Off the Charts - albertapulse.comInvestment of $6.9 million The excitement of International Year of Pulses 2016, increased pulse acreage and record pulse prices converged in 2015-16

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Off the Charts2015 - 2016 Annual Report

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Table of Contents

Vision, Mission, and Values 3Pulses Off the Charts in 2015-16 4Chair’s Report 6Executive Director’s Message 7APG Strategic Plan Progress 2015-2020 8Directors and Staff 9

Internal ReportsStrategic Committee: Audit & Finance 9Strategic Committee: Research 10Strategic Committee: Extension 11Strategic Committee: Marketing 12Zone 14Policy 15

Pulse Canada Highlights 16Message from Grain Growers of Canada 182015-16 Financial Statements 19

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VisionHave Alberta pulses

recognized by consumers as environmentally friendly, healthy and nutritional, and

by all producers as being an essential element in a

sustainable cropping system.

MissionTo provide leadership,

increasing the competi-tiveness, profitability, and sustainability of pulse pro-

duction as well as pro-moting the health and environment benefits

of pulses.

Values

AccountabilityOptimismInnovation

CollaborationSustainability

Vision, Mission and Values

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Highlights of APG’s Year

Where we started

August 1

Pulse Innovator Award

Presented toKen Lopetinsky

Plot to Field Project Announced

IYP Alberta Calendar Launch

APG’s enhanced booth at FarmTech featured Canadian Ag Museum display

and the Pulse Pledge

Record Research Investment

of $6.9 million

The excitement of International Year of Pulses 2016, increased pulse acreage and record pulse prices converged in 2015-16 to create a year that was off the charts in many respects. This graphic shows just some of the exciting milestones for Alberta Pulse Growers and the pulse industry during this fiscal year, starting on August 1, 2015 and ending on July 31, 2016.

Programs influencing

Chefs, Teachers & Dietitians

Increased collaboration

with other pulse commissions

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July 31

Record pulse acreage in

Alberta with record pricing

Pulses featured in new and

exciting ways at culinary events

APG and IYP recognized by all MLAs

in the Alberta Legislature

Ramped up efforts to showcase

Alberta made pulse products

Amplified advocacy efforts

in conjunction with other grower

groups

Off the Charts!

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Chair’s Report

Chair Allison Ammeter

Pulses were truly off the charts in every respect during 2015-16, from produc-tion to attention and recognition. Cred-it can be given to the world celebrating International Year of Pulses 2016 (IYP), as declared by the United Nations, an increased consumer focus on protein alternatives, and the efforts of our great growers.

IYP is a celebration that recognized the contribution that peas, beans, lentils and chickpeas make to global nutrition, health, food security and environmen-tal sustainability. It is an opportunity to capture the attention of consumers and the food industry, to demonstrate how incorporating pulses into diets and food products can improve nutrition and also support the environment. Alberta Pulse Growers looked for ways to leverage this international focus on pulses to build more demand for the pulses our farmers are growing. We aimed to have Alber-ta consumers understand what a pulse is, and recognize the health benefits of eating pulses. This also lent itself well to one of APG’s strategic goals of increasing Alberta consumer pulse consumption by 100 grams per capita per week. After the first half of IYP, I think the attention gen-erated by the special year has allowed us to make significant progress.

I attended the Canadian launch of IYP in Toronto and spoke at the event as the Chair of the Canadian IYP committee. During the year, a Global Pulse Brand for North America was launched to identify food products that include the goodness

of pulses in the top five ingredients. Some of the Alberta companies that could quali-fy to use the Pulse Brand on their packag-ing showcased their products made with pulses at the Alberta Legislature in April. They offered delicious samples to MLAs and government staff in advance of APG and IYP being recognized in the Legisla-ture during a Member’s Statement. We look forward to introducing many other success stories such as these next year.

One of APG’s communications efforts for IYP was the creation of an exclusive cal-endar for 2016 that highlighted the pulse value chain in Alberta, and sending letters to MLAs and other officials announcing IYP and its potential. APG also worked with Pulse Canada on the launch of pulses.org, and we are proud to support this resource of accurate pulse informa-tion, fabulous recipes, and interesting blogs and videos for the consumer and grower alike.

In Alberta, we experienced a record har-vest in 2015 of more than 1.8 million acres of pulses, and 2.4 million acres were estimated to have been seeded in 2016. These seeding increases more than satisfy another APG strategic goal of an average annual increase of 370,000 acres planted to pulses. The long-term aim is to increase the arable land planted to pulses to 15 per cent over five years. We have worked hard to ensure our first time growers have the best agronomic advice possible, and our existing growers are supported in whatever way needed.

Another way to support our growers is by encouraging our governments to form positive policies for our farmers. This year, we took part in two Ottawa trips, one with Pulse Canada and our provincial counterparts in Saskatchewan, Manitoba, and Ontario, and one with the other crop commissions in Alberta. The purpose of these trips was to inform the government decision makers of our needs related to transportation, research, market access, and sustainability. We have also taken ev-ery opportunity possible to meet with our provincial and federal governments.

In 2015-16, APG thanked outgoing Zone 1 Director Jack Van Tryp and Zone 4 Di-rector Nick Sekulic for their advice and dedication over the years as they com-pleted their terms. Sarah (Weigum) Hoffmann, Non-Bean Director-at-Large, stepped down from the provincial board, but APG will continue to benefit from her input and experience as she remained involved as a Zone 2 Advisor. It is ideal to have continuity on the board as we continue the work started with the new five-year strategic plan we implemented in 2014-15. It is also essential to contin-ue to grow the board with the fresh ideas and new perspectives that new members provide. The board has already started to benefit from the insights and participa-tion of Zone 1 Director Rodney Volk, Zone 4 Director Caroline Sekulic and Non-Bean Director-at-Large John Kowalchuk. I am proud to stand with our entire board of 12 progressive producers as we work to help Alberta farmers GROW MORE PULS-ES and SELL MORE PULSES.

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Executive Director’s MessageSeeded acres of pulse crops in Alberta are increasing. International Year of Puls-es (IYP) celebrations - a once-in-a-lifetime opportunity realized. Alberta Pulse Grow-ers (APG) invests record amount of grow-er funding into research in 2015-16. You could say that this year is off the charts! Welcome to our Annual Report for the 2015-16 fiscal year from August 1 to July 31.

Highlights from this past year touch on many areas of the organization, but for the most part it is reflections on imple-mentation of APG’s strategic focus – our roadmap for the next five years - that is seeing success. The five-year plan began with the goal of increasing pulse acres to 15 per cent of arable land in Alberta by 2020. In 2014-15, we were at eight per cent of the arable land in pulse crops: this year it is 10 per cent. The strong interest and increase in acres was seen due to the global demand of pulses in our export markets and this translated to attractive pricing for many pulse crop types, but it moves us along toward our goal in 2020.

Related to the increase in acres, and as off the charts as the organization has ever seen, is this year’s increase in lentils in Alberta. Jumping from around 150,000 acres to estimates nearing 500,000 acres in the province! New growers choosing lentil for the first time and experienced growers substituting lentil for another pulse in their rotation likely make up the increased acres.

Engagement was also a significant area of

focus for APG this year. IYP allowed our industry occasions to open dialogue with numerous groups. APG supported Pulse Canada in outreach with MPs in Ottawa to share ideas about food policy transfor-mation. Directors participated in Team Al-berta outreach opportunities focusing on key Alberta opinions on cropping sector issues like market access, transportation, research and sustainability. Directors and staff presented at Senate and House of Commons committees providing the valuable grower voice on key issues of market access and trade to Members of Parliament and Senators. APG engaged MLAs to bring IYP messages to Alberta’s Legislature sharing the importance of this crop for Alberta and for the world. In addition, APG joined the history-making AgCoalition and we continue to provide comments and guidance to the AgCoa-lition process, supporting a strong farm safety culture. Through Team Alberta, we are working with our cropping sector partners to respond to the Alberta gov-ernment’s climate change bill, making sure that farmers’ voices are heard and make an impact on this issue. Engage-ment has been important and working with our partners across Alberta and Canada has given pulse growers a power-ful voice on many issues.

Research investments have also been off the charts this year. APG provided research funding to 36 projects total-ling $6.9 million, and as the organization looks into the future, there are a lot of exciting opportunities ahead. One of the most significant investments was the an-

nouncement of the Plot to Field (P2F) proj-ect, a five-year APG initiative. This project takes plot research and moves it into field scale testing. Researchers, agronomists and growers will be working together to look at the adaptability of proven plot research in the field and this is informa-tion that growers can use. Looking at new processing techniques and how they will improve pulse utilization was also a big component of research investment in 2015-16. A highlight that will be realized in the next year will be the Pulse Show-case – a partnership of APG and the Food Processing Development Centre to intro-duce pulse ingredients and uses to Alber-ta’s food processors. This flagship project shares information on pulse use and in-formation on the growing industry while celebrating IYP 2016.

I wish to thank the Directors and Advisors of the Alberta Pulse Growers Commission for their support during this off-the-chart year. Members can also credit success of the organization to the high performance of staff who have worked hard this year to elevate the organization and shine the light on our industry during IYP celebra-tions. From support to growers, commu-nicating about IYP, helping to guide and invest in research and increasing en-gagement, your organization is striving to keep breaking records, endeavouring for ‘off-the chart’ strategic achievements that translate to success for our growers and industry.

Executive Director Leanne Fischbuch

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Celebrating IYPwith Alberta Culinary

Tourism AlliancePartnership

YP

Over 43,000print resources

sent out toconsumers

5,800 print resources and 330

gift cards worth$8,250 sent out to

schools

Increased soybean acresto 10,000

Plot to Field projectlaunched

Producer Profitability

Record APG research investment of $6.9 million

in 36 projects

10% of arable land planted to pulse crops in 2016

Directors and Advisors come together at March meeting to learn about

genetic breeding

Significant increase in Twitter followers – up

1,000 in first half of 2016

Grower Support

Grower info on wiki and available through APG

agronomist

Met with governmentsto highlight sustainability

Participation in Canolapaloozaand Making the Grade Marketing

Engagement with Alberta Culinary Tourism Alliance

Attention through IYP activities

Over 43,000 print resources sent out to consumers and

15 Community Support sponsorships worth $750

Over 5,800 print resources and 330 gift cards worth $8,250

sent out to 6,862 students or330 classes in 34 schools

Marketing

5 800 pr

Met withgovernmentsto highlight

sustainability

Up-to-dategrower info on wiki

and available throughAPG agronomist

Participated inCanolaPALOOZA

with emphasis onrotations

Strong RVTprograms

GrowerSupport

Participated in andsupported

“Making the Grade”

d

Cww

10% arable landplanted to pulses

Plot to FieldLaunch

Soybean10,000 acres

ProducerProfitability

Record $6.9 millionResearch Investment

Progress on APG’s Five-Year Strategic Plan

The above chart shows the progress made towards the goals outlined in APG’s five-year strategic plan for 2015 to 2020. Progress during 2015-16 was Off the Charts in Marketing, Grower Support and Producer Profitability as the world celebrated International Year of Pulses, and Alberta enjoyed increased grower interest and record investment. More information about the strategic plan is available on APG’s website.

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Celebrating IYPwith Alberta Culinary

Tourism AlliancePartnership

YP

Over 43,000print resources

sent out toconsumers

5,800 print resources and 330

gift cards worth$8,250 sent out to

schools

Increased soybean acresto 10,000

Plot to Field projectlaunched

Producer Profitability

Record APG research investment of $6.9 million

in 36 projects

10% of arable land planted to pulse crops in 2016

Directors and Advisors come together at March meeting to learn about

genetic breeding

Significant increase in Twitter followers – up

1,000 in first half of 2016

Grower Support

Grower info on wiki and available through APG

agronomist

Met with governmentsto highlight sustainability

Participation in Canolapaloozaand Making the Grade Marketing

Engagement with Alberta Culinary Tourism Alliance

Attention through IYP activities

Over 43,000 print resources sent out to consumers and

15 Community Support sponsorships worth $750

Over 5,800 print resources and 330 gift cards worth $8,250

sent out to 6,862 students or330 classes in 34 schools

Marketing

5 800 pr

Met withgovernmentsto highlight

sustainability

Up-to-dategrower info on wiki

and available throughAPG agronomist

Participated inCanolaPALOOZA

with emphasis onrotations

Strong RVTprograms

GrowerSupport

Participated in andsupported

“Making the Grade”

d

Cww

10% arable landplanted to pulses

Plot to FieldLaunch

Soybean10,000 acres

ProducerProfitability

Record $6.9 millionResearch Investment

Directors

Back Row: (Left to Right) Fraser Robertson (Zone 4), Vice-Chair D’Arcy Hilgartner (Zone 5), Ryan Kubinec (Zone 3), Executive Member Doug Sell (Zone 2), Tim VanderHoek (Director-at-Large, Bean), Rodney Volk (Zone 1), Robert Weisgerber (Zone 1), James Jackson (Zone 3).

Front Row: (Left to Right) Caroline Sekulic (Zone 4), Don Shepert (Zone 5), Chair Allison Ammeter (Zone 2), John Kowalchuk (Director-at-Large, Non-Bean).

Staff

(Left to Right) Jolene Watson (Finance & Planning Assistant); Rhonda Lafreniere (Office Manager); Leanne Fischbuch (Executive Director); Nevin Rosaasen (Policy & Programs Specialist); Debra McLennan (Food & Nutrition Coordinator); Jenn Walker (Research Officer); and Rachel Peterson (Communications Coordinator).

Strategic Committee: Audit & FinanceThe Audit and Finance Committee’s ob-jective is to oversee the financial health of the organization and make recommenda-tions to the board on financial policy. The committee works closely with APG staff to review and understand the financial state-ments and budgets, and they liaise with the

organization’s appointed auditors during the yearly audit process.

In 2015-16, the committee invested grow-er dollars into investment securities as per policy. Of the upmost importance for the organization is that the investment portfo-lio is safe and secure.

Most of all, it will remain liquid to enable APG to meet all operating and investment commitments while achieving a higher rate of return. The objective is to attain a market rate of return throughout budgetary and economic cycles taking into account the in-vestment risk constraints.

Audit and Finance Committee members include: Directors Ryan Kubinec (Chair), D’Arcy Hilgartner, Fraser Robertson and APG Chair Allison Ammeter, supported by APG staff.

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Strategic Committee: ResearchThe Alberta Pulse Growers’ Research Committee is comprised of three Direc-tors, two Advisors, an Alberta Crop Indus-try Development Fund representative, a non-government industry and a govern-ment representative. The committee’s responsibility is to instigate and evaluate pulse breeding and agronomic research projects that address key issues faced by producers across the province. It is at the recommendation of this committee that the provincial board makes decisions on research dollar investments. There is an APG staff member dedicated to ensuring consistent quality of reporting, network-ing with the research community, and liaising with growers to ensure communi-cation is maximized.

The committee focuses on research that enhances profitability and sustainability of Alberta pulse producers, recognizing

that the committee needs to have flexibil-ity to address new issues and constantly push the boundaries of existing knowl-edge. Currently, there are 36 research projects being funded by the Alberta Pulse Growers. The total value of these projects is $31.8 million, of which APG contributes in excess of $6.9 million.

APG is a participant in the national Pulse Science Cluster, a collaboration between Pulse Canada and all of the provincial pulse commissions that leverage federal program monies funding pulse research across Western Canada. APG is also an active member of the Agriculture Funding Consortium, which includes all provincial livestock and crop commissions along with Alberta Innovates Bio Solutions, and the Alberta Crop Industry Development Fund.

A summary of all APG funded projects is printed in the summer edition of Pulse Crop News and available on the APG website.

Strategic visioning and planning for re-search investment has identified four

main priority areas. The pie chart above provides the percentage of total research dollars that are currently directed to-wards each priority area, in addition to the new Plot to Field project, which focus-es on moving small plot research towards applicability on an individual farm basis.

Above: APG invests in research under four pillars: Agronomic advances; improved plant breeding and genetics; processing and utilization of pulses; and realizing and quantifying human health and nutritional benefits of consuming pulses. The new Plot to Field project is in addition to these pillars.

Left: AAFC’s dry bean breeder and Viterra staff work closely together, and annually evaluate new genetics to ensure that they meet market needs.

APG Research Investments

Genetic Improvement Agronomic Advancements Plot to Field

Processing & Utilization Health Outcomes

22%9%

30%

29%

10%

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Strategic Committee: ExtensionThe past year saw a change in Directors on the Extension Committee. Don Shep-ert and John Kowalchuk were added, with the latter being elected as Extension Committee Chair. The committee also now has representation from Advisors in every zone, in addition to continuing with industry representation.

The committee funded all of the Applied Research Associations with base funding for Extension Committee events through the Alberta Crops Extension (ACE) pro-gram, allowing ARAs to access funding through the four major crop commis-sions. APG provided additional funding, based on request, to certain ARAs that meet and often exceed all Extension Committee expectations.

The Extension Committee also spon-sored different events, including a joint field day in Lacombe between Alberta Agriculture and Forestry, Agriculture and Agri-Food Canada, and Alberta’s four major crop commissions. APG was also invited to participate in CanolaPALOO-ZA. Both events were well attended. In-formation was extended to more than 400 producers, agronomists and partic-ipants. The Extension Committee also again sponsored the Alberta Outstanding Young Farmers this year.

In the coming year, the Extension Com-mittee will be looking at new ways of ed-

ucating producers on the latest research, agronomy best practices, and the role it may play in the Plot to Field research ini-tiated over the next five years. The com-mittee will also be tasked with consider-ing a winter extension event to further educate producers on recent research and agronomic information pertaining to all pulses grown in the province.

With the evolving landscape of technol-ogy and social media, producers are engaging in new ways to reach out to specialists with questions and receive in-formation from their peers. Social media and the interconnectedness of produc-ers, agronomists and researchers are ex-cellent forms of exchanging information.

Many Extension Committee members are active on Twitter. This form of extension is becoming popular and well received. Extension Committee members retweet Pulse Check and Pulse Crop News arti-cles pertaining to pulse agronomy, and encourage APG Directors, Advisors and all members to favourite good extension material, and retweet it when possible. The more messengers who communi-cate the best practices, the more effective APG’s extension becomes. Catch up with your Extension Committee members at field days and crop walks, and engage us on social media for discussion or to ask questions.

Left: John Kowalchuk, Extension Committee Chair, examines the soybeans growing on his farm in 2016.

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Strategic Committee: MarketingThe Marketing Committee is mandated to provide recommendations on projects and activities for which pulses are used with the key objectives of food and nutri-tion, processing capacity development, and pulses incorporated as ingredients, building industry capacity, and support for strategic market development. The committee is comprised of three Direc-tors, two Advisors, one Pulse Canada representative, and one Government of Alberta representative.

In 2015-16, the Marketing Committee recommended new project funding of $856,319 for nine projects. This is the largest APG investment in marketing proj-ects to date.

As a priority for exploration of interna-tional market development, APG sent a Director to the Indian Pulses and Grains Association international conference. The Pulse Conclave in February 2016 was a signature International Year of Pulses event and provided an opportunity to en-gage Indian trade and government offi-cials on Alberta pulse opportunities. India continues to be the key export destina-tion for many of Alberta’s pulse crops and it is important to learn and share infor-mation with key markets on how Alber-ta pulses get to market and understand what they are used for by the end users once in the marketplace.

With 2016’s celebration of Internation-al Year of Pulses there were two prima-ry activities that were highlighted under the Marketing Committee’s purview that

took Alberta pulses to a whole new lev-el. APG partnered with the Alberta Cu-linary Tourism Alliance (ACTA) to bring greater awareness of pulses to the chef community in the province. The partner-ship was designed to include pulses at ACTA events such as the Juno Awards in Calgary, the Sunshine Skillet in Medicine Hat and the Bison Festival in Elk Island, as well as develop two signature events that brought pulses from the field to the plate with partners, the Leduc Food Processing Centre and Viterra’s Taber Bean Plant.

First place in the Alberta Mission: ImPUL-SEible (MI) competition was awarded to the University of Alberta with a student creation of lactose and gluten-free ma-ple walnut gelato made with fermented white beans with a chickpea flour and pea protein cookie wafer topping. Students worked with Fiasco Gelato in Calgary to create their samples for the national MI competition. The team placed second at the national competition in Burnaby, BC in February and so impressed the judges and Pulse Canada representatives that

The team from the University of Alberta constantly improved their BiotaGelata for Mission: ImPULSEible competitions and demonstrations pro-vincially, nationally and internationally.

New marketing projects supported for 2016-17Project InvestigatorAlberta’s showcase of Pulse Food Products, celebrating the International Year of Pulses 2016

Dr. Jay Han, Food Processing Development Centre, Alberta Agriculture and Forestry

Developing value added meat products with non-allergen ingredients

Dr. Zeb Pietrasik, Food Processing Development Centre, Alberta Agriculture and Forestry

Reduction of blood glucose with beans: Defining the minimum dose Dr. Dan Ramdath, Guelph Food Research Centre, AAFC

Value added processing of pulse grains using novel technology called Air Current Assisted Particle Separation (ACAPS)

Dr. Feral Temelli, University of Alberta

Value Added Application of Pulse Products Dr. Lingyung Chen, University of Alberta

Development of pulse protein based pet food kibbles through lab and pilot scale studies

Dr. Thava Vasanthan and Dr. Ruurd Zilstra, University of Alberta

Application development for the starch/protein concentrate produced by the Air Current Assisted Particle Separation technology (ACAPS)

Dr. Thava Vasanthan, University of Alberta

Low Glycemic Index Diet to Improve Glycemic Control and Cardiovascular Disease in Type 2 Diabetes

Dr. John Sievenpiper, University of Toronto

Increasing pulse intake in primary care patients: The CHANGE Cancer Alberta Intervention’s increase pulse module and toolbox

Dr. Douglas Klein, University of Alberta

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they were invited to attend the Love-Pulses Showcase event at the Institute of Food Technologists Annual Meeting and Food Expo in Chicago, Illinois in July. APG provided sponsorship and support throughout the various competitions and the Alberta team enjoyed the MI experi-ence, which also helped them discover the areas of food development they want to focus on in their careers. MI 2016 tru-ly showcased the innovative possibilities with pulses to post-secondary students as well as the food industry in Alberta and Canada.

APG continued outreach to health pro-fessionals and educators. The health professional community was accessed through Primary Care Networks and Di-abetes Networks with a brochure that focused on how to cook pulses and the health benefits of regular pulse con-sumption in a healthy diet. In addition, APG joined Pulse Canada representatives for a feature presentation at the Food

Matters Conference with Alberta Health Services. The educator outreach focused on providing support for teachers in their Culinary Technology Studies programs. Support includes recipe ideas and a $25 gift card for the purchase of pulse ingre-dients so a class could be dedicated to learning how to use pulses in everyday meals.

For 2016-17, the marketing objectives will be to develop strong national coor-dination to address pulse innovation and health projects and work towards plan-ning the health and nutrition component of the pulse industry’s next Agri-Science Cluster national application (a federal government funding program). The op-portunity to continue communicating to consumer audiences enhancing messag-es developed for International Year of Pulses to facilitate increasing consump-tion will also be a key objective. APG will support continued value-added opportu-nities domestically and internationally.

APG provided new experiences with pulses for culinary experts in June as they took a journey from farm to fork.

A five-year project that received funding through Alberta Pulse Growers’ Market-ing Committee wrapped up during this fiscal year with encouraging results for the cholesterol-lowering properties of pulses.

Pulses (beans, peas, lentils and chick-peas) are healthy foods that contain twice the amount of protein as cereals, are very high in fibre, key vitamins and minerals like folate and iron, and are low in fat. Canada is the world’s largest pro-ducer and exporter of lentils and peas, and Alberta produced 34 per cent of the pea crop and 12 per cent of beans

in 2010. Current consumption of pulses in Canada is low due to a lack of pulse-based convenient food products. An approved health claim can drive interest in development of food products with particular ingredients as seen with oat beta-glucan. Experts agree that existing evidence for the cholesterol-lowering effects of pulses is particularly strong for beans, but more studies are needed to show the effects of peas, lentils and chickpeas are comparable to beans. In this study, people with high levels of blood cholesterol consumed 90 grams of either beans or peas every day for six

weeks to determine the effects of pulse consumption on cholesterol-lowering. Results from this study will be used to substantiate a health claim for beans and other pulse crops in the future.

The study, which ended in December 2015, concluded that regular consump-tion of pulses in amounts consistent with Canada’s Food Guide improved cardiovascular risk factors in people with mild hypercholesterolemia, compared with consumption of control foods con-taining rice. The project also concluded that beans and peas may act on different risk factors, and regular consumption of

pulses holds promise as a food-based approach to reduce cardiovascular risk.

“This study is the largest and most exten-sive study of its kind and would not have been possible without the continued support of APG,” said U of A research-er Dr. Rhonda Bell. “We are extremely grateful for the APG support, and the trial has identified some new roles for beans and peas in promoting cardiovas-cular health. The research team is really looking forward to highlighting our re-sults in a number of public forums in the coming months.”

Project Update: Substantiating a Health Claim for Pulses and Cholesterol LoweringDr. Rhonda Bell, University of Alberta

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Zone ReportsThe Alberta Pulse Growers membership is organized into five zones across the prov-ince. Within each zone there are elected Advisors who are responsible for planning activities and identifying key issues within their region. This structure helps the gen-eral organization to maintain open com-munication with its members, as well as provides feedback that helps to direct research priorities and provincial exten-sion needs, but also allows each zone to actively address needs within their region.

Zone 1Advisors: Richard Pepneck (Chair), George Lohues, Will Muller, Brad Proud, Will Van Roessel, Greg Stamp

The growing year went fairly well for much of Zone 1 until the middle of July 2016. Most of the dry bean area had good rains at good intervals and limited amounts of hail. There weren’t any late frosts this year to destroy the early seeded pulses, so there was little reseeding.

There were some pockets that missed the early rains and crops faced severe mois-ture shortages. However, throughout the growing year, we have seen numerous, in-tense, localized storms pass through the zone.

This has been especially true since the middle of July. There have been nearly daily warnings of severe weather. Some areas became too wet and growers were concerned that we may experience a wet harvest.

Zone 2Advisors: Les Bell (Chair), Noel Flitton, Gerry Good, Barry Grabo, Peter Hoff, Curtis Hoffmann, Sarah Hoffmann, Kevin Steeves

Overall the first half of the 2015 growing season was dry for much of Zone 2, then it started to rain through the second half. In a lot of areas this led to disappoint-ing yields and poor quality. High prices through the winter of 2015-16 helped make up for this and encouraged more acres for 2016. Seeding conditions in 2016 were good throughout most of the zone and timely rains got crops off to a good start. Ample to excessive rains since July 1 have brought challenges again. Root rot and aphanomyces are a major con-cern in many areas of the zone. We are glad that APG is supporting research into this serious pulse production problem.

The Zone 2 advisory board looked at the Regional Variety Trials (RVT) and noted that there was no site in the central part of the zone. So the zone initiated and fi-nancially supported another RVT site in the Three Hills/Morrin area. This site was able to recover from an early hail storm. In July, we held a tour of the RVT site.

Zone 3Advisors: Rick Mueller (Chair), Chris Allam, Clifford Cyre, Nick Jonk, Richard Krikke, Justin Nanninga, JP Pettyjohn

Each year, Zone 3 Advisors meet and dis-cuss research questions and priorities specific to Zone 3. A strong history of col-laboration with provincial researchers has allowed this region to conduct indepen-

dent research and demonstration trials. Zone 3 and the Alberta Agriculture and Forestry (AF) team conducted three trials this past year in the Barrhead/Westlock area, including Year 2 of a foliar fungicide trial, a faba bean desiccation trial and a faba bean fungicide trial for control of chocolate spot. Over the growing season, the group hosted seven crop tours. Zone 3 welcomed summer student Mason Jackson in 2016 and thanks him for help-ing to conduct zone-specific research.

Zone 4 Advisors: Linda Schmidt (Chair), David Bosma, Kevin Finster, Troels Hansen, Michael Popek, Nick Sekulic

Zone 4 had another interesting year. The spring started off very dry. Seeding was done earlier than usual in most areas with an increase in pulse acres. When the rain came in May and June, it was too much at once in a lot of areas causing drowned out areas in the fields. There was a spring snow storm on the May long weekend and some parts of Zone 4 received a very large snowfall. Emergence of crops was good. Some areas of the zone continued to get too much rain through the summer and other producers were very short on precipitation through late June and July. Pea harvest began in parts of the zone with good yields being reported in some areas. The extremes of excess moisture and very dry conditions are definitely af-fecting the yields.

Zone 4 is pleased to support area ap-plied research groups. The North Peace

Applied Research farm tour on July 27 at North Star near Manning showcased the results of pulse regional variety trials. They have been working with soybeans, chick-peas and lentils over the last few years with some encouraging results. SARDA at Falher and MARA at Ft. Vermilion have also been doing pulse research and also attended the event.

Zone 5Advisors: Robert Semeniuk (Chair), Michael Bury, Harold Haugen, Shawn Inge, Tom Jackson, Gus Johnson, Gordon Tuck

Zone 5 had a rough start to harvest in 2015 with a rainy early September that then led to good harvesting weather. The mild winter that followed resulted in dry-ness concerns at the outset for planting in 2016, but after the May long weekend there was ample to excessive moisture in much of the zone. There were problems with aphanomyces, and a few fields in the zone were lost completely. Cutworms were also a problem during seeding. There were a lot of pea acres planted in Zone 5 in 2016 and it was good to see a lot of new growers that we hope won’t be put off by less than ideal conditions this year.

Zone 5 is excited about its Pea and Faba Bean Yield Challenge launched for Inter-national Year of Pulses 2016. The winners will be announced at the zone annual gen-eral meeting in November. The zone also added a scholarship for a second-year crop technician student at Lakeland Col-lege in Vermilion.

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Policy WorkPolicy is best defined as a multi-faceted approach to ensure that pulse growers are able to continue to produce and ex-port in a business environment that is conducive to producer profitability. It in-cludes receiving grass roots input on is-sues relating to environment, watersheds, and wildlife. Policy includes commercial diplomacy and international trade. It is a combination of working with other stake-holders in the value chain, governments and non-governmental organizations to meet the collective interests of pulse growers and address the needs of oth-ers, including importers, consumers or society in general.

APG participates in numerous collabora-tions, working groups and partnerships that tackle policy, for example the Crop Sector Working Group is a collection of broadacre crop commissions that col-laborate through a staff coordinator, to address environmental, municipal and other joint concerns.

APG staff and Directors also participate in the Agri-Environmental Partnership of Al-berta (AEPA), a working group composed of representatives of crop and livestock commissions, municipal, provincial and federal NGOs, and the Government of Alberta. The AEPA looks at different land use planning issues, and environmen-tal issues including watersheds, riparian areas, biodiversity and alternative land use programs. The AEPA allows industry to engage government and government staff directly on these issues.

The AgCoalition is another collaborative working group that has received APG staff support as well as Director engage-ment on the government consultation or ‘Table’ process surrounding Bill 6. The Ag-Coalition is a group of 37 crop, livestock and other primary producer commis-sions, boards and associations that are collectively speaking with one voice when engaging government on the Labour and Occupational Health and Safety compo-nents of Bill 6.

Farm safety remains a priority for all Di-rectors and APG members. This year, APG invested in the Grain Safety Program mo-bile unit, as well as extension workshops for hazard assessment and building farm safety plans. Collectively, the crop and livestock commissions have received a grant from the province through Agri-culture and Agri-Food Canada’s Growing Forward 2, to implement farm and ranch safety extension programming. The com-missions collectively hired a program and extension coordinator with the funding to review the existing safety information and programming and generate exten-sion material for the provincial industry to share with their members.

Sustainability is another policy area that can sometimes land in research or ex-tension. APG is engaged with Alberta Wheat, Alberta Barley and Alberta Canola Producers commissions to better equip members with the information they need to improve areas within their operations. The four commissions completed a sus-tainability pilot program, and are commit-

ted to better inform and equip producers to meet international sustainability certi-fication schemes if desired. A grant was secured from Alberta Agriculture and Forestry for two years of funding for an additional staff person to coordinate on the commissions’ behalf, as well as fund-ing to survey producers regarding the level of grass roots awareness, adoption and implementation of best practices. This project will be completed in 2018.

APG continued as a member of Grain Growers of Canada (GGC). GGC is a na-tional organization that includes a num-ber of crop organizations from coast to coast striving to engage the federal government on common issues. Transportation, max-imum residue limits (MRLs), sound science and sustain-ability are areas where the GGC advocates on behalf of producers. APG Director Doug Sell is the Sustainabil-ity and Sound Science Com-mittee Chair for GGC and Nevin Rosaasen is the staff lead on that committee. The two of them attended GGC’s summer meeting in PEI, along with APG Vice-Chair D’Arcy Hilgartner.

Climate change is another area where APG is being proactive alongside other major Alberta crop com-missions. The provincial and federal governments are in

the process of drafting and passing leg-islation that is expected to increase the cost of farmers doing business. This is an area where much staff time has been focused to ensure that we can meet the societal expectations of emission reduc-tions while remaining competitive, profit-able and sustainable into the future.

APG also works through Pulse Canada on other national policy issues. Pulse Cana-da coordinates work on transport, trade and regulatory efforts and APG works to communicate pesticide options, pre-har-vest intervals and best practices to pro-ducers.

APG Director Fraser Robertson and Executive Direc-tor Leanne Fischbuch travelled to Ottawa with Team Alberta to meet with government officials.

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Pulse Canada HighlightsIn 2015-16, Pulse Canada continued its work to improve the profitability and via-bility of Canada’s pulse sector by enhanc-ing value and reducing costs. With the designation of 2016 as the International Year of Pulses (IYP), the Canadian pulse industry had an unprecedented oppor-tunity to raise awareness of pulses and their benefits, and address market-relat-ed issues on a global scale. Over the past year, important progress has been made in many areas. This report captures some of the key outcomes achieved by Pulse Canada in the 2015-16 fiscal year.

Pulse & Special Crops Convention

Five hundred and forty-nine delegates and guests from 20 countries joined the Canadian Special Crops Association (CSCA) in Toronto for the biggest Pulse & Special Crops Convention on record. The 2016 convention theme was “Game On!” and speakers on the program looked at how IYP, the Global Pulse Brand and other exciting developments in the pulse industry have set the stage to increase pulse consumption and awareness around the globe. The CSCA submitted a successful bid to the Global Pulse Con-federation (GPC) for Canada to host the Global Pulse Convention 2017 in Van-couver, BC in conjunction with the Pulse & Special Crops Convention 2017. Staff from the two associations have started discussions about the best way to unite the activities in 2017 into the world’s larg-est pulse gathering.

Transportation Building Ag Industry CoalitionsPulse Canada and CSCA are key Part-ners in the Ag Transport Coalition (ATC). The ATC developed a multi-commodity/multi-organization strategy focused on three key areas: Performance Measure-ment; Supply Chain Effectiveness; and Building Industry Capacity.

The ATC produces weekly measurement reports on system performance from the shipper’s perspective; reporting weekly on rail capacity provided relative to de-mand as well as a range of other service oriented indicators. The performance measurement work funded by Pulse Can-ada, CSCA and its partners across the ag sector also provides participating com-panies with the ability to compare their company-specific logistics performance with aggregated data that represents more than 90 per cent of all grain move-ment. These reports highlight key areas of performance on a weekly basis, pro-viding both the industry and government with important objective and credible in-formation about the performance of Can-ada’s logistics system.

Pulse Canada continues to actively work with industry partners and government to provide effective input into the Cana-da Transportation Act Review. The David Emerson CTA Review report was released in February 2016 and Pulse Canada de-livered an assessment of the report to government in April, identifying those recommendations that closely align with

the position of the industry, recommen-dations that are not aligned with the in-dustry and areas that may deliver pos-itive outcomes with further discussion with industry. Pulse Canada will continue to focus on providing constructive and detailed input to government that pro-motes effective legislative and regulatory solutions to offset railway market pow-er and ensure increased access to rail equipment and service for the pulse and special crops industry.

Market Access & Crop Protection Keeping Markets OpenThe interests of the pulse industry have been well represented to ensure that the best possible deals were reached in ne-gotiations leading up to the conclusion of Canada’s two most recent FTAs – the Trans-Pacific Partnership (TPP) and the Canada-EU Comprehensive Economic Partnership Agreement.

The TPP was concluded and signed by Canada in 2015-16. While it still needs to be ratified, the TPP will create enabling conditions to harmonize trade rules, and it will also eliminate tariffs where pulses do not already have duty-free access into TPP countries (U.S., Japan, Australia, Peru, Malaysia, Vietnam, New Zealand, Chile, Singapore, Mexico, and Brunei). The industry’s interests are also being fully represented in ongoing input into other current and upcoming FTAs, including the Canada-India FTA.

Several country-specific access issues also required ongoing attention, includ-

ing alleged GM detections in Turkey, new access into China for pulse crops other than peas, proposed requirements from China and Korea for registration of ex-port facilities, India’s fumigation deroga-tion, and various phytosanitary certificate challenges. In addition, key changes were implemented in 2015-16 on reduced testing associated with India’s stem and bulb nematode issue, as well as changes to canaryseed phyto requirements into Mexico. Proactive work around maxi-mum residue limits (MRLs) continued, including securing key MRLs, technical analysis of where crop protection prod-uct use could result in noncompliance in importing countries – leading to new rec-ommendations in the 2016 grower MRL advisory – and efforts to clarify the MRL policies of China, Korea, India and other countries who are moving away from Co-dex toward their own national MRL lists.

Market Development & Innovation International Year of Pulses The International Year of Pulses (IYP) was officially launched by FAO Director Gen-eral José Graziano da Silva on November 10, 2015 in Rome, Italy. A North American IYP launch event was hosted by His Excel-lency Michael Grant, UN Ambassador of Canada and the Canadian Mission at the UN General Assembly in New York City on Nov. 18.

International media interest in IYP has been significant. Between the Novem-ber launch and the end of the 2015-16 fiscal year, more than 1,080 news stories

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around the world mentioned IYP. Con-sumer engagement through social media was also substantial. The cumulative im-pressions between November and March 31 across all platforms and hashtags (in-cluding #LovePulses, #IYP2016, #Pulse-Pledge and #PulseFeast) reached 252 million. In total, 2.98 million people have actively engaged (tweeted, viewed, post-ed, commented, liked, clicked) with the IYP 2016 campaign up to the end of the fiscal year.

The global consumer facing website www.Pulses.org was launched in con-junction with IYP in November. The site features information about what pulses are and where they are grown, along with details about the health, nutrition and sustainability benefits of pulses. Recipes from around the world are also featured to demonstrate how to incorporate puls-es into one’s diet. The website is also the home of the Pulse Brand.

In Canada, the first IYP event took place on Jan. 6, 2016 in Toronto. Hosted by Chef Michael Smith of the Food Network Canada, “Pulse Feast” brought over 180 Canadian media, dietitians, chefs, blog-gers and food industry representatives together with members of the Canadian pulse industry to celebrate the start of IYP. The event was covered by national news outlets such as CBC’s the National, the Globe and Mail and Sun News Net-work.

An interactive exhibit on pulses devel-oped by the Canada Agriculture and Food

Museum was unveiled at Pulse Feast. The exhibit has been visiting regional mu-seums, food shows, malls and airports around Canada since January educating Canadians on the nutritional, environ-mental and economic benefits of pulses. In January, Agriculture in the Classroom Canada also launched a series of educa-tional materials on pulses that are being taught in Canadian schools.

Global Pulse Brand The Global Pulse Brand was introduced to the pulse trade at the Global Pulse Con-vention in Las Vegas in April 2015. The year 2015-16 focused on the develop-ment of a global management structure, administrative procedures, a marketing strategy and promotional materials. The Pulse Brand is a cornerstone of IYP and will anchor a globally coordinated effort to promote pulses well beyond 2016.

In July 2016, Pulse Canada and the Amer-ican Pulse Association / US Dry Pea and Lentil Council (USADPLC) hosted a Pulse Brand Media Launch event at the Insti-tute of Food Technologists (IFT) Annual Food Expo in Chicago. Representatives from Alberta Pulse Growers enthusiasti-cally attended and supported the event helping make it a success. The event was for food industry and media to unveil the global Pulse Brand and ‘Made with Pulses’ seal.

A global marketing strategy for Pulse Brand outreach was also developed and is currently being implemented. The strat-egy consists of establishing a cohort of

IYP National Committees and Pulse Asso-ciations to administer the Pulse Brand to food companies and other pulse indus-try members. The Global Pulse Confed-eration will offer a ‘Pulse Brand Training Program,’ designed to train IYP National Committees and Pulse Associations to market and administer the Pulse Brand in their own countries and regions.

Health Claims for PulsesThe industry submitted a therapeutic health claim dossier for the cholester-ol-lowering effects of whole beans to Health Canada on Nov. 26, 2015. The health claim communicates the choles-terol-lowering efficacy of 130 g/day whole cooked beans. The industry also received Health Canada feedback on the wording for the post-prandial glycemic claim and incorporated this information into a brief-ing document for industry that highlights the results of the systematic review on the post-prandial glycemic response of pulses. This document communicates the use and scope of a post-prandial gly-cemic health claim on dry (conventionally prepared) and canned pulses.

Sustainability Canadian Field Print Calculator The Canadian Field Print calculator con-tinues to attract interest from companies and associations from across the value chain. The calculator is now available for use in Ontario, as well as Western Can-ada, and the calculator was used in five regional pilot projects which are focused on benchmarking the sustainability per-

formance of farmers against each oth-er. The calculator is now being used by General Mills and its suppliers to mea-sure the sustainability performance of oat, canola, soy and wheat production in Manitoba and North Eastern Saskatche-wan. The project has also attracted new participants from across the value chain, including Paterson Grain, Warburton’s, Richardson International, Agrium, Farm Credit Canada, Alberta Wheat Commis-sion and Agrian.

In 2015-16, a benchmarking report was developed for the Canadian Field Print Calculator, comparing it to the several sustainability tools and standards that are in use in the marketplace. The report demonstrated that the Canadian Field Print Calculator aligned well with other farm-based tools, and utilized the best technical information available for Cana-dian production.

Sustainability Indicator ReportIn 2015-16, the industry led the devel-opment of a report which tracks the sustainability performance of Canadian grain, oilseed and pulse production from 1981 to 2011. The report demonstrates that the adoption of improved practices in Western Canada and Ontario has led to improved performance in four key in-dicators: greenhouse gas emissions, soil erosion, energy use and land use effi-ciency. The report is an update of work published in 2011, but now includes soy-beans in Western Canada, as well as corn, soybean and winter wheat from Ontario.

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Message from Grain Growers of CanadaTransition has been the name of the game at Grain Growers this past year. While we were sorry to see Bryan Rogers step down as Executive Director in Janu-ary, he left for an exceptional opportunity in the Office of the Leader of the Opposi-tion and we wish him well.

I joined GGC as the new Executive Di-rector in May 2016 and have been on a steep learning curve ever since. My back-ground in policy development and advo-cacy has helped me get up to speed on existing and emerging issues and build relationships with key stakeholders such as government, other agriculture groups, and industry partners. With the return of Public Affairs Manager Lindsey Ehman from maternity leave in June, we’re on track for a successful future.

Many of our key files have stayed the same including transportation, research, trade, safety nets and sustainability. We are fortunate to have the support of members and their staff as we work to build awareness of the importance and potential of agriculture and a positive pol-icy environment in Ottawa.

In the theme of transition, we saw a re-markable upheaval here in Ottawa as Jus-tin Trudeau and his Liberal Party replaced the Conservative government that had been in power for over 10 years. GGC has always operated on the belief that policy is developed by all parties, and cultivated strong relationships across the board. Our outreach will continue this fall to take advantage of the incredible oppor-

tunity that close to 200 new MPs present to educate and promote agriculture. A new government of course means new ministers, and the new Agriculture and Agri-Food Minister Lawrence MacAulay has been very open to collaboration and spoke at both our board meetings this past year, in November and July.

In addition, Minister MacAulay and his staff sat down with the GGC Safety Nets Committee following the July luncheon to have a focused session discussing the need for stronger Business Risk Man-agement programs for farmers in Cana-da. We were joined by Grain Farmers of Ontario and Quebec, and together we put forward a proposal for a government advisory committee composed of indus-try association stakeholders to advise on the needs of the industry. We are very pleased to say that our request was ap-parently heard and it is expected that this committee will be populated in the fall. The next agricultural policy framework will replace the current Growing Forward 2 programs in 2018. Much of the coming year will be dedicated to the develop-ment of this framework, and GGC will be actively working with elected officials and bureaucrats to ensure that the next suite of programs takes into account grain farmer needs.

In April, we were pleased to once again play host to the ‘Team Alberta’ outreach initiative here in Ottawa. Representatives of Alberta Pulse Growers, Alberta Barley, Alberta Canola Producers and Alberta Wheat met with officials from all parties

and it was an excellent opportunity to get to know the new and returning MPs. The focus of meetings was on the importance of rail transportation trade agreements, research and sustainability.

At the close of this fiscal year, the two major trade agreements, CETA and TPP, are still in ongoing negotiations. GGC is a board member of the Canadian Agri-Food Trade Alliance (CAFTA), and, through them, follows these developments close-ly. GGC appeared before the House of Commons Standing Committee on Trade in May to discuss the importance of TPP for Canadian grain farmers.

Transportation issues remain with the current review of the Canada Transpor-tation Act in play. GGC was pleased by federal Transport Minister Marc Gar-neau’s decision to extend key provisions of Bill C-30, the Fair Rail for Grain Farmers Act. This one-year extension should help move what is expected to be another re-cord crop in 2016 more smoothly than was the case in 2013-2014, but it is not a long-term solution. Therefore, we contin-ue to advocate for improved rail service and capacity through amendments to the Canada Transportation Act. Consul-tations are ongoing with the government and the comment deadline of Sept. 16, 2016 means that industry groups will have their views in soon. GGC submit-ted to the Canadian Transportation Act review in December 2014 and again in 2015. We met with officials at Transport Canada and AAFC regularly and indicat-ed our need for support from Minister

MacAulay’s office. We also continue to support and work within coalitions such as the Crop Logistics Working Group and the Coalition of Rail Shippers.

The International Year of Pulses has been a great time to highlight the positive steps farmers make in sustainability. As you well know, pulses contribute to the sustainability of farming practices. GGC supports the efforts of our members by playing active roles on the Canadian Roundtable on Sustainable Crops, the National Bee Health Roundtable and any other initiative that is introduced. By en-gaging on these platforms, we are able to ensure that grain farmers have a voice at the table and that any sustainability mea-surement systems and protocols which might be developed will meet the needs of both growers and consumers.

GGC will continue to interact closely with the federal government to advocate on behalf of our members and collabora-tively with like-minded agriculture groups such as the Canada Grains Council, Ce-reals Canada and the other national grain organizations. GGC will be heavily engaged in a re-branding process which will include a new website and logo. We are fortunate to have the support of our membership and we thank APG for its hard work and dedication over the past year. All the very best for 2016-2017 and to our first ever national agriculture day on Feb. 16, 2017!

- Fiona Cook, Executive Director

Alberta Pulse Growers CommissionFinancial Statements

July 31, 2016

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To the Members of the Alberta Pulse Growers Commission:

Management is responsible for the preparation and presentation of the accompanying financial statements, including responsibility for significant accounting judgments and estimates in accordance with Canadian accounting standards for not-for-profit organizations. This responsibility includes selecting appropriate accounting principles and methods, and making decisions affecting the measurement of transactions in which objective judgment is required.

In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of financial statements.

The Board of Directors and Audit and Finance Committee are composed entirely of Directors who are neither management nor employees of the Commission. The Board is responsible for overseeing management in the performance of its financial reporting responsibilities, and for approving the financial information included in the annual report. The Board fulfils these responsibilities by reviewing the financial information prepared by management and discussing relevant matters with management and external auditors. The Board is also responsible for recommending the appointment of the Commission’s external auditors.

MNP LLP is appointed by the members to audit the financial statements and report directly to them; their report follows. The external auditors have full and free access to, and meet periodically and separately with, both the Board and management to discuss their audit findings.

November 9, 2016

Leanne FischbuchExecutive Director

Management’s Responsibility

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To the Members of the Alberta Pulse Growers Commission:

We have audited the accompanying financial statements of the Alberta Pulse Growers Commission, which comprise the statement of financial position as at July 31, 2016, and the statements of revenue and expenditures, changes in members’ equity, cash flows and schedules 1 to 7 for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit orga-nizations, 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.

Auditors’ ResponsibilityOur 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 auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess-ments, 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 qualified opinion.

Basis for Qualified OpinionThe Alberta Pulse Growers Commission derives the majority of its revenue from levies submitted on behalf of producers of pulse crops. The recognition of this revenue is initiated by the registered dealer at the time of delivery and reported to the Commission. Since it is not possible for the Commission to ensure that all revenue is reported, the completeness of revenue is not susceptible to satisfactory audit verification. Accordingly, our verification of this revenue was limited to the amounts reported by registered dealers to the Commission and we were not able to determine whether any adjustments might be necessary to revenue, excess of revenue over expenditures and cash flows from operations for the years ended July 31, 2016 and July 31, 2015, and current assets and net assets as at July 31, 2016 and July 31, 2015.

Qualified OpinionIn our opinion, except for the possible effects of the matter described in the basis for qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Alberta Pulse Growers Commission as at July 31, 2016 and the results of its operations, changes in members’ equity and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Leduc, Alberta

November 9, 2016

Chartered Professional Accountants

Independent Auditors’ Report

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Head Office Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 2016 2015ASSETSCurrentCash 4,036,393 56,595 44,846 56,427 12,770 60,800 4,267,831 6,038,647Investments 4,774,161 - 24,949 - 10,024 - 4,809,134 1,203,613

Accounts receivable 234,711 - 302 31 - - 235,044 223,068Prepaid expenditures 173,051 - - - - - 173,051 138,218

Total current assets 9,218,316 56,595 70,097 56,458 22,794 60,800 9,485,060 7,603,546Capital assets (Note 4) 29,406 875 - - - - 30,281 38,309

Total assets 9,247,722 57,470 70,097 56,458 22,794 60,800 9,515,341 7,641,855

LIABILITIESCurrentAccounts payable and accruals 151,171 797 - - - - 151,968 112,801Research payable 456,078 - - - - 10,000 466,078 347,350

Total liabilities 607,249 797 - - - 10,000 618,046 460,151

Commitments (Note 5)Members’ EquityAccumulated surplus 2,132,564 55,798 70,097 56,458 22,794 50,800 2,388,511 2,987,981Equity in capital assets 29,406 875 - - - - 30,281 38,309Reserves (Note 6) 6,478,503 - - - - - 6,478,503 4,155,414

8,640,473 56,673 70,097 56,458 22,794 50,800 8,897,295 7,181,704

9,247,722 57,470 70,097 56,458 22,794 60,800 9,515,341 7,641,855

Approved on behalf of the Board

Director Director

The accompanying notes are an integral part of these financial statements

Alberta Pulse Growers Commission

Statement of Financial PositionAs at July 31, 2016

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2016 2015RevenueCommunication and Extension – Schedule 1 33,212 39,206Market Development – Schedule 2 22,823 24,425Research – Schedule 3 36,558 59,556Zones – Schedule 6 44,464 50,374Administration – Schedule 7 5,671,813 3,999,360Less: Zone revenue transferred from operations (Note 3) – Schedule 7 (26,000) (31,500)

5,782,870 4,141,421

ExpendituresCommunication and Extension – Schedule 1 414,988 323,535Market Development – Schedule 2 1,869,548 1,425,306Research – Schedule 3 972,064 804,022Risk Management – Schedule 4 76,841 48,062Sustainability and Trace – Schedule 5 28,848 21,413Zones – Schedule 6 41,862 33,748Administration – Schedule 7 663,128 552,246

4,067,279 3,208,333

Excess of revenue over expenditures 1,715,591 933,088

Accumulatedsurplus Reserves Equity in

capital assets 2016 2015

Opening 2,987,981 4,155,414 38,309 7,181,704 6,248,616Excess of revenue over expenditures 1,715,591 1,715,591 933,088Purchase of capital assets (12,301) 12,301Amortization 20,329 (20,329)Transfer to reserves (2,323,089) 2,323,089

Ending 2,388,511 6,478,503 30,281 8,897,295 7,181,704

The accompanying notes are an integral part of these financial statements


Statement of Revenue and ExpendituresFor the year ended July 31, 2016

Statement of Changes in Members’ EquityFor the year ended July 31, 2016

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2016 2015Cash provided by (used for) the following activitiesOperating activitiesCash receipts 5,833,595 4,207,683Cash paid to suppliers (3,517,022) (2,874,540)Cash paid to employees (629,333) (471,047)Interest paid (14,241) (1,013)Interest received 174,007 85,863

1,847,006 946,945

Investing activitiesNet proceeds on disposal (purchase) of investments (3,605,521) 1,690,677Additions to capital assets (12,301) -Proceeds on disposal of capital assets - -

(3,617,822) 1,690,677

Increase (decrease) in cash (1,770,816) 2,637,622Cash, beginning of year 6,038,647 3,401,024

Cash, end of year 4,267,831 6,038,647


Statement of Cash FlowsFor the year ended July 31, 2016

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1. Incorporation and purpose of the organization The Alberta Pulse Growers Commission (the “Commission”) is an incorporated not-for-profit organization, exempt for income tax purposes, established through the Alberta Marketing of Agricultural Products Act. The Commission’s purpose is to provide grower support and to promote marketing and research of pulse crops in Alberta. The Commission is comprised of five zones and the head office.

2. Significant accounting policies The financial statements have been prepared in accordance with the Canadian accounting standards for not-for-profit organizations as set out in Part lll of the CPA Handbook - Accounting, as issued by the Accounting Standards Board in Canada and include the following significant accounting policies:

Cash Cash includes deposits with banks and investment portfolios with maturities of

three months or less. Investments

Investments are measured at cost. Capital assets

Capital assets are recorded at cost. Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimated useful lives. The Commission’s capitalization policy is for items costing $1,500 and above.

Rate Automotive and farm equipment 5 or 10 years Computer equipment 2 or 5 years Office equipment 5 years Leasehold improvements 4 years Financial instruments

All financial instruments are initially recorded at their fair value, excluding certain financial assets and liabilities originated and issued in a related party transaction measured at their carrying or exchange amount in accordance with Section 3840 Related Party Transactions. At initial recognition, the Commission may irrevocably elect to subsequently measure any financial instrument at fair value. The Commission has not made such an election during the year. The Commission subsequently measures investments in equity instruments quoted in an active market at fair value. All other financial assets and liabilities are subsequently measured at amortized cost. Transaction costs and financing fees directly attributable to financial instruments subsequently measured at fair value are immediately recognized in excess of revenue over expenditures for the current period. Transaction costs and financing fees are added to the carrying amount for those financial instruments subsequently measured at cost or amortized cost. The Commission assesses impairment of all of its financial assets measured at cost or amortized cost when there is an indication of impairment. Any impairment which is not considered temporary is included in current year excess of revenue over expenditures.

Revenue recognition The Commission uses the deferral method of accounting for contributions. Externally restricted contributions and grants are recognized as revenue in the year in which the related expenditures are incurred and appropriate reporting has been submitted. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Service fee revenue is recognized monthly as the commission is earned. All other revenue is recognized as the related service or product is delivered. Contributed services Volunteers contribute significant hours per year to assist the Commission in carrying out its service delivery activities. Because of the difficulty in determining their fair value, contributed services are not recognized in the financial statements. Measurement uncertainty (use of estimates) The preparation of financial statements in conformity with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures during the reporting period. Actual results may vary from current estimates. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is provided where considered necessary. Amortization is based on the estimated useful lives of capital assets. These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in excess of revenue over expenditures in the periods in which they become known. Nature of funds in net assets a) The equity in capital assets fund represents the net book value of capital assets held at the year-end less any related capital debt and capital deferred contributions. b) The accumulated surplus fund represents the funds available that are not internally restricted by the Board of Directors. c) The reserves fund represents funds restricted by the Board of Directors to be available for future project commitments and internally mandated operations.

3. Zone revenue transferred from operations A portion of zone revenue consists of amounts transferred from operations. These amounts are reported as revenue in the zones with an offsetting deduction from revenue in administration.


Notes to the Financial StatementsFor the year ended July 31, 2016

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4. Capital assets Accumulated Cost amortization

2016Net book value

2015Net book value

Automotive and farm equipment 55,255 54,380 875 4,375

Computer equipment 100,231 75,051 25,180 28,992

Office equipment 12,977 8,751 4,226 3,795

Leasehold improvements 10,829 10,829 - 1,147

179,292 149,011 30,281 38,309

5. CommitmentsThe Commission has signed research grant agreements and marketing project agreements committing to the following payments over the next three years:

2017 2018 2019 TotalResearch 498,519 329,247 56,433 884,199Marketing 208,138 100,000 12,000 320,138

706,657 429,247 68,433 1,204,337Pulse CanadaCore funding 1,000,000 666,667 - 1,666,667

Total 1,706,657 1,095,914 68,433 2,871,004

The Commission has entered into a lease agreement for their office space with minimum lease payments, including common costs, of $3,395 per month to November 2016 and then $3,565 per month to November 30, 2018.

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6. Reserves 2016 2015Committed future projectsResearch 884,199 1,437,833Marketing 320,138 117,581

1,204,337 1,555,414

Pulse CanadaAnnual support 1,666,667 2,000,000

Internally restricted reservesPlot to Field project 1,964,570 -Projects approved not contracted 1,042,929 -Operational reserve 600,000 600,000

3,607,499 600,000

6,478,503 4,155,414

The reserves include commitments above from Note 5 plus internally restricted reserves.

8. Allocation of expenses

Human resources expenses of $314,208 (2015 – $363,774) have been allocated as follows:2016 2015

Communication and Extension 185,647 202,601Market Development 79,314 88,694Research 49,247 72,479

314,208 363,774

7. Financial instruments The Commission, as part of its operations, carries a number of financial instruments. It is management’s opinion that the Commission is not exposed to significant interest, currency, credit, liquidity or other price risks arising from these financial instruments except as otherwise disclosed. Credit concentration Accounts receivable from three customers (2015 - three customers) in connection with pulse crop service fees represents 49% (2015 - 49%) of total

accounts receivable as at July 31, 2016. The Commission believes that there is minimal risk associated with the collection of these amounts. The balance of accounts receivable is widely distributed among the remainder of the Commission’s large customer base. The Commission performs regular credit assessments of its customers and provides allowances for potentially uncollectible accounts receivable.



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Schedule 1 - Communication and Extension Revenue and ExpendituresFor the year ended July 31, 2016

Schedule 2 - Market Development Revenue and ExpendituresFor the year ended July 31, 2016

2016 2015

Revenue

Pulse Crop News 33,212 39,206

Expenditures

Human resources, administration and travel 214,106 185,706Projects 89,794 50,337Pulse Crop News - postage and printing 68,638 66,368Sponsorships 18,141 5,080Trade fair and extension initiatives 12,192 7,869Marketing channels 12,117 8,175

414,988 323,535

Deficiency of revenue over expenditures (381,776) (284,329)

2016 2015RevenueMarket income 13,523 -Feed Benchmarks 6,300 21,425Mission ImPULSEible sponsorships 3,000 3,000

22,823 24,425ExpendituresPulse Canada 1,112,445 1,009,351Marketing projects 466,340 222,326Human resources, administration and travel 112,120 54,900Food and nutrition initiatives 97,392 44,362CSCA membership and convention 28,581 16,798International travel 24,914 57,226Mission ImPULSEible 16,461 12,801Promotion 11,295 7,542

1,869,548 1,425,306

Deficiency of revenue over expenditures (1,846,725) (1,400,881)

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Schedule 3 - Research Revenue and ExpendituresFor the year ended July 31, 2016

Schedule 4 - Risk Management ExpendituresFor the year ended July 31, 2016

Schedule 5 - Sustainability and Trace ExpendituresFor the year ended July 31, 2016

2016 2015

Revenue

Research contribution 36,558 59,556

Expenditures

Research projects 847,421 729,138Human resources, administration and travel 68,890 66,974Plot to Field agronomic research 35,430 -Prairie Pest Minor Use Consortium membership 14,323 6,210CPRW Sponsorship 3,000 -Other sponsorships 3,000 1,700

972,064 804,022


2016 2015Expenditures

Memberships 35,000 35,000Farm safety 23,545 -Administration and travel 18,296 13,062


2016 2015Expenditures

Projects 28,618 20,615Administration and travel 230 798


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Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 2016 2015RevenueAllocation from operations (Note 3) 7,500 5,500 7,500 5,500 - 26,000 31,500Projects 10,699 - - 3,000 - 13,699 12,445Annual general meeting 2,350 300 - - - 2,650 4,567Interest 12 866 - 534 702 2,115 1,862

20,561 6,666 7,500 9,034 702 44,464 50,374ExpendituresProjects - 3,782 7,566 - 10,000 21,348 4,714Zone annual meeting 4,505 390 706 1,057 708 7,366 10,905Amortization 3,500 - - - - 3,500 3,500Repairs and maintenance 3,226 - - - - 3,226 -Insurance 2,339 - - - - 2,339 2,810Tours, seminars and trade fairs 851 564 - 345 420 2,179 7,513Office 1,542 - 23 - - 1,566 2,547Promotional materials - - - - - - 600Bank charges and interest - 104 33 96 105 338 196Meetings and travel - - - - - - 1,260

15,963 4,840 8,328 1,498 11,233 41,862 33,748

Excess (deficiency) of revenue over expenditures 4,598 1,826 (828) 7,536 (10,531) 2,602 16,626


Schedule 6 – Zones Revenue and ExpendituresFor the year ended July 31, 2016

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Schedule 7 – Administration Revenue and ExpendituresFor the year ended July 31, 2016

2016 2015RevenueService fees 5,750,486 4,077,079Less: Services fees refunded (265,705) (169,965)Interest 186,282 91,496AGM sponsorship 750 750Transfers to zones (Note 3) (26,000) (31,500)

5,645,813 3,967,860ExpendituresHuman resources 310,264 214,295Director meetings and travel 118,252 110,205Annual general meeting and FarmTech 57,761 45,506Office lease 43,206 44,287Office expenses 38,210 27,496Professional fees 21,683 21,735Amortization 16,829 17,260Bank charges and interest 13,902 1,013Staff travel 13,602 10,484Telephone, fax and internet 9,919 7,796Zone administration and travel 8,364 5,686Insurance 5,920 5,910Professional development 4,974 40,354Advertising 242 219

663,128 552,246

Excess of revenue over expenditures 4,982,685 3,415,614

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5007B - 49th Avenue,Leduc, Alberta T9E 6M6

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Documents

Off the Charts - albertapulse.comInvestment of $6.9 million The excitement of International Year of Pulses 2016, increased pulse acreage and record pulse prices converged in 2015-16