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Wheat Groups Applaud Decision to Negotiate for TPP Membership

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are very happy to learn that President Trump is directing U.S. Trade Representative (USTR) Robert Lighthizer and National Economic Council Director Larry Kudlow to begin negotiating for the United States to join the Trans-Pacific Partnership (TPP).

“Putting it simply, joining TPP is the best way to avoid a potentially devastating loss of wheat sales to Japan,” said USW Chairman Michael Miller, a wheat farmer from Ritzville, Wash. “If the United States joins TPP, U.S. wheat should be able to compete on a level playing field with Canadian and Australian wheat, which will soon have a major advantage once TPP is implemented. That would keep U.S. wheat sales that currently represent 50 percent of Japan’s total wheat imports competitive in this crucial market.”

“It is very encouraging that the President is taking this step,” said NAWG President Jimmie Musick, a wheat grower from Sentinel, Okla. “If we can find a way to join this trade agreement, it will go a long way toward helping protect the incomes of every American wheat farmer. We also want to thank the members of Congress who pushed very hard to see this opening.”

USW and NAWG look forward to working with the Administration to provide any information and support it needs to achieve a successful negotiation that brings the United States back into the agreement.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Organizations Ask USTR to Work Toward Re-Joining TPP to Prevent Serious Revenue Loss

ARLINGTON, Virginia — U.S. Wheat Associates (USW), the National Association of Wheat Growers (NAWG) and 33 state wheat organizations have expressed hope in a letter to U.S. Trade Representative (USTR) Robert Lighthizer that the Administration will immediately prioritize accession to TPP to save the valuable Japanese market for U.S. wheat farmers.

“Once TPP is ratified, U.S. wheat exports to Japan will be at serious risk,” the letter stated. “TPP will reduce the effective tariffs that Japanese flour millers pay for imported Australian and Canadian wheat over nine years from about $150 to about $85 per ton. Effective tariffs on imported U.S. wheat would remain at about $150 per ton. Loss in market share and its negative effect on farmgate prices are likely to come much sooner, as Japanese millers reformulate their product mix to avoid the need to purchase artificially expensive U.S. wheat. Lost market share is incredibly difficult to regain.”

The wheat industry organizations noted that Japan has, on average, imported more U.S. wheat than any other country for many years. U.S. wheat market share is typically more than 50 percent of the 6 million metric tons (MMT) of wheat Japan imports annually. Sources within the Japanese milling industry however estimate that could quickly fall to less than 25 percent under TPP 11 rules. At the average price Japan has been paying for U.S. wheat the past five years, that would represent an annual loss of almost $500 million for farmers, rail and barge operators and grain handlers.

“Unfortunately, the agreement among the TPP members will have a devastating impact in rural communities across the wheat belts of the Great Plains and the Northwest, though it will hurt the income of every American farmer growing wheat,” the letter continued. “The President has promised to negotiate great new deals. American agriculture now counts on that promise and American wheat farmers – facing a calamity they would be hard pressed to overcome – now depend on it.”

The organizations said they welcomed the President’s recent openness to joining TPP if better terms for the United States can be negotiated. They also suggested that Ambassador Lighthizer could include acceding to the TPP as an objective in the Administration’s report to Congress that will outline its request to extend Trade Promotion Authority.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About NAWG
NAWG is the primary representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at state and national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S. – 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

Letter:

The Honorable Robert E. Lighthizer
Ambassador
United States Trade Representative
600 17th Street, NW
Washington, DC 20508

March 7, 2018

Dear Ambassador Lighthizer,

As you prepare the Administration’s report to Congress accompanying the request for extension of Trade Promotion Authority (TPA), the undersigned organizations strongly urge including the objective of acceding to the Trans-Pacific Partnership (TPP) before the extension of TPA expires on July 1, 2021.

As representatives of more than 140,000 American wheat farmers, we welcomed President Trump’s recent comments suggesting openness to joining the TPP. Unfortunately, that has become an urgent need as the eleven members of TPP plan to sign the agreement on March 8th in Chile. We hope that the Administration will immediately prioritize accession to TPP in order to save the valuable Japanese market for U.S. wheat farmers.

Once TPP is ratified, U.S. wheat exports to Japan will be at serious risk. Australia and Canada – both TPP members – are major competitors to U.S. farmers in wheat and other agricultural products. TPP will improve their access to several markets, resulting in an erosion of U.S. market share, particularly in Japan, and a major hit on farm income at home.

TPP will reduce the effective tariffs that Japanese flour millers pay for imported Australian and Canadian wheat over nine years from about $150 to about $85 per ton. Effective tariffs on imported U.S. wheat would remain at about $150 per ton. Loss in market share and its negative effect on farmgate prices are likely to come much sooner, as Japanese millers reformulate their product mix to avoid the need to purchase artificially expensive U.S. wheat. Lost market share is incredibly difficult to regain.

In many ways, the Japanese market has been the backbone of the U.S. wheat industry for decades because of its consistent demand for high quality wheat. That is now at serious risk. Japan imports around 3 million metric tons (MMT) of U.S. wheat per year, with an average value of over $800 million. Sources inside the Japanese milling industry tell us this $65 per ton disadvantage will force them to cut U.S. wheat to about 1.35 MMT, a loss of approximately $500 million per year.

Unfortunately, the agreement among the TPP members will have a devastating impact in rural communities across the wheat belts of the Great Plains and the Northwest, though it will hurt the income of every American farmer growing wheat. The President has promised to negotiate great new deals. American agriculture now counts on that promise and American wheat farmers – facing a calamity they would be hard pressed to overcome – now depend on it.

Like President Trump, American farmers do not enjoy losing to their competitors. They want to make great deals and see their family businesses thrive. If the President brings us into TPP, U.S. farmers can start winning again among the world’s most important agricultural markets. The undersigned organizations strongly urge you to put forward the objective of U.S. membership in TPP to prevent this market loss and put the farmers we represent on a strong foundation for the future.

Sincerely,

National Association of Wheat Growers
U.S. Wheat Associates
Arizona Grain Research & Promotion Council
California Association of Wheat Growers
California Wheat Commission
Colorado Association of Wheat Growers
Colorado Wheat Administrative Committee
Idaho Grain Producers Association
Idaho Wheat Commission
Kansas Association of Wheat Growers
Kansas Wheat Commission
Kentucky Small Grain Growers’ Association
Maryland Grain Producers Association
Maryland Grain Producers Utilization Board
Minnesota Association of Wheat Growers
Minnesota Wheat Research & Promotion Council
Montana Grain Growers Association
Montana Wheat & Barley Committee
Nebraska Wheat Board
Nebraska Wheat Growers Association
North Carolina Small Grain Growers Association
North Dakota Grain Growers Association
North Dakota Wheat Commission
Ohio Corn & Wheat Growers Association
Oklahoma Wheat Commission
Oklahoma Wheat Growers Association
Oregon Wheat Commission
Oregon Wheat Growers League
South Dakota Wheat Inc.
Texas Wheat Producers Association
Texas Wheat Producers Board
Washington Association of Wheat Growers
Washington Grain Commission
Wyoming Wheat Growers Association
Wyoming Wheat Marketing Commission

cc:
The Honorable Sonny Perdue, Secretary, U.S. Department of Agriculture
The Honorable Wilbur Ross, Secretary, U.S. Department of Commerce
The Honorable Pat Roberts, Chairman, Senate Agriculture, Nutrition & Forestry Committee
The Honorable Debbie Stabenow, Ranking Member, Senate Agriculture, Nutrition & Forestry Committee
The Honorable Orrin Hatch, Chairman, Senate Finance Committee
The Honorable Ron Wyden, Ranking Member, Senate Finance Committee
The Honorable Michael Conaway, Chairman, House Agriculture Committee
The Honorable Collin C. Peterson, Ranking Member, House Agriculture Committee
The Honorable Kevin Brady, Chairman, House Ways & Means Committee
The Honorable Richard Neal, Ranking Member, House Ways & Means Committee

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TPP 11 Puts U.S. Wheat Exports to Japan at Risk

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) have expressed concern that the recent announcement that the eleven remaining TPP members have concluded talks on a revised deal without us is a looming disaster for U.S. wheat farm families and related industries. It puts U.S. wheat exports at serious risk in Japan, which has been our largest, most consistent importer for decades.

President Trump recently suggested that we could reconsider the decision not to join TPP if a better deal is possible. The President is a tough negotiator and clearly wants a good deal for the United States. It would be a better deal for wheat farmers now if the Administration would apply its strength to open the door all the way to negotiating a better TPP deal or bilateral solutions to protect the crucial Japanese market and help open other wheat markets like Vietnam.

TPP 11 calls for gradually discounting effective tariffs that Japanese flour millers pay for imported Australian and Canadian milling wheat over 9 years from about $150 to about $85 per metric ton (MT). Imported U.S. wheat effective tariffs would remain at about $150 per MT.

Sources within the Japanese milling industry estimate this $65 per metric ton disadvantage would eventually force them to find alternatives to U.S. wheat and cut average total imports of Western White, dark northern spring (DNS) and hard red winter (HRW) wheat from about 3.1 million metric tons (MMT) per year to as little as 1.35 MMT per year. U.S. wheat farmers and the U.S. grain trade will essentially be writing a $500 million check every year to Australian and Canadian farmers, even at today’s relatively low wheat prices, if nothing changes before the effective tariff schedule is fully implemented.

The agreement that the eleven remaining TPP members announced was designed to provide an opening for the United States to re-engage in the agreement, so we do not have to sit on the sidelines.

American agriculture now counts on the Administration’s strong negotiating skills; and American wheat farmers, facing a calamity they would be hard pressed to overcome, now depend on it.

The TPP 11 countries include Canada and Australia, which are major competitors to the United States in the Japanese wheat market. Other TPP countries with rapidly growing demand for imported wheat include Mexico, Vietnam, Malaysia, Chile and Peru. Singapore, Brunei and New Zealand round out the remaining TPP partner countries

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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U.S. Wheat Industry Celebrates Japan Flour Millers Association Anniversary

ARLINGTON, Virginia — Several representatives from the U.S. wheat industry joined members of the Japan Flour Millers Association to help celebrate the association’s 70th anniversary in Tokyo on Jan. 23, 2018. Senior managers from U.S. Wheat Associates (USW), as well as state wheat commission representatives and farmers from Washington, Oregon, Idaho and Montana participated in events commemorating the anniversary.

Japan has purchased significantly more U.S. wheat than any other country since 1949, when the Oregon Wheat Growers League first organized a trade delegation to investigate opportunities for expanding U.S. wheat sales there.

Today, the Japanese domestic milling and wheat foods industries are highly advanced and demand consistent, high quality wheat and flour. USW Chairman Mike Miller, of Ritzville, Wash., told members of the association that U.S. farmers are very proud to supply much of that wheat every year.

“It is good to know that our wheat is an essential ingredient in the wonderful wheat foods the Japanese people enjoy — and an essential ingredient in the success of these flour millers,” Miller said. “I reassured them that to honor their achievements, farmers will continue to invest in trade service and technical support in Japan, and to improve the quality and wholesomeness of our wheat to meet their needs in the future.”

“It was a great pleasure to congratulate the association’s Chairman, Mr. Masayuki Kondo, President of the Japan Flour Millers Association, and the members of the association in person on their important anniversary,” said USW President Vince Peterson. “We were also able to thank our respected friend and colleague, Mr. Masaaki Kadota, who is retiring after many years serving as the association’s Executive Director.”

With support from state wheat commissions and USDA’s Foreign Agricultural Service, USW focuses on providing up-to-date market information and collaborating with Japanese industry groups to demonstrate the quality and value of U.S. wheat. The mills provide purchase specifications to Japan’s Ministry of Agriculture, Fisheries, and Forestry (MAFF) based on the strict characteristics their wheat food customers demand. Japanese grain trade organizations act as intermediaries between MAFF and overseas sellers. Then MAFF carries out all milling wheat purchases and sells the wheat to Japanese flour mills.

“It is difficult to express how much we value our partnership with Japan’s flour millers and the rest of the wheat foods industries,” Peterson said. “We have developed a deep level of trust by maintaining an open dialogue with them. That has been so important to our mutually beneficial, long-term trading relationship and we confirmed our commitment to continue our partnership in that spirit.”

U.S. farmers continue to earn the largest market share in this well-established and quality conscious wheat market. MAFF issues consistent weekly tenders for U.S. hard red spring (HRS), hard red winter (HRW) and Western White, a blend of soft white (SW) and up to 20 percent club wheat. As a result, Japan has purchased an average of 3.1 million metric tons (about 114 million bushels) of wheat annually the past five years.

Also honoring the association at events in Japan were: wheat farmers Bill Flory of Culdesac, Idaho., Walter Powell of Condon, Ore., and Darren Padget of Grass Valley, Ore.; Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash.; Glen Squires, chief executive officer of the Washington Grain Commission; Michelle Hennings, executive director of the Washington Association of Wheat Growers; Collin Watters, executive vice president of the Montana Wheat and Barley Committee; Mark Fowler, USW vice president of overseas operations; Mr. Wataru “Charlie” Utsunomiya, USW/Japan country director; and Ms. Sadako Ishida, USW/Japan program assistant.

U.S. Wheat Associates (USW) is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities are funded by producer checkoff dollars managed by 17 state wheat commissions and USDA Forei­gn Agricultural Service cost-share programs. For more information, visit www.uswheat.org or contact your state wheat commission.

Photo from the JFMA Anniversary event

 

PHOTO CAPTION (High resolution image posted online):
Mr. Masayuki Kondo (center), Chairman of the Japan Flour Millers Association and President of Nippon Flour Mills, accepts a gift recognizing the association’s 70th anniversary from Mike Miller (third from right), Chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash., and Vince Peterson (second from right), President of USW. Behind Mr. Kondo is Mr. Masaaki Kadota, who is retiring after many years as the association’s Executive Director. Mr. Wataru Utsunomiya (far right), USW Country Director for Japan, served as interpreter at the ceremony Jan. 23, 2018, at the association’s headquarters in Tokyo, Japan.

TOP PHOTO CAPTION (High resolution image posted online):
U.S. Wheat Associates (USW) and U.S. wheat industry representatives joined Mr. Chairman, Mr. Masayuki Kondo (holding a ceremonial gift plate), Nippon Flour Mills President and Chairman of the Japan Flour Millers Association, to celebrate the association’s 70th anniversary Jan. 23, 2018, in Tokyo, Japan.

Members of the U.S. delegation included (front row, left to right): Glen Squires (third from left), Washington Grain Commission CEO; Vince Peterson (fourth from left), USW President; Mike Miller (sixth from left), USW Chairman and a wheat farmer from Ritzville, Wash. (Back row, left to right): Walter Powell (fifth from left), a wheat farmer from Condon, Ore.; Collin Watters, Montana Wheat and Barley Committee Executive Vice President; Bill Flory, a wheat farmer from Culdesac, Idaho; Darren Padget, a wheat farmer from Grass Valley, Ore.; Michelle Hennings, Washington Association of Wheat Growers Executive Director; and Damon Filan, manager of Tri-Cities Grain, LLC in Pasco, Wash. Not pictured, Mark Fowler, USW Vice President of Overseas Operations, and Ms. Sadako Ishida, USW/Japan Program Director.

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Nondiscrimination and Alternate Means of Communications
USW prohibits discrimination in all its programs and activities based on race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USW at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S., 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, USW, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. USW is an equal opportunity provider and employer.

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TPP-11 Puts U.S. Wheat Exports at Risk

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are expressing concern that a revised Trans-Pacific Partnership (TPP) that excludes the United States puts overseas demand for U.S. wheat at serious risk.

“On January 23, 2017, President Trump announced the United States would pull out of the TPP. The announcement today that the eleven remaining TPP members have concluded talks on a revised deal without us sends a discouraging signal to our long-time wheat importing customers in Japan,” said Ben Conner, USW Director of Policy.

Japan imports an average of 3.1 million metric tons of U.S. wheat every year. After full implementation of the new TPP, Japan’s import tariffs on Canadian and Australian wheat would drop by about $65 per ton.

“That would put U.S. wheat producers at a total price disadvantage of more than $200 million per year from TPP alone,” Conner said. “As the agricultural community warned when the President made the announcement, withdrawing from TPP was shortsighted and unnecessary, and now U.S. wheat farmers could take the hit.”

“As expected, the remaining members of TPP are moving forward without the United States,” said Gordon Stoner, NAWG President and a wheat grower from Outlook, Mont. “If nothing else, this announcement should serve as a rallying cry for farmers, ranchers and dairy producers calling for the new trade deals we were promised when the President walked away from TPP. The heat needs to be turned up on the administration and on trade negotiations with Japan. An already stressed agriculture sector needs the benefit of free and fair trade now.”

The so-called TPP-11 countries include Canada and Australia, which are major competitors to the United States in the Japanese wheat market. Other TPP countries with rapidly growing demand for imported wheat include Mexico, Vietnam, Malaysia, Chile and Peru, Singapore, Brunei and New Zealand round out the remaining TPP partner countries

 

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

About the National Association of Wheat Growers
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Observing Pacific Northwest Wheat Quality Effort Builds Future Opportunity

Even though Japan has imported more than half of its annual milling wheat needs from the United States for many decades, the market requires constant attention in an increasingly competitive world wheat trade environment. U.S. wheat farmers are doing that in part by building relationships with future senior managers in Japan’s milling industry.

With the support of U.S. Wheat Associates (USW) and export market development programs administered by USDA’s Foreign Agricultural Service, the Washington Grain Commission (WGC) and the Oregon Wheat Commission (OWC) hosted a team of four Japanese flour milling managers and the managing director of the Japanese Flour Millers Association Oct. 8 to 12, 2017. These managers are from companies that produce almost 80 percent of all the flour consumed in Japan. The visit reinforced the ways in which the entire U.S. supply chain is working to constantly improve the quality, performance and value of the wheat these customers need.

“This was an excellent team,” said WGC CEO Glen Squires. “They were looking at our wheat and supply system with the perspective of having more authority and responsibilities in their positions.”

“Producing and exporting high quality wheat is no accident,” said USW Vice President and West Coast Office Director Steve Wirsching. “It is a process that requires tremendous investment and effort by a team of wheat breeders and cereal scientists. We showed these millers that farmers in the Pacific Northwest have invested heavily in varietal development that is paying dividends.”

That message came through quite clearly.

“Our visit with the wheat breeders at Washington State University and with the staff at the Western Wheat Quality Laboratory was a very good reminder that there is much work being done to develop new and improved varieties of both soft white and club wheat development,” said Mr. Koji Ishizuka, Manager, Quality Control and Assurance Group, Nisshin Flour Milling Inc.

Club, a sub-class of soft white, is an essential component of the Western White wheat blend that Japan buys more of than any other importers. Mr. Ishizuka and the rest of the team also visited the HighLine Grain facility in East-Central Washington, which draws a significant amount of club wheat from area farmers.

With additional stops in Washington, including time with USW Chairman and Ritzville, Wash., wheat farmer Mike Miller, and to grain handling systems in Portland, Ore., the team essentially followed wheat from production to export. In Portland, the millers met with the Japanese Importers Association, OWC staff, WMC and Overseas Merchandise Inspection Company (OMIC). Federal Grain Inspection Service (FGIS) inspector Kim Harper put on a mini-grain grading seminar to demonstrate how the federal agency objectively certifies the integrity of wheat relative to the buyer’s contract as it is loaded on a vessel.

“The skill of the inspectors and their ability to identify potential issues with wheat is reassuring,” Mr. Ishizuka said.

According to the Japanese Flour Millers Association, per capita annual wheat consumption has grown sharply, from 56.7 pounds in the 1960s to 73 pounds today as the Japanese diet has become more diversified. Japanese consumers now spend more of their income on bread products than rice.

The Japanese domestic milling and baking industries are highly advanced and fully automated, and demand consistently high-quality wheat. They must address concerns from an increasingly sensitive consumer base on issues such as pesticides, allergens and biotech products. However, the Ministry of Agriculture, Fisheries, and Forestry (MAFF) carries out milling wheat purchases and sells the wheat to Japanese flour mills. The managers on this team will be in position to provide periodic information to the MAFF officials on their needs, based on the strict characteristics their bakery customers demand. The Japanese grain trade acts as intermediaries between MAFF and overseas sellers, and OMIC USA, in Portland, OR, provides testing and inspection services.

“This visit will help these managers better understand how U.S. farmers and the export system can deliver uniformly high-quality wheat and help them make more informed purchase decisions,” said Wataru “Charlie” Utsunomiya, USW Country Director for Japan, who led the team.

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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First Japanese Baking Industry Trade Team Visits United States

As consumer demand for higher quality food strengthens around the world, so do the expectations of everyone from those who grow the food to those who prepare it. Japan is one of those markets, with end-use companies demanding very high standards for a wide range of flour products used for hundreds of different food products. To build an understanding of how U.S. wheat compares to other wheat suppliers, USW invited four executives from the four major Japanese baking companies to the United States, Aug. 29 to Sep. 2, 2017. The participants are all members of the Japan Baking Industry Association and were led by USW Country Director Wataru Utsunomiya, from the USW Tokyo Office.

USW collaborated with the North Dakota Wheat Commission (NDWC) to organize and host this group, the first USW-hosted Japanese baking industry trade delegation to visit the United States. Funding also came from the USDA Foreign Agricultural Service (FAS).

“Japan is a sophisticated market purchasing more U.S. wheat than any other country, including more than 3.0 million metric tons on average annually over the past five years,” said Shawn Campbell, USW Deputy Director of the West Coast Office. “USW’s ongoing efforts in Japan focus on providing up-to-date market information and collaborating with Japanese industry groups. This has built trust and helped foster a mutually beneficial, long-term trading relationship.”

The delegation began its trip in North Dakota with a visit to the NDWC office for a discussion on the 2017 hard red spring (HRS) production prospect and price outlook. The group also visited the Northern Crops Institute (NCI) and learned about the education opportunities it provides.

According to NDWC Marketing Specialist Erica Olson, the discussions on wheat breeding with staff of the North Dakota State University (NDSU) Spring Wheat Breeding Program and Wheat Quality Lab were eye-opening for all.

“The majority of our visitors are millers and procurement staff, so this team was unique and knew less about the wheat breeding process and supply chain,” said Olson. “Quality is still the key factor in flour, so as they shared their consumer trends and demands, we were able to tie that back to how U.S. wheat quality affects trends, and ultimately starts with wheat breeding and research programs.”

The group also toured the North Dakota State Mill and enjoyed discussion with farmer commissioners and NDWC staff.

“Our farmers enjoyed their conversations with this team and the opportunity to learn about the different products made with U.S. wheat that are popular in the Japanese market,” said Olson.

Next, the participants traveled to Oregon, where they visited the USW West Coast Office, Wheat Marketing Center (WMC) and met with a Federal Grain Inspection Service (FGIS) quality assurance specialist. They also visited Columbia Export Terminal for a tour.

Participants said they weren’t aware of the scope of the U.S. wheat industry and the intricate details of the process to produce high quality wheat before this trip.

“U.S. wheat farmers are interested in learning more about what happens to their wheat after it leaves the port. These bakers have the same interest in learning about the wheat before it arrives to them as flour,” said Campbell. “Now they have a better understanding of how U.S. wheat quality is sustained over time, the process to improve it and how it affects their markets in Japan.”

USW’s mission is to “develop, maintain, and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Mid-Size Millers Team from Japan Learn about U.S. Wheat Supply Chain

In the world wheat market, milling companies of all sizes can have an impact on wheat exports and purchasing decisions. This is certainly the case in Japan where mid-sized milling companies representing Japan’s National Cooperative of Millers provide input on the functional characteristics those millers need to meet customer demand to buyers at Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF).

USW welcomed a trade team of four milling executives from mid-sized companies representing the co-op to the United States May 28 to June 4. USW collaborated with the Oregon Wheat Commission (OWC), Washington Grain Commission (WGC) and the Montana Wheat & Barley Committee (MWBC) to organize and host this trade team. Funding for this trade team also came from the USDA Foreign Agricultural Service (FAS).

“Japan will be the second largest buyer of U.S. soft white (SW) and hard red spring (HRS) wheat this year, which means no matter the size of the mill, it is important that these millers are familiar with the value of U.S. wheat and the U.S. wheat marketing system,” said Steve Wirsching, USW Vice President and Director of the West Coast Office. “Japanese millers are always quality conscious and ask good questions about improving overall wheat quality and end-use functionality.”

The team began its trip in Portland, OR, meeting with the OWC, USDA Federal Grain Inspection Service (FGIS) and the Wheat Marketing Center (WMC), to learn more about the U.S. wheat market.

Next the team traveled to Washington where the team focused on research and breeding, transportation and SW wheat crop conditions.

During a tour at a barge loading facility, the team had an impromptu opportunity to visit the nearby dam and watch a barge and tug boat go through the lock and down through to the river.

“U.S. wheat growers rely on the river system to move their wheat,” said Mary Palmer Sullivan, WGC Vice President. “The opportunity to see the system in action demonstrated its importance and why periodic closures have to happen so improvements can be made.

Palmer Sullivan shared that during a visit to the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab, the team also spent time in the greenhouse, observing the wheat breeding process.

“The same traceability that we recognize as important to U.S. millennials, is maybe more important to Japanese consumers,” said Scott Yates, WGC Director of Communications and Producer Relations. “They want to know that their food was grown to the highest standard.”

While in Montana, the team shifted their focus to HRS wheat production and continued to meet with members of the supply chain. At the center of their schedule, was a farm tour with Chris Kolstad, Montana wheat farmer, who showed them his spring and winter wheat production, equipment, grain bins, and explained how the technology he uses allows his farm to be more efficient.

“The team was curious about the new varieties we seeded and I shared with them that all of our wheat varieties are tested and proven before they are commercialized for farmers to use,” said Kolstad, who current servers on the USW Board of Directors as Secretary-Treasurer. “Eighty percent of Montana grains are sent to foreign markets, so it is important to demonstrate the work we put in to growing quality wheat.”

Stephen Becker, MWBC Outreach Coordinator added, “We are firm believers in the strength of personal relationships with our trade partners,” he said. “These customers learn firsthand the knowledge our producers carry and the pride they have in producing a high quality crop, which is important to keep in the forefront of the minds of those who make purchasing decisions.”

Ultimately the importance of relationships between U.S. wheat farmer and overseas customers is mutual.

“I think the opportunity to meet with U.S. wheat farmers and breeders is important,” said Shinjo Oda, Odazo Flour Milling Company President. “From wheat breeding to the producer to the country elevator and to the shuttle train or barge, we have a better understanding of the overall flow of U.S. wheat industry.”

USW’s mission is to “develop, maintain and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Japanese Executive Millers Focus on Trade Issues and Quality on Annual U.S. Wheat Tour

When a new Administration takes office and appoints new leadership, new opportunities and challenges for U.S. agriculture and trade are inevitable. It becomes increasingly important for the U.S. wheat industry to continue to renew the relationships built over the years with overseas customers and clearly communicate how changes might affect them.

Every year, as a part of USW’s market development activities, several overseas teams of U.S. wheat customers are organized and invited to travel to the United States to learn firsthand about the benefits of a business relationship with the U.S. wheat industry. USW welcomed its first 2017 trade team, a group of five Japanese executive flour millers, to the United States April 18 to May 6. USW collaborated with the Oregon Wheat Commission (OWC), Washington Grain Commission (WGC), Idaho Wheat Commission (IWC) and North Dakota Wheat Commission (NDWC) to organize and host this trade team.

“The United States is the biggest wheat supplier for Japan, so it is important to maintain dialogue between representatives of Japan’s biggest wheat users and our U.S. wheat contacts,” said Mr. Masaaki Kadota, Executive Director of the Japan Flour Millers Association (JFMA). “Our focus for this trip was to exchange views on future trade issues and maintaining a stable supply of wheat to meet our needs.”

USW President Alan Tracy noted that JFMA and the U.S. wheat industry have maintained a mutually respectful relationship for many years.

“We want to thank Mr. Kadota for his friendship and many years of service,” Tracy said.

The team began its trip in Portland, OR, meeting with U.S. wheat producers from Oregon and Idaho to discuss current crop conditions. Darren Padget, OWC Chairman, outlined the pressing decisions farmers have to make that affect the wheat crop and Bill Flory, Wheat Marketing Center (WMC) Chairman, hosted the group for a tour of the WMC laboratory. The team also met with the staff at the Overseas Merchandise Inspection Company (OMIC) grain and chemical residue testing laboratories and with the Japanese grain traders.

“At our office, we discussed the overall decrease in wheat seeded area, but we also assured them that the United States has ample carryover stocks and production conditions look pretty good for states that are tributary to Pacific Northwest ports,” said Steve Wirsching, USW Vice President and Director of the USW West Coast Office.

Next, the team traveled to Washington state, where they looked at the journey wheat takes from the farm to port, visiting with USW Vice Chairman Mike Miller while touring a warehouse and rail facility. They also learned more about plant breeding innovations at the Washington State University wheat breeding program and the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab in Pullman.

During the next leg of their trip to Washington, DC, the team shifted its focus to the U.S. and global wheat market situation and trade policy, including meetings with the North American Export Grain Association, National Grain and Feed Association and USDA/FAS.

The team rounded out their trip in North Dakota where they met with U.S. wheat producers and focused on wheat quality and the North Dakota State University wheat breeding programs.

“Japanese consumers seek extremely high quality, safe and secure products,” said Mr. Junji Kokuryo, General Manager, Flour Milling Department, and Officer, Showa Sangyo Co. “It is our responsibility to convey those needs and message to U.S. wheat producers and breeders.”

Erica Olson, NDWC Marketing Specialist, said the team was very interested in hearing about planting progress and crop expectations in North Dakota.

“Japan is not only one of our oldest customers and quality focused buyers, but they are often the largest importer of hard red spring wheat,” said Olson “Hosting the team gives them the opportunity to share their questions and needs with producers. In return, our producers better understand the necessity of a quality product ­— that all wheat is not created equal and that they need to produce a crop that stands out amongst the growing competition.”

In 2016, the USW Tokyo Office celebrated 60 years serving customers in Japan and since the office opened in 1956, bringing trade teams to the United States has become a tradition.

“Steady communication and transparency is the key to the U.S. wheat industry’s long term relationship with Japan,” said Wirsching. “Inviting our customers — and friends — here renews that commitment year-after-year and is an investment in both of our industries.”

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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Wheat Grower Organizations Disappointed in TPP Withdrawal; Call for New Agreements in Crucial Asian, Latin American Markets

WASHINGTON, DC — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) recognize that President Trump’s executive order to withdraw the United States from the Trans-Pacific Partnership (TPP) was inevitable. It is disappointing, however, that until an alternative trade policy is established, export opportunities in the promising Pacific Rim markets that could help U.S. wheat farmers at a time when they need it most are very much at risk.

“U.S. wheat farmers depend heavily on export demand to determine their per-bushel income,” said Jason Scott, USW Chairman and a wheat farmer from Easton, Md. “We can compete very effectively in Asian and Latin American markets where the demand for high quality wheat is rapidly increasing and our organizations took a long-view of the benefits TPP held out — a trade agreement that promoted economic growth abroad as a way to grow export sales and prosperity for farmers at home.”

Without TPP or alternative agreements, U.S. farmers will be forced to the sidelines of trade while losing market share in the region to our competitors including Australia, Canada, Russia and the European Union, which have current agreements or are negotiating new ones with countries outside the network of existing U.S. trade agreements,” said Gordon Stoner, NAWG President and a wheat farmer from Outlook, Mont.

USW and NAWG agree that trade agreements must provide the most benefit possible to our own farmers and industries. We continue to support new agreements that expand free, rules-based trade, as TPP would have done, and encourage that agricultural interests be able to continue to provide input into those negotiations.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

NAWG is a federation of 22 state wheat grower associations that works to represent the needs and interests of wheat producers before Congress and federal agencies. Based in Washington, DC, NAWG is grower-governed and grower-funded, and works in areas as diverse as federal farm policy, trade, environmental regulation, agricultural research and sustainability.

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the U.S.- 605-331-4923). To file a complaint of discrimination, write to Vice President of Finance, U.S. Wheat Associates, 3103 10th Street, North, Arlington, VA 22201, or call 202-463-0999. U.S. Wheat Associates is an equal opportunity provider and employer.

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