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Boyuan Chen to Represent U.S. Wheat Farmers in Taiwan Market

ARLINGTON, Virginia — U.S. Wheat Associates (USW) has hired Boyuan Chen as Country Director in the organization’s Taipei, Taiwan, office. Starting Nov. 1, 2016, Chen will manage U.S. wheat market development programs and USW’s business and government relationships in a market that imports on average about 38 million bushels of U.S. wheat every year. Chen will replace long-time Country Director Ron Lu, who is transitioning to retirement at the end of 2016 after 33 years with USW.

“Boyuan Chen is an ideal manager for this position who will draw from 20 years of experience in food and feed commodity procurement with Uni-President Enterprises,” said USW Regional Vice President Matt Weimar. “He joins our history of strong leadership since Western Wheat Associates opened an office in Taipei more than 50 years ago. By helping Taiwan’s flour millers and wheat foods industry constantly improve their products, we have developed very loyal customers for U.S. dark northern spring, soft white and hard red winter wheat farmers.”

After three years in banking, Chen started with Uni-President, Asia’s largest food production corporation, in 1997 as a grain market analyst and gained experience in the company’s soybean procurement group. In 2001, he moved up to assistant chief of the company’s Taipei procurement section working closely with the Taiwan Flour Mills Association (TFMA), the Taiwan Feed Industry Association and the Taiwan Vegetable Oil Manufacturers Association. Chen’s last position with Uni-President was as section chief of import affairs from 2009 to 2016. He earned a bachelor’s degree in Agricultural Economics from National Taiwan University, Taipei, in 1989, and a master’s degree in Financial Management from Syracuse University in 1994.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.

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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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U.S. Wheat Associates Bids Farewell to Taiwan Colleagues Ron Lu and Serena Wu

TAIPEI, Taiwan – U.S. Wheat Associates (USW) announces the retirement of two long-time associates from its Taipei Office. After 33 years of service, Ronald L. J. Lu is stepping down as Country Director, and Serena Wu is retiring her post as Office Manager and Accountant after 38 years of service.

“Today, per capita wheat consumption in Taiwan has exceeded that of rice. It is a market that prefers the quality and reliability of U.S. wheat and Ron and Serena have played key roles in that success,” said USW Regional Vice President Matt Weimar, who oversees operations in South Asia, China, Hong Kong and Taiwan. “USW has a strong presence in Taiwan, across all sectors and entities in the food industry because of their dedication and commitment representing U.S. wheat farmers.”

Lu joined USW in 1983 as a technical specialist and was appointed country director in 2004. During his tenure, Lu worked directly with end users and importers to help them strengthen commercial links with U.S. export companies through trade servicing, technical assistance and promotional activities. From 2007 to 2009, Lu served as the chairman of the China Grain Products Research and Development Institute (CGPRDI). During his USW career, he has facilitated countless customer and trade team visits to the United States, including the biennial Agricultural Trade Goodwill Mission during which the Taiwan Flour Mills Association (TFMA) traditionally signs letters of intent to purchase U.S. wheat during the following two marketing years. Lu will remain with USW through the end of 2016 providing ongoing assistance as a Senior Advisor.

“Over these many years, Ron has added value to every level of USW’s work in Taiwan — from improving and creating the finest wheat food products for consumers to strengthening the long standing trade relationship between Taiwan and the United States,” said USW Vice President of Overseas Operations Vince Peterson. “Through his steady efforts and successes, he has made immeasurable contributions to both the wheat food industry in Taiwan and the U.S. wheat production and export industries.”

“By hosting so many public introductions of those new wheat food products with his customers and educational partners, Ron truly has been the face of U.S. wheat in Taiwan,” said Weimar.

Wu joined USW in 1978 serving as a personal assistant to the country director and overseeing daily office operations. Her responsibilities ranged from budget development and program management to finances and translations. She had an important role in planning conferences, seminars and meetings for the Taipei office, including arranging travel for office staff, consultants and trade cooperators.

“With an ever-engaging smile and upbeat attitude, Serena has been a constant element in producing and molding USW’s activities into a highly successful program for Taiwan,” said Peterson. “She has been indispensable and the wheat-related industries on both sides of the Pacific owe her a huge thank you for her dedication, service and for bringing us all together.”

Taiwan is on average the sixth largest market for U.S. wheat, purchasing more than 15 million metric tons (more than 550 million bushels) since 1998. In each of the past two marketing years, Taiwan’s flour millers purchased about 1.0 million metric tons (MMT), or nearly 37 million bushels, of U.S. wheat.

USW’s mission is to “develop, maintain and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

Header Photo Caption: Ron Lu and Serena Wu with USW colleagues at the USW Taipei Office 50th Anniversary event in April 2016. (L to R): Steve Mercer, Vice President of Communications; Shu-Ying “Sophia” Yang, Asian Products/Nutrition Technologist; Erica Oakley, Program Manager; Serena Wu, Office Manager and Accountant; Fiona Lee, Executive Secretary and Accountant; Matt Weimar, Regional Vice President; and Ronald Lu, Country Director.

Caption: USW staff recently hosted a dinner honoring Ron and Serena’s many years of service. (L to R): Ronald Lu, Country Director; Kevin McGarry, Vice President of Finance; Serena Wu, Office Manager and Accountant; and Matt Weimar, Regional Vice President.

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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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U.S. Wheat Associates Promotes Rutger Koekoek to European Regional Marketing Director

ARLINGTON, Virginia – U.S. Wheat Associates (USW) is pleased to announce that Rutger Koekoek is promoted from marketing specialist to regional marketing director for Europe. Koekoek joined USW in 2009 and is based in the organization’s regional office in Rotterdam, The Netherlands. USW is the export market development organization for U.S. wheat farmers.

“We are recognizing Rutger’s work and his successful performance over the past several months filling this regional role as our long-time director Goris van Lit transitioned to retirement,” said USW Regional Vice President Ian Flagg. Flagg manages USW staff and all market development activities in Europe, the Middle East and North Africa from Rotterdam.

Europe continues to be an important regional market for U.S. wheat. It is the largest export market for northern durum and Desert Durum® and flour millers frequently import U.S. hard red spring (HRS) wheat to blend with locally-produced “soft” wheat.

Before joining USW, Koekoek worked in seed sales and marketing management first with Delta and Pine Land in its Netherlands office. Koekoek managed sales and marketing of cotton seed in Europe and directly managed Delta and Pine Land’s Turkish subsidiary. Koekoek also worked as a marketing product manager for Dutch vegetable seed producer De Ruiter Seeds, where he steered the development and product lifecycle for pepper and eggplant varieties.

Koekoek received a bachelor’s degree in International Management at the Rotterdam Business School and a master’s degree in Agricultural Economics and Marketing from Wageningen Agricultural University.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

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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 Welcome Trade Enforcement Action on Chinese Market Support Programs

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) welcome the Obama Administration’s new trade enforcement action against China at the World Trade Organization (WTO). The significant investigative effort by the Office of the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) followed five years of work by USW, NAWG and other industry partners to demonstrate how China’s domestic support policies hurt U.S. farmers.

This enforcement action challenges the level of China’s trade-distorting market price support programs for wheat as well as for corn and rice. In describing its action, USTR said “the level of support provided through these programs in excess of China’s commitment was nearly $100 billion.”

These programs cost U.S. wheat farmers between $650 and $700 million annually in lost income by pre-empting export opportunity and suppressing global prices, according to a 2016 Iowa State University study sponsored by USW. That loss estimate is actually 19 percent more than the losses estimated by a similar 2015 study due to the effect of increasing global stocks and resulting market price decline.

“Wheat production subsidies in China and other advanced developing countries are the single biggest policy issue affecting our farm gate prices and global trade flows,” said USW President Alan Tracy. “In taking this step, USTR and USDA are demonstrating that trade enforcement can ensure that our many trade agreements and a pro-trade agenda really work for American farmers.”

“This enforcement action shows a welcome willingness to defend farmers against governments that blatantly disregard the rules of the road under their trade agreements,” said NAWG President Gordon Stoner, a wheat grower from Outlook, MT. “It comes at a critical time for farmers who have seen market prices collapse to unsustainable levels in recent years.”

A 2014 study by DTB Associates, also sponsored by USW, showed that China’s minimum procurement price of about $10 per bushel for wheat, in addition to other subsidies, violates China’s WTO commitments. That market price support is so high that the Chinese government has to purchase and store enormous stocks of domestic wheat. As a result, USDA estimates that by June 2017, China will hold 44 percent of the world’s wheat stocks, which will be at record levels and further depress market prices. This also hurts Chinese flour millers who are forced to purchase overpriced domestic wheat from these stocks and hurts their customers who pay more for the flour.

Noted Iowa State University agricultural economist Dr. Dermot Hayes conducted the 2015 and 2016 studies of domestic support effects. In reviewing the 2016 study results, which compared a base case including China’s current support to a new scenario in which the factors represented by China’s policies were removed, Dr. Hayes said farmers there would grow less wheat because domestic prices would fall and input costs would increase.

“In our comparison, that would benefit farmers in the United States and other wheat exporting countries as China would need to increase its imports to more than 9 million metric tons,” Dr. Hayes said. “The corresponding lift in wheat exports would increase U.S. farm income from wheat by 19 cents per bushel.”

“China may try to cloak its market price support as necessary to achieve self-sufficiency in wheat production, but this does not justify ignoring its trade commitments,” said Tracy. “Trade plays a vital role in food security, as no country can truly be self-sufficient in food production. The studies we have sponsored clearly show that eliminating its expensive market price support programs and letting the market work to meet their wheat needs would reduce the cost of food for Chinese consumers.”

“Trade agreements cannot meet their promise if other countries ignore the rules, no matter if the agreements are multilateral, bilateral or regional like the Trans-Pacific Partnership,” said Stoner. “That TPP has improved enforcement mechanisms is one more reason we strongly support its passage. Our grower organizations fully support this new trade enforcement action with China, and we will continue to work with our government and industry partners to address other trade distorting issues.”
USW and NAWG have posted the Iowa State studies online at https://bit.ly/1XPLrLo and https://www.wheatworld.org/issues/trade/. For results of two DTB Associates studies measuring domestic support in advanced developing countries, visit www.dtbassociates.com/docs/DomesticSupportStudy11-2014.pdf and www.dtbassociates.com/docs/domesticsupportstudy.pdf. For a third party analysis of individual policy measures by country, visit https://www.oecd.org/tad/agricultural-policies/producerandconsumersupportestimatesdatabase.htm#country.

USW’s mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities in more than 100 countries are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA/Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat. For more information, visit our website at www.uswheat.org.

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

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

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Wheat Industry Welcomes End to Japan’s Temporary Suspension of White Wheat Imports

ARLINGTON, Virginia — U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) are pleased that Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) resumed tenders this week for new purchases of U.S. Western White (WW) wheat, a blend of soft white and club wheat. On Sept. 1, 2016, MAFF announced it had purchased 58,000 metric tons, or more than 2.13 million bushels, of WW for delivery in October.

MAFF had temporarily suspended new WW purchases following the announcement on July 29, 2016, by USDA’s Animal and Plant Health Inspection Service (APHIS) that a small number of wheat plants containing an unapproved, genetically engineered (GE) event to resist the herbicide glyphosate were found in a fallow field in eastern Washington State.

USW and NAWG believe that this unexpected situation caused only a minor disruption in trade because every stakeholder approached it in a reasonable way. APHIS promptly identified the regulated wheat event, validated a detection method developed by Monsanto and made that test available to officials in Korea and Japan. Effective communications between government officials, including USDA’s Foreign Agricultural Service, the grain trade companies and customers kept the process moving in a positive way.

As a result, APHIS, MAFF and the Korean government have now tested thousands of samples of U.S. wheat and found no evidence of any GE material in commercial supplies, which reaffirms the conclusion that this was a limited, isolated situation.

The productive relationships wheat farmers and their representatives at USW, NAWG and state wheat organizations have built with customers at home and around the world also played an important part in resolving this incident.

On behalf of those wheat farmers, USW and NAWG express our appreciation to APHIS for its help. To all our customers, we thank them for their response to this situation and their continued confidence in the quality, safety and value of U.S. wheat.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service (FAS).

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

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Nondiscrimination and Alternate Means of Communications
U.S. Wheat Associates prohibits discrimination in all its programs and activities on the basis of race, color, religion, national origin, gender, marital or family status, age, disability, political beliefs or sexual orientation. Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact U.S. Wheat Associates at 202-463-0999 (TDD/TTY – 800-877-8339, or from outside the United States – +1-605-331-4923). 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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USW Bringing Indonesian Milling Executives to Experience U.S. Wheat Supply System

ARLINGTON, Virginia — Three top-level executives from Indonesia’s largest flour milling company will travel to North Dakota and the Pacific Northwest August 17 to 27, 2016, with U.S. Wheat Associates to learn how they can select and efficiently import different classes of U.S. wheat. The millers work for Bogasari, which operates four separate flour mills in Indonesia. These managers in quality and product development, production planning and finance will see and hear how U.S. hard red spring (HRS), hard red winter (HRW) and soft white (SW) can help them meet the needs of their growing market.

Funding for this trade team visit comes from USDA through its Foreign Agricultural Service export market development programs and from in-kind contributions from the Montana Wheat and Barley Committee, the Idaho Grain Commission, the Washington Grain Commission, the Oregon Grain Commission and the Wheat Marketing Center in Portland, OR.

“USW has had success demonstrating to Indonesian mills the processing advantages of flour made from U.S. hard red spring and winter wheat for bread products,” said USW Regional Vice President Matt Weimar, who will lead the Bogasari team. “We are also promoting soft white for superior performance in cakes, cookies and other soft wheat products. This visit supports those strategies very well.”

The team will start its visit in Fargo, ND, with the North Dakota Wheat Commission, North Dakota State University and Northern Crops Institute focusing on the advantages of HRS and the on-going work to improve functional performance. Next is a visit to Greg Svenningsen’s farm in Valley City, ND, and a country elevator owned by Columbia Grain before the team flies west to Portland. The visit there and then back up-country to eastern Washington and northern Idaho provides a complete picture of the U.S. Pacific Northwest wheat supply system and a detailed look at SW advantages.

“With U.S. wheat at a price disadvantage compared to Canadian wheat the last couple years and with Australia’s strong influence with Indonesia nearby, it is important to bring top-level managers from a large mill like Bogasari that has a majority market share to the United States to put a face on our advantages,” said Weimar. “It makes a difference when the buyer meets the breeders, farmers and grain handlers who actually make U.S. wheat the world’s most reliable supply.”

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat. Its activities are made possible through producer checkoff dollars contributed by 18 state wheat commissions and cost-share funding from USDA’s Foreign Agricultural Service.

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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 United States – +1-605-331-4923). 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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USW Market Analyst Joins Colombian Trade Team on Its U.S. Tour

For Stephanie Bryant-Erdmann, USW’s market analyst, the diversity of the wheat export market and its changes keep her job interesting. She works closely with industry partners and USW overseas staff to track the pulse of the industry, so when the opportunity to gain direct insight into customer needs and concerns by traveling with one of USW’s trade teams from Colombia — she took it.

“Trade teams provide a unique opportunity to see the interaction between U.S. exporters and their customers that normally takes place remotely,” said Bryant-Erdmann. “This face-to-face interaction helps me better understand the challenges and opportunities U.S. wheat exports face.”

With funding from USDA’s Foreign Agricultural Service, USW collaborated with the North Dakota Wheat Commission (NDWC) and the Montana Wheat & Barley Committee (MWBC) to host a trade team of five Colombian executives July 24 to 30, 2016. Colombia was the top destination for U.S. wheat in South America in marketing year 2015/16 (June to May) after importing over 670,000 metric tons (MT) from four of the six U.S. wheat classes. During their visits to North Dakota, Montana and Louisiana the team focused on renewing their familiarity with the advantages of the U.S. wheat marketing system and gaining a better understanding of the U.S. wheat industry.

“The managers on this team represent the major flour, cookie and pasta groups in Colombia. Some are experienced buyers and account for 40 percent of the country’s wheat imports in 2015,” said USW Assistant Regional Director Osvaldo Seco, who led the team. “They are directly responsible for evaluating and importing wheat for their organizations and this trip put them directly in contact with traders to better inform their purchasing decisions.”

The team started its trip in Fargo, ND, at the Northern Crops Institute where they heard from a variety of North Dakota State University durum and spring wheat researchers on breeding and quality programs, pasta production techniques and pricing strategy.

“The programs the state commissions put together were excellent. One highlight for me was the USDA-ARS Hard Spring and Durum Wheat Quality Laboratory on the NDSU campus,” said Bryant-Erdmann. “Not only did the team see the depth and breadth of the lab’s capabilities, but we also saw samples fresh from the elevators and fields awaiting analysis for the USW annual Crop Quality Report.”

The trip’s northern leg, which included Montana, put an emphasis on highlighting the supply chain with tours of farms, grain elevators, the Montana State Grain Laboratory, Pasta Montana, General Mills and Columbia Grain. They also had several opportunities to meet directly with growers.

To top off their experience, the team traveled to Destrehan, LA, to visit a FGIS field office and a Bunge export elevator; and to Reserve, LA, to visit Cargill’s Terre Haute Marine Facility.

“Gulf exports account for roughly 45 percent of all U.S. wheat export volume, and have their own, unique challenges and opportunities,” said Bryant-Erdmann. “While the Pacific Northwest handles a similar quantity of exports, the Gulf climate, origination logistics, classes of wheat and customers ensure it is an entirely different animal. This was a great experience to share with the team.”

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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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Korean Wheat Crop Survey Team Taking Annual U.S. Tour

ARLINGTON, Virginia — Three executives representing Korean flour milling companies will travel through the Pacific Northwest Aug. 7 to 14, for a more in-depth look at crop production and quality of soft white (SW), hard red spring (HRS) and hard red winter (HRW) wheat. Their visit, which includes stops in Montana, Washington and Oregon, will give them the opportunity to meet with growers, breeders and exporters.

“These milling companies hold purchasing tenders for milling wheat that supply all eight mills in Korea,” said USW Country Director Chang Yoon Kang, who is leading the team. “Each of these managers have a key role in making decisions about wheat origin, class, purchase contract specifications and wheat procurement policies. It is vital that they receive timely and reliable information on the crop situation.”

With funding from USDA’s Foreign Agricultural Service, USW collaborated with the Montana Wheat & Barley Committee (MWBC), Washington Grain Commission (WGC) and Oregon Wheat Commission (OWC) to organize and host this trade team.

In calendar year 2015, South Korea imported 2.37 MMT of wheat, including 1.10 MMT U.S. SW, HRS and HRW wheat sourced from Pacific Northwest and northern plains fields. While Korean millers import most of their wheat from the United States, Canadian spring wheat is also imported to blend with U.S. classes for bread flour. Australian white wheat is preferred for Korean style noodles, but USW is working to flank that market by helping its customers introduce whole wheat products made with flour from U.S. wheat as a healthy noodle choice.

The team will start its visit in Great Falls, MT, to visit a Columbia Grain elevator and the State Grain Lab. They will also tour O’Hara Farms in Fort Benton, MT, and have dinner with MWBC commissioners. In Pullman and Spokane, WA, the team will meet with Washington State University breeders and tour the USDA Agricultural Research Service (ARS) Western Wheat Quality lab, as well as go on a tour of the HighLine Grain shuttle facility. The final leg of the trip will be to Portland, OR, where the team will learn more about the PNW supply chain from staff at the USW West Coast Office, Wheat Marketing Center, Oregon Wheat Commission, Pacific Grain Exporters Association and Federal Grain Inspection Service (FGIS). The team will round out their trip with a farm tour in the Willamette Valley.

“The Korean consumer is sophisticated and demands a wide range of high-quality wheat products that compete effectively with more traditional rice products. Korea has grown into a very important market for U.S. wheat producers because they buy our premium wheat classes and are willing to pay more to extract that quality from our market,” said USW Vice President and West Coast Office Director Steve Wirsching. “This trade team provides a way for the millers to learn more about the upcoming harvest so they can do a better job of originating the best quality we have to offer.”

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service (FAS).

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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 United States – +1-605-331-4923). 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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Detecting No GM Event, Korea Ends U.S. Wheat Import Suspension

ARLINGTON, Virginia — (Updated 8/5/16) Korea’s Ministry of Food and Drug Safety (MFDS) has ended a temporary suspension of U.S. wheat imports after testing detected no genetically modified wheat in U.S. supplies. MFDS quickly deployed the test to assure U.S. wheat remains safe and reliable, adding confidence that nothing has changed the U.S. wheat supply chain’s ability to deliver wheat that matches every customer’s specifications. This action follows the discovery of a very small number of wheat plants that were genetically engineered (GE) to resist the herbicide glyphosate in an unplanted, fallow field in eastern Washington State in June.

Out of an abundance of caution, Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF)is temporarily suspending only new purchases of western white wheat (soft white and 20 percent club wheat) from the PNW until it can validate and start using a customized version of the new detection assay test provided quickly by Monsanto and USDA. U.S. Wheat Associates (USW) expects that to happen by mid- to later-August. As we expect the testing will detect no GE wheat, the results will likely end the suspension very soon after Japan starts testing. In 2013, WW suspension was in place for 2 months. U.S. hard red winter and hard red spring tenders/purchases so open purchases (already contracted) with vessels loading in the PNW and discharge operation in Japan continue normally.

The Animal and Plant Health Inspection Service (APHIS) took prompt and thorough action to identify the regulated wheat event in the plants that were discovered and has confirmed to us that:
the situation was isolated to only 22 plants in a fallow field;

  • there is no health risk associated with this wheat event based on Food and Drug Administration evaluation;
  • there is no evidence suggesting that this wheat event, or any other GE wheat event, has entered U.S. commercial supplies;
  • a validated test to detect this event in wheat was quickly produced and made available to trading partners if so desired to help ensure that any market disruption will be limited and temporary; and
  • a statement with more facts about this situation is posted at https://www.aphis.usda.gov/aphis/ourfocus/biotechnology/brs-news-and-information/ct_news.

The agency has kept our organizations, as well as government officials in several key overseas markets, informed as it worked to find the facts. In turn, our organizations have shared information about the situation with the domestic grain trade and downstream customer organizations, as well as overseas grain trade and buyers in several countries that import U.S. wheat.

USW, the National Association of Wheat Growers (NAWG) and state wheat organizations believe that APHIS has successfully managed this situation and provided sufficient evidence that this has not affected commercial wheat supplies. Based on that and other facts, we are very confident that nothing has changed the U.S. wheat supply chain’s ability to deliver wheat that matches every customer’s specifications. In fact, the Korean Ministry of Agriculture, Farms and Rural Affairs has issued a public statement saying that there is no concern from Korean experts, including officials from the Quarantine Inspection Agency (QIA), that GM wheat has been or will be introduced to Korea.

It is also important to note that grain import officials in Japan and Korea have tested for the GE event identified in 2013 in virtually every load of U.S. wheat delivered to those countries since August 2013. The event has never been identified in more than 500 million bushels of wheat exported to Japan alone. In addition, researchers at Washington State University have been conducting routine phenotype screening for glyphosate tolerance in wheat since 2013. In each of the last three growing seasons, this field screening process has involved more than 80 varieties, 2,000 advanced breeding lines and more than 35,000 individual plots. Varieties included in these trials represent more than 95 percent of the wheat acreage planted in the state of Washington and much of the acreage planted in Oregon and Idaho. Screening to date has revealed no glyphosate tolerant wheat plants in these trials.

The federal systems in place ensure that unauthorized biotech products are tightly regulated and do not enter commercial channels. In fact, APHIS recently changed its rules to require developers to apply for a permit for field trials involving GE wheat. APHIS said this more stringent process will add protection that GE wheat will remain confined during the trials.

Nothing is more important to the U.S. wheat industry than the trust we have earned with customers at home and around the world by providing a reliable supply of high-quality wheat. We thank our customers for their reasonable approach to this situation and we are confident that public and private breeders and federal regulators are taking all appropriate actions to ensure that U.S. wheat, wheat flour and wheat foods remain safe, wholesome and nutritious for people, and in animal feed, around the world.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service (FAS).

For additional information, please contact:

Ed Curlett
Director of Public Affairs
APHIS
301-851-4052

Steve Mercer
U.S. Wheat Associates
703-650-0251

Ainslie Campbell
National Association of Wheat Growers
202-547-7800

Glen Squires
Washington Grain Commission
509-456-2481

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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 United States – +1-605-331-4923). 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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Trade Visit to Demonstrate U.S. Wheat Competitive Advantages to Venezuelan Millers

ARLINGTON, Virginia — Quality control and purchasing managers from three Venezuelan flour mills will visit North Dakota, Nebraska, Kansas and Ohio July 31 to Aug. 6, 2016, to learn more about the value of working with the U.S. wheat supply chain. With funding from USDA’s Foreign Agricultural Service, U.S. Wheat Associates (USW) is sponsoring this trade team in cooperation with the North Dakota Wheat Commission, Nebraska Wheat Board, Kansas Wheat Commission and Ohio Small Grains Marketing Program.

Chad Weigand, USW Assistant Regional Director for Mexico, Central America and the Caribbean, said U.S. wheat exports to Venezuela are not as strong as they once were, in part because increased government intervention and limited access to U.S. dollars have forced millers there to make cost a primary buying decision.

Venezuela imports durum, high protein spring wheat and soft red winter wheat. However, current market conditions there have given Mexican durum a competitive advantage. Canadian western red spring wheat has only recently come up in price to near parity with U.S. hard red spring (HRS) wheat, but the high U.S. dollar value continues to favor Canadian origin export prices. For the vibrant cookie and snack market in Venezuela, soft red winter grown in eastern Canada continues to compete with U.S. soft red winter (SRW).

Participants on this team represent some of the largest mills in Venezuela, but they do not have significant knowledge of U.S. wheat quality, its marketing system or federal inspection services.

“With key decision makers like these, we have to demonstrate why performance and value is worth more, but it is very difficult for our staff to conduct activities in Venezuela,” said Weigand. “By coordinating with our state wheat commissions, however, we can bring these customers to the United States to see our production and export system at work. That first-hand experience will help increase their confidence in U.S. wheat.”

Weigand, who is based in USW’s regional office in Mexico City, is leading the team, which includes Jenny Villasuso, Purchasing Manager for MONACA, the second largest milling group in Venezuela. Laura Paz is Purchasing and Quality Manager for Pastas Capri in Caracas, one of Venezuela’s largest pasta producers. Violeta Rosales is Purchasing Manager for Molinos Hidalgo, which operates a mill in Catia La Mar.

USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.

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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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