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Taiwan Goodwill Mission Signs Letter of Intent for U.S. Wheat Purchases

WASHINGTON, D.C. — Representatives from the Taiwan Flour Millers Association (TFMA) signed letters of intent to purchase wheat and other U.S. grown commodities over the next two years Sept. 18, 2019, at the U.S. Capitol. The millers are part of a biennial Taiwan Agricultural Trade Goodwill Mission demonstrating Taiwanese consumer preferences for high quality U.S. agricultural products. The wheat delegation members first stopped in Portland, Ore., Seattle, Wash., and Idaho before travelling to Washington, D.C., for events. They will also visit Oklahoma and South Dakota to meet with farmers, grain handlers and state officials.  

Mr. Yi-Chuen “Tony” Shu, Executive Director of TFMA and President of Formosa Oilseed Processing Co., Ltd., the parent company of Top Foods Flour Mills, signed the wheat letter of intent along with U.S. Wheat Associates (USW) President Vince Peterson. The letter states that TFMA intends to purchase a total of 1.8 million metric tons (equivalent to 66.1 million bushels) of U.S. wheat between 2020 and 2021. The value of these purchases is estimated to be around $576 million.

“We have long had mutually beneficial trade relations with the Taiwan milling and flour products industry,” Peterson said. “U.S. wheat farmers pioneered the market more than 60 years ago by meeting with members of the developing flour milling industry. One innovative plan involved those flour millers donating the equivalent of $1.00 for every one metric ton of imported U.S. wheat to a wheat foods foundation that eventually established what is today the China Grain Products Research & Development Institute. The members of TFMA continue to be reliable trading partners that fully recognize the value of purchasing quality U.S. grown wheat.”

The Republic of China, known as Taiwan, is on average the eighth largest market for U.S. wheat. TFMA imports wheat on behalf of all 20 Taiwanese flour mills and has imported far more wheat from the United States compared to other origins.  

Today, the Taiwanese people consume more wheat flour per capita than rice. Significant hard red spring (HRS) imports reflect a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with hard red winter (HRW) to make traditional Chinese flour foods and noodles. Year-to-date sales to Taiwan in marketing year 2018/19 (June to May) are up 11% from 2017/18. Imports of soft white (SW), including Western White (a blend of SW and up to 20% club), help meet growing demand for cake, cookie and pastry flours.

USW and its legacy organization Western Wheat Associates have maintained an office in Taipei for 53 years.

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.

USW President Vince Peterson (seated left) and Taiwan Goodwill Mission Wheat Delegation Head Yi-Chuen “Tony” Shu, Executive Director of TFMA, co-signed letters of intent for Taiwan to import 1.8 million metric tons of U.S. wheat between 2020 and 2021 on Sept. 18, 2019. The letters were signed at an event at the U.S. Capitol Visitors Center attended by several members of Congress.

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U.S. Wheat Industry Commitment to Philippines Milling Industry Returns Export Sales Increase

ARLINGTON, Virginia — Sales of U.S. hard red spring wheat got a boost recently after a delegation of four leaders from the Philippine flour milling industry traveled to Oregon, Washington D.C. and Washington state June 16 to 24, 2018.

U.S. Wheat Associates (USW) sponsored the delegation with funding from USDA’s Foreign Market Development export programs and support from wheat commissions In Oregon and Washington state. The delegates met with state wheat commissions, producers and grain traders, and visited a port loading facility and a Federal Grain Inspection Service (FGIS) dockside laboratory.

“Together, we demonstrated that these wheat buyers were likely to see basis prices increase for dark northern spring wheat with 14 percent protein,” said USW Regional Vice President Joe Sowers, who is based in Manila, Philippines, and accompanied the delegation to the United States. “With first-hand knowledge of the new crop conditions, one of the buyers purchased a total of almost 100,000 metric tons of old crop U.S. hard red winter and soft white wheat, valued at more than $30 million, during and after the visit.”

Sales of U.S. wheat to the Philippines set a record 2.7 million metric tons (MMT) in marketing year 2016/17 (June 1 to May 31). In 2017/18, however, competitively priced Canadian spring wheat displaced nearly 400,000 MT of U.S. hard red spring (HRS). Nevertheless, continued strength in overall demand pushed U.S. wheat sales to the second highest level in history, just short of 2.6 MMT.

Wheat food consumption is growing in the Philippines and U.S. wheat farmer investments in training millers and end product manufacturers has helped the country’s wheat foods industry achieve world class sophistication with a strong preference for U.S. wheat that now represents 93 percent of total milling wheat imports. The Philippines is now the third largest market in the world for U.S. wheat exports.

Sowers said this delegation included experienced leaders that want to capitalize on what they learned in part to fight for extended protection from low priced Turkish flour exports to their country.

In 2012, Turkish flour dumped at prices well below the price of unprocessed soft milling wheat cut Philippine millers out of more than 10 percent of the flour market representing more than 200,000 metric tons of lost U.S. wheat imports. After several years of legal research and hearings, including substantial support from U.S. wheat farmers and USW, in late 2014, the milling industry won government support for tariff protection from cheap Turkish flour imports. However, the anti-dumping tariffs will sunset in 2019, leaving the Philippine millers unprotected from predatory Turkish flour import prices once again.

Meetings with USW and officials in Washington, D.C., helped reassure these milling executives that they have strong U.S. support that will help them establish a strategy for winning an extension of anti-dumping tariffs on Turkish flour. That outcome will help clear the way for a substantial increase in U.S. soft white wheat exports to the Philippines.

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 in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination 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 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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African Wheat Buyers Visit U.S. Wheat Industry

U.S. Wheat Associates (USW) anticipates new opportunities to export more U.S. hard red winter (HRW) wheat to countries in Sub-Saharan Africa. To ensure key wheat buyers in the region get the latest information they need about HRW quality and value, USW sponsored a delegation of flour milling executives from Nigeria, South Africa, Tanzania and Liberia to Texas, Oklahoma and Kansas June 11 to 21, 2018. Funding for the visit comes from USDA’s Foreign Market Development export programs with support from wheat commissions in those states.

The countries represented in this delegation are important markets for U.S. hard red winter (HRW) wheat, with higher import volumes in Nigeria and South Africa. The buyers first visited the Port of Corpus Christi, hosted by the Texas Wheat Producers Board. With hosts from the Oklahoma Wheat Commission, they visited country elevators, the Tulsa Port of Catoosa and experienced HRW harvest on Schieber Farms near Ponca City. While in Kansas, the flour millers toured the Grain Craft Wheat Quality Lab in Wichita, the Kansas Wheat Innovation Center and IGP Institute in Manhattan and Cargill Elevator and wheat harvest near Salina.

Kansas offers a good example of the opportunity these buyers represent for HRW wheat growers. Aaron Harries, Vice President of Research and Operations at Kansas Wheat, said Nigerian flour millers continue to be extremely good customers for Kansas wheat farmers.

“About half of the Kansas wheat crop is exported every year, and Nigeria has been a top buyer in recent years,” he said. “They love the consistent quality they get in wheat from the U.S. We want to be able to grow our market share in the Sub-Saharan region and build the same relationship of trust with our buyers in South Africa.”

U.S. wheat farmers, through trade servicing and technical support by USW helped establish flour milling as a highly successful industry in the west African nation of Nigeria. Hard red winter (HRW) became the standard source of flour for pan bread and instant noodles there. Demand for soft red winter (SRW) flour for snack foods grew together with durum for quality pasta.

Nigeria remains among the top volume customers of U.S. wheat, including more than 43.2 million bushels (1.18 million metric tons) of HRW and 8.3 million bushels (226,000 metric tons) imported in marketing year 2016/17 (June to May). Unfortunately, that volume is down significantly from previous years as lower priced Russian wheat gained market share in this quality conscious but cost sensitive market.

U.S. HRW wheat remains the dominant source of flour to make instant noodles and wet pasta in Nigeria and a key ingredient as a blending wheat for pan bread flour. USW will continue to keep buyers informed about U.S. wheat quality and a long-term effort to provide regular trade service, including this annual trade team visit, as well as training and technical assistance to the major Nigerian flour milling companies.

South Africa is a smaller market than Nigeria, but annual per capita wheat consumption is the highest in Sub-Saharan Africa. Though it varies widely year to year, South Africa produces about 50 percent of its 3.5 MMT annual wheat consumption. Wheat breeders and flour millers are working together to develop improved protein varieties of wheat for South African farmers so it can be blended with imported wheat. Millers prefer imports of HRW and similar classes of German and Argentinian wheat and tend to buy more of whatever is the least expensive. They are also consistent SRW buyers.

U.S. HRW was much more competitive the past two marketing years. In fact, South African millers imported HRW for the first time in five years in 2016/17. USW kept up the momentum in that marketing year by bringing representatives from a prominent milling company to the United States to observe production and be even better prepared to take advantage of favorable prices this marketing year. Although their pace of imports is down, South African millers have kept HRW in their blends again this year.

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 in more than 100 countries. Its activities are made possible through producer checkoff dollars managed by 17 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.

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Nondiscrimination and Alternate Means of Communications
In all its programs, activities and employment, U.S. Wheat Associates (USW) prohibits discrimination 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 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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Japanese Flour Milling Executives Visit United States at a Pivotal Time

U.S. Wheat Associates (USW) Country Director Wataru “Charlie” Utsunomiya traditionally brings a team of senior executives from Japan’s flour milling industry to the United States to get an early look at each year’s wheat crop and establish professional connections with farmers, grain traders and other industry representatives. This year’s team arrived April 28, 2018, in Portland, Ore., at a good time to discuss many factors that affect the long, productive relationship between the Japanese milling industry and U.S. wheat.

Having just celebrated the 70th anniversary of the Japan Flour Milling Association (JFMA) in January 2018 in Tokyo, USW, the Oregon Wheat Commission (OWC) and the Washington Grain Commission (WGC) were pleased to welcome the team of six JFMA members and the organization’s new executive director Mr. Yasuo Sasaki.

“It is difficult to express how much we value our partnership with Japan’s flour millers, Japan’s Ministry of Agriculture, Forestry and Fisheries and the rest of its wheat foods industries,” said USW President Vince Peterson at the anniversary event. “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.”

Trade policy and how it affects that relationship was among the topics of discussion for the trade team with wheat commission representatives and USW in Portland and later in Washington, D.C.

Because the United States withdrew from the Trans-Pacific Partnership (TPP), U.S. wheat imported by Japan may be subject to a significantly higher effective tariff amount compared to wheat from Canada and Australia under the new Comprehensive and Progressive Trans-Pacific Partnership agreement signed March 8, 2018, by eleven countries. Japanese President Abe’s meeting with U.S. President Trump to discuss trade and other topics in mid-April also provided context to the 2018 trade team visit.

“It is important to maintain and develop the good relationship Japan has had with the U.S. wheat industry for more than 60 years,” Mr. Sasaki said. “To that end, we hope the United States will return to the Trans-Pacific Partnership agreement, and we were encouraged by the joint announcement by USW and the National Association of Wheat Growers supporting that goal.”

Discussion of U.S. wheat quality is an important part of any trade team agenda, but there was a very special event for this team on May 2 at Washington State University (WSU) in Pullman, Wash.

Mr. Sasaki and WGC CEO Glen Squires signed a letter of intent to develop club wheat varieties through more technical exchange at a ceremony with U.S. Rep. Cathy McMorris Rodgers, Washington state Agriculture Director Derek Sandison, WSU President Kirk Schulz, USDA Agricultural Research Service and WSU researchers, university officials, WGC board members and USW Chairman Michael Miller.

Club wheat is a sub-class of soft white (SW) wheat that represents up to 20 percent of a blend with SW designated at Western White wheat. Japan imports more club wheat than any other country.

Mr. Sasaki and WGC Chairman Gary Bailey noted the important benefits they expect to come from this agreement to continue improving the white club varieties needed to make the flour demanded by Japan’s sophisticated baking and wheat foods industry.

“We truly appreciate your efforts to develop a stable supply of good quality wheat for Japan,” Mr. Sasaki said at the ceremony.

Trade, innovative plant breeding and other policy topics were on the agenda during the team’s visit to Washington, D.C., from May 3 to 5. The executives met with senior staff at the USW Headquarters office in Arlington, Va., and with milling industry colleagues at the North American Millers’ Association and their own diplomatic officials at the Japanese Embassy in Washington, D.C., before returning to Japan.

The entire U.S. wheat industry is fully committed to enhancing the bond with customers in Japan and around the world that has helped us all weather many challenges and will continue to be a basis for open and productive partnership well into the future.

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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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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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Emerging Philippine Milling Industry Leaders Visit the United States

With new mills and an increasingly competitive price environment, the Philippines continues to be one of U.S. wheat’s top, consistent customers. As new industry leaders emerge there, USW recognizes the importance of providing training to increase millers’ knowledge of procurement strategies and the U.S. wheat marketing system through trade servicing in the South Asian nation and sometimes here at home.

In September, USW combined a formal training course with a first-hand view of the U.S. wheat supply chain for a delegation of six executives from the Philippine milling industry to the United States, Sep. 20 to 22, 2017. USW collaborated with the Northern Crops Institute (NCI), the Washington Grain Commission (WGC) and the Oregon Wheat Commission (OWC) to organize and host this group. Funding also came from the USDA Foreign Agricultural Service (FAS).

“The Philippines was the third largest buyer of U.S. wheat in the 2016/17 marketing year with total imports reaching almost 103 million bushels (2.8 million metric tons) and the largest buyer of both soft white (SW) and hard red spring (HRS) wheat,” said USW Assistant Regional Vice President Joe Sowers, who led the team. “This delegation represented mills that imported more than 1.5 MMT of U.S. wheat in the past marketing year with an estimated FOB value of $325 million.”

The executives first participated in the Grain Procurement Management for Importers short course at the NCI in Fargo, N.D., from Sept. 11 to 20. The course focused on basic hedging principles, fundamental and technical analysis of commodity markets, basis and spreads, the U.S. grain transportation infrastructure, U.S. wheat grading standards and purchase quality specifications for wheat importers.

USW Vice President and West Coast Office Director Steve Wirsching joined the delegation at NCI to deliver a presentation entitled “Getting the Wheat Quality and Value You Want.” The group learned about the importance of wheat quality specifications in purchase contracts and the role of the Federal Grain Inspection Service (FGIS) in performing all mandatory grain inspections for quality assurance.

Sowers shared that a trading game exercise in the commodity trading room at the North Dakota State University Department of Agribusiness and Applied Economics was particularly helpful to both senior and junior members of the delegation in better understanding the intricacies of wheat purchasing.

After attending the course, the delegation traveled to Washington where they visited the WGC to discuss supply and demand and toured HighLine Grain, LLC.

“The Philippines is Washington farmers’ leading customer for soft white wheat, so this was an important opportunity to share our appreciation for their business,” said WGC Vice President Mary Palmer Sullivan. “Having just completed the grain procurement course, they were able to connect what they learned in the course with the real experience and people here in our state.”

Next, the delegation drove from Spokane, Wash., to Portland, Ore., making stops along the way to visit USW Chairman Mike Miller near Ritzville, Wash., and in Pasco, Wash., to visit Tri-Cities Grain, LLC, and meet with WGC commissioners Damon Filan and Dana Herron.

Palmer Sullivan, who traveled with the delegation from Washington to Oregon, shared that the team was particularly interested in learning more about the transportation system.

“Last year, the scheduled river closures and the weather heavily impacted transportation issues for our overseas customers,” said Palmer Sullivan. “I think seeing and learning about the system helped them better understand how to plan ahead and that U.S. wheat farmers are dedicated to providing them with a reliable wheat supply.”

In Portland, the delegation visited the USW West Coast Office and Wheat Marketing Center (WMC) and met with a FGIS quality assurance specialist. On a tour of the TEMCO (Cargill/CHS) export elevator, the group witnessed first-hand FGIS’s supervisory role in vessel hold inspection and loading to contract specifications to ensure uniform quality. During a meeting with the Pacific Grain Export Association, whose members compete for their business, the delegation received timely market information specific to each wheat class. The group also met with OWC CEO Blake Rowe and Commissioner Darren Padget.

“The Philippines was also our largest soft white wheat market this past year, so we wanted to explain the emphasis we put on quality throughout our production process,” said Rowe. “Everyone, from our wheat breeders to our growers to our handlers to our exporters, has a role in providing quality wheat to our customers.”

“This trip gave us the opportunity to keep sharing the many ways the U.S. grain production and marketing system benefits the Filipino industry, which has a strong preference for U.S. wheat that we want to reinforce,” said Sowers.

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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Taiwan Flour Millers Sign Letter of Intent to Import U.S. Wheat

Taiwan Flour Millers Association (TFMA) Chairman Tony I. T. Chen (center right) and U.S. Wheat Associates (USW) President Vince Peterson (center left) signed a letter of intent by TFMA to purchase a total of 1.8 million metric tons of U.S. wheat in 2018 and 2019 on Sept. 13, 2017, in the Mansfield Room of the U.S. Capitol in Washington, D.C. The ceremony is a part of a biennial Agricultural Trade Goodwill Mission to the United States to purchase grains and other agricultural products for the people of Taiwan. Witnesses to the signing include Congressman Roger Marshall of Kansas (left of Vince Peterson), Representative Stanley Kao, Taipei Economic and Cultural Representative Office in the United States and a Republic of China agricultural minister.

“We all look forward to this event and appreciate the long history of mutually beneficial trade relations with the Taiwan milling and wheat foods industries,” said Peterson.

USW, the U.S. Grains Council, the U.S. Soybean Export Council and the North American Export Grain Association honored delegates from TFMA and Taiwan’s feed and oilseed industries at a reception Sept. 12, 2017, in Washington, D.C. The delegates also signed letters of intent to import U.S. corn and soybeans.

Taiwan is on average the sixth largest market for U.S. wheat. TFMA imports wheat on behalf of all 20 Taiwanese flour mills and has imported far more wheat from the United States compared to other origins, at an average of 1.03 million metric tons (37.9 million bushels) per year since marketing year 2011/12 (June to May).

Significant hard red spring (HRS) imports reflect a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with hard red winter to make traditional Chinese flour foods and noodles. Year-to-date sales of HRS to Taiwan in marketing year 2017/18 are up 93 percent from 2016/17. Soft white (SW) wheat imports, including Western White wheat (a blend of SW and up to 20 percent club), help meet growing demand for cake, cookie and pastry flours.

Chairman Chen and other TFMA delegates will also visit North Dakota, Montana and Idaho to make similar commitments and to meet with state wheat commission representatives and state government officials.

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About U.S. Wheat Associates
USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” Its activities are made possible by producer checkoff dollars managed by 18 state wheat commissions and through USDA Foreign Agricultural Service cost-share funding. For more information, visit www.uswheat.org or contact your state wheat commission.

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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Taiwan Goodwill Mission Will Sign Letters of Intent for U.S. Wheat Purchases

As part of a biennial Agricultural Trade Goodwill Mission to the United States to purchase grains and other agricultural products for the people of Taiwan, representatives from the Taiwan Flour Millers Association (TFMA) will be in Washington, D.C., Sept. 11 to 13, 2017, to sign a letter of intent to purchase U.S. wheat in 2018 and 2019. The TFMA delegates will also visit North Dakota, Montana and Idaho to make similar commitments and to meet with state wheat commission representatives and state government officials.

The Republic of China, known as Taiwan, is on average the sixth largest market for U.S. wheat. TFMA imports wheat on behalf of all 20 Taiwanese flour mills and has imported far more wheat from the United States compared to other origins, at an average of 1.03 MMT (37.9 million bushels) per year since marketing year 2011/12.

Significant HRS imports reflect a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with HRW to make traditional Chinese flour foods and noodles. Year-to-date sales of HRS to Taiwan in marketing year 2017/18 (June to May) are up 93 percent from 2016/17. Imports of SW, including Western White (a blend of SW and up to 20 percent club), help meet growing demand for cake, cookie and pastry flours.

“We all look forward to this event and appreciate the long history of mutually beneficial trade relations with the Taiwan milling and wheat foods industry,” said USW President Vince Peterson, who will co-sign the letter of intent at the Washington, D.C., event.

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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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Growth in South Asia Leads Customers to Learn More About the U.S. Wheat Industry

In South Asia, the market for wheat-based foods is rapidly growing, and people are starting to take notice. The largest company serving those markets is Singapore-based Wilmar International. Its holdings include flour milling operations in Vietnam, Indonesia and Malaysia that process about 2 million metric tons (MMT), or about 73.5 million bushels, of wheat. As the company expands its milling operations, most of the wheat it needs must be imported, and USW is working with Wilmar wheat buyers and flour millers to promote the value U.S. wheat can add to their expansion.

USW welcomed a trade team of four executives from Wilmar’s Singapore, Vietnam and Indonesia operations to the United States, Aug. 9 to 16, 2017. USW collaborated with the Montana Wheat & Barley Committee (MWBC), Washington Grain Commission (WGC), Idaho Wheat Commission (IWC) and the Oregon Wheat Commission (OWC) to organize and host this trade team. Funding also came from the USDA Foreign Agricultural Service (FAS).

“These executives understand the business side, but selecting the right wheat is important to see those business plans through,” said Matt Weimar, USW Regional Vice President in South Asia. “We want to help them develop a deeper understanding of how to use data on crop quality, supply and demand, contract specifications and U.S. federal grain inspections to minimize price risk and meet or exceed the company’s milling and end-use standards.”

The team began its trip in Montana and Idaho, where they were welcomed by local growers and participated in hard red spring (HRS) and soft white (SW) wheat harvest. This is included a visit with USW Vice Chairman Chris Kolstad, who produces HRS and hard red winter (HRW) wheat and other crops. They also toured Montana State University’s variety development programs, the Lewis and Clark Grain Terminal and the Pacific Northwest Farmers Cooperative.

“The team saw firsthand that U.S. wheat producers have a direct investment in their crops. With funding from grower organizations combined with other public and private funds, they are able to develop new varieties and fund on-going research to increase yield and end-use performance in those varieties,” said Blaine Jacobsen, IWC Executive Director.

The team shared that they gained a new appreciation for the large investment individual producers and the rest of the industry puts into getting a reliable supply of wheat with consistent quality to traders, millers and food processors in Asia.

The team continued their tour of the supply chain in Washington state, where they visited the USDA ARS Western Wheat Quality Laboratory and Highline Grain Rail Loading Facility, which receives regional rail shuttles of grain, and ships 15 hopper car shuttle trains to export facilities on the Columbia River and Puget Sound. The timing of their visit also allowed the team to meet with the WGC to discuss supply and demand, as well as Washington State University wheat researchers to learn about new variety development. They learned that the information from these programs is shared with wheat farmers at through meetings conducted every year on new high quality and good yielding varieties.

Mary Palmer Sullivan, WGC Vice President, explained that while all the participants represented the same company and shared priorities, their separate business units have different end-products.

“Consistency is essential to their brand, especially as demand grows, and they are working directly with their consumers to maintain that consistency,” said Palmer Sullivan. “These meetings allowed us to do the same for them and demonstrate the quality of U.S. wheat.”

“We need to educate the end-users because now everything is based on price. We need to help them see that if they buy quality, they will get quality,” said Hairuddin Halim, General Manager, Wilmar Indonesia.

In Oregon, visits included the OWC, Wheat Marketing Center, Federal Grain Inspection Service and the Pacific Grain Exporters Association. They also visited the Columbia Export Terminal and met with U.S.-based grain traders, which allowed them in turn to inform the traders about Wilmar’s wheat quality needs in their many markets.

“The U.S. system of public universities, grower organizations and USW maintains a stream of research and development, quality assurance and control, yield growth and communications with domestic mills, retailers, consumers and international U.S. customers,” said Weimar. “This chain of support, both through trade and technical servicing, does not exist in other markets that originate wheat, so it is essential to witness it in action.”

“When we buy U.S. wheat, we assume that the quality we are asking for is what we are going to get,” said Tze Shien Ang,” Senior Executive, Oilseeds and Grains, Wilmar Trading, Singapore. “Now, because of this trip, I can see why.”

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.

View pictures of the trade team’s visit on Facebook here.

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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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