Annual Service Plan Reports 2004/05 -- Ministry of Agriculture, Food and Fisheries

A competitive and profitable industry that is environmentally and socially sustainable and provides safe, high-quality food for consumers and export markets.

Mission

Deliver programs that maintain a positive business climate for a competitive market-responsive agri-food and fisheries sector, promote environmental and social sustainability, and safeguard B.C.'s ability to provide safe and high-quality British Columbia agri-food and seafood products for consumers.

Values

The following values outline the fundamental beliefs of the ministry and describe how the organization and its employees interact with clients and each other. The ministry strives to conduct its business effectively and in a manner that is:

Ministry Overview, Core Business Areas and Structure

Ministry Overview

The ministry's mandate is to create an environment in which the agriculture, food and fisheries sectors prosper and contribute to the British Columbia economy, while delivering high-quality and safe products to consumers within a context of environmental sustainability. The mandate supports the corporate goals of a strong and vibrant economy, safe healthy communities and a sustainable environment.

Ministry programs relate to the production, marketing, processing and merchandising of agricultural and seafood products. Its' stakeholders include B.C. producers (agriculture, aquaculture and fisheries) and the entire food system from primary producer to retail, consumers and citizens.

Some 30 statutes are administered by the ministry that ensure responsible approaches to the public interest concerning food safety/quality, the environment, pest and disease management, appropriate farm practices, licensing, risk management and marketing. Many of these statutes are administered in partnership with other agencies, including municipal, provincial and federal governments.

The ministry has 326 full-time equivalent positions located in communities across the province. It is organized into 15 branches within three divisions:

The ministry partners with federal agencies such as Agriculture and Agri-Food Canada (AAFC). The partnership with AAFC has been formalized with the Agriculture Policy Framework¹ and implementation agreements.


¹	APF is a five-year implementation agreement with the federal government, addressing the delivery of agriculture policy in food safety, environmental sustainability, risk management, and renewal, science and innovation. The framework was developed by federal, provincial and territorial Ministers of Agriculture.

Other federal partnerships include the Canadian Food Inspection Agency (food safety and quality) and Fisheries and Oceans Canada (aquaculture and fisheries). The ministry partners with provincial ministries and agencies including, but not limited to:

In addition, the ministry partners with industry stakeholder groups to deliver programs that foster economic growth and environmental sustainability objectives.

Core Business Areas

Services and programs delivered by the ministry are divided into six core business areas:

This area promotes industry self-reliance and growth by reducing regulatory burden for farm businesses, providing online access to information and expertise, facilitating investment in the bio-based economy, and influencing international and inter-provincial trade negotiations and disputes.

This area promotes economic growth and environmental sustainability, harmonizes policies and regulations at the federal and provincial levels and strengthens monitoring and enforcement regimes in the fisheries and aquaculture sectors. In addition, fisheries and aquaculture management participate in coastal and marine planning, and builds awareness of B.C.'s fisheries and aquaculture practices and economic benefits.

This area of the ministry provides disease diagnostic services to enable rapid identification and containment of foreign animal and plant diseases, and invasive species that adversely impact economic activity in the agriculture, food and fisheries sectors and threaten the biodiversity of the province's ecosystems. Food Safety and Quality also promotes science-based approaches to food quality and product tracking.

Environmental Sustainability and Resource Development provides services and programs that improve industry management of soil, waste, air and water, promotes cooperation and understanding of farm and aquaculture practices within local government and communities, improves access to Crown and agricultural resources and improves the fit between local regulations and agriculture and aquaculture activities.

Services and programs provided by this area develop, promote and deliver risk management products such as the Canadian Agriculture Income Stabilization Program (CAIS) and Production Insurance. These products assist the agriculture sector in managing risks beyond the farmer's ability to control, such as weather and market prices. In addition, they help the province manage its financial exposure to industry demands to respond to these types of risks. This business area also covers the regulated marketing agencies.

Executive and Support Services broadly support the five other core business areas. It consists of the Strategy, Policy and Legislation Services Division, Corporate Services Division and Deputy Minister's Office. Key services provided include strategic planning, legislative and policy support, financial management, human resources and performance strategies.

Ministry Operating Context

Within an effective government policy framework, B.C.'s agriculture, food and fisheries sectors can continue to achieve economic growth while managing environmental and social expectations. The development of this framework and the ministry's performance has been influenced by many factors.

During the last decade, employment and production in the agriculture, food and fisheries sectors have remained steady or continued to grow when many other sectors have declined or lost markets due to trade issues or global or local recession. This resilience provides a stabilizing influence on many of B.C.'s resource-based communities.

Strengths

Economic Contribution

The food system is an important contributor to the B.C. economy, with nearly $23 billion in consumer sales and more than 282,000 jobs supported in B.C. The agriculture, food and fisheries sectors within the food system are diverse, with more than 200 commodities being produced in agriculture and some 100 species of fish and shellfish harvested or raised in B.C. waters. The province has over 2,400 food processing businesses as part of the food system. This provides many opportunities for innovation, adding value and marketing.

Size and Scale

The smaller-sized food businesses in British Columbia enable the food system to be more responsive and adaptable to changes in the marketplace. Continued industry efforts to diversify with higher-value products and target niche markets, supported by government improving market access, is a strength of the B.C. industry.

Regulatory Reform

The province's shift to outcome-based regulations enables innovation and provides industry greater flexibility in responding to regulatory requirements that safeguard the public interest. New policy and governance mechanisms in the regulated marketing commodity sectors increase flexibility and market responsiveness.

Challenges

Global markets for agricultural and seafood products are highly competitive.

B.C.'s agriculture, food and seafood industries compete in international markets where competitors with similar or lower cost structures enjoy greater economies of scale and create downward pressures on food commodity prices. Some competitors, including those in Europe, the United States and Japan, receive large government subsidies, and B.C.'s access to markets is often reduced by trade and non-trade barriers. The higher value of the Canadian dollar in 2004 has had a detrimental impact on exports, particularly in B.C.'s export-dependent seafood and horticulture industries.

The seafood industry is in transition.

The seafood industry has been impacted by fluctuations in wild fish populations, uncertainty over access, risk-averse fisheries management decisions, competition in the marketplace, and downturns in the economies of countries that have been traditional export markets. The seafood industry's business development is moving from a production approach to one that is more market-driven where the focus is on diversification, new product development and expansion.

Consumer concerns about food safety.

The Avian Influenza outbreak in the Fraser Valley has heightened consumer interest in the safety and quality of their food and water, and in border security. This increases the challenge to the agriculture, food and seafood industries to provide assurance that products from farms and firms meet recognized safety standards. The implementation of systems for standards, certification and product tracking/tracing is costly, time-consuming and rarely results in increased returns to the producers.

Environmental values must be balanced with economic viability.

Public concern about the environment (and, increasingly, animal welfare) is high, and industry growth must be managed in an environmentally sustainable way. With the highest ratio of livestock-to-land base in Canada, manure volumes are putting environmental pressure on Fraser Valley farms. B.C. has included livestock methane emissions as part of its climate change strategy. In addition, maintenance and expansion in the British Columbia aquaculture industry must ensure environmental values and standards are respected.

Governments are key partners in building a prosperous economy.

There is extensive overlap in jurisdiction and interests among all orders of government. Effective relations with the federal government, other provinces, First Nations and local governments are an ongoing challenge, and are essential to achieving B.C.'s agri-food and fisheries sector interests.

Extreme weather patterns and market prices increase the vulnerability of the sector.

The agriculture and fisheries industries are challenged by significant and unpredictable weather conditions, market situations and disease crises. Early snowfalls can reduce yield and quality of a promising crop. Many regions of the province experience drought conditions more frequently. Bumper crops in competing jurisdictions or increased production from newly exporting countries have a significant impact on prices for B.C. commodities. These weather and market conditions create wide fluctuations in income and prices, leading to instability for farmers and processors and the economies of local communities. These risks can affect investment decisions at the farm level and can lead to under-investment that may affect output and efficiencies in the long run.

New Era Commitments

New Era Commitment	Key Projects	Progress and Actions to Date
Adopt a scientifically-based, principled approach to environmental management that ensures sustainability, accountability and responsibility.	Develop a strategic plan to renew the fisheries industry.	*Progress: Ongoing* The first draft of a comprehensive government-wide Fisheries Strategic Framework has been completed, based on the B.C. Seafood Sector and Tidal Water Recreational Fishing SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis and other reports. A major review of the Pacific Fisheries (the Federal Provincial Task Group on Post-Treaty Fisheries) was completed. Follow-up work by the ministry yielded the federal announcement of a Pacific Fisheries Renewal Strategy. The strategy will be implemented in 2005/06 and will facilitate progress in treaty negotiations, enhance the performance of the Pacific fisheries and demonstrate the effectiveness of joint approaches to fisheries policy-making. The Pacific Salmon Forum was established. The forum will provide independent recommendations and options relating to science, policy and regulatory issues in the marine environment. Forum objectives include: Protecting and enhancing the viability of wild salmon stocks and their economic, social and environmental benefits to British Columbians. Increasing public confidence in fisheries management generally, and in aquaculture in particular, in the marine environment. Enhancing economic, social and environmental sustainability of aquaculture for all coastal communities.
	Examine the potential for growth of the aquaculture sector in a manner that minimizes environmental impacts.	*Progress: Significant Progress-Ongoing* The ministry has continued to expand opportunities for salmon aquaculture in a science-based environmentally sustainable way. Provincial support and involvement in activities of the BC Aquaculture Research and Development (BCARD) committee, including funding allocations for six projects relating to environmental sustainability, has also been continued. Other investments in science facilitated by the ministry include: Federal/provincial funding to the Centre for Shellfish Research at Malaspina University-College, to expand their environmental research capacity. • Federal/provincial funding to establish a Centre for Aquatic Health Science in Campbell River. • Filling the provincially co-funded chair position in Sustainable Aquaculture at the University of British Columbia. • Funding for two graduate positions at UBC under the chair of Sustainable Aquaculture. The ministry has minimized environmental impacts of the growth of aquaculture through: Addressing, by relocation or by amending operations, the previous siting issues for 37 farms identified in 2000. The relocations and amendments promote sustainable responsible production. Carrying out investigation of all reported escape events. These inspections, and subsequent follow-up, ensure the industry has complied with the environmental standards established by government. Signing the Fish Health Memorandum of Understanding (MOU) with Fisheries and Oceans Canada (DFO) for mandatory Fish Health Management Plans, to satisfy federal requirements. Supporting DFO with environmental reviews of farms by providing staff and the modeling analysis tool for all tenure renewal and new farm sites. Conducting inspections of all finfish farms (76 inspections in total) to assess waste management and escape standards to ensure that industry is complying with environmental standards as required.
Increase access to Crown lands and resources, to create jobs in tourism, mining, forestry, farming, ranching, and oil and gas.	Participate actively in supporting the success of the Ministry of Sustainable Resource Management (MSRM).	*Progress: Ongoing* The ministry supported the success of MSRM by: Continuing active participation in broader government initiatives to promote successful development and implementation of resource management policies, including the Oceans MOU, Living Rivers Strategy, Endangered Species/Species at Risk Act and land-use plans. Assisting MSRM to make informed and balanced decisions in the development of coastal zone management plans relating to aquaculture. Conducting agricultural capability and suitability assessments in strategic areas to identify Crown lands best suited for agricultural production. Environmental review guidelines for applications received under the Extensive Agriculture Program for unplanned areas were developed and adopted for use by LWBC. Assisted MSRM with completion of four coastal plans to support sustainable marine development and diversification for Quatsino Sound, the Malaspina and Okeover Inlets system and Johnston-Bute Inlet. 12,000 hectares of Crown land identified for agriculture expansion in the Morice Forest District. 15,955 hectares of Crown land identified for agriculture expansion on Vancouver Island. Capability and suitability analysis projects initiated in the Cariboo, Bulkley and East Kootenay areas.
Push for provincial control over the management and revenues of B.C.'s offshore fisheries, to improve fisheries management and protect fishery jobs.	With the Minister of State for Intergovernmental Relations, negotiate to increase provincial influence and represent provincial interests in federal fisheries management decision-making processes.	*Progress: Ongoing* Change in strategic direction was initiated through the Joint Task Group on Post-Treaty Fisheries to enable viable salmon fisheries and progress on treaty settlements, and to demonstrate the mutual advantage of a joint approach to fisheries decision-making. B.C. continues to engage Fisheries and Oceans Canada (DFO) through the Pacific Council of Fisheries and Aquaculture Ministers (PCFAM) in a more structured and disciplined relationship to better advance provincial objectives for fisheries management and economic development. Bilateral and reciprocal agreements, committees and boards were established to assist with the management of fisheries and aquaculture. The ministry participated in various processes and committees to ensure provincial issues and concerns are recognized. Highlights include: The Hake Sharing Agreement between the U.S. and Canada was approved in principle, but has to be ratified by the U.S. government. The proposed agreement will ensure that Canada/B.C. will have a say in development of the annual Total Allowable Catch (TAC); currently the final decision on TAC rests with the U.S. fisheries council. The Reciprocal Tuna Access Agreement with the U.S was ratified and implemented last year. The ministry continues to be active on the DFO Tuna Advisory Board, where the regime to limit access to the U.S. zone was developed. The Integrated Herring Harvest planning committee, comprised of industry, First Nations, DFO, the ministry and environmental non-government organizations (ENGOs), was established and is focusing on the planning process for the herring fisheries. With representation from the fishing industry and all orders of government, the Sardine Harvest Board was established, providing advice to DFO on fishing plans for sustainable sardine fisheries. The Commercial Groundfish Integrated Advisory Committee is in the process of developing an integrated management plan for all groundfish species. Integration will encourage its individual sectors to create a management regime designed to ensure conservation of all groundfish stocks. The plan is expected to be operational and in place by 2006. The ministry, along with the Ministry of Water, Land and Air Protection, continue to be key players in the Inshore Rockfish/Lingcod Conservation Strategy. A total of 89 Rockfish Conservation Areas have been created with another 13 due for implementation in 2005. Lingcod stocks are rebuilding in the Strait of Georgia and, as a result, DFO is considering a limited restart to the inside lingcod fishery.