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U.S. Wheat Supply Chain System: Exporters, Inspectors and USW Overseas Offices

By Michael Anderson, USW Assistant Director, USW West Coast Office

At the core of the U.S. Wheat Associates (USW) mission is a strong commitment to enhance the value of U.S. wheat for farmers and their customers. A large part U.S. wheat’s value-added differential advantage is the U.S. wheat supply chain system. It is system that ultimately works for wheat food consumers around the world. But it is also complex and therefore most effective when farmers, end users and everyone in between have a better understanding of how it works for them.

Once the wheat has arrived at the port by truck, rail or barge, grain exporters work around the clock to meet customer contract requirements. Through the futures market and a network of facilities up country, exporters are able to bring the right wheat to the export facility for blending, inspection and loading while managing their own price risks. This diverse network allows exporters to meet diverse and varied cargo requirements. USW helps exporters meet diverse and varied cargo requirements by connecting them and facilitating communications with customers worldwide.

 

As the wheat is loaded from the export facility to vessels, the law requires inspection by the Federal Grain Inspection Service (FGIS) to certify that the wheat loaded for export meets the quality standards specified in the customer’s contract. Created in 1976 by the U.S. Congress, FGIS is responsible for establishing and upholding standards for quality assessments and managing the grain inspection and grading procedures. FGIS also maintains equipment standards and manages the network of federal, state and private laboratories that provide impartial inspection and weighing services. The United States is the only wheat exporter with an independent, neutral grain inspection system, which is valued by its overseas customers and has helped wheat and other U.S. commodities grow export markets.

The Federal Grain Inspection Service (FGIS), as an objective third party, certifies that all exported wheat meets import specifications.

For end users of imported wheat, understanding what you need is key to producing what you want, which is why USW’s network of 15 offices across the world, including two in the continental United States, is the final step in the U.S. supply chain. Each office works closely with customers, including buyers, millers, bakers, food processors and government officials, to promote the advantages of U.S. wheat quality, help troubleshoot issues and simplify the process of importing and utilizing U.S. wheat.

Peter Lloyd, Regional Technical Director, based in the USW Casablanca Office, notes that the cheapest improver for wheat flour is buying the right wheat in the first place. He knows that making a high quality, desired end product is what the customer wants and getting there starts with the right wheat and understanding how best to use it. USW technical experts work closely with customers to share technical information on U.S. wheat characteristics, address issues related to wheat functionality and help customers make better end products with U.S. wheat.

USW Regional Technical Director Peter Lloyd visits Mennel Milling, Fostoria, Ohio, Feb. 2016. Read more about Peter’s work here.

 

USW Milling & Baking Technologist Tarik Gahi touring the Bakhresa Mill in Zanzibar, Tanzania in 2019 and answering one of the chief miller’s questions about flour extraction and bran. Read more about Tarik’s work here.

 

USW Food/Bakery Technologist David Oh in the laboratory at the Korean Baking School testing formulations of testing blends of HRW and SW flour for Korean-style baguettes and HRS and HRW flour for sweet buns in 2017. Read more about David’s work here.

USW representatives also raise the profile of wheat and note that only the United States offers six distinctly different wheat classes. Joe Sowers, Regional Vice President for the Philippines and Korea, notes that USW’s “philosophy for relating to industry participants is to put ourselves in their position and try to understand what they need to succeed. Then we maximize the number of positive contacts such as providing information, training or other resources to a customer. If everybody on the team is striving to make the most positive contacts possible, good sales follow. Good sales leads to better prices for our farmer stakeholders.”

USW has taken a global approach to increasing the profile of U.S. wheat. Alongside each stakeholder in the U.S. wheat supply chain, we too, take seriously our commitment to providing education, access, reliability and guidance in accessing the world’s most reliable wheat supply. It is through the commitment of dependable people, that we breed, grow, transport, inspect, export and promote the wheat the world needs.

Read other blog posts in this series:
Research and Breeding
Farmers and State Wheat Commissions
Grain Handlers

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Stories from the Wheat Farm – Loving the Work in Ohio

U.S. wheat farm families grow six distinct classes of wheat across the diverse landscape of the United States. Those farmers take great care in producing the highest quality wheat in the most sustainable ways possible to honor their family legacies and to ensure greater value for their customers at home and abroad. Behind the world’s most reliable supply of wheat are the world’s most dependable people.

Goyings Farms: The Goyings family has been “working hard and going strong” on their wheat farm in northwestern Ohio since 1884. Today, Doug Goyings, his wife Diane and their son Jeremy strive to be leaders in innovative farming practices that incorporate precision and conservation. They were one of the first farms in the area to successfully implement no-till practices and GPS-based systems that protect their soil, reduce fuel use and increase crop production efficiency.

With remarkable self-sufficiently, Doug and Jeremy designed and built their high-volume grain storage system (only to re-build it after it was severely damaged by a tornado) and built their own equipment to offer custom field drainage services to other farmers. They know that such challenging work and long days are made slightly easier when it is work that you love, surrounded by the people that you love, including the next generation on Goyings Farms – the twin boys Axel and Garrett of Jeremy and his wife Jessica.

Location: Paulding, Ohio
Classes of Wheat Grown:  Soft Red Winter (SRW)
Leadership: Doug Goyings: 2019/20 Chairman, U.S. Wheat Associates (USW); USW Director, representing Ohio Small Grains Marketing Program (OSGMP), since 2009; Past-Chairman, USW Long-Range Planning Committee; Past Director, OSGMP; Member and Past-President, Paulding County, Ohio Farm Bureau Federation; Director, Ohio Veal Growers Inc.; Director, Creston Veal, Inc.; Director, Paulding Landmark, Inc.

View other videos and stories in this “Stories from the Wheat Farm” series:

The Next Generation in Kansas
Committed to Stewardship in Washington
Living with Purpose in North Dakota
A Passion for the Land in Oklahoma
Committed to Wheat Quality in Oregon
Embracing the Agricultural Lifestyle in Montana

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A Legacy of Commitment – The U.S. Wheat Export Public-Private Partnership Today

By Steve Mercer, USW Vice President of Communications

Wheat farmers in post-World War II United States were producing more wheat than ever before. So, to improve marketing opportunities, they organized and reached out to the U.S. Department of Agriculture (USDA) for help. These visionary state wheat leaders ultimately formed two regional organizations to coordinate export market development: Western Wheat Associates and Great Plains Wheat Market Development Association.

In the fourth of a series on the “Legacy of Commitment,” Wheat Letter describes the highly successful public-private partnership supporting U.S. wheat export market development that has endured since the 1950s.

“The proper role of government…is that of partner with the farmer – never his master. By every possible means we must develop and promote that partnership – to the end that agriculture may continue to be a sound, enduring foundation for our economy and that farm living may be a profitable and satisfying experience.” – President Dwight D. Eisenhower, from a message to Congress on agriculture, Jan. 9, 1956.

On March 27, Wheat Letter offered historical perspective on how changes in federal programs, global market factors and relationships drew Western Wheat Associates and Great Plains Wheat ever closer together and led to the establishment of U.S. Wheat Associates (USW) as a single export market development organization to serve all U.S. wheat farmers.

A formal agreement between the Nebraska Wheat Commission and USDA’s Foreign Agricultural Service (FAS) to co-fund and implement export market development activities in 1958 marked the beginning of an enduring partnership between farmers, state wheat commissions, FAS and USW after the merger in 1980.

“I consider this to be one of the most successful partnerships between a U.S. government agency and private industry,” said USW President Vince Peterson. “Each partner brings unique core capabilities that support the export development mission. Our activities are jointly planned, funded and evaluated. We all share the risks, responsibilities and results.”

It Starts with the Farmer

State wheat commissions exist under state law generally to conduct promotion and market development through research, education and information. Commissions are funded by assessments paid by the farmer either by bushel or by a portion of the price at the time of sale. This is called a “checkoff” and though it is voluntary, a strong majority of farmers contribute their assessment. Farmer commissioners, either elected by their peers or appointed by their state’s governor, direct how the checkoff funds are to be used, such as for domestic promotion, public crop production research and variety development and export market development.

Ralph Bean, Agricultural Counselor, USDA Foreign Agricultural Service, U.S. Embassy Manila (far right), met with farmers from South Dakota, North Dakota and Montana during their trip to South Asia as a part of the 2017 USW Board team. The farmers were guests of honor at the 9th International Exhibition on Bakery, Confectionary and Foodservice Equipment and Supplies, known as “Bakery Fair 2017,” hosted by the Filipino-Chinese Bakery Association Inc.

By agreeing to contribute a portion of checkoff funds to USW for export market development, state wheat commissions choose to become members of USW. The annual USW membership assessment is about one-third of one cent per bushel, multiplied by the average production in the state over the past five years. Currently 17 state wheat commissions are USW members. In 2020, Wheat Letter is profiling each state commission member.

The contributions from state wheat commissions, including special project funds as well as the personal time and talent invested by farmers and U.S. wheat supply chain participants, supports the USW mission to develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers. In addition, state commission contributions qualify USW to apply for federal export market development funds administered by FAS.

Linking U.S. Agriculture to the World

USDA’s Foreign Agricultural Service has primary responsibility for overseas programs including market development, international trade agreements and negotiations, and the collection of statistics and market information. It also administers the USDA’s export credit guarantee and food aid programs and helps increase income and food availability in developing nations by mobilizing expertise for agriculturally led economic growth. The FAS mission is to link U.S. agriculture to the world to enhance export opportunities and global food security.

Jim Higgiston (left), USDA/FAS Minister Counselor for Agricultural Affairs, met with Regional Director Chad Weigand (right) and farmer members of a USW Board Team in September 2018 in the capital city of Pretoria, South Africa. The FAS team in Pretoria included Kyle Bonsu, Agricultural Attache, Laura Geller, Senior Agricultural Attache, and Dirk Esterhuizen, Senior Agricultural Specialist.

FAS export market development programs available to USW as a cooperating organization include the Market Access Program (MAP), the Foreign Market Development (FMD) program, the Agricultural Trade Promotion program and the Quality Samples Program. USW is required to conduct an extensive, annual strategic planning process that carefully examines every market, identifying opportunities for export growth and recognizing trends or policies that could threaten existing or prospective markets. FAS reviews this annual plan, the Unified Export Strategy (UES), results from previous years and private commitments to determine how USW will invest program funds. In 2019/20, federal funding provided $2.60 for every $1.00 contributed by farmers through their state wheat commissions.

“It is important that [overseas] buyers and government officials develop direct personal relationships not only with us at USDA but also directly with American farmers and ranchers,” said USDA Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney in testimony before the U.S. Senate Committee on Agriculture, Nutrition and Forestry in June 2019.

Jeffery Albanese (pictured back row with hat), Agricultural Attache, USDA Foreign Agricultural Service, U.S. Embassy Manila, joined the 2017 USW Board Team, with farmers from South Dakota, North Dakota and Montana, and USW staff,  for a tour of San Miguel Mill, Inc. in the Philippines.

USDA in general and FAS specifically foster such relationships by acting as strategic partners with USW through the extensive FAS network of foreign service officers serving in 98 offices around the world and its civil service support in the United States. The foreign service officers provide vital liaison with government officials and are active in market development work. The civil service likewise plays a critical role in everything from supporting the foreign service, managing the relationships with organizations like USW, providing market information, analyzing trade policy barriers, and much more.

FAS programs make it possible for wheat farmers to have representatives from USW who work directly with overseas wheat buyers, flour millers and wheat food processors and translate customer needs directly back to the state wheat organizations, who are in turn helping direct research for wheat crop development in their states. This leads to improved varieties and helps farmers manage their crops with the end user in mind, who would otherwise be thousands of miles and multiple steps apart in the supply chain.

A team of U.S. wheat farmers from Kansas, Oklahoma and Arizona bound for trade visits to customers in Nigeria and South Africa met in September 2016 with Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney (center) and other FAS staff in Washington, D.C. 

Read other stories in this series:

Western Wheat Associates Develops Asian Markets
Great Plains Wheat Focused on Improving Quality and HRW Markets
Evolution of a Public-Private Partnership
NAWG, USW Lead the Way Through Issues Affecting Wheat Farmers

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Dependable People: A Spotlight on the Idaho Wheat Commission

For 40 years, U.S. wheat farmers have supported U.S. Wheat Associates’ (USW) efforts to work directly with buyers and promote their six classes of wheat. Their contributions to state wheat commissions, who in turn contribute a portion of those funds to USW, qualifies USW to apply for export market development funds managed by USDA’s Foreign Agricultural Service. Currently, 17 state wheat commissions are USW members and this series highlights those partnerships and the work being done state-by-state to provide unmatched service. Behind the world’s most reliable supply of wheat are the world’s most dependable people – and that includes our state wheat commissions.

Member: Idaho Wheat Commission
Member of USW since 1980

Location: Boise, Idaho
Classes of wheat grown: Hard Red Winter (HRW), Hard Red Spring (HRS), Hard White (HW), Soft White (SW), Durum
USW Leadership: Boyd Schwieder, 2005/06 Chairman; Jim McDonald, 2002/03 Chairman; Jerry Kress, 1998/99 Chairman; Dallin Reese, 1987/88 Chairman

Wheat is grown in 42 of Idaho’s 44 counties and ranks as the state’s second largest crop, behind potatoes. About half of Idaho’s crop goes to domestic mills and the other half is exported, primarily through Pacific Northwest (PNW) ports to Asian and Latin American customers. Idaho typically ranks in the top seven U.S. states for wheat production. An average of 1.2 million acres of wheat is planted each year and yields per acre are among the highest in the nation.

IWC Commissioner and wheat farmer Clark Hamilton was a member of the 2016 USW Board team that traveled to Japan and Korea.

Why is export market development important to Idaho wheat farmers and why do they continue to support USW and its activities?

Idaho exports about half of its wheat, but strong global demand contributes to the profitability of all Idaho growers by increasing farmgate wheat prices. Through its partnership with USW, the Idaho Wheat Commission (IWC) leverages the market intelligence and valuable customer relationships established around the world, in order to find new markets and sustain demand in established markets. USW programs bring the customers and growers together, facilitating a personal connection that is key to the continued success of the Idaho and U.S. wheat industries. We are grateful to USW for the work their team does to develop and maintain relationships for our growers with buyers in other countries and we wish for many more prosperous years to come.

IWC Commissioner and wheat farmer Joe Anderson (second from left) participated on the 2019 USW South Asia Board Team trip to the Philippines, Singapore and Indonesia.

How have Idaho wheat farmers recently connected with overseas customers?

Idaho hosts multiple international trade delegations each year from many different countries. Participants follow the entire supply chain to see how wheat gets from the ground to its destination in the mill. These customers visit quality control labs and wheat breeding programs, visit farms and see how growers take care to produce high-quality wheat and then go on to visit the local grain handlers who move the wheat by rail, barge and container. Idaho is unique in that it has an inland “ocean port.” At the Lewis-Clark Terminal in Lewiston, Idaho, wheat is loaded onto barges that travel down the Columbia-Snake River System to the export facilities near Portland, Ore.

Additionally, IWC commissioners and staff regularly participate in events overseas. Recently, for example, Commissioner Clark Hamilton joined Idaho Governor Brad Little in a goodwill mission to Taiwan, a country with which IWC has a long and fruitful relationship. Commissioner Bill Flory also visited Japan with USW to meet with longtime friends of IWC and major buyers of SW, HRS and HRW wheat.

With the current travel restrictions, IWC is working to connect virtually with customers through USW online programs.

IWC Commissioner Bill Flory hosted the 2019 Philippine Trade Team on his farm.

What is happening lately in Idaho that overseas customers should know about?

  • Wheat growers in Idaho are diligently tending to their crops and working like any other year, despite the global pandemic. Favorable weather throughout the growing season has the crop in excellent condition just a few weeks from the start of harvest. The transportation system is running smoothly, and customers can expect mostly normal operations. The Columbia-Snake River System is critical for reliably and affordably shipping grains from the PNW to overseas markets.
  • Our new executive director, Casey Chumrau, has extensive international wheat marketing experience gained as a marketing manager for USW’s South American region, based in Santiago, Chile, and as a USW market analyst.*
  • IWC invests one-third of its annual budget into research that will help Idaho growers produce high-quality wheat that customers demand. Research ranges from production practices to end-use quality.

Learn more about the Idaho Wheat Commission on its website here and on Facebook, Twitter, Instagram, Pinterest and YouTube.

*USW wants to thank Blaine Jacobson, who recently retired after many years as IWC’s executive director, for his dedicated service to wheat farmers and support for export market development.

Longtime IWC Executive Director Blaine Jacobson (L) retired in June 2020 after 18 years of service. He’s show here being congratulated by IWC Chairman Ned Moon.

IWC Commissioner and wheat farmer Jerry Brown represented Idaho at the 2017 USW Crop Quality Seminars in Asia.

IWC Commissioner Clark Hamilton (directly behind photo in white), a farmer from Idaho, participated on the 2018 USW Board Team that traveled to China and Taiwan.

IWC Commissioner and Idaho wheat farmer Bill Flory traveled to Japan with USW to participate in the 2019 Japan Buyers Conference.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “Our export markets are critical to U.S. wheat farmers’ bottom lines as they see 50 percent of U.S. wheat exported each year. The grain inspection system is one of our key advantages over our competitors that has helped wheat and other U.S. commodities grow export markets. Our overseas customers value the independent system in place through the Grain Standards Act.” – Doug Goyings, USW Chairman and Paulding, Ohio wheat farmer, in response to the U.S. Senate Committee on Agriculture’s business meeting to markup the United States Grain Standards Reauthorization Act (GSA) of 2020

Congratulations Colleagues. We are fortunate to have devoted, loyal colleagues at U.S. Wheat Associates, including two that recently celebrated milestones. Ann Murchison, Office Manager, USW West Coast Office, recently celebrated 25 years with USW, while Joe Sowers, Regional Vice President for Philippines and Korea, USW Manila Office, recently celebrated 15 years. Thank you, Ann and Joe, for your service to our organization, U.S. wheat farmers and our customers.

Phase One Deal with China Still Needed. USW joined the National Association of Wheat Growers (NAWG) and a coalition of almost 200 other agricultural organizations in a letter reiterating to the Trump Administration the importance of the U.S.-China Trade Agreement for U.S. agriculture and exports. “Today, the world grain and oilseed market is experiencing the greatest oversupply of production since the 1980s, and the United States is facing increasing competition from foreign sources,” the letter stated. Read the letter online here.

2020 National Wheat Yield Contest. On February 18, 2020, the National Wheat Foundation officially opened the 2020 National Wheat Yield Contest! The Contest is divided into two primary competition categories: winter wheat and spring wheat, and two subcategories: dryland and irrigated. The Foundation is currently accepting entries for the Spring Wheat category. The deadline to submit it August 1.

New Virtual Offerings for Women in Agribusiness Event Series. In a pivotal move to ensure event excellence during the changing business climate, the Women in Agribusiness (WIA) Summit series has announced virtual attendance options for its 2020 U.S. and international conferences in July and September.

Open Position in OWGL. Oregon Wheat Growers (OWGL) is looking to fill their Administrative Assistant/Membership Coordinator position. For more details on the job opening and how to apply, visit www.owgl.org/careers!

Subscribe to USW Reports. USW publishes a variety of reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, the weekly Price Report and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online. Visit our Facebook page at 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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Limited Elevation Capacity Supports Gulf Wheat Export Basis

By Claire Hutchins, USW Market Analyst

A swift uptick in export demand for U.S. soybeans, corn and sorghum is limiting export elevation capacity out of the Center Gulf, which supports nearby Gulf export basis for all classes of wheat. Between June 12 and June 19, Gulf 14.0 percent protein hard red spring (HRS) export basis increased 6 percent to $1.75/bu. Over the same period, Gulf 12.0 percent protein hard red winter (HRW) export basis increased 6 percent to $1.65/bu and Gulf soft red winter (SRW) export basis increased 7 percent to $0.75/bu.

Source: U.S. Wheat Associates (USW) weekly Price Report.

Soybeans. “A lot of customers are surprised by the fact that export capacity is filling up so quickly with soybeans,” said one industry contact. A significant increase in U.S. soybean exports to China this year compared to previous years is supporting overall soybean sales. According to USDA, the United States sold 1.79 million metric tons (MMT) of soybeans to China between May 14 and June 11 for delivery in 2019/20. That is nearly 4 times greater than the 360,000 metric tons (MT) sold to China over the same period in 2019. Soybean sales to all destinations, between April 2 and June 11, reached 7.34 MMT, nearly double the amount sold over the same period in 2019.

 Source: USDA FAS Weekly Export Sales as of June 11, 2020

Corn. Between April 2 and June 11, total U.S. corn export sales, to all destinations, reached 9.58 MMT, more than 80 percent greater than the volume sold over the same period in 2019. Export sales to Mexico, the largest market for U.S. corn, increased 79 percent year-over-year to 2.04 MMT during the previously noted 2020 period.

Source: USDA FAS Weekly Export Sales as of June 11, 2020

Sorghum. Total U.S. sorghum export sales, as of June 11, 2020, are nearly 4 times greater than this time last year at 4.01 MMT. Like soybeans, weekly sorghum exports to China were significantly greater between mid-May and Mid-June 2020, at 455,000 MT, compared to the same period in 2019.

 Source: USDA FAS Weekly Export Sales as of June 11, 2020

According to U.S. grain traders, customers might have difficulty finding export capacity for “grocery boats” (vessels containing multiple commodities or multiple classes of wheat) out of the Center Gulf for nearby deliveries. While the effect of limited elevation capacity is focused in the Center Gulf, it could also support wheat export basis levels out of all export regions.

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Dependable People: A Spotlight on the California Wheat Commission

For 40 years, U.S. wheat farmers have supported U.S. Wheat Associates’ (USW) efforts to work directly with buyers and promote their six classes of wheat. Their contributions to state wheat commissions, who in turn contribute a portion of those funds to USW, qualifies USW to apply for export market development funds managed by USDA’s Foreign Agricultural Service. Currently, 17 state wheat commissions are USW members and this series highlights those partnerships and the work being done state-by-state to provide unmatched service. Behind the world’s most reliable supply of wheat are the world’s most dependable people – and that includes our state wheat commissions.

Member: California Wheat Commission
Member of USW since 1994

Location: Woodland, Calif.
Classes of wheat grown: Hard Red Winter (HRW), Hard White (HW), Soft White (SW), Durum
USW Leadership:  Roy Motter, 2014/15 Chairman

Wheat is an important part of farming economics in California both as a valuable rotational crop and a primary crop. The California Wheat Commission’s (CWC) mission is “to support research that improves California wheat quality and marketability, and to develop and maintain domestic and international markets for California wheat.”

USW Past President Alan Tracy visited 2014/15 Chairman Roy Motter on his farm in California in 2015.

Why is export market development important to California wheat farmers and why do they continue to support USW and its activities?

Since wheat is a global commodity, U.S. pricing is tied to the ups and downs of the global marketplace. A strong export market leads to a higher market value and potentially a higher premium for California wheat. While flour milled from California wheat has many coveted qualities for baking, pasta and tortilla manufacturers, any pricing premium will be a percentage over the U.S. market. Due to the competition of other high value crops in California, bolstered global wheat prices influence additional planted and harvested acres of wheat. U.S. Wheat Associates unites wheat growers to work together for our common good. As wheat growers, we have all benefited from our membership and USW’s staff working on trade policy, opening new markets and strengthening relationships both domestically and globally to grow our industry.

How have California wheat farmers recently connected with overseas customers?

California wheat farmers connect with overseas customers in USW meetings. California also hosts customers from various mills as part of California Wheat Commission’s training courses. This face to face interaction and learning is the best way for us to build strong relationships with our customers.

What is happening lately in California that overseas customers should know about?

  • The California Wheat Lab offers milling, baking, pasta making and other flour-based product training. We partner with Andrea Saturno and Marco Fava to offer a pasta course in Spanish.
  • CWC is currently working on creating a targeted artisan baking product course for white and whole grain flours.
  • In collaboration with the University of California-Davis (UCD), CWC developed a new preferred variety list for hard white and hard red wheat and is developing a list for durum wheat. Also, in collaboration with UCD, we have released varieties with high fiber, high yellow pigment and increased protein content. Breeding for high nutrient density wheat crops continues to be a priority for the breeding program, in addition to quality and yield improvements.

Learn more about the California Wheat Commission on its website here and on Facebook, Twitter, Instagram and Linkedin.

Past Chairman Roy Motter and his family’s California wheat farm were featured in a USW profile series on sustainability practices. View the profile here.

2014/15 Chairman Roy Motter, a wheat farmer from California (R) is congratulated on his year of service by 2013/14 Chairman Dan Hughes, a wheat farmer from Nebraska (L).

CWC Executive Director Claudia Carter at the California Wheat Lab.

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The Future of Plant Breeding Depends on Sound Science-Based Policy

By Shelbi Knisley, USW Director of Trade Policy

New breeding technologies are forecast to offer many promises for consumers, producers and the environment. Plant Breeding Innovations (PBI) is a term defined by the International Seed Federation as, “the constantly evolving ideas and practices which enhance the field of plant breeding. Today’s innovations in plant breeding are developed using sophisticated science and technologies including cell biology, gene mapping and marker-assisted breeding.”

Benefits

Unlike GMOs, gene editing technologies such as CRISPR and TALENs represent a breeding method in which precise changes are made to an organism’s genome, changes that many of which may also occur naturally in nature. These technologies do not require insertion of a “foreign” gene into the plant variety being developed.

Gene editing and other PBIs show excellent potential to improve food safety and affordability. Calyxt is a commercial organization that has developed a gene edited soybean offering the health benefits of zero trans-fat and reduced saturated fat oil. The company is also developing a high fiber wheat variety that could help many consumers meet recommended dietary fiber needs. Gene editing can also assist in reducing food waste. Intrexon (now known as Precigen) used this technology to create non-browning lettuce, which would extend its shelf life.

Producers are expected to see economic and environmental benefits from these innovations by using fewer crop protection inputs to grow more food on the same amount of land leading to less environmental impact – something an increasing number of consumers have shown they care about as well.

Global Regulations

Many countries are formulating policies on these new technologies. In mid-May the United State Department of Agriculture (USDA) released revised rules on biotechnology. Under these rules, USDA stated that “gene edited products may be exempt from strict regulation so long as no “plant pest” is present, and the products could be produced through traditional breeding methods.”  Two other regulators, the Food and Drug Administration (FDA) and Environmental Protection Agency (EPA), are expected to release their regulations in the future.

Japan has stated it will not label or regulate genome edited products as genetically engineered products. Some other countries that have put in process methods of regulating these new technologies are Argentina, Australia, Brazil, and Canada, with various ways of monitoring, such as consultative process or trait-based approaches. Alternately, the European Court of Justice ruled in June 2018 that gene editing would be regulated like GMOs.

To ensure that these new breeding techniques can fulfill their potential, wide-ranging benefits, governments should rely on sound science to develop policies. If unproven fears lead to highly regulated policies, the risk of disruption in international trade will be increased unnecessarily.

Collaboration

U.S. Wheat Associates (USW) and the National Association of Wheat Growers (NAWG) regularly discuss breeding technologies and track how various governments are planning to regulate those products through our joint Wheat Breeding Innovation Committee. Any gene edited wheat varieties are expected to be several years away from commercialization. During that time, USW and NAWG will continue to work hand in hand with all sectors of the wheat value chain to ensure growers have access to technology and that our international customers can continue to count on access to the highest quality wheat in the world.

More information about how USW and NAWG support new plant breeding techniques  through science-based policies can be found here.

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Wheat Export Market Development Goes Virtual – For Now

Despite the different roles or distances between us, all the people around the world in the story of U.S. Wheat Associates (USW) share an unspoken connection, not only through U.S. wheat, but also through our shared values of growth, hard work and family.

Today, those connections may have been physically broken by concern for our health during the COVID-19 pandemic, but the effort to keep those bonds strong continues thanks to the miracle of the Internet.

USW has adapted before to circumstances that kept our representatives apart from overseas customers. Our regional office in Mexico City used online tools to successfully conduct virtual Crop Quality Seminars with Venezuelan customers since 2015.

With forethought that looks uncanny today, USW Director of Information Services Terry Herman in 2019 installed the latest collaboration software from Microsoft that has become a lifeline to customers who initially were very concerned that the pandemic would disrupt the flow of wheat from the United States. USW quickly put the new tool to work to help reassure customers that the U.S. wheat store would stay open.

USW Singapore Biscuit/Bakery and Noodle Technologist Ivan Goh presented a webinar on “SRC as a Quality Control Tool” to a Philippine food company May 21, 2020, one of many such online presentations USW is now conducting to stay in touch with its customers

“It was very important to have the ability to connect personally, even if it was through virtual meetings,” said USW Vice President of Overseas Operations Mike Spier. “With the restrictions and a new wheat crop coming there were lots of questions about supply to answer. I don’t think you can ever replace the value of face-to-face meetings but being able to quickly turn to online tools that allow us to see and hear each other sure helps to reinforce the relationships.”

Using its new platform, for example, USW Manila has conducted an online meeting with more than 50 Philippine flour millers to discuss current supply and demand factors. The tool helped USW reach out to flour millers across Sub-Saharan Africa. USW Santiago is holding almost daily meetings on the platform with customers in several South American countries

In April, USW Singapore worked with a local partner to conduct a two-hour webinar on cookie and cracker production featuring USW Bakery Consultant Roy Chung for 194 baking industry professionals from key U.S. wheat markets including the Philippines and Indonesia. A second webinar to South Asian customers in May focused on cake production. USW Santiago and USW Cape Town also partnered with Kansas Wheat to hold virtual trade teams that featured harvest progress, early crop quality and price expectations, and online video discussions with farmers live from their fields.

These are only a few examples of how USW, with support from its state wheat commission members, USDA’s Foreign Agricultural Service, farmers and other industry organizations, is working to secure the trusted partnerships they have built with overseas customers – even in the midst of such an unexpected disruption.

 

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Speaking of Wheat: “We go that extra step to take care of the ground because we’re excited when it produces better. It’s a family heritage thing. This is what my grandparents did, they passed it down to my father and now it’s going to be passed down to me and I want to pass it on to my children.” – Kyler Millershaski, Kleeman/Millershaski Farms, Lakin, Kan. Hear more from Kyler about his family’s story here.

Congratulations Colleagues. We are fortunate to have devoted, loyal colleagues at U.S. Wheat Associates (USW). This month, Vince Peterson and Mina El Hachimi are celebrating 35 years with the organization. Peterson is USW President in the USW Headquarters Office in Arlington, Va., and El Hachimi is Senior Administrative Consultant in the USW Casablanca Office. Thank you, Vince and Mina, for your service to our organization, U.S. wheat farmers and our customers.

USW Submits Export Plan to FAS. USW submitted its latest Unified Export Strategy (UES) plan to USDA’s Foreign Agricultural Service (FAS) on June 8, 2020. Funding is not guaranteed, and each year USW Vice President of Planning and Programs Jennifer Sydney and USW’s overseas offices work for several months to create this comprehensive U.S. wheat export plan.

World Food Prize Announces 2020 Laureate. Dr. Rattan Lal of Ohio State University, a native of India and a citizen of the United States, will receive the 2020 World Food Prize for developing and mainstreaming a soil-centric approach to increasing food production that restores and conserves natural resources and mitigates climate change. See more about Dr. Lal and The World Food Prize here.

Idaho Wheat Commission Executive Director Retires. After 18 years at the helm of the Idaho Wheat Commission (IWC), Blaine Jacobson will end his leadership tenure in June. Jacobson spent a decade as chairman of the joint USW and National Association of Wheat Growers Food Aid Working Group. We wish him a long and happy retirement. Former USW Santiago Marketing Manager Casey Chumrau will become IWC’s Executive Director. Read more.

Early Bird Registration for Spring Wheat Yield Contest. The National Wheat Foundation officially opened the 2020 National Wheat Yield Contest in February 2020. The Foundation is currently accepting entries for Spring Wheat until Aug. 1 with an early registration deadline of June 15.

Subscribe to USW Reports. USW publishes a variety of reports and content that are available to subscribe to, including a bi-weekly newsletter highlighting recent Wheat Letter blog posts, the weekly Price Report and the weekly Harvest Report (available May to October). Subscribe here.

Follow USW Online. Visit our Facebook page at 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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