Wheat Letter Blog Archive - Page 30 of 104

Bringing Home the Crop: The Work, Risk and Reward of Wheat Harvest

Every farmer marks the passage of the year by the work that must be done. U.S. Wheat Associates (USW) has described the care needed as the crop grows to protect its potential yield and quality in a sustainable way. Stunning fields of gold mark the culmination of a farmer’s time raising wheat.

Wheat harvest is a season that brings joy but also demands a determination to do whatever it takes to bring home the crop at its peak. In the photo above, Colorado wheat farmer Brian Starkebaum pushes through the evening to harvest his 2022 winter wheat crop.

“Wheat harvest represents the fruition of everything that we have worked for the last several months,” said Ohio farmer Jeremy Goyings. “You get to capitalize and collect those things that you hope you are doing right to make lots of high-quality, high yield product to sell.”

“The work is just an emotional roller coaster day by day, honestly,” said Montana wheat farmer Angie Hucke. “Farming is risky. Being able to manage that and control what you can to make the best of what you cannot control is something that farmers keep in their mind all the time. But this is what we decided to do, and we are going to dig our heels in and make the very best of it.”

As a part of its film, “Wholesome: The Journey of U.S. Wheat,” USW has shared individual chapters of the video since celebrating our 40th anniversary. “Harvest: Bringing Home the Crop” provides more information about the work, risk and rewards of each wheat harvest.

During the wheat harvest season, USW publishes a weekly harvest update. Subscribe here to receive this report directly to your inbox. On social media: follow hashtag #wheatharvest22 for updates throughout the season.

August 16, 2022/by Amanda Spoo

Precision Agriculture

How Will Precision Agriculture Help Farmers Meet Food Demand Sustainably?

U.S. farmers work every day to make the United States a sustainable source of wheat for domestic and overseas use. They assume enormous levels of risk. And, as they are asked to do more with less by their customers and society, farmers lead the way in the use of innovations like precision agriculture technologies.

Precision agriculture uses information technology and “smart” equipment to ensure that crops and soil receive exactly what they need for optimum health and productivity. The goal is to ensure economic and environmental sustainability for the farmer and the public.

The U.S.-based Association of Equipment Manufacturers (AEM) has published a whitepaper that identifies trends that may influence the future of global food production, including several that touch on precision agriculture. An online publication called Precision Farming Dealer recently summarized those trends.

Producing More with Less Environmental Impact

In 2021, AEM and other organizations also published a study on the Environmental Benefits of Precision Agriculture. The study found farmers using precision technology saw a 4% increase in crop production, 7% increase in fertilizer placement efficiency, 9% reduction in herbicide and pesticide use, and 6% reduction in fossil fuel use. According to the U.S. Sustainability Alliance, U.S. wheat yields increased more than 25% since 1980 through breeding and improved agronomic practices including precision agriculture technologies.

Interior of an agricultural vehicle with precision agriculture technology.

Precision Agriculture in the Cab. Farmers are adapting equipment that will continue to work smarter and do more with continued application of machine learning and connectivity, a pivotal part of increasingly sustainable wheat and other crop production systems.

Optimal Water Use

AEM noted that embracing precision irrigation will help ensure a stable food supply. The association’s study found growers using precision irrigation reduced their water use by 4%. U.S. wheat is a very water efficient crop with a less than 10% of U.S. wheat grown under irrigation. This includes the uniformly excellent quality Desert Durum^® grown in California and Arizona.

Improved Connectivity

“Connectivity is the lynchpin of agriculture’s future,” AEM report stated. Connectivity enables precision technologies, artificial intelligence and automation, and other components of the food chain of the future. And there is room to grow on the farm, and the U.S. federal government is helping by funding improved internet access in rural areas.

Farming With the “Internet of Things”

The AEM believes the agriculture industry is well-suited to maximize the influence of substantial amounts of “IoT” data. The report predicts artificial intelligence will begin to assume a prominent role throughout the entire crop production process over the next 10 years.

For example, precision agriculture equipment will work smarter and do more with continued application of machine learning and use of image recognition. Smart sprayers are already pairing image recognition with artificial intelligence for precise and only-as-needed crop protection applications.

Not Without Challenges

The rapidly advancing technology in agriculture holds exciting potential for positive innovations in wheat production and other crop systems. Yet there are always unexpected consequences. For example, equipment manufacturers’ use of proprietary repair tools, software, and diagnostics can limit the farmer’s ability to repair their own equipment. This means farmers have to pay dealer rates for repairs that they or third-party repair shop could do at a much lower cost. This is identified as the “right to repair” debate.

Still, as AEM stated, by adapting precision agriculture and other practices, farmers will always lead the way on sustainability.

“The world is changing,” AEM said. “Over the next 10 years, the one constant at the center of it all will be the American farmer, blessed with the ingenuity and tenacity needed to continue ensuring a reliable food supply here at home and abroad.”

Read more about innovation and sustainability at www.uswheat.org.

August 10, 2022/by Steve Mercer

Promoting U.S. Wheat Around the World

As U.S. Wheat Associates (USW) President Vince Peterson often says, at any given hour of the day there is someone, somewhere, talking about the quality, reliability and value of U.S. wheat. Wheat Letter wants to share just some of the ways USW was working in June and July to promote all six classes of U.S. wheat in an ever more complex world grain market.

USW Beijing Builds Online Resources

Pandemic restrictions to movement and gatherings continue in the People’s Republic of China and have compelled a greater reliance on remote delivery systems. USW Beijing now offers a suite of regular programming made up of translations from the USW Price Report, Crop Updates and our monthly Supply and Demand presentations. By adapting as many materials as possible to deliver remotely or online, USW Beijing is able to keep USW technical support, trade service, and U.S. wheat quality information flowing to China’s flour millers

USW Seoul Sent Noodle Makers to Wheat Marketing Center

In June, USW Seoul conducted a Noodle Flour Development Short Course with the expert staff at the Wheat Marketing Center (WMC) in Portland, Ore. The team included noodle processors and milling quality specialists from Korea. They made 34 distinct types of general ramen and non-fried ramen noodles using various blends of U.S. wheat and Australian wheat flour. As a result of the general ramen test, these customers concluded that U.S. flour could be increased in a blend with Australian flour and maintain acceptable appearance and texture. In addition, the course participants identified that adding U.S. hard red spring (HRS) flour improved the hardness of stir-type noodles.

A team of Korean noodle experts produce ramen noodlesmade with U.S. wheat flour at the Wheat Marketing Center in Portland, Oregon.

Better Wheat…Better Ramen. USW and the Wheat Marketing Center (WMC) held a Noodle Workshop for Korean manufacturers in June to test several blends of U.S. wheat flour for ramen noodle production. Here the participants are observing ramen on the WMC pilot production line.

USW Mexico City Technical Support

USW Mexico City Director of Technical Services Marcelo Mitre and consultant Juan Manuel Tiznado conducted a cookie seminar in June for processing staff at a large Mexican manufacturing plant. The seminar helped demonstrate improvements in processing and end-product quality, including improved outcomes using U.S. soft red winter (SRW) and soft white (SW) wheat flour. Mitre and Tiznado identified several modifications, and they will continue working with the manufacturer to monitor progress and the customer’s satisfaction with those improvements.

Chung and Goh Teach Baking

In July, USW Singapore held the 42nd Baking Science and Technology Course (BSTC) in conjunction with the UFM Baking and Cooking School in Bangkok, Thailand. Noted USW Bakery Consultant Roy Chung and USW Biscuit/Bakery and Noodle Technologist Ivan Goh were the principal lecturers. This six-week course features ingredient functionality, bread and cake processing, and sections on flour specification and quality evaluation. USW Manila Baking Technician Ady Redondo participated in the course and received the second highest overall score among 19 students. Those participants now understand more about how U.S. wheat classes provide superior functionality for the most popular wheat-based foods in their markets.

USW Santiago Brings U.S. Harvest to Customers

A benefit to both USW and its customers from pandemic travel restrictions is the ability to reach a lot more customers in a single online activity. In June, USW Santiago was able to share a detailed, up-to-date look at the 2022/23 U.S. hard red winter (HRW) and SRW crops then being harvested to 138 customers from 85 different companies in the South American region. Justin Gilpin, CEO, Kansas Wheat Commission reported on the progress and quality of the HRW crop while wheat farmer and a past USW Chairman Jason Scott representing the Maryland Grain Producers Utilization Board gave the SRW update. USW Santiago reports that there was active participation in the question-and-answer session and that those customers now have added confidence that these crops will offer excellent flour and functional characteristics. Read more about the current U.S. wheat harvest and by-class quality in the USW Harvest Report here.

The Oklahoma Wheat Commission, USW and members of a trade team from Ecuador and Peru observing U.S. wheat production participate in a trade agreement signing ceremony.

Ecuador and Peru Team in Oklahoma. The Oklahoma Wheat Commission (OWC) recently hosted members of a wheat industry trade team from Ecuador and Peru touring wheat handling and processing facilities. The Oklahoma Department of Agriculture and OWC held a ceremonial wheat trade signing with the team and USW, represented by USW Santiago Technical Manager Andrés Saturno (seated). Oklahoma State Secretary of Agriculture Ms. Blayne Arthur (seated) greeted the team. Hear more as Ron Hays with Oklahoma Farm Report interviews team members at https://bit.ly/3d9zEe1.

USW activities are made possible through export market development programs administered by the USDA Foreign Agricultural Service.

August 8, 2022/by Steve Mercer

Wheat Industry News

Recent news and highlights from around the U.S. wheat industry.

Speaking of Wheat

“We’ve got weather issues all over the world. We’ve got La Niña still hanging around, which is impacting weather in the U.S. and South America. We have had favorable weather in Australia for record wheat crops, but they don’t have the port capacity to move a crop that large. It’s been extremely hot in Europe, and they were talking a week ago about a 5% decrease in the EU wheat crop, which may be optimistic.” – Steve Nicholson, Global Sector Strategist for Grains & Oilseeds at Rabobank, commenting on S&D fundamentals affecting wheat and grains markets in a July 29 World Grain article.

Best Wishes to Cassidy Marn

Cassidy Marn is leaving her position as Executive Vice President of the Montana Wheat and Barley Committee (MWBC) after 10 years of service. In her role, Cassidy strongly supported export market development on behalf of Montana and U.S. wheat farmers. For example, she presented Pacific Northwest hard red winter crop quality information in recorded videos for the past two marketing years. U.S. Wheat Associates (USW) thanks Cassidy and wishes her all the best in her new endeavors. MWBC has named Jason Laird as its interim Executive Vice President.

Wheat Industry Standing for PNW River Transportation

The National Association of Wheat Growers (NAWG) recently noted that wheat industry representatives were on “The Business of Agriculture Podcast” to discuss the Columbia-Snake River system and its effect on wheat exports. Michelle Hennings, Executive Director for the Washington Association of Wheat Growers, listed the serious problems that would result from removing dams on the Snake River. Glen Squires, CEO of the Washington Grain Commission, also shared how eliminating dams would result in an increased emissions from other methods of transportation that would be needed to move wheat to overseas markets.

A Look at Durum S&D

In a webinar sponsored by the Northern Crops Institute (NCI) Aug. 3, North Dakota Wheat Commission Policy and Marketing Director Jim Peterson looked at global durum supply and demand. He showed stocks are relatively low and likely to remain so into 2023. He also suggested there is good demand potential given global pasta consumption and weather challenges in North Africa and Europe. And while U.S. and Canadian production potential is good, there is “still significant harvest and quality risk” before harvest. A recording of this NCI webinar is available here.

Check Out This Global Wheat Production Infographic

Online publisher Visual Capitalist has produced an interesting “infographic” showing wheat production by country between the years 2000 to 2020. The graphic is called “Which Countries Produce the Most Wheat?” and proportionately fills a circle with the percentage of wheat production by country and continent. While the basic information is familiar to those in the global wheat industry, the visual impact offers new perspective. See more graphic information from Visual Capitalist.

Subscribe to USW Reports

USW publishes various reports and content available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts and wheat industry news, the weekly Price Report, and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online

Visit our Facebook page for the latest updates, photos, and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter, video stories on Vimeo, and more on LinkedIn.

August 4, 2022/by Steve Mercer

Market and Crop Analysis

Black Sea Grain Corridor, Weather and Harvest Pressure Wheat Prices

Russia’s unprovoked invasions of Ukraine sent already bullish wheat futures prices soaring earlier this year.

However, the first grain vessel to leave Ukraine since Russia’s February invasion set sail on Monday, August 1. The ship, carrying 27,000 metric tons (MT) of corn bound for Lebanon, was able to sail nine days after Ukraine and Russia agreed to a deal brokered by the United Nations (U.N.) and Turkey.

The news of the Ukrainian grain cargo’s safe arrival in Turkey sent Chicago Board of Trade wheat futures down more than 3% on August 2. Harvest across the northern hemisphere is another factor helping global wheat prices soften. However, the weather will play a crucial role in the weeks ahead. Hot weather could slash yields as it did in India this year. Too much rain could create quality issues.

In its July World Agricultural Supply and Demand Estimates (WASDE) report, the USDA forecast that global wheat production would total 771.6 million metric tons (MMT), falling 1.7 MMT from USDA’s June estimate and 7.3 MMT less than in 2021/22. Global consumption is forecast at 784.2 MMT, outpacing production by 12.6 MMT.

The tighter balance sheet for worldwide wheat year-over-year is partly due to the Black Sea conflict, but other key exporting regions are worth a look.

United States

The most recent USDA Crop Progress Report, published August 1, reported that 82% of the winter wheat crop was harvested. USDA expects 2022/23 hard red winter (HRW) production to reach 15.9 MMT, falling 6.0 MMT from last season. Soft red winter (SRW) production is estimated at 10.2 MMT, higher than last season, and winter soft white (SW) production at 7.8 MMT, 1.3 MMT more than 2021/22. Many state wheat commissions have reported very limited disease pressure because of dry conditions during the growing season.

In the same report, the USDA rated U.S. spring wheat at 70% good or excellent. Last week the annual hard red spring (HRS) tour estimated that HRS yield would reach 49.1 bushels per acre (bpa) (3.3 MT/ha), the highest since 2015 and above the 5-year average of 39.4 bpa (2.6 MT/ha). In a weekly update, the North Dakota Wheat Commission said spring wheat remains behind in its maturation but added that recent warmer temperatures are helping the crop develop.

Read the weekly U.S. Wheat Associates (USW) Harvest Report here. In addition, North Dakota Wheat Commission Policy and Marketing Director Jim Peterson reviewed U.S. and global durum supply and demand in a webinar sponsored by the Northern Crops Institute (NCI) Aug. 3.

Canada

Canada is rebounding from a drought that slashed spring wheat and durum production there in 2021/22. The USDA raised the Canadian wheat forecast by 57% compared to last year. An analyst with MarketsFarm warned that the USDA is too optimistic and does not take into account the late plantings in the eastern Prairies and the lingering drought in western Canada. The USDA puts 2022/23 exports at 25.0 MMT.

European Union

The European Union (E.U.) has recently been hit with a severe heat wave. Last week the E.U.’s crop monitoring service, MARS, cut its yield forecast to 5.74 MT/ha. France, the largest wheat-producing country in the E.U. experienced its driest July on record and the driest month since 1961. Last week, Agritel, a French consultancy, cut its forecast for French wheat. German farm group DBV, increased Germany’s 2022 winter wheat harvest by 1% to 21.38 MMT.

While the hot weather in some E.U. countries is concerning, a drought in Romania is affecting the water levels on the Danube River. The river is a major artery for transporting Romanian and, increasingly, Ukrainian grains to E.U. countries and to the Black Sea. The lower water levels mean that ships must sail at reduced tonnage. The Rhine River in Germany and Po River in Italy are also low meaning that barges carrying grain are either unable to sail or must sail with reduced cargos.

Australia

Production in Australia is expected to fall 6.3 MMT to 30.0 MMT this season following the bumper crop harvested in 2021/22. Exports are expected to fall 3.5 MMT to 24 MMT, but this is still 45% above the 5-year average. Even with the surplus of exportable wheat, port capacity in Australia is tight, making it hard for exporters to manage increased demand.

Argentina

The USDA Foreign Agricultural Service attaché, on July 25, lowered the 2022/23 export forecast to 12.35 MMT or 1.15 MMT less than the July WASDE forecast. The wheat-growing region is experiencing prolonged dry weather due to a protracted La Niña weather event making it difficult for farmers to plant their wheat crops.

Russia

Russia is expected to harvest a record crop this season. SovEcon, a Russian market analyst, put total wheat production at 90.9 MMT. The USDA estimates a more modest 81.5 MMT, but even that is 8% higher than in 2021/22 if realized. Recent heavy rain has affected the quality of the wheat being harvested reported Reuters. AgriCensus said that the amount of wheat designated as feed grain would be higher.

Ukraine

Ukraine is expected to harvest 19.5 MMT of wheat in 2022/23 according to USDA, falling 41% behind its 2021/22 production level. Exports are expected to fall to 10.0 MMT, dropping nearly 9.0 MMT year-over-year. Exports are down because of Russia’s Black Sea blockade; however, grain exports through the Black Sea resumed this week. Unfortunately, the ultimate outcome of this deal remains unknown.

Kazakhstan

The Kazak minister of agriculture said that wheat production in the Central Asian country would be 15% to 20% higher this year compared to last. The minister forecasts up to 13.5 MMT total wheat production this season. The Kazakh Grain Union is even more optimistic, indicating 16.0 MMT of wheat production and 9.0 MMT of grain available for export.

Nontraditional Wheat Exporters

Brazil is expected to harvest a record wheat crop in 2022. According to Conab, the food supply and statistics agency, wheat farmers in Brazil planted the largest area in 32 years, around 2.9 million hectares (7.16 million acres), and will harvest a record 9.0 MMT of wheat if the weather holds up. Conab said that Brazilian farmers boosted their plantings due to higher prices caused by supply disruptions.

India boasted plans to export as much as 10.0 MMT of wheat this season. However, hot weather weeks before harvest cut yields. The country instead banned wheat exports, thereby adding even more uncertainty and disruption to the global wheat market.

Chicago Board of Trade (CBOT) wheat futures have averaged $9.61 since January. On Tuesday, August 2, the September contract was trading at $7.74. This is good news for wheat buyers. Allowing Ukrainian wheat back into the market via the “grain corridor” is a positive move for the global price of wheat. The weather in key growing regions, both during harvest and during fall planting, will be the thing to keep an eye on.

By USW Market Analyst Michael Anderson

August 3, 2022/by Steve Mercer

Trade Service Activities

U.S. Wheat Customer Trade Teams are Back

U.S. Wheat Associates (USW) invests funding from USDA Foreign Agricultural Service export market development programs to bring several trade teams of overseas customers and stakeholders to the United States. Visiting wheat-producing states connects customers with farmers as well as state wheat commissions and industry partners that co-sponsor local visits. The goal is the same for USW and partners: to promote the reliability, quality and value of all six U.S. wheat classes to customers around the world.

Substituting virtual trade visits during the pandemic did allow more customers to learn about the 2020 and 2021 U.S. wheat conditions and harvest. And virtual experiences will remain part of USW’s trade service and technical support.

However, “we are excited to be able to bring customers to the U.S. again to meet face-to-face with U.S. wheat farmers and to learn about the U.S. marketing system,” said Stephanie Bryant-Erdmann, U.S. Wheat Associates (USW) assistant regional director for Mexico, Central America, the Caribbean and Venezuela, who led a team of Mexican flour milling executives to Kansas and Ohio in June. “The face-to-face conversations and hands-on experiences an in-person trade team offers are invaluable.”

Photo shows participants in a USW-sponsored trade team of Mexican flour millers with USW and Kansas Wheat representatives at the IGP Institute.

Mexican Millers. A trade team of flour millers from Mexico, the largest importer of U.S. wheat in the world, learned about the U.S. hard red winter wheat industry in June through visits with the Kansas Wheat Commission (above), the IGP Institute and the Kansas Wheat Innovation Center in Manhattan, Kan.

Club Wheat Exchange

In mid-July, USW brought a team of three quality control managers from Japanese flour millers to Portland, Ore., to exchange information with the Wheat Marketing Center and Pacific Northwest wheat commissions about U.S. club wheat functional performance (photo above). The demand for the highest quality cakes and confection products leads Japan to be the leading importer of U.S. Western White wheat. This is a subclass of soft white (SW) that includes a blend of not less than 10% club wheat and 90% SW, which allows the customer to define quality targets and adjust the proportion of SW and Club wheat in the blend according to price and quality expectations.

Up-to-Date Trade Information

The grain companies with elevators in the Pacific Northwest process an estimated 60% of all U.S. wheat exports. That is why the Pacific Grain Exporters Association often participates in USW-sponsored trade team activities. Association members met with a trade team of Korean flour milling executives July 22, a day that included stops at USW’s West Coast Office and the Wheat Marketing Center in Portland and the EGT Grain Terminal in Longview, Wash. The millers also spent a full day on wheat farms hosted by growers David Brewer and Jeff Newtson with support from the Oregon Wheat Commission.

Next Generation Millers

Also in July, members of the next generation of flour millers and commodity buyers from operations in Morocco, Algeria, Egypt and Oman spent 12 days on an educational tour to Idaho, Kansas and North Dakota.

The team included future industry decision-makers. Some attendees were students and had part-time jobs in their family’s flour mills to prepare them to take over from their parents. USW used this opportunity to introduce information about the U.S. grain marketing system at an early stage in the careers of these young professionals and build strong relationships to lay the foundation for future opportunities like potential combination cargos.

“These young generation millers represent their family businesses and are exposed to the U.S. grain marketing system at a very early age,” said Tarik Gahi, milling and baking technologist in the USW office in Casablanca, Morocco, who accompanied the team. “Visits to different states on this trip were an opportunity to introduce different classes of U.S. wheat and learn about efforts implemented by organizations and facilities to produce the best quality wheat.”

Photo shows participants in a USW trade team from the Middle East and North Africa around a large red tractor on the Bill Flory farm in Idaho.

Touching Ground. Visiting farms as part of USW-sponsored trade team activities is a memorable experience for U.S. wheat customers and important for U.S. wheat industry stakeholders. This team of next generation flour millers from North Africa and the Middle East touched ground at Idaho Wheat Commissioner Bill Flory’s farm in July.

South American Visits

Senior managers and wheat buyers from five Colombian flour mills and the leader of Fedemol, the Colombian milling and wheat food industries association, just returned home July 30 from a nine-day trade team activity in Washington state, Ohio and Kansas. Colombian millers purchase more U.S. hard red winter, soft red winter and soft white wheat each year than any other South American country. Colombia has ports on the Gulf of Mexico receiving U.S. hard red winter and soft red winter wheat, and on the Pacific Ocean receiving U.S. SW wheat.

In addition, technical managers from flour mills in Peru and Ecuador arrived in July 31 for a USW-sponsored trade team to meet with industry representatives from Minnesota, Idaho and Oklahoma. They will be in the United States through Aug. 6.

Over the next two months, additional trade teams from Japan, the Philippines, Taiwan and South Asian countries will have that personal experience meeting with the dependable people who make up the U.S. wheat industry.

USW wants to thank our partners with USDA-FAS, state wheat commissions, educational organizations and of course the farmers we represent who make these activities possible.

August 1, 2022/by Steve Mercer

durum, Hard Red Spring, Northern Durum, Wheat Quality

Spring Wheat Tour Scouts Say the Crop Has Excellent Potential

The 2022 Hard Spring Wheat Tour sponsored by the Wheat Quality Council ended July 28 with a very positive outlook for the U.S. hard red spring (HRS) and durum crop. The wheat is behind its normal development at this time of year because of late planting, but more than 50 industry participants determined a total weighted average HRS yield estimate of 49.1 bushels per acre (about 3.3 metric tons per hectare). The weighted average durum yield was 39 bu/a, or about 2.7 MT/ha.

Those estimates are the highest since the spring wheat tour estimated an average HRS yield of 49.9 bu/a in 2015. Following the drought-ravaged 2021 crop, the much-improved potential of this crop is welcome news to spring wheat farmers. Harvest is not expected to start for at least 3 weeks, depending on weather conditions but the industry is cautiously optimistic.

Photo of Tyllor Ledford on 2022 Spring Wheat Tour

Measuring for Yield Potential. USW Assistant Director, West Coast Office, Tyllor Ledford measures a section of a North Dakota HRS crop to start calculating yield potential on the 2022 Hard Spring Wheat tour. Photo by Jeff Beach, AgWeek.

Neal Fisher, Executive Director of the North Dakota Wheat Commission told Progressive Farmer/DTN that there is a lot of potential “if we do not have an early frost of rain at harvest, and we can keep diseases [and pests] at bay.” The spring wheat tour scouts did see evidence of grasshopper damage in the crop, pest pressure likely resulting from the drought last year.

Happy Customer

In the same article, a representative of a large U.S. snack food company said participating in the spring wheat tour helped him understand future [supply] risks. He added that he was happy with the yield potential and thought the wheat quality “was great.”

Buyers and Farmers Together

U.S. Wheat Associates (USW) Assistant Director, West Coast Office, Tyllor Ledford participated in the 2022 spring wheat tour. Dave Green, Executive Director, Wheat Quality Council, noted that having representatives from milling and wheat food processing industries participate with farmers and other stakeholders is a crucial part of the annual tours.

The real value of the tour said one farmer is connecting with buyers and end-users in the fields to show them how farmers manage their crops for the best potential yield and functional quality.

July 29, 2022/by Steve Mercer

Philippines, Sustainability, Trade Service Activities, Wheat Foods, Wheat Quality

FAS Trade Mission to Philippines Includes Wheat Customer Meetings

USDA’s Foreign Agricultural Service (FAS) Administrator Daniel Whitley recently returned from leading a U.S. trade mission to the Philippines. The mission’s objective was to help foster stronger ties and build economic partnerships between the United States and the Philippines. The mission included representatives from 29 U.S. agribusinesses and farm organizations and 10 state departments of agriculture who are interested in exploring export opportunities in the Philippines.

Charlie Vogel, Executive Director of the Minnesota Wheat Research & Promotion Council, Red Lake Fall, Minn., shared his experience on the trade mission that included meetings with U.S. wheat customers in the Philippines.

People Make It A Small World

“Participating in the trade mission, I was reminded how big this world physically is and the miracle of modern transportation. However, from a human perspective, it is a small world,” Vogel said. “The concerns about geopolitics, world wheat supplies, market volatility, and weather were the exact same questions domestic buyers ask me about hard red spring [HRS] wheat. People are people the world over.

“A key takeaway from this trade mission is the value U.S. wheat farmers receive from the continued efforts of U.S. Wheat Associates (USW) and its staff, who set up meetings, tours, and dinners with millers, bakers and associations. Some themes became apparent. USW staff has developed deep and genuine relationships with these HRS buyers and end users. They provide technical skills and resources to assist these partners in maximizing use, expanding markets and product lines, and improving business. The consistent quality of HRS provided by U.S. growers, including from Minnesota, is essential to the value proposition USW utilizes. In the face of a rising U.S. dollar and uncertain geopolitics, these relationships are critical to continued success.”

Meeting Wheat Customers

USW Country Director Joe Bippert and the USW Manila team arranged a tour and meeting with Gardenia Bakery, a large commercial bread and wheat food company in Manila, for Vogel. In addition, Vogel and Bippert met with leaders of the Filipino Chinese Bakery Association.

Vogel’s photo at the top of this page is from a visit to the flagship store of Eng Bee Tin, an over 90-year-old landmark in the heart of the oldest Chinatown in the world. Eng Bee Tin produces hopia, a popular snack in the Philippines.

“We met wonderful, hospitable and genuine people in Manila, and I was happy to let them know how much our wheat growers in Minnesota and across the country appreciate their support for our products,” Vogel said.

Customer meeting during Philippines trade mission

Valued Customers. (L-R) Charlie Vogel and Joe Bippert met with Royce Gerik Chua, Eng Bee Tin, Jerry Midel, Philippine Society of Baking, and Henry Ah, Liberty Food Mart, during the FAS trade mission to the Philippines in July 2022.

World’s Most Reliable

USW and its legacy organizations have maintained an office in the Philippines for almost 60 years. Flour millers in the Philippines rely on U.S. HRS, soft white and hard red winter milling wheat to meet the growing demand for wheat foods in the island nation. Administrator Whitley also noted that the Philippines is the eighth-largest market for U.S. agricultural and food products, with even more potential. There is a reason for that, he said.

“Everywhere I go, trading partners are looking for a reliable supplier. And they view American agriculture to be the most reliable in the world,” Whitley said. “That, along with our outstanding qualities and the fact that we are embracing the challenge to produce commodities that are more sustainable.”

July 27, 2022/by Steve Mercer

Amanda Spoo, Foreign Agricultural Service, Trade Delegation, Ukraine, Wheat Industry News