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Wheat Industry News

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

Speaking of Wheat

“We strongly oppose proposals advanced by India and other WTO members that would lead to an unlimited allowance of trade distorting price supports tied to public stocks at MC12. This would render WTO rules on agricultural domestic support meaningless to the world’s farmers while benefiting only a few developing countries.” – From a letter to President Biden from U.S. Wheat Associates (USW), National Association of Wheat Growers, North American Millers’ Association and 18 other U.S. agricultural organizations before the 12th WTO Ministerial Conference (MC12) June 12 to 15, 2022.

2022 Hard Spring Wheat and Durum Tour

The annual Wheat Quality Council spring wheat tour is planned for July 25 to 28, 2022. The tour will provide the first production estimate for the 2022 U.S. hard red spring and durum crops. Tour information and registration are posted here. Customers can follow the tour in real-time by checking #wheattour22 on Twitter. And keep up to date on the entire U.S. wheat harvest with the weekly USW Harvest Report.

U.S. Consumer Attitudes Toward Gene-Edited Food Products

A new report follows up on FMI Foundation research, first published in 2020. It delves deeper into what U.S. consumers want to know about gene-edited food products and who they consider trustworthy sources in addressing biotechnological applications in food. Read the report here.

Comments Filed on U.S. Dietary Guidelines

More than 900 comments were submitted to HHS and USDA on the proposed scientific questions to be reviewed by the Dietary Guidelines Advisory Committee (DGAC) as the next version of the  Dietary Guidelines for Americans is developed. The Nutrition Coalition is urging a close examination of diets low in carbohydrates. HHS and USDA are also expected to look at “ultra-processed foods” and, notably separate from the DGA process, plan to examine the issue of “sustainability and the complex relationship between nutrition and climate change.”

National Wheat Yield Contest Opens for 2022 Contest Entries

The National Wheat Foundation is accepting spring wheat entries for the National Wheat Yield Contest until Aug. 1, 2022. To get the early entry price of $100 per entry, enter by June 15. Winter wheat entries are closed, and there are 260 entries from 26 states. Read more about the contest and how to enter here.

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.

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Meet The USW Technical Experts: Wei-lin Chou – Finding Harmony in the Wheat Industry

Name: Wei-lin Chou

Title: Asian Products and Nutrition Specialist

Office: USW Taipei Office

Providing Service to: Taiwan

Wei-lin Chou will tell you that wheat is the most fascinating food ingredient in the world, but his fascination with food science first started with starches.

“In elementary school, my science teacher showed us an iodine–starch test. In the lab, he dropped iodine reagent on bread and rice. The iodine reagent changed color from brown to purple-blue,” said Chou. “I was so excited about the color changes. I still remember after that class, I started asking many questions about starch and eventually concluded that almost all the foods I love contain starches.”

Life Lessons

Chou grew up in what he says was an ordinary family in New Taipei City, Taiwan. His district, Shulin, translates to “forest” in Mandarin and is famous for red yeast rice and red rice liqueur that is fermented using spores known as “monascus.” This healthy ingredient provides a natural red color and several nutritional functions to various fermented foods. Despite so many childhood memories tied to food, Chou’s parents did not work in the food industry, but his family has strongly influenced how he views the world around him.

“My parents taught me to treat others with honesty and kindness, always feel grateful and cherish the things we have and harm neither others nor our environment,” said Chou. “They taught my sister and me these lessons by living their own lives this way, so my family has really shaped who I am.”

Wei-lin Chou as a kid with his family

Wei-lin Chou as a kid with his family.

These lessons carried Chou to National Taiwan University (NTU), where he started studying in the nursing department before transitioning to agriculture chemistry. While some might think that is an unusual route to a career in the food industry, Chou believes his experience starting in nursing has helped him further his career.

“Nursing is a career devoted to a human being’s whole life from birth to death, and food is the same. We cannot live without food,” said Chou. “I learned a lot about patience, empathy, respect, communication, and trust-building from nurses. I also learned more about people and their needs at various ages and health situations, whether physical or mental. It now influences the way I support and provide service to customers.”

Building a Career

Once Chou transferred to the agriculture chemistry department, he majored in his true interest – food science. That is where he met his mentor, Dr. Hsi-mei Lai, who emphasized understanding the principles behind testing methods and food processing steps students were applying in their coursework. Chou said he learned from her that collaboration – teaching and sharing with fellow students was the best way to learn. Dr. Lai also regularly took her students to visit food industries and factories, where Chou first experienced interacting with customers and working with them to solve problems.

Wei-lin Chou with member Dr. Hsi-mei Lai

Wei-lin Chou (third from left) is pictured with his mentor, Dr. Hsi-mei Lai (second from left), who took her student out to visit and interact with food industry customers.

Wei-lin Chou teaching at National Taiwan University

Wei-lin Chou (right) taught gluten qualities to NTU’s Agriculture Chemistry department undergraduate students through the most basic hand washing method in the Food Analysis Lab course.

In addition to earning a bachelor’s and master’s in agriculture chemistry, which included a thesis on rice flour properties and applications, Chou received a scholarship from the Ting Hsin International Group to support his post-graduate work.

After graduating, Chou’s first job was as a research and development assistant at Taiwan’s China Grain Products Research and Development Institute (CGPRDI). Established in 1962, CGPRDI is a historic vocational training, research, and development center for several grain and food products that U.S. Wheat Associates (USW) has supported since 1964 through its legacy organizations.

Wei-lin Chou research with CGPRDI and USW

The USW Taipei Office cooperated with CGPRDI to research what types of bread were suitable for Taiwan’s aging population. Wei-lin Chou produced the bread samples for sensory evaluation in 2020.

“As a fresh graduate, CGPRDI was the most suitable place to put what I had learned to work. Since rice is the major crop in Taiwan, I extended rice flour and starch research to various food applications in CGPRDI,” said Chou. “This work fortified my knowledge of flour and starch and expanded my point of view about the food industry and mass production.”

Next, Chou worked as a technical sales representative for STARPRO Starch Co., reconnecting with the company that provided him with the scholarship in graduate school.

“I love to have adventures and try new things. This was my first time living and working in a foreign country, first in China for a few months and then Thailand for three and a half years,” said Chou.

Wei-lin Chou in a tapioca field when working in STARPRO

Wei-lin Chou in a tapioca field when he worked at STARPRO Starch Co.

This work took Chou to several new places, primarily focused on providing service to customers in Japan, Southeast Asia, and Europe. He recalls what he learned from the occasional culture shock and how to communicate better and find common ground with his customers.

“I gained a lot from customers with different views that I might have otherwise ignored,” said Chou. “The international experience also taught me to respect differences and that we cannot judge things only from one aspect.”

Working with Wheat

When Chou heard about the opening in the USW Taipei Office, he said he submitted his resume without any hesitation. It was a new opportunity to work with a food ingredient that fascinated him.

“It is distinctive that U.S. wheat has developed six wheat classes for the various wheat products created,” said Chou. “For me, each wheat product is like a harmonious symphony composed of starches and glutens, so beautiful and kaleidoscopic.”

Unfortunately, Chou started with USW in 2020 after the outbreak of the COVID-19 pandemic, which limited travel and in-person activities. Still, Chou has engaged in important research to support a developed market where demand for healthy wheat food products is increasing, especially in schools and Taiwan’s aging population.

Wei-lin Chou SRC testing

Wei-lin Chou conducting a series of solvent retention capacity (SRC) tests in 2021.

“To attempt servicing an advanced market like Taiwan, we need to stay abreast of the latest research in wheat processing and food science, or indeed, to undertake it ourselves. Wei-lin’s background gives him the technical tools to ask the right questions, interpret what is out there for our customers, and make original contributions,” said Jeff Coey, USW Regional Vice President for China and Taiwan. “The work is never done, so to bring younger talent into our wheat world is the future of our program.”

While the pandemic has created limitations, Chou has still been able to make meaningful connections with customers.

“As with my previous work, I really enjoy interacting with customers. After our 2021 Crop Quality Seminars [a hybrid event with pre-recorded videos], many local millers, cooperators, and customers contacted me wanting to learn more about starch and pasting properties,” said Chou. “It felt great to be able to provide that technical support and help build on their needs step by step.”

USW staff at core competency training

USW staff at a core competency training in 2022. (L to R) Ady Redondo, USW Manila; David Oh, USW Seoul; Roy Chung, USW Singapore; Mark Fowler, USW Headquarters; Marcelo Mitre, USW Mexico City; Joe Bippert, USW Manila; and Wei-lin Chou, USW Taipei.

Chou has also connected with many of his USW colleagues from around the world who were able to gather in March 2022 in the United States for internal training focused on key core competencies.

“USW has so many awesome technical experts with specialties in milling, baking, and more,” said Chou. “It was so nice to get acquainted with so many colleagues and cooperators. They are all passionate about their work and happy to share their experiences. I enjoy working and interacting with these dependable people.”

Seeking Harmony

In all aspects of his life, Chou is drawn to the things that bring him a sense of harmony and the things that fascinate him, like the colors from the iodine-starch test and the versatility of wheat as a food ingredient. He sees a synergy between those things and his love for music which he says continues to teach him about teamwork and what brings people together.

Wei-lin Chou in his high school marching band

Wei-lin Chou was a percussionist in his high school marching band.

“I grew up playing in my high school marching band, and that is a group where every member is important and must be fully coordinated. If any member fails in the performance, the music and the formation will be a mess. The team members need to help each other and grow together,” said Chou. “Everyone sometimes needs to sacrifice a little bit to achieve a greater goal. We, technologists, do the same—we are the bridge that connects customers and suppliers to U.S. wheat. That is what makes U.S. wheat so reliable.”

By Amanda J. Spoo, USW Director of Communications

Editor’s Note: This is the tenth in a series of posts profiling U.S. Wheat Associates (USW) technical experts in flour milling and wheat foods production. USW Vice President of Global Technical Services Mark Fowler says technical support to overseas customers is an essential part of export market development for U.S. wheat. “Technical support adds differential value to the reliable supply of U.S. wheat,” Fowler says. “Our customers must constantly improve their products in an increasingly competitive environment. We can help them compete by demonstrating the advantages of using the right U.S. wheat class or blend of classes to produce the wide variety of wheat-based foods the world’s consumers demand.”

Meet the other USW Technical Experts in this blog series:

Ting Liu – Opening Doors in a Naturally Winning Way
Shin Hak “David” Oh – Expertise Fermented in Korean Food Culture
Tarik Gahi – ‘For a Piece of Bread, Son’
Gerry Mendoza – Born to Teach and Share His Love for Baking
Marcelo Mitre – A Love of Food and Technology that Bakes in Value and Loyalty
Peter Lloyd – International Man of Milling
Ivan Goh – An Energetic Individual Born to the Food Industry
 Adrian Redondo – Inspired to Help by Hard Work and a Hero
Andrés Saturno – A Family Legacy of Milling Innovation

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U.S. Spring Wheat Planting Progress Hindered by Too Much Rain

The U.S. Department of Agriculture (USDA) as of Sunday, June 5, reported spring wheat planting at 82% complete, 15-points below the 5-year average of 97% and below analysts’ expectations of 86%. Spring wheat planting was up just 9-points from the week before, dragged down by slow progress in North Dakota and Minnesota. Idaho, Montana, South Dakota, and Washington planting were much further along averaging 98% planted, slightly ahead of the 5-year average.

Farmers in the upper Great Plains are likely disappointed at mother nature’s refusal to cooperate. After dry conditions in 2021, hard red spring (HRS) wheat production was down 44% compared to 2020. Planting conditions remained dry until late spring when heavy snow, persistent rain, and spring flooding made planting difficult due to the excess moisture.

A line chart showing U.S. spring wheat planting progress.

Planting Delay Perspective. This chart showing the percentage of U.S. spring wheat planting progress for the past several years showed planting in 2022 (thick black line) was far behind as of mid-May. Farmers moved quickly when conditions allowed and as of June 6, planting progress stood at 82%. Source: USDA/NASS.

Saturated Soil

Saturated fields are hard to move heavy farming equipment in. The equipment can also compact soil and tear up fields. Additionally, crops can emerge unevenly, if at all, in soggy soil. In the eastern part of North Dakota, flooding along the Red River caused road conditions to become impassable impacting field access for farmers. Finally, farmers must consider the impact of delayed planting; when spring wheat is planted too late the crop can yield less.

North Dakota

North Dakota, the largest spring wheat producing state, reported 74% of the HRS crop planted, compared to 59% the week before and 23-points below the 5-year average of 97%. Rain the last weekend in May delayed planting for some producers. Across the state, conditions differ, according to the most recent North Dakota Wheat Commission update some farmers have finished planting while others are less than halfway done. Some fields remain too wet to plant and more rain is in the forecast this week. Planting past this week is not ideal the commission notes but farmers are doing as much as they can to get their crop in the ground.

Minnesota

The USDA reported Minnesota at 65% planted for the week of June 6, 33-points behind the 5-year average of 98%. Farmers in Minnesota made significant progress between the weeks of May 22 and May 29 when HRS planting went from 11% to 53%, an impressive jump that shows what can be done in good weather conditions. Still, Minnesota farmers have much progress to make in the days ahead to get their wheat in the ground.

Canada

Conditions are not much different in Canada’s spring wheat production region. Dry weather last year also cut production while abundant rain this year is slowing planting progress. In Manitoba, the Canadian province adjacent to North Dakota, seeding progress was 40% for the week through May 31, compared to the 5-year average of 91%. Like North Dakota and Minnesota, Canadian farmers are dealing with saturated and flooded fields.

By Michael Anderson, U.S. Wheat Associates (USW) Market Analyst

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A Timely Look at U.S. Wheat in Food Aid

The United States sends more international food aid to those in need than any other country. U.S. food aid programs are managed by the United States Agency for International Development (USAID) or the United States Department of Agriculture (USDA) and include either commodity, cash or food voucher donations. U.S. wheat is typically the commodity utilized the most through in-kind donations.

U.S. Food Aid Programs

The USDA Foreign Agricultural Service (FAS) coordinates the Food for Progress program, which prioritizes countries in need annually. Through the program, the USDA purchases U.S. commodities to donate to priority developing countries where the commodity is sold to support agricultural development projects in those countries.

However, most U.S. food aid is operated by USAID’s Food for Peace office. Title II of the Food for Peace Act is primarily an emergency food assistance program. USAID purchases commodities for Title II from the United States at market price and donates them to meet the immediate nutritional needs of those facing hunger. In other cases, USAID will purchase and donate local or regionally grown commodities or provide market-based food vouchers and cash. The type of assistance varies based on local circumstances and needs.

Currently, the two largest recipients of wheat under the Food for Peace program are Ethiopia and Yemen. Ethiopia receives U.S. hard red winter (HRW) wheat, while Yemen receives U.S. soft white (SW) wheat, as these two wheat classes best meet the local demand.

USAID programs using SW wheat are most important to the Pacific Northwest, including Idaho. Wheat donations to Yemen represent approximately 30% of all U.S. wheat food aid donations. Although supplies have been tight for marketing year 2021/22 due to weather, the Pacific Northwest has remained a consistent supplier of food aid to Yemen when it is most in need.

Challenges

Under USAID’s food aid programs, cash and vouchers represent most of the aid provided, surpassing in-kind commodity donations in recent years, which account for 40% of aid. USAID’s justification for this preference is that supplying cash and vouchers is more cost-efficient than shipping commodities.

This leads to another challenge in the U.S. food aid programs. Cargo preference policies currently require that 50% of food aid be shipped on U.S.-flagged vessels, imposing additional costs on these programs. A study from the Government Accountability Office (GAO) states that cargo preference requirements on shipping commodities for food aid increased costs by about 23%, or $107 million, from 2011 to 2014.

As a result, this requirement limits the amount of funding spent on purchasing U.S. commodities and reduces the amount of food aid that reaches those most in need. However, the costs of cargo preference policies were once offset by a reimbursement program from the maritime administration. This allowed the benefit of maintaining a U.S.-flagged vessel fleet for the maritime industry while keeping more funding in USDA and USAID food aid programs. With the elimination of these reimbursements, the additional costs impact the amount of commodities purchased for food aid programs.

Today’s Crisis and Tighter Wheat Supplies

Russia’s invasion of Ukraine started a ripple effect of catastrophic events in the Black Sea region. The unjust attack on Ukraine and its people has increased the risk of food insecurity globally as many countries heavily rely on low-cost wheat from this region. Ports along the Black Sea in Ukraine have remained closed due to these needless attacks, although Russia has continued to export. With Ukrainian ports closed, some European countries, notably Romania, have been helping Ukraine export its grain through its ports.

The Black Sea region supplies around 30% of the world’s wheat exports. Many countries that depend on this region to meet their wheat demand are questioning where they can import wheat from while facing significantly higher costs. The European Union, United States, Canada and Australia are expected to pick up much of the demand but with limits. Although India increased its exports at the start of the crisis, helping meet global demands, India recently announced it would restrict wheat exports over concerns domestic wheat production will not be as high.

The U.S. Wheat Industry’s Commitment

As food costs continue to rise, the impact of a global pandemic continues, and now a war in an important wheat production region will likely push more people into food insecurity across the globe. U.S. Wheat Associates (USW) and the Food Aid Working Group (FAWG), a joint working group between USW and the National Association of Wheat Growers (NAWG), are proud of the wheat provided through these food aid programs and believe that commodities should be kept in these programs. The U.S. wheat industry is committed to food assistance that impacts the most vulnerable populations to provide food security.

By Shelbi Knisley, USW Director of Policy 

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Wheat Industry News

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

Speaking of Wheat

“I tip my hat to modern wheat breeders. The wheat out there is finding a way. The plant bottom was in drought, but the top half is making a head and finding a way. Twenty years ago, our genetics would not do that. The genetics are making a difference, I think.” – Aaron Harries, Vice President of Research and Operations, Kansas Wheat, from a Kansas Farmer photo story about the Wheat Quality Council’s Hard Winter Wheat Tour May 16 to 19, 2022.

UK to Consider Gene Editing Benefits

Precision breeding technologies, like gene editing, have a range of benefits. They give scientists the power to help farmers and producers develop plant varieties and animals with beneficial traits that could also occur through traditional breeding and natural processes but more efficiently and precisely. On May 24, 2022, legislation that would open research to gene editing in the United Kingdom was introduced to Parliament as the Genetic Technology Bill. George Eustice, UK Environment Secretary, told the Daily Mail, “Outside the EU, we are free to follow the science. These precision technologies allow us to speed up the breeding of plants that have natural resistance to diseases and better use of soil nutrients so we can have higher yields with fewer pesticides and fertilizers.”

Washington Grain Commission Begins Leadership Transition

The Washington Grain Commission (WGC) has announced it is seeking applicants for its Chief Executive Officer position. The WGC CEO serves as the operations and business manager, information liaison and representative and is ultimately responsible for the successful implementation of the policies and actions of the WGC. The position will remain open until it is filled, with no specific completion date specified. To apply, please submit a cover letter and resume to [email protected]. Please reference WGC–CEO in the email subject line. WGC is a member organization of U.S. Wheat Associates (USW).

Logo of Washington Grain Commission

WGC is a member organization of U.S. Wheat Associates (USW).


Lakes Port Tour

The Northern Crops Institute (NCI) is hosting a two-day export tour in Duluth, Minn., June 20 to 21, 2022. NCI calls the tour an excellent opportunity to visit Duluth/Superior grain export facilities and learn how grains from the Northern Great Plains are handled and shipped to destinations worldwide. Participants will have the opportunity to tour the Duluth Superior Port Authority, container and rail yards, and grain terminal and hear presentations from industry professionals. The deadline for registration is June 10. Learn more and register here.

Perspective on India’s Wheat Export Policies

The news service Aljazeera has published an interesting article on the uncertainty affecting the global wheat market, Indian wheat farmers and grain traders from India’s recent wheat export policies. Sharing frustration with his government’s intervention, one Indian farmer said, “it is the farmers’ interest that is often sacrificed to keep consumer prices low.” Read the article here.

Photo Story: Day in the Life of U.S. Agriculture

There is agricultural activity going on at all times of the day in all areas of the United States. Farm Progress editors went out on May 18, 2022, to capture moments happening on farms and ranches during the day. There was planting, harvesting, researching, marketing, livestock pasturing and even an image from the Wheat Quality Council Hard Winter Wheat Tour. View the photo story here.

Photo by Jennifer Latzke from 2022 Hard Winter Wheat Tour

Scouts on the Wheat Quality Council Hard Winter Wheat Tour on May 18, 2022. Photo by Jennifer Latzke, Farm Progress Publications

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.

 

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Indo-Pacific Economic Framework: Perspective On Its Potential

This week, the Biden Administration launched a signature foreign policy initiative aimed at increasing economic involvement across Southeast Asia. The initiative is called the Indo-Pacific Economic Framework for Prosperity or IPEF.

According to the initial declaration issued by the participating countries, it “intends to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies. Through this initiative, we aim to contribute to cooperation, stability, prosperity, development, and peace within the region.”

TPP Replacement?

While touted by some in the United States as a replacement for the Trans-Pacific Partnership (TPP) for economic engagement in the Southeast Asia region, what has been revealed so far about the Indo-Pacific Economic Framework is quite different from Free Trade Agreements (FTA) like TPP. Unlike an FTA, the IPEF has no plans for addressing tariffs, instead featuring four “pillars” that individual countries can choose to opt-in or out of.

Those pillars are:

  • Trade
  • Supply Chains
  • Clean Energy, Decarbonization and Infrastructure
  • Tax and Anti-corruption

The initial countries agreeing to launch the discussions include key U.S. wheat markets such as Japan, the Philippines, Korea, Indonesia, Thailand, Vietnam, and Malaysia. Others include Australia, Brunei, India, New Zealand and Singapore.

Next Steps

These countries have not yet stated which pillars of the Indo-Pacific Economic Framework they intend to join. The outcome of those individual country decisions will likely come after initial negotiations establish the scope of issues to be addressed by each pillar, and for the trade section, this will have far-reaching implications for the value of any subsequent agreement.

The timeline for reaching final agreements across all pillars ranges from 12 to 24 months, making it a hopeful first-term effort for President Biden. IPEF is not expected to require Congressional approval because it would not change U.S. law. Changes would require the U.S. Trade Representative to consult with and eventually seek approval from the U.S. Congress.

This also avoids the need for Trade Promotion Authority (TPA), which expired nearly a year ago. Politically, TPA is often seen as a prerequisite for large-scale negotiations because it delegates some negotiating powers from Congress to the administration and establishes processes for formal consultation and expedited voting for eventual agreements.

With no congressional approval, required an aggressive timeline is more likely for IPEF. However, it also indicates that the scope of the trade pillar will likely be limited in depth.

By Dalton Henry, U.S. Wheat Associates (USW) Vice President of Policy 

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Defining U.S. Wheat’s Comparative (Competitive) Advantage: Durum

In the increasingly competitive global wheat market, it is important to review the advantages that U.S. wheat delivers to millers and bakers. This post examines the advantages that durum wheat brings to the market.

Durum is the pasta wheat and the fifth-largest class of wheat grown in the United States with an annual average production over the last five years of 1.6 million metric tons (MMT), or about 58.79 million bushels. In part because of regional economies of scale, U.S. imports of durum at a 5-year average are 1.18 million metric tons (MMT). In comparison, export volume at a 5-year average is slightly less than 680 thousand metric tons (TMT).

Northern durum is grown in North Dakota, Minnesota, and Montana and primarily exported through the Lakes via the St. Lawrence Seaway or the Gulf. Desert Durum® is a registered certification mark owned by the Arizona Grain Research and Promotion Council and the California Wheat Commission. These groups authorize using the mark only for designated durum grain produced under irrigation in Arizona and California’s desert valleys and lowlands. Desert Durum® is exported from the Gulf or the West Coast.

Image shows long goods pasta production in a commercial plant.

The finest quality pasta is produced from U.S. durum grown in the northern Plains and in the southwest as Desert Durum®.

Milling Advantages

U.S. durum is competitive mostly with Canadian durum in the global market. U.S. durum is represented by three subclasses controlling for hard, vitreous kernel (HVK) content. Subclass options include Hard Amber Durum (HAD) with more than 75% vitreous kernels; Amber Durum with 60% to 74% vitreous kernels; and Durum with less than 60% vitreous kernels. Higher HVK values yield a larger quantity of semolina. U.S. durum has a large kernel size, allowing millers to benefit from higher extraction rates.

Desert Durum® is harvested and shipped at a very low moisture content. This advantage to millers contributes to efficient transportation costs and high extraction rates. It also allows them to add significantly more water during the tempering and conditioning phase of processing.

Product Advantages

The finest quality pasta is the primary product made from U.S. durum –  long goods, short goods, pasta of all shapes and sizes. Other products made from durum include couscous and some varieties of traditional Mediterranean semolina bread. In all durum food products, one quality factor is the most critical to the consumer – color. In its purest form, pasta is water and durum semolina. Couscous is large semolina boiled and eaten as an alternative to rice. In both products, consumers prefer a bright yellow, translucent appearance that U.S. durum delivers because of its higher HVK level. The higher HVK also allows the miller to provide a more uniform, consistent semolina to the pasta process, thus improving production efficiencies and color.

Image shows couscous made from durum wheat

Couscous is produced with durum wheat.

Sourcing Opportunities

Like some other classes of wheat, U.S. durum planted area is declining. Proactively working with producers and suppliers is the best way to assure ample supply to the market. Desert Durum® can be produced and delivered “identity-preserved” to domestic and export markets, which allows customers to purchase grain of varieties possessing quality traits specific to their needs. Annual production requirements can be pre-contracted with grain merchandisers ahead of the fall-winter planting season for harvest from late May to early July. Varietal identity is maintained by experienced growers planting certified seed and merchandisers who store and ship according to customers’ preferred delivery schedules.

Northern durum is competitively sourced by U.S. pasta producers in the Midwest and northern states. Export customers must be proactive when working with suppliers to obtain the best quality available, such as HAD.

U.S. Wheat Advantages

As we highlight each specific class in this series, let us not forget the advantages that all U.S. wheat classes bring to the market. First, and perhaps the most important, is consistency in quality and consistency of supply. Although each new crop year brings different challenges and opportunities, U.S. wheat is always available to the global market. Second, U.S. wheat delivers variety. Wheat is a raw material manufactured into a bakery ingredient: flour. The flour made from each class of U.S. wheat brings value to the market through specific quality characteristics that make a variety of baked goods and noodles. Further, blending flours from one or more types of wheat is an important component for customers to understand as part of optimizing flour performance at a minimal cost.

Each region, country, and culture have wheat-based food products that are uniquely their own. With six unique wheat classes, the United States has the right wheat class to deliver the optimal quality and value for every variety of product on the market.

Learn more about the six classes of U.S. wheat here or leave a question in our “Ask The Expert” section.

By Mark Fowler, USW Vice President of Global Technical Services

Read more about other U.S. wheat classes in this series.

Hard Red Winter
Hard Red Spring
Hard White
Soft White
Soft Red Winter

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Scenes From A Variable but Smaller Kansas Wheat Crop

The anxiously awaited Hard Winter Wheat Tour sponsored by the Wheat Quality Council that ended May 19, confirmed that persistent drought will cut the yield potential of the 2022 Kansas wheat crop to its lowest level since 2018. The 83 participants scouting the crop estimated the average yield potential at 39.7 bushels per acre (52.71 kilograms per hectoliter) compared to the average tour estimate of 47.4 bu/ac (62.66 kg/hl) between 2016 and 2021 (there was no tour in 2020).

Still, the hard red winter (HRW) and hard white (HW) crop potential is quite variable across Kansas. The photos taken by participants shared here show the wide range of crop conditions. Timely precipitation and cropping patterns made a significant difference, even in extremely dry southwestern Kansas. Jennifer Latzke, editor of Kansas Farmer magazine, reported this observation from the tour on May 18.

The tour participants also estimated total production from the scouted area at 261 million bushels. That is less than USDA’s most recent estimate of Kansas wheat production, even though the tour yield estimate was slightly higher than USDA’s estimate of 39.0 bu/ac.

Higher Abandonment

“The participants agreed that there will be more fields abandoned than USDA has estimated,” said U.S. Wheat Associates (USW) Market Analyst Michael Anderson. USW Assistant Director, West Coast Office, Tyllor Ledford, joined Anderson as tour scouts this year.

Photo shows T. Ledford in a field estimating Kansas wheat crop.

USW Assistant Director, West Coast Office, Tyllor Ledford scouted a Rooks County, Kansas, wheat field on May 17, 2022, the first day of the Hard Winter Wheat tour.

“Some fields have wheat plants that are so short, they likely will not be, or cannot be, harvested,” Anderson said. “The more experienced participants had a keen sense that making an insurance claim would be the best decision for those fields with questionable potential. I have to say, however, that during the tour, our group saw only isolated fields like that.”

Neighboring Crops Also Stressed

Kansas Wheat’s report from the last day of the tour included the following update on crop conditions in Nebraska, Colorado and Oklahoma.

Dry wheat field from Pratt County showing drought in Kansas Wheat Crop

Photo from a #wheattour2022 Tweet on May 18, 2022.

The USDA estimate for the Nebraska wheat crop is ­­36.9 million bushels, down from 41.2 million in 2021. The estimated yield average is 41 bu/ac. USDA expects the Colorado crop at 49.6 million bushels, down from 69.6 million bushels last year. However, Colorado Wheat Executive Director Brad Erker estimated the state’s crop at 40.1 million bushels, based on a yield of 28.6 bu/ac, with a 30% abandonment rate. Oklahoma reported that the state’s production is estimated at 60 million bushels, down from 115 million bushels last year, with 25 bu/ac yield.

This Week’s Snapshot

The Wheat Quality Council (WQC) is a coordinated effort by breeders, producers and processors to improve wheat and flour quality. WQC executive director Dave Green said that this tour and a Hard Spring Wheat tour scheduled later this year are important to make connections within the wheat industry. He said another goal is to “describe the wheat as well as we can at the current point in time, not knowing what will happen over the next few weeks.”

Harvest is still more than three weeks away. Any potential rain, or lack of it, to come will affect final yields. In addition, even very thin fields may be harvested. As Kansas Farmer editor Latzke wrote: “At $13 per bushel, every bushel … counts.”

Domestic and overseas wheat buyers can continue to monitor 2021 progress for most U.S. wheat classes by subscribing to the USW Harvest Report posted on the website every Friday.

 

Close up of super dry soil and wheat in a field showing drought in Kansas wheat crop

The obvious effects of the deep drought are clear in this Tweet on May 18 from Clay Patton.

 

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New Study: Agricultural Export Market Development Has Wide-Ranging Benefits

A recently released econometric study confirmed that two export market development programs administered by the USDA Foreign Agricultural Service (FAS) benefit wheat farmers, their overseas customers and the general U.S. economy.

“Four studies since 2007 using various econometric models have all shown the same bottom line result – export market development programs work for American agricultural producers,” said Robbie Minnich, Chair of the Coalition to Promote U.S. Agricultural Exports and Senior Government Relations Representative with the National Cotton Council. “Without question, the economic benefits they return far exceed the investment made.”

Cover of USDA FAS Export Market Development yearbook for 2021.

Learn more about USDA export market development here.

U.S. Wheat Associates (USW) participates in the Market Access Program (MAP) and the Foreign Market Development (FMD) program on an annual basis. These programs are apportioned by law in the U.S. federal budget. They are public-private partnerships between USDA and organizations like USW and 17 state wheat commission members that help fund its activities. Across all the participating organizations, private contributions to the programs represented more than 70% of total funding in recent years.

Wheat Trade

Wheat is the most trade-dependent of the major food and feed crops grown in the United States. But individual farming operations cannot effectively market wheat overseas. The MAP and FMD programs help to encourage those customers to consider the various classes and qualities of U.S. wheat.

With funding from MAP, FMD and U.S. wheat farm families, experienced USW staff and consultants add exceptional value to all U.S. wheat class imports. USW also invests substantial funding to help overcome trade or technical barriers that would otherwise keep end-users from realizing the highest value and most revenue from using U.S. wheat.

“These export market development programs enable U.S. Wheat Associates to build a critical reserve of trust and goodwill with our overseas buyers, end-users and influential government officials, as well as key U.S. government agencies and officials,” said USW President Vince Peterson. “And there is a clear return on investment—for every dollar spent on export promotion, there is a return of $24.50 in additional net export revenue – and the return is even higher to the U.S. wheat supply system.”

U.S. Farm and Economic Returns

The new econometric study, conducted by IHS Markit and Texas A&M University agricultural economists Dr. Gary Williams and Dr. Oral Capps, showed export programs added an average of $9.6 billion per year to export value between 1977 and 2019. For farmers, livestock producers and dairy operators, the study showed MAP and FMD increased cash receipts by $12.2 billion per year. The study also indicated that these export market development programs added 225,800 new jobs across the entire U.S. economy.

“Our work indicated that MAP and FMD have accounted for 13.7% of all the revenue generated by U.S. agricultural exports between 1977 and 2019,” said Dr. Williams. “The additional export revenue bolsters the entire U.S agricultural sector and creates a multiplier effect throughout the U.S. economy.”

Infographic information noting 13.7% increase in revenue from export market development programs.

Export Market Development programs fund the trade and technical service that adds value to U.S. wheat imports and dozens of other U.S. agricultural export products.

The Coalition to Promote U.S. Agricultural Exports welcomed the results of the study. In letters sent on April 27, 2022, members of the Coalition, including USW and other organizations, asked U.S. House and Senate agricultural appropriations subcommittee leadership to maintain funding of at least $200 million for the Market Access Program (MAP) and $34.5 million for the Foreign Market Development (FMD) program in FY2023.

ATP Investment Also Analyzed

The study also analyzed the potential impact of the Agricultural Trade Promotion (ATP) program that the USDA established in 2019.

The ATP program provided $300 million to cooperating organizations, to which they contributed $90 million in cash, goods and services. The study’s analysis of future expected returns from those investments between 2019 and 2026 predicts that incremental funding for agricultural export market development will provide an excellent return.

The full export market development study, the Coalition letters to congressional appropriators, and more information about the value of U.S. agricultural exports to U.S. producers and their global customers are available at www.AgExportsCount.org.

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What New Information Will the Hard Winter Wheat Tour Add?

With wheat now firmly among the world’s top media stories, attention this week turns to Kansas and the annual Wheat Quality Council Hard Winter Wheat Tour. U.S. Wheat Associates (USW) Market Analyst Michael Anderson and Assistant Director, West Coast Office, Tyllor Ledford, will join more than 80 stakeholders scouting fields across Kansas, far southern Nebraska and far northern Oklahoma to estimate average yield and production.

Bullish USDA Report

USDA provided a preview on May 12 with a very bullish 2022/23 wheat outlook in its May World Agricultural Supply and Demand Estimates (WASDE) report. Factoring in extremely dry conditions in the southern Plains, USDA estimated hard red winter (HRW) production at 16.1 million metric tons (MMT), down 21% from production in 2021. The farmer survey USDA uses to make its estimates suggested that 28% of winter wheat seeded in fall 2021 – mostly HRW and hard white – will be abandoned.

The Kansas Wheat Commission reported on May 9 that very little wheat would make it to harvest in several southwest Kansas counties. Throughout the winter, drought and vicious winds took their toll on the wheat and the soil. The photo at the top of this page from Kansas Wheat shows how farmers in that area have tried to protect their wheat from the dry winds with “chisel plowing” that lifts up soil into rows next to the wheat.

Map from NASS showing change in wheat yields by state from 2021 to 2022

Yields Down in HRW Region. USDA’s National Agricultural Statistics Service estimates lower HRW production in key states in 2022 compared to 2021 but a return to trend yields in the northern Plains and Pacific Northwest as of May 12, 2022.

Will the Hard Winter Wheat Tour see some measure of hope for a better-than-expected crop? After widespread rain in Colorado, Kansas, Nebraska and parts of Oklahoma the week of May 1, USDA’s May 9 estimate of wheat crop conditions in Kansas ticked up 3 points to 28% good or excellent. However, the week’s weather turned hot and dry again.

Some Decent Wheat

Ahead of the tour, Kansas Wheat CEO Justin Gilpin told his board that “there will be some decent wheat in the first part of the tour, but the scouts will witness the stressed, poorer conditions as they proceed westward.” He added that heat, low humidity and winds the week of May 9 likely pushed wheat rapidly toward maturity.

Colorado Wheat Director of Communications and Policy Madison Andersen reported to the state’s wheat farmers that “despite last week’s (May 2) rain, crop conditions remained unchanged this week (May 9). This [fact] further drives home the point that what remains of Colorado’s wheat crop is living on borrowed time. Even the ‘good’ wheat needs rain soon and the forecast is not encouraging.”

Photo by Colorado Wheat shows variable wheat conditions.

Decent Wheat. A photo taken May 13 by Colorado Wheat CEO Brad Erker in northeast Colorado’s Morgan County shows what he called “decent wheat” but with inconsistent stands.

Follow the Tour

The annual Hard Winter Wheat Tour will help make the picture of the 2022 U.S. HRW crop clearer. Along with the world, follow the tour in real time by checking #wheattour22 on Twitter. And keep up-to-date on the harvest, which could start soon in southern Texas, with the weekly USW Harvest Report posted for the first time this season on May 13, 2022. Subscribe to have the report sent directly to your email inbox here.

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