Hamilton’s Visit to Angola Provides Look at Potential Market for U.S. Wheat
Exports to Angola are dominated by European Union (EU) and Russian wheat, but U.S. Wheat Associates (USW) Vice Chairman Clark Hamilton recently found evidence the emerging market holds good potential for wheat farmers back home.
Hamilton was in Angola in late February as part of USDA’s first-ever U.S. agribusiness trade mission to Luanda, the capital of Angola. Teaming with Chad Weigand, USW’s Regional Director for Sub-Saharan Africa, the Idaho farmer met millers and bakers. He also analyzed consumer trends.
A Market with Potential
Hamilton was able to imagine U.S. wheat’s place on menus and store shelves there. U.S. hard red winter wheat (HRW) wheat is used to make Lebanese-style breads that are popular in Angola. HRW is one of the six classes of U.S. wheat that could gain traction with importers.
“I believe there are a lot of positive things happening in Angola – there is a desire to build on industries other than oil, which has been the primary economic driver,” Hamilton said. “Importantly for future imports of grains, Angola has major plans to improve infrastructure, with rail being a major priority.”
Quality Will Be An Advantage
Right now, U.S. wheat struggles in the market because of pricing.
“But I think in the near future there could be more desire to use the high-quality wheat we grow for food products,” Hamilton said. “It is a growing country that has tremendous potential. For U.S. wheat, it is smart to be in an advantageous position when the market is ready.”
Milling Increasing in Angola
According to USDA’s International Agricultural Trade Report released in late 2023, wheat milling in Angola has been expanding since 2017. The country’s wheat production has not kept up, meaning it relies heavily on imports. In 2022, Angola imported 167 percent more wheat than in 2018. USDA reported that the EU has a 77% market share, while Russia’s share is 21%.
The U.S. wheat imports were valued at more than $3 million in 2019, USDA noted. U.S. exports to Angola have not been measurable since.
February’s trade mission to Angola was led by USDA Deputy Secretary Xochitl Torres Small. Representatives of the Kansas and Wisconsin departments of agriculture, and 16 U.S. companies and organizations joined the mission.
Participants conducted business meetings with potential buyers, received market briefings from USDA’s Foreign Agricultural Service (FAS) and made site visits.