Industry Committee on Removal of KVD

December 10, 2007 12:45 ET

Grain Industry Committee Prepares for Removal of KVD by 2010

WINNIPEG, MANITOBA--(Marketwire - Dec. 10, 2007) - The Industry Committee on Removal of Kernel Visual Distinguishability (KVD) continues to work on the process required to replace KVD as a grain identification system in Canada.

The removal of KVD from the major classes of wheat is slated for August 1, 2010. An Industry Committee came together this fall with the sole purpose of determining what alternative system(s) or process(es) can be reasonably adopted that will permit producers and grain handlers to remain competitive in the sale of quality Canadian wheat and durum. The committee is made up of representatives of the Canadian Grain Commission, Canadian Wheat Board, Inland Terminal Elevators Association the Western Grain Elevator Association as well as producer representative.

The removal of KVD, particularly in the major classes of Canada Western Red Spring wheat and Canada Western Amber Durum wheat, presents a myriad of policy and operational issues that must be addressed and resolved prior to change coming into effect, for example:

- Liability and risk issues, and the liability impact on industry participants including the Canadian producer

- Remediation solutions for contaminated stocks at country, rail, terminal and loaded vessels

- Producer declarations

- Sampling and testing requirements and protocol

- Technology and the evaluation of testing equipment (including availability and commercial viability)

- Nature and magnitude of producer penalties

- Necessary amendments to the Canada Grain Act

- Quality Management System(s)

- Requirements for issuance of the Certificate Final

- Additional system and producer costs

The Committee is targeting to be prepared for these changes that are anticipated to come into effect August 1, 2010. What has become clear is that to advance removal of KVD for the major classes of wheat prior to August 2010 would prove problematic. KVD exists to protect farmers, grain handlers and marketers from liability due to inadvertent co-mingling of classes. Removing it before a replacement system is found removes this protection and exposes the industry participants to an unknown liability. It could also result in system slowdowns and significant costs to ensure quality for our export customers.

This issue of the removal of KVD was recently reviewed by participants at the Seventh Annual Grain Industry Symposium held in Ottawa November 19-20, which included significant producer group participation. While members clearly endorsed removal of KVD there was general recognition that time was required for the industry to develop the necessary processes required as a result of the removal of KVD. One of the most significant issues is that varietal testing capacity simply does not exist at this time. Testing will be a critical component to test for varieties as visual assessment will obviously not be used going forward.

The industry will be ready - but time is required to adjust and August 1, 2010 is the target the industry is working towards.

Contact Information

  • Chuck Fossay
    Producer Representative
    (204) 721-9843
    Canadian Wheat Board
    Earl Geddes
    (204) 983-6466
    Western Grain Elevator Assoc.
    Wade Sobkowich
    (204) 942-6835