competitiveness:
1. Canada Grains Act
2. Seeds Act (Variety Registration, Plants
with Novel Traits)
3. Food and Drugs Act (health claims,
labelling)
4. Pest Control Products Act (pesticide
access and trade issues (MRLs)
Regulatory Systems
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Variety Registration - needs to change (focus on
quality or a list)
Foster the use of contract registration
Recognize regulatory impact on other
commodities if a change is made for canola
Must enable commercialization and innovation
No agreement on PNT – strengths and
weaknesses
Challenge no-split approval policy
Non-Uniformity across Government (e.g., Health
Canada and CFIA)
Regulatory Systems
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System must be science-based; market
access must not be a consideration
Do we need Canadian Grain
Commission grading when the industry
sells on specifications?
Opportunities:
• Smart regulations
• Does the Canadian system give us a
competitive advantage compared to
other countries
“Fix it”
1.
Transportation Constraints
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2.
Regulatory
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3.
4.
growers & exporters
Variety Registration
Need for greater commercialization of
inspection services
Tariffs
GMO approvals
Canola Industry BITW
Most recognized oil
Best all round oilseed
Number one consumer choice
Providing the health and nutritional value of canola products to the world
Providing the highest quality canola product
“To be successful must tie all sectors together”
R&D
Focus on commodity canola and specialty canola
Reliable and consistent supply of canola seed
Biggest supplier of canola seed in the world
Producing the healthiest and most versatile oil in the whole wide world
Premium world oilseed to meet consumer demand; producing a superior product
Sustainability
Innovation and collaboration across the value chain
Producing the healthiest affordable everyday use food oil
Mutual respect of all sectors
Delivering quality oil and meal to meet consumer demands through IP programs
Ability to change quickly to meet new demands
Supply the food and non-subsidized industrial demands
Educating consumers
Environmentally friendly production
Research and development
Aligning all the sectors of the canola industry
Most Innovation and collaboration
Improving the health of the North American consumer
Delivering multi-functional oil to meet consumer health and food demands
Cooperation amongst the industry
“We are damm lucky to be part of this industry”
Speed of change
Health/Quality
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Most recognized oil, “Best all round oilseed”
Number one consumer choice
Producing healthiest and most versatile oil in the whole wide world
Producing the healthiest affordable everyday use food oil
Delivering quality oil and meal to meet consumer demands
through IP programs
Improving the health of the North American consumer
Delivering multi-functional oil to meet consumer health and food
demands
Premium world oilseed to meet consumer demand; producing a
superior product
Providing the highest quality canola product
Educating consumers
Providing the health and nutritional value of canola
products to the world
Industry Collaboration
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“To be successful must tie all
sectors together”
Mutual respect of all sectors
Aligning all the sectors of the
canola industry
Cooperation amongst the industry
“We are damn lucky to be part of
this industry”
Innovation and Adaptation
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Research and development
Innovation and collaboration
across the value chain
Speed of change and adaptation
Ability to change quickly to meet
new demands
Differentiation Products
Food/ Industrial
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Focus on commodity canola and
specialty canola
Supply the food and nonsubsidized industrial demands
Supply
• Reliable and consistent supply of canola
seed
• Biggest supplier of canola in the world
Sustainability
Environmentally friendly production (E)
Canola Industry
Economic Drivers
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Premium for canola vs. other canola
Seeded acres
Return/ac vs. other oilseed
Most profitable across the value chain
Profit/acre or tonne relative to other crops
Profitability in the entire value chain
Product consumption
Global demand that exceeds supply
Economic value for all participants in the value
chain
“Growing the chain of value from field to fork”
$ per tonne of marketed components
Number of valuable components extracted
Our Passion:
“Made in Canada Crop”
Healthy Quality Product
Value of the growers contribution to the well-being of the overall industry
Something is always happening in Canola
Marketing freedom
“Canola is the most innovative and exciting crop”
Profit
Solutions for growers
Unique solutions for the industry's
Competitiveness and delivering value
Increased growth for all industry
Innovation
Canola provide the value of life
Health agricultural economy
Canada’s gift to health
Spreading the good word about canola
Profitable growth of the entire industry, feeding the world, environmentally
sustainable
Communicating the message ahead of the curve (E.g. boomers)
“Proud to be involved in the fundamental health policies of the world”
Our Passion:
“Made in Canada Crop”
Healthy Quality Product
Value of the growers contribution to the well-being of the overall industry
Something is always happening in Canola
Profit
Marketing freedom
“Canola is the most innovative and exciting crop”
Solutions for growers
Unique solutions for the industry's
Competitiveness and delivering value
Increased growth for all industry
Innovation
Canola provides the value of life
Health agricultural economy
Canada’s gift to health
Spreading the good word about canola
Profitable growth of the entire industry, feeding the world, environmentally
sustainable
Communicating the message ahead of the curve (e.g. boomers)
“Proud to be involved in the fundamental health policies of the world”
Common Threads
Healthy oil product (focus is on oil for food)
Value and Profit for Value Chain
Differentiation
• Premium products
• Increase value
• From our competitors …. accompanied by a
continuing low cost strategy
Innovation/R&D
• to maximize grower returns/acre
• to differentiate canola products
Alignment and collaboration of all sectors of the
canola industry
Passion
‘Hedgehog Concept’ for
the Canola Industry
Next Steps
Passion
for…
Best in the world’
at…
Economic
driver
Industry
Input
CCC
Convention
March, 2006 New
York
CCC Board
Drafts
Industry
Priorities
“Greatness is not in where we
stand, but in what direction we
are moving. We must sail
sometimes with the wind and
sometimes against it – but sail we
must and not drift nor lie at
anchor.”
Oliver Wendell Holmes