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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The United States has not completed any new trade agreements and withdrawn from the Trans-Pacific Partnership since KORUS was signed in 2007.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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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 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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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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Korean Wheat Crop Survey Trade Team Visits United States to Inform Purchasing Decisions

When making major purchasing decisions, there are a variety of factors to consider and balance. Global wheat buyers typically consider price, reliability, customer service and wheat quality, and U.S. Wheat Associates (USW) makes it possible for overseas wheat buyers to review these factors with the people who develop, produce and sell U.S. wheat.

USW welcomed a trade team of four Korean executives from major flour milling companies to the United States July 16 to 23, 2017. USW collaborated with the Montana Wheat & Barley Committee (MWBC), Washington Grain Commission (WGC) and the Oregon Wheat Commission (OWC) to organize and host this trade team. Funding also came from the USDA Foreign Agricultural Service (FAS).

“Three of the team members recently took on new responsibilities for wheat purchasing, so this experience was essential to help them learn about the U.S. quality assurance system and to better understand the wheat supply chain,” said Chang Yoon Kang, USW Country Director for Korea. “They had a firsthand look at the 2017 crop, which will help them prepare their upcoming purchasing plans.”

USDA reports that in marketing year 2016/17, South Korea imported 1.13 million metric tons (MMT) of U.S. wheat, including U.S. soft white (SW), hard red winter (HRW) and hard red spring (HRS) wheat.

Kang, who led the trade team, explained that the Korean wheat foods market is developing in a way that is similar to the U.S. market. End-product flour specifications in Korea are becoming more complicated because consumers demand quality and an increasingly wide range of products.

The team began its trip in Montana, where it immediately took a broad look at the complete supply chain with visits to the Northern Ag Research Center, CHS Big Sky, EGT, LLC, and Columbia Grain. The team members also visited MWBC Director Randy Hinebauch’s farm and observed the HRS crop harvest.

Next, the team traveled to Washington for a focus on wheat breeding and research. During a visit to the USDA Agricultural Research Service (ARS) Western Wheat Quality Lab in Pullman, the team participated in a blind taste test for noodles produced with flour from various varieties and wheat classes, and provided their feedback.

“The team had an extensive discussion about how quality is determined to correlate with end-users,” said Glen Squires, WGC CEO. “The lab team explained how over time, the aggregate quality of Pacific Northwest wheat has been increasing as new varieties are released.”

The team met with three breeders: Arron Carter, Washington State University (WSU) winter wheat breeder; Mike Pumphrey, WSU spring wheat breeder; and Kim Campbell, ARS club wheat breeder. They explained the breeding process and shared what they have learned from previous experiences meeting with customers and discussing end use needs, and how they have applied that knowledge to their work.

The team also stopped by some local SW and club wheat fields.

“Korea was one of the first countries I visited as a USW board member,” said Gary Bailey, USW board member from the WGC, and a wheat farmer from St. John, Wash. “I strongly feel it is important to listen to our buyers to better understand their needs and concerns, along with what they like. I appreciate being able to meet with these customers to discuss this year’s crop with them.”

On the last leg of their trip, the team traveled to Oregon, and in Portland met with the Wheat Marketing Center (WMC), Federal Grain Inspection Service (FGIS) and Pacific Grain Exporters Association. They also visited the Columbia Export Terminal and toured some farms in the Willamette Valley.

“This trip let us see firsthand, the quality of U.S. wheat and to meet the people who grow it,” said team member Dong Bae Nam, Executive Director, Sajodongaone Company. “I came with questions about U.S. wheat production, and meeting with FGIS and learning about the wheat breeding system showed me the quality and safety of U.S. wheat. We appreciate the hospitality and opportunity to build relationships with U.S. farmers.”

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 18 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit our website at www.uswheat.org.

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

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U.S. Wheat Organizations Applaud McKinney Nomination for USDA Post

WASHINGTON, D.C. — On July 19, 2017, the Trump Administration announced a declaration of intent to nominate Ted McKinney for Under Secretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture (USDA). In May, the USDA created the new Under Secretary for Trade and Foreign Agricultural Affairs position, as directed by the 2014 Farm Bill.

“McKinney’s leadership experience as Indiana’s Agriculture Director and longstanding background in trade make him an ideal candidate for this position,” said David Schemm, president of the National Association of Wheat Growers (NAWG) and a wheat farmer from Sharon Springs, Kansas. “The U.S. wheat industry applauds the Administration’s choice and calls for a quick confirmation hearing in the Senate.”

Indiana Agriculture Director Ted McKinney spent over 30 years in various roles with Dow AgroSciences and Elanco, a subsidiary of Eli Lilly and Company.

“McKinney has been a champion for U.S. agriculture throughout his career and clearly understands the importance of access to foreign markets,” said Mike Miller, chairman of U.S. Wheat Associates (USW) and a wheat farmer from Ritzville, Wash. “We look forward to working with him and his team at USDA to expand trade opportunities for U.S. farmers.”

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 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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