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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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Wheat Growers Organizations Dispute Corker’s Food Aid Position

WASHINGTON, D.C. — In remarks to the American Enterprise Institute (AEI) on Oct. 19, 2017, Sen. Bob Corker (R-TN) stated that he has talked to farmers and that farmers “do not care” about U.S. in-kind food aid.

“I don’t know what farmers Senator Corker is talking to because I can assure you wheat farmers care a lot about in-kind food aid,” said Dighton, Kan., wheat farmer Ron Suppes. “In 2016, U.S. government donations of milling wheat that helped feed food insecure populations or were monetized by NGOs to fund local food security projects, reached a level that would be equal to a top ten export market.”

“Sen. Corker’s call to eliminate in-kind food aid donations in favor of all cash gifts is an extreme position, shared by AEI, a group that regularly attacks farm programs and farmers,” said Gordon Stoner, a wheat farmer from Outlook, Mont. “In-kind food aid and monetization are still important tools for delivering greater food availability and easing local market price volatility.”

In June 2017 at a House Committee on Agriculture hearing, Suppes testified on food aid and a trip to Tanzania where he saw development programs that utilized wheat.

“I saw first-hand how food aid can also generate goodwill with other countries,” he said. “By encouraging agricultural development in countries like Tanzania, we’re ultimately spurring economic growth, which means Tanzania is more likely to be a stronger trading partner in the future. And the tangible presence of U.S. wheat in that equation is a symbol that cash can’t match.”

In fact, one of the goals of the U.S. PL-480 food program is to get food to the places where it is needed most. Over time, this program has also had beneficial effects for U.S. farmers. The Philippines and Taiwan are countries that once received in-kind food aid from the United States. Today, both markets are major importers of U.S. wheat and other food ingredient commodities.

“U.S. Wheat Associates and NAWG believe time-honored U.S. food aid programs have been engines of peace, food security and local capacity building in countless countries around the world,” said Stoner. “In-kind food donation and monetization should remain a vital part of America’s tradition of global generosity.”

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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.” 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.

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 Associates to Close Cairo Office, Continue Regional Market Coverage from Rotterdam, Casablanca

ARLINGTON, Virginia — Continuing a strategic effort to increase resources in wheat import market segments with the best potential for growth and returns for the farmers it represents, U.S. Wheat Associates (USW) has announced it will close its office in Cairo, Egypt, on December 1, 2017. USW is the export market development organization for the U.S. wheat industry with funding from 17 state wheat commissions and USDA’s Foreign Agricultural Service.

“Closing our Cairo office was a difficult decision because it affects four colleagues who have been very dedicated to our mission for many years,” said USW President Vince Peterson. “The closure is most certainly not a reflection of our very good staff, as they have remained committed and hardworking even though the market dynamics of the region have changed. Everyone in our organization thanks them for their service and wishes them all the best in the future. USW is now working through the process to help with these transitions.”

Peterson said USW saw a need to begin adjusting its activities in the Middle East and North Africa several years ago as the supply of significantly lower priced wheat from Russia increased. The organization eliminated a Cairo-based marketing position in 2014. This allowed USW to add an experienced technical specialist in its Casablanca, Morocco, office. In 2016, USW shifted regional management for the Middle East operations to its office in Rotterdam, The Netherlands.

Peterson noted that USW will continue to provide trade service to government wheat buyers in Egypt, Iraq, Saudi Arabia and other countries in the region on a targeted basis.

“Our colleagues in Rotterdam and Casablanca will also promote U.S. high performance hard wheat classes and soft wheat classes in specific markets. This includes private buyers, millers and food companies that serve a growing demand for higher value bread products, cakes and confectionary products in the Middle East,” Peterson said. “In addition, these changes will help us increase future marketing capabilities in higher value Asian and Latin American markets.”

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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Wheat Growers Call for New Trade Agreements

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) strongly urge the Office of the U.S. Trade Representative (USTR) to pivot from re-negotiating existing free trade agreements (FTAs) to negotiating new deals, as repeatedly promised by President Trump as a candidate and since taking office.

The United States and Korea yesterday pledged to begin negotiations on aspects of the U.S.-Korea Free Trade Agreement (KORUS). While the wheat industry does not in principle object to modernizing trade agreements, such as the ongoing negotiations to update NAFTA, KORUS is the United States’ most recent trade agreement and is barely a quarter of the way through full implementation. It also passed with strong bipartisan support in Congress after being negotiated under two separate administrations.

“While we disagreed, the President made clear that he did not support the Trans-Pacific Partnership. We were promised a series of bilateral trade agreements in its place,” said NAWG CEO Chandler Goule. “USTR has limited resources — it is time to get past plowing the same fields and start opening ground in new markets. Right now, we are standing around watching the world pass us by on trade agreements.”

USW and NAWG recently weighed in against withdrawal from KORUS for fear of market disruptions and concern that the United States will lose leverage and incentives to get good trade deals in the future.

“I’m glad to see we’re not making any rash decisions about withdrawing from trade agreements, but we need to see more than that,” said USW President Vince Peterson. “In the decade since KORUS was negotiated we have no new trade agreements and zero additional market access for wheat farmers. The Administration has committed to ‘do no harm’ for agriculture, but we think there is harm in not negotiating new agreements.”

The United States has not completed any new trade agreements and withdrawn from the Trans-Pacific Partnership since KORUS was signed in 2007. Over the same period, wheat export competitors have been significantly more active in signing new FTAs:

Argentina: Israel, Botswana, Lesotho, Namibia, South Africa, Swaziland, Egypt, Colombia.

Australia: Chile, Brunei Darussalam, Burma, Malaysia, Philippines, Singapore, Vietnam, Cambodia, Laos, Indonesia, Korea, Japan, Canada, Mexico, Peru, China.

Canada: Iceland, Liechtenstein, Norway, Switzerland, Peru, Colombia, Jordan, Panama, Honduras, Korea, Ukraine, Australia, Brunei Darussalam, Japan, Malaysia, New Zealand, Singapore, Vietnam.

European Union: Albania, Montenegro, Serbia, Bosnia and Herzegovina, Kosovo, Korea, Moldova, Georgia, Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Madagascar, Mauritius, the Seychelles, Zimbabwe, Fiji, Papua New Guinea, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Colombia, Ecuador, Peru, Cameroon, Ukraine, Ghana, Ivory Coast, Botswana, Lesotho, Mozambique, Namibia, South Africa, Swaziland, Canada.

Russia: Belarus, Moldova, Tajikistan, Armenia, Kazakhstan, Kyrgyzstan, Uzbekistan, Vietnam

Ukraine: Iceland, Liechtenstein, Norway, Switzerland, Azerbaijan, Belarus, Armenia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan, Montenegro, European Union.

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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.” 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.

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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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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Wheat Organizations Applaud Trump Administration’s Aggressive Trade Enforcement at the WTO

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the decision by the Trump Administration to make sure China is living up to its commitments on wheat trade. In response to action by the Administration, the World Trade Organization (WTO) Dispute Settlement Body has established a panel to rule on a complaint filed in December 2016 by the United States Trade Representative (USTR) regarding China’s administration of its tariff rate quotas (TRQs) for wheat and other agricultural products. USW and NAWG are very pleased with the Trump Administration’s aggressive use of the WTO dispute settlement mechanism on behalf of wheat farmers.

This is the second panel established at the WTO under the Trump Administration to defend the interests of wheat farmers. The first will examine whether China’s market price support programs for wheat, corn, and rice violate its trade commitments. According to a 2016 Iowa State University study sponsored by USW, China’s market price support programs cost U.S. wheat farmers between $650 and $700 million annually in lost revenue by pre-empting export opportunities and suppressing global prices.

China also has a WTO commitment for an annual TRQ of 9.64 million metric tons (MMT) of imported wheat. The panel established Sept. 22, 2017, in the TRQ case will review evidence that China has not administered this TRQ in a transparent, predictable and fair manner as required by its WTO obligations. The result is that China’s TRQ administration unfairly impedes wheat export opportunities for U.S. wheat farmers, as well as farmers from Canada, Australia and other wheat exporting countries, to the detriment of Chinese consumers.

“It is very encouraging to see the Trump Administration defend farmers against governments that say to the world they will live up to their commitments, but then scheme to disregard the rules we all need to ensure global trade is conducted freely and fairly,” said NAWG President David Schemm, a wheat grower from Sharon Springs, Kan. “Wheat growers will always stand up and applaud when the Administration expands, improves and enforces trade agreements on behalf of farmers.”

“Trade enforcement is crucial for building confidence in existing and new trade agreements,” said USW Chairman Mike Miller, a wheat farmer from Ritzville, Wash. “The Trump Administration’s actions should send a signal that strong and enforceable trade rules are vital to the United States and to U.S. farmers, specifically.”

To read more about the dispute panel established in the TRQ case, visit the WTO website at https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds517_e.htm, and the USW website at https://www.uswheat.org/newsRelease/doc/B002A11603AFAC788525808A00574963?Open.

More information about the market price support case is posted online at https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds511_e.htm and at https://www.uswheat.org/newsRelease/doc/8707CB93926092D98525802D0056551C?Open.

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.

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.

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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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U.S. Wheat Organizations Urge Administration Not to Withdraw from KORUS

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) strongly urge the Trump Administration not to withdraw from the U.S.-Korea Free Trade Agreement (KORUS).

“We believe it would be irresponsible to unilaterally walk away from this or any other trade agreement,” said Mike Miller, USW Chairman and a wheat grower from Ritzville, Wash. “Withdrawing raises the specter of retaliation against agricultural exports and creates unnecessary uncertainty in the market. Any disruption in the relationship wheat growers have built in Korea over more than 60 years gives Australia, Canada and even Russia an opening to move in and take business away from us at a time when we are all struggling to stay profitable. KORUS, like the North American Free Trade Agreement, has been very good for American agriculture.”

“We think this trade agreement, negotiated in good faith and strongly supported in Congress, reinforces the Administration’s stated goal to sell more agricultural products overseas,” said David Schemm, NAWG President and a wheat grower from Sharon Springs, Kan. “We support finding ways to improve any agreement, but let’s do that in a reasoned and respectful way, with input from all stakeholders so U.S. wheat farmers can gain greater access to world markets.”

Korea was the sixth largest volume importer of U.S. wheat in marketing year 2016/17 (June to May).

USW is the industry’s export market development organization with a mission 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.

NAWG is a federation of more than 20 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. For more information, visit our website at www.wheatworld.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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