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U.S Wheat Industry Supports International Food Assistance Programs

By Elizabeth Westendorf, USW Assistant Director of Policy

“We know that a peaceful world cannot long exist, one-third rich and two-thirds hungry.” – President Jimmy Carter

Conflict and population displacement are both on the rise around the world. From war in Yemen to natural disasters in Southern and Eastern Africa, when these events happen, the people most at risk are also the most vulnerable to malnutrition—women and children. While there are no easy answers to these problems, the U.S. government and U.S. wheat farmers are doing their parts to help.

In marketing year 2018/19, the United States donated 800,100 metric tons (TMT) of wheat through international food assistance programs. Of this, 46% (364.4 TMT) was hard red winter wheat donated primarily to Ethiopia, and 52% (418.1 TMT) was soft white (SW) wheat primarily donated to Yemen. Other countries that received wheat included Ghana, Kenya and Bangladesh. Some of these donations were part of USDA Food for Progress monetization programs, under which wheat is sold commercially in-country and then the proceeds of that sale are used to fund an agricultural development project in the area.

September 2018 – USAID hosted an event in Portland, Ore., to bring attention to the need for food in Yemen and ongoing U.S. efforts to provide aid. Read more about this event here.

U.S. Wheat Associates (USW) has long supported these programs and the economic value they bring to countries. Other donations, like the SW wheat going to Yemen, were part of USAID’s Food for Peace emergency feeding initiatives. Yemen has been embroiled in civil war for several years now, and that instability has very real negative effects on its population. This program works to ensure that the most vulnerable people, such as women and young children, have access to food despite such turmoil.

Food aid donations are not a “market.” These programs feed hungry people and generate diplomatic goodwill, making the world a safer place. If these programs are working effectively, there would be no need to donate commodities at all because there would not be food insecurity abroad. However, until that day comes and while political crises continue to outpace natural disasters, the United States’ leadership and commitment to supplying these resources, as it has for over 60 years, is as crucial as ever.

In 2017, USW led a team of U.S. wheat farmers, state wheat commission staff members and others to Tanzania to visit current USDA Food for Progress projects funded by wheat monetization. Read more about this experience here.

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USW’s Experience in Many Countries Helps Introduce New Wheat Foods

U.S. Wheat Associates (USW) with the support of several export market development programs administered by the USDA’s Foreign Agricultural Service (FAS), has built a team of very effective end-product technical experts in Korea and Taiwan. These are very sophisticated markets with many different wheat foods. Now, USW is sharing that product and technical knowledge to help customers in the Republic of the Philippines introduce new products in a market that is hungry for innovation.

In 2018, for example, USW worked with a large flour mill in the Philippines to plan a customer appreciation learning visit to observe innovations in the Korean baking industry. USW’s representatives in Seoul set up meetings for the team of 19 customers at Korean bakeries where they saw new products and formulations made with flour from U.S. hard red spring (HRS) and hard red winter (HRW) wheat.

USW chose that milling customer for this activity knowing that Bakery World 2018, the first bakery trade show in the miller’s region, was scheduled for October 2018 where the organization would be very visible on behalf of U.S. wheat farmers. At the show with more than 6,000 bakers and allied industry representatives, USW’s Korea Country Director CY Kang presented a look at bakery trends in Korea. USW Korea Food and Bakery Technologist David Oh demonstrated production methods for five different types of breads currently popular in the Korean market. USW Manila Bakery Consultant Gerry Mendoza made a presentation on bakery operations.

With additional support from three state wheat commissions, USW also hosted 30 Philippine managers at a noodle production workshop presented by USW Taipei Asian Food Technologist Shu-Ying “Sofia” Yang in Taiwan. Yang demonstrated how milling U.S. soft white (SW) wheat yields both high quality cake flour and higher protein “clear” flour that is ideal for bright white noodles.

Participants at the 2019 Korean Bakery Workshop.

Using funding from FAS’ newly implemented Agricultural Trade Promotion (ATP) program, USW’s Manila and Seoul offices collaborated on a Korean Bakery Workshop held in Seoul, South Korea in June 2019. USW designed the workshop as a service to 30 additional Philippine bakers and millers to familiarize them with Korean products, formulations and production methods.

Sharing product knowledge and technical expertise across regions is just one of the ways USW demonstrates its commitment of service to its customers on behalf of the wheat farmers it represents.

*Header Photo Caption: Participants at the 2018 Philippine Noodle Course in Taiwan

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USW Continues Gathering Harvest and Farm Family Stories in Ohio

Contributions made by Brad Reynolds, Ohio Corn & Wheat Director of Communications

As the 2019 U.S. wheat harvest rolls on in other parts of the country, it started only recently for soft red winter (SRW) wheat harvest in Ohio, the next stop for U.S. Wheat Associates (USW) to capture the images and words of another farm family. Our organization is producing a video that focuses on the people who contribute to the wholesome quality of U.S. wheat for dozens of different food products around the world. We began in Kansas and the project to be completed in 2020 will take us around the United States.

USW’s second video shoot for this project took our team to Paulding, Ohio.

It was a busy day in Paulding, Ohio at the Goyings Family Farm late in the week of July 8. The sky was clear with puffy white clouds and a slight breeze blowing and temperatures were expected to top out around 85 degrees F. — both signals that Northwest Ohio may be pressing on from cool wet weather that has plagued the region this spring.

Doug Goyings, current USW Chairman, prepared for a day of harvest at his farm that has grown significantly since his ancestors moved there in the 1800s. Harvest is always a busy time that needs to be carefully planned, but spirits were high. This “organized chaos” was evident as the first video interview with son Jeremy began. Upon completion, his wife Jessica and his twin boys showed up at the shop to “supervise” the activities.

Doug’s son Jeremy Goyings does an interview.

“Working hard and going strong” was the theme of the day as wheat harvest, bailing the wheat straw and planting soybeans in the same fields they had just harvested went on into the night. There is no question that a supportive family is what makes Doug’s operation strong and that challenging work and long days are made slightly easier when spent doing something that you love surrounded by the people that you love.

Doug’s twin grandsons are the newest generation on the farm.

While growing SRW wheat in Ohio this year has been a challenge and acres to be harvested are down, wheat is still an important crop for the state. In addition to supplying a source of food and animal feed, growing wheat in Ohio helps improve water quality, soil health and fertility.

Thanks to Brad Reynolds, Director of Communications with the Ohio Small Grains Checkoff, for his help arranging our visit. And many thanks to the Goyings family for graciously taking so much time to share their love of producing U.S. wheat for the world.

Wheat harvest is a family affair for the Goyings family.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “Today we can say that we’ve moved from precision ag to decision ag. The digital revolution is here … here to stay, and it’s going to have a profound impact on our [agricultural] business. I never in my wildest dreams, growing up on a 600-acre farm, thought any of this would be possible.” – David Hollinrake, President, Syngenta Seeds.

Congratulations. We are fortunate to have devoted, loyal colleagues at USW. This month, Stacy Taylor, Meeting Planner and Executive Assistant to the President, from the USW Headquarters Office in Arlington, Va., is celebrating 30 years. Thank you, Stacy for your service to our organization, to U.S. wheat farmers and to our customers around the world.

Agricultural Resources and Environmental Indicators Report. Agriculture is dynamic, adjusting in response to changes in the economy, technology, the environment, and policy – and agricultural production affects a wide range of natural resources. Understanding the complex links among public policies, economic conditions, farming and conservation practices, productivity and technological change, resource use, and the environment, is important for agricultural decision making. A new report from USDA’s Economic Research Service provides a comprehensive review of the use of natural resources (land and water) and commercial inputs (such as energy, nutrients, and pesticides) in the U.S. agricultural sector, as well as the impact of agricultural production on environmental quality.

Food Technologist Doug Engle Retires. After 35 years with USDA’s Western Wheat Quality Lab, food technologist Doug Engle retired on July 6. He will remain at the lab—based on Washington State University’s campus in Pullman, Wash.—for two years, working three-quarter time, in a new position funded by the Idaho Wheat Commission, Oregon Wheat Commission and Washington Grain Commission, to ease the transition as a replacement is hired. Read more about Engle’s career here.

Marketing Seminar to Offer Perspectives on 2019 Wheat Outlook. The North Dakota Wheat Commission is sponsoring a Pre-harvest Marketing Seminar in conjunction with the North Central Research Extension Fields Days in Minot, N.D., on Wednesday, July 17. The seminar will focus on marketing strategies for harvest and beyond, key issues affecting markets and demand outlook for hard red spring and durum wheat. Read more about the free seminar here.

A Cereal Science Events Calendar is available through Prof. Dr. M. Hikmet Boyacıoğlu. Contact him at [email protected] to join the subscription list.

IAOM-KSU Flour and Dough Analysis. The IAOM-KSU Flour and Dough Analysis short course will be held at the IGP Institute in Manhattan, Kan., Sept. 10 to 12, 2019. The course will focus on flour and dough analysis practices and methods and correct interpretation and understanding of the results. Click here to learn more and register.

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 page at https://www.facebook.com/uswheat for the latest updates, photos and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter atwww.twitter.com/uswheatassoc  and video stories at https://www.youtube.com/uswheatassociates.

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Wheat food products to illustrate Wheat Industry News

U.S. Grain Chain Testifies on Health Benefits of Increased Grain Servings

Excerpts reprinted with permission from the American Bakers Association; Read the original release here.

The “Grain Chain”, a farm to fork coalition of stakeholders in the U.S. grain industry chaired by the American Bakers Association (ABA), testified July 11, 2019, on the nutritional benefits of bread and grain-based products at the Dietary Guidelines Advisory Committee (DGAC) meeting. The recommendations in the Committee’s scientific report, due next year, will form the basis of the 2020-2025 Dietary Guidelines for Americans (DGAs). The DGAs are the cornerstone of U.S. federal nutrition policy and nutrition education guidelines, shaping consumer health decisions and doctor recommendations.

“The Grain Chain endorses maintaining the 2015 DGAs recommendation of carbohydrate intakes between 45-65% of calories and at a minimum, the recommended six servings daily of traditional grains with at least half as whole grains,” testified Kathy Wiemer, MS, RD, speaking on behalf of the Grain Chain. “Further, given that Americans continue to under consume whole grains, we support an increase in daily recommended Whole Grain servings, while maintaining at least three servings of enriched grains.”

Kathy Wiemer, MS, RD, testifies on behalf of the Grain Chain. Photo Credit: American Bakers Association

The testimony and written comments highlighted key recommendations:

  • Both whole and enriched grains play a leading role in diet quality
  • Enrichment, fortification of grain foods have made lasting contributions to health
  • Total grain consumption results in positive health outcomes
  • Grains are important to growth and development in infants and children
  • The current body of scientific evidence does not support a recommendation of low-carbohydrate dietary patterns to the U.S. population
  • Grain food manufacturers are constantly innovating to improve the nutritional profile of their products and deliver more health benefits to consumers

A 1990 law requires the U.S. Departments of Agriculture, and Health and Human Services, to publish nutritional and dietary guidelines for the public every five years. Members of the U.S. Grain Chain provide information to these agencies as guidelines are developed to help ensure that recommendations on grain foods consumption reflect current grain science research and data.

There is strong evidence that both whole and enriched grains are important sources of valuable nutrition and both the domestic and global baking industries continue to offer innovative, healthy grain products to meet consumer needs. Overseas, U.S. Wheat Associates (USW) works on behalf of U.S. wheat producers to help bakers and wheat food processors understand the quality and value of all six classes of U.S. wheat. USW provides technical assistance and training in baking, snack food and pasta production, and sponsors participation in technical courses, workshops and seminars to help strengthen these industries.

Learn more about the nutritional value of wheat foods from the Wheat Foods Council, the Grain Foods Foundation, the National Pasta Association and the International Pasta Organization.

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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 some of the ways USW was working in June to promote all six classes of U.S. wheat in an ever more complex world wheat market.

Mexico. The USW Mexico City Office hosted the Mexico Wheat Trade Conference in Cancun, Mexico. Mexican millers, representing more than 85% of total Mexican milling capacity, attended the conference, as well as Mexican government officials, U.S. farmers from 13 states, U.S. grain trade representatives, and representatives from the four railroads serving the Mexican market including BNSF, Ferromex, Kansas City Southern-Mexico and Union Pacific. The program included messages from USW Chairman Chris Kolstad and USW President Vince Peterson, thanking the Mexican milling industry for their business and many years of close friendship, as well as presentations and discussions on the United States-Mexico-Canada Agreement (USMCA), price risk management, rail transportation, ocean freight, contracting for wheat value and more. Read the full article about the conference here.

https://youtu.be/tvytAcIROE4

Jamaica. USW Technical Specialist Marcelo Mitre and Assistant Regional Director Stephanie Bryant-Erdmann accompanied Bakery Consultant Kirk O´Donnell to Jamaica to conduct two, 2-day seminars in partnership with a local mill. The seminars—attended by a combined 57 participants from four countries representing the baking, milling and distribution sectors—focused on the quality and versatility of U.S. wheat, baking technology, ingredient functionality, traditional fermentation methods, puff pastries and shelf life.

USW Bakery Consultant Kirk O´Donnell at a seminar in Jamaica. Photo Credit: JF Mills

A participant a the baking seminar in Jamaica. Photo Credit: JF Mills

Brazil. Accompanied by USW Marketing Manager, Casey Chumrau, and Technical Specialist, Andres Saturno, a delegation of Brazilian flour milling managers who are responsible for quality control in their wheat purchases, traveled to Kansas, Ohio and Texas. During its travels, the delegation met with the Federal Grain Inspection Service (FGIS), milling companies, analysis laboratories, wheat breeding facilities and visited wheat farms.

The 2019 USW Brazilian Trade Delegation visits Texas A&M University. Photo Credit: Texas Wheat

The Philippines. The USW Manila and Seoul offices hosted a Korean Bakery Workshop in Seoul, South Korea, for Philippine bakers and millers to learn about Korean products, formulations and production methods to help the industry take advantage of growing opportunities and improving processes in the Philippines. The workshop took place at the Korean Baking School (KBS) under the direction of a Grand Master Baker and was facilitated by KBS program staff, along with USW Food Technologist, David Oh, and Country Director, CY Kang.

USW Korean Bakery Workshop in Seoul, South Korea.

Taiwan. USW collaborated with Chia Nan University (CNU) of Pharmacy and Science to host a full-day 2019 CNU Symposium on Chinese-style Steamed Breads for baking and catering professionals, souvenir development companies and culinary faculty and students. The symposium including hands-on training on how to make fermented steam bread and buns, as well as presentations on quality control of steamed bread, an introduction to wheat flours used for steamed breads and wheat flour inspection and milling.

2019 CNU Symposium on Chinese-style Steamed Breads

China. Together, USW and the Wheat Marketing Center (WMC) hosted a Contracting for Wheat Value Workshop (CFWC) for Chinese buyers and technical officials. This workshop highlighted the strengths of U.S. wheat production and its reliability and high quality. Participants also had the opportunity to travel to visit Padget Ranches in Oregon’s Sherman County. Darren Padget is a wheat farmer and current USW Vice Chairman and invited the workshop participants for a farm tour and dinner barbeque with several local farmers and neighbors.

Contracting for Wheat Value Workshop participants visit Darren Padget’s farm in Oregon’s Sherman County.

*Header Photo Caption: Contracting for Wheat Value Workshop participants visit with a farmer in Oregon’s Sherman County.

Italy. USW Regional Marketing Director Rutger Koekoek spoke at the Romacereali Conference on the outlook for durum wheat for North America and North Africa. The conference is a popular event for the Italian cereal sector organized by the Rome Chamber of Commerce. Its 200 participants primarily work in the Italian durum milling, durum trading and pasta processing industries.

Sub-Saharan Africa. Accompanied by USW Assistant Regional Director, Chad Weigand, and Marketing Specialist, Olatunde Omotayo, a delegation of milling and procurement staff representing companies from Nigeria, South Africa, Senegal, Ghana and Cote d’Ivoire spent 10 days traveling to Washington D.C., North Dakota and Kansas to learning more about the excellent quality of hard red winter (HRW), hard red spring (HRS) and durum supplies available, as well as the promise of more exportable supply of hard white (HW) and the logistical advantages of purchasing from the United States

The 2019 USW Sub-Saharan Delegation at the Kansas Wheat Innovation Center. Photo credit: Kansas Wheat

Nigeria, South Africa and Kenya. USW Vice President of Global Technical Services, Mark Fowler, and IGP Institute Associate Director, Shawn Thiele, conducted on-site milling consultations and hands-on technical training in four flour mills in Nigeria and three flour mills in South Africa. During their visits, Fowler and Thiele gave recommendations for improving milling operations and flour quality for HRW, HW and soft red winter (SRW) flour. They also spoke at the African Milling School (AMS) in Kenya about U.S. wheat classes and milling for U.S. wheat for the AMS Apprenticeship Program

 

Mark Fowler (L) and Shawn Thiele (R) inspect flour at a mill in Nigeria.

USW and IGP staff at a mill for training in Nigeria.

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U.S. Wheat Prices Competitive with Corn for Domestic Feed Use

By Claire Hutchins, USW Market Analyst

According to USDA’s June WASDE (World Agricultural Supply and Demand Estimates) report, U.S. feed wheat consumption will increase 64% in marketing year (MY) 2019/20 to 3.81 million metric tons (MMT), compared to 1.36 MMT in MY 2018/19. U.S. Wheat Associates (USW) believes the current price relationship between domestic wheat and corn and the nutritional value of U.S. hard red winter (HRW) wheat and soft red winter (SRW) wheat support USDA’s estimates.

When the cash price gap between U.S. wheat and corn shrinks, wheat becomes an attractive feed ingredient for the cattle, swine and poultry industries. Per bushel, wheat is typically more expensive than corn, making it economically less practical as a staple ingredient in U.S. feedlots. However, recent market conditions are changing wheat and corn feeding ratios across the United States. The spot price gaps between U.S. winter wheat and corn have diminished, and even inverted, over the past several months as the potential for a bountiful wheat harvest offsets the potential for lower corn production due to late spring planting in the Midwest.

HRW can be substituted for corn as cattle feed in the High and Southern Plains where much of the country’s HRW wheat is grown. The cattle industry, predominant in Kansas and Texas, favors wheat as a feed ingredient when HRW is less than $1.00/bu more expensive than corn. Between early May and late June, the average cash price for wheat and corn increased steadily in both states, but the price gap narrowed and eventually inverted by early July.

In early May, the cash price for HRW in Kansas, the third largest cattle-producing state in the country, was $0.49/bu higher than corn. By early June, the price gap dropped to $0.29/bu. On July 1, the average cash price for both commodities settled around $4.06/bu and by July 5, HRW was $.06/bu cheaper than corn at $4.20/bu. According to Aaron Harries, Kansas Wheat Commission Vice President of Research and Operations, Kansas feedlots are already feeding more wheat than usual as managers respond to market incentives. Importantly, the decision to feed more wheat is made based on months of efficient market conditions as the ideal cattle diet consists of at least six months of a consistent ingredient blend.

Source: Reuters Eikon

In Texas, the largest cattle-producing state in the country, the recent spot price relationship between HRW and corn has been much tighter. In the first half of May, the cash prices for HRW and corn were nearly tied around an average of $3.92/bu. By early June, the average cash price for HRW dropped $0.24 below corn’s $4.50/bu. The cash-price relationship between wheat and corn is still inverted as of early July and HRW is, on average, $0.37/bu cheaper than corn.

“We are seeing a trend of feedlots purchasing more wheat directly from producers and elevators,” says Darby Campsey, Texas Wheat Producers Board, Director of Communications and Producer Relations. “Market conditions and wheat quality are increasing the value of wheat compared to corn in some cases.”

Campsey explains that in addition to market conditions, Texas livestock producers make grain purchasing decisions based on nutritional needs and local supplies. When wheat protein is lower than average, producers may be more likely to sell to feedlots, where quality requirements are slightly easier to meet than milling standards.

In the Midwest and South, where much of the country’s SRW is grown, swine producers are willing to pay more for wheat than corn because of wheat’s high nutritional value, according to Joel DeRouchey, Kansas State University professor in swine nutrition and management. Corn is used as a feed ingredient for swine because it is cheaper and a higher source of energy than wheat, but wheat brings a higher concentration of amino acids and phosphorous to the animal’s diet. The same market conditions affecting Kansas and Texas can be seen in Illinois and North Carolina, making wheat an even more attractive feed ingredient for swine producers.

In Illinois, the fourth largest swine-producing state in the country, the average spot price gap between SRW and corn decreased significantly between early May and early July. In early May, SRW was, on average, $.90 more expensive than corn. By July 8, the difference collapsed to $.50 as SRW prices continued their decline to $4.92/bu and corn prices continued their incline to $4.42/bu.

Source: Reuters Eikon

At an elevator in North Carolina, the second largest swine-producing state in the country, the spot price for corn surpassed the spot price for SRW between early June and early July. Between June 24 and July 5, the spot price for SRW sank from $4.82/bu to $4.38/bu while the price of corn hovered around an average $4.81/bu.

Wheat is also used as a corn feed substitute in the poultry industry due to its high protein content. Wheat becomes attractive to broiler producers when the price gap between SRW and corn narrows to $.50/bu. The average cash price for SRW in Kentucky, the seventh largest broiler producer in the country, decreased significantly between June 26 at $5.39/bu and July 5 at $4.91/bu, while the average price of corn increased from $4.36/bu to $4.60/bu. In early June, the average spread between SRW and corn was $.81/bu. As of July 5, the spread narrowed to just $.31/bu.

Source: Reuters Eikon

“I wouldn’t be surprised if more chicken producers are feeding wheat. Corn is preferred for chickens, because of its high energy levels, until corn prices rise too high, and right now cash prices for wheat and corn in Maryland are pretty close,” says Jason Scott, Maryland wheat farmer and USW past chairman. As of July 8, the average SRW spot price in Maryland, a top ten broiler producing state, was only $.10/bu higher than corn.

If the narrow or inverted price gaps between wheat and corn persist across the country, producers could continue to increase the amount of wheat used in feed blends for cattle, swine and poultry, potentially surpassing USDA’s estimate of 3.81 MMT.

Every month, USW publishes a graphic summary of the latest data from USDA’s WASDE report, including global wheat market factors, major country and regional export history and U.S. wheat supply and demand summaries by class. View the monthly summary here.

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Managing the New U.S. Wheat Crop: Wheat Blending for Consistency

By Mark Fowler, USW Vice President of Global Technical Services

[Editor’s Note: This is the second in a series of articles designed to help flour millers transition efficiently and effectively from old to new crop wheat.]

Delivering a homogeneous mix of wheat to the mill is critical to optimize mill performance and assure consistently high-quality flour products for end-user customers. Blending wheat prior to conditioning and milling is a necessary part of this process and is even more critical as the farmers who grow your grist are harvesting their new wheat crop.

To maximize product quality and cost, both the miller and the baker are rewarded by processing a consistent wheat blend. Consistency is the most critical flour quality characteristic for large bakeries.  Delivering a consistent product during harvest and new crop transition can be a challenge. However, a well-defined and implemented plan can assure a successful transition for both the miller and the baker.

Mark Fowler (L), USW Vice President of Global Technical Services, and Shawn Thiele (R), Associate Director; Flour Milling and Grain Processing Curriculum Manager at IGP Institute, recently conducted technical support in several Nigerian flour mills.

Flour extraction, or yield, is the main measure of efficiency of the milling process.  Differences in the physical attributes of wheat such as moisture, kernel size and density do change the mill balance and may lower extraction rates, flour output and ultimately lower profitability for the miller. Careful blending of new and old crop wheat is the best defense against these risks.

How much and how soon to incorporate new crop wheat into the mill grist is an important consideration during the harvest transition. In most cases, existing inventory constraints make this decision for the miller. In my experience, an optimal blending plan is to incorporate new crop into the mill grist at a rate of 10 percent in the beginning and gradually increase the blend, ideally over four to six weeks. The transition can be longer depending on the availability of new crop wheat and storage capacity in the mill. The most important thing is to lay out a blending plan as you tender for your first delivery of new crop wheat.

Blending old and new crop wheat always provides other benefits to the flour miller. Blending wheat based on quality characteristics such as protein content or water absorption allows the miller to provide the baker flour that meets their desired quality characteristics. And blending wheat of various classes or origins purchased at different prices also helps the miller meet customer demand at the best possible variable cost.

In the next post in this series, we will address the potential changes to flour quality characteristics due to new crop wheat and blending to meet flour quality characteristics expected by our customers. As always, U.S. Wheat Associates (USW) technical experts are available to answer any question our customers may have by contacting their local USW office, or by sharing a question in our new “Ask the Expert” section of our website at https://www.uswheat.org/market-and-crop-information/ask-the-expert/.

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Wheat Buyers and Officials from Six Countries Kick Off USW Trade Team Season

Each year, U.S. Wheat Associates (USW) invests funding from USDA Foreign Agricultural Service export market development programs to bring several 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. Our success relies on the success of our customers and their ability to create products that appeal to consumers in markets around the globe.

So far in 2019, six USW-sponsored teams and an industry-sponsored team have traveled to 10 different states to gain greater understanding of the new U.S. wheat crops, wheat marketing structure and transportation logistics.

In March, the Wheat Marketing Center in Portland, Ore., sponsored a workshop on the unique characteristics of club wheat, a subclass of soft white (SW), for five baking technologists from Japan. Japan is a major importer of the premier U.S. soft wheat blend of club and SW known as Western White. USW worked with WMC to prepare the workshop and plan a visit to farms in Washington State growing club wheat.

A team of Japanese baking technicians participated in a club wheat workshop at the Wheat Marketing Center in March 2019 with support from USW and state wheat commissions.

In late April and early May, a team of seven senior executives from Japan’s flour milling industry, led by Country Director Charlie Utsinomiya and Associate Country Director Kazunori “Rick” Nakano, made an annual trip to the United States. These executives took in high-level meetings in Washington, D.C., including with USDA Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney, to discuss the state of U.S. trade negotiations with Japan. In Montana, the milling executives spent time with then USW Chairman Chris Kolstad on his farm near Ledger, Mont., and toured a local elevator that loads 100-car shuttle trains with hard red winter (HRW) and dark northern spring (DNS) wheat bound for Pacific Northwest export elevators.

At about the same time, USW/Taiwan Country Director Boyuan Chen led five representatives of the Taipei Bakers Association and three officials from Taiwan’s Department of Public Health on a trade team to Oregon and Manhattan, Kan. The focus for this team was to demonstrate the high-quality of U.S. wheat, sanitation and best management practices employed by domestic flour mills and bakeries and retail trends in the U.S. baking industry. This team saw the Federal Grain Inspection Service process at export, visited high-value commercial flour mills and commercial bakeries, and toured AIB International. USW Vice Chairman Darren Padget also hosted the team at his family’s farm in north-central Oregon. A collection of photos from the team visit is posted online here.

Executives from several Nigerian and South African flour mills traveled with USW Assistant Regional Director Chad Weigand and USW/Lagos Marketing Specialist Olatunde Omotayo to Washington, D.C., North Dakota and Kansas in mid-June. USW, state commissions and educational partners at IGP Institute and Northern Crops Institute demonstrated the excellent quality of HRW, HRS and durum supplies available, as well as the promise of more exportable supply of hard white (HW) for the team and the logistical advantages of purchasing from the United States.

Millers from Nigeria and South Africa saw wheat quality and varietal improvement research at Heartland Innovations in Manhattan, Kan., on their trade team visit this year.

Brazilian flour milling managers who are responsible for quality control in their wheat purchases arrived in Ohio in late June to learn more about U.S. soft red winter (SRW) and HRW quality. The visit coincided with the announcement that Brazil’s government planned to implement a duty-free tariff rate quota (TRQ) for wheat from countries like the United States outside the regional South American trade agreement. If implemented, the TRQ provides an opportunity for U.S. wheat to compete on an equal basis with Argentina for 750,000 metric tons of annual imports. As SRW importers, the Brazilian millers gained good information from a visit to the USDA’s Agricultural Research Service Soft Wheat Laboratory in Wooster, Ohio. The trade team also had the opportunity to tour wheat research facilities at Kansas State University and Texas A&M University in College Station, Tex. USW/Santiago Marketing Manager Casey Chumrau and Technical Specialist Andres Saturno led this team.

USW Market Analyst Claire Hutchins recently provided interesting insight into the trade team experience in a “Wheat Letter” post about the team of seven milling executives from the Philippines while they visited the U.S. wheat supply system in Portland. This team continued from Portland to Eastern Washington State, Idaho and Nebraska before departing for home on June 29. Philippine millers imported more SW and DNS than any other country in marketing year 2018/19 (June to May). Their total U.S. wheat imports put them in a close second position after Mexico.

Looking ahead, additional teams from Peru, Korea, Mexico, Taiwan, Japan and South Asian countries, as well as a team of bakery officials from South American countries, will be in the United States between now and late September. 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.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “Gerry has a natural affinity for presenting information in a classroom setting or running a baking workshop in an interesting and engaging fashion. He is very creative in designing training activities and enthusiastically carries them out. I think that is why so many customers here want Gerry to put on workshops – and, of course, because he is such a nice guy.” – Joe Sowers, USW Regional Vice President for the Philippines and Korea, on the work of his colleague USW Baking Consultant Gerry Mendoza. Read the full story here.

Wheat Growers Join Nearly 1,000 Food & Ag Groups in Letter Urging Congressional Ratification of USMCA. Nearly 1,000 groups representing the U.S. food and agriculture value chain at the national, state and local levels have called on Congress to support the ratification of the U.S.-Mexico-Canada Agreement (USMCA). In a letter sent to Congress June 13, the groups reiterate that USMCA will benefit the U.S. agriculture and food industry while providing consumers a more abundant supply of high-quality, safe food at affordable prices. Read the full release from the National Association of Wheat Growers (NAWG) here.

Congratulations. USW President Vince Peterson and his wife Sandi welcomed their eighth grandchild, a girl, Carly Reagan, born June 12.

Wheat Myth Debunked by a Major New Study. The myth that modern wheat varieties are more heavily reliant on pesticides and fertilizers is debunked by new research published in Nature Plants today. Lead author on the paper, Dr. Kai Voss-Fels, a research fellow at The University of Queensland, said modern wheat cropping varieties actually out-perform older varieties in both optimum and harsh growing conditions. Read the full story here.

USDA Announces ERS and NIFA Relocating to Kansas City Region. On June 13, USDA Secretary Sonny Perdue announced that the Economic Research Service and the National Institute of Food and Agriculture will be relocating to the Kansas City Region. The USDA went through a selection process that included 136 locations expressing interest before coming to the decision. Read the USDA’s press release on the announcement for more information and background on the decision here.

Procedural Step on China TRQ Case. On June 24, the Chinese government formally notified the World Trade Organization that it will not appeal a ruling it lost in a case brought by the United States against Beijing’s adherence to a reduced duty tariff-rate quota on imported grain. China said it would abide by the WTO ruling within a reasonable period of time to be negotiated with the United States. This is a procedural process and in the domestic support case brought by the United States against China the “reasonable period of time” to comply is until March 31, 2020.

National Wheat Foundation Blog Series: The Science Behind Gene Editing. On June 20, 2019, NAWG Summer 2019 Intern Merrick Irvin drafted his second blog in a five-part series on the progression of wheat genetics from the beginning to present. The second blog provides a high-level overview of what is gene editing. Read it here.

Baking with Whole Wheat and Whole Grains Course. The Northern Crops Institute is hosting a course focused on the utilization of whole wheat flour made from hard red spring (HRS) wheat and how to incorporate other whole grain ingredients into wheat-based products. The July 30 to Aug. 2, 2019 course will be at its facilities in Fargo, N.D. Click here to learn more and register by Monday, July 8.

IAOM-KSU Flour and Dough Analysis. The IAOM-KSU Flour and Dough Analysis short course will be held at the IGP Institute in Manhattan, Kan., Sept. 10 to 12, 2019. The course will focus on flour and dough analysis practices and methods and correct interpretation and understanding of the results. Click here to learn more and register.

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 page at https://www.facebook.com/uswheat for the latest updates, photos and discussions of what is going on in the world of wheat. Also, find breaking news on Twitter at www.twitter.com/uswheatassoc and video stories at https://www.youtube.com/uswheatassociates.

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