You are here: / / Wheat Letter Blog
thumbnail
,

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/.

/by
thumbnail
,

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.

/by
thumbnail

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.

/by
thumbnail

USW Captures Images of Harvest in Kansas

The landscape in southwestern Kansas is vast and relatively flat. You can see the local grain elevators from 10 kilometers away, tall testimony to the crop for which this country is known. Hard red winter (HRW) and hard white (HW) wheat is ripening everywhere here this week and that is why U.S. Wheat Associates (USW) is also here.

Admist the busy start of wheat harvest, Gary Millershaski and his family welcomed USW and a video production crew to the farm for interviews and gathering footage.

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. With help from our friends at Kansas Wheat, we are capturing the images and words of one farm family; it is only our first of many visits for a project that will be completed in 2020.

Kyler Millershaski does an interview in front of a barn bearing his grandpa’s name.

In what is now the kitchen of the farm house he lives in now, Earl Kleeman was born in 1930, the same year his parents bought their farm north of Lakin, Kan. Earl’s daughter Jana is married to Gary Millershaski who serves as a Kansas Wheat Commissioner and USW Director. Earl and Gary started farming together in 1992 and Gary and Jana’s sons Jeremy and Kyler joined the operation three years ago. Even though this has been a very wet season, their wheat weathered the storms and has excellent potential. Shortly after we arrived at the farm, Earl proudly showed us a head of wheat he had clipped from one of their best fields. It was full of kernels and ready for the harvest we will proudly show in our video production.

The video production crew films Gary Millershaski working on his combine.

Thanks to Kansas Wheat Director of Communications Marsha Boswell and Program Manager Jordan Hildebrand for their help arranging our visit. And many thanks to the Kleeman/Millershaski family for graciously taking so much time to share their love of producing U.S. wheat for the world.

Gary Millershaski and his son Kyler, talk with Kansas Wheat Commission staff Jordan Hildebrand and Marsha Boswell.

 

 

/by
thumbnail
,

The Science Behind Promoting U.S. Wheat

Originally printed in Dakota Gold, June 2019, Volume 35, No. 3; Reprinted with permission from the North Dakota Wheat Commission

In May, Dr. Senay Simsek, Professor and Wheat Quality Specialist with North Dakota State University (NDSU), traveled to the Philippines and Indonesia with U.S. Wheat Associates (USW) to meet with millers and end-users of U.S. wheat. The objective of the visits and seminars was to provide technical assistance to mills to improve their efficiency to produce flour that meets their local needs. USW staff included Peter Lloyd, Andres Saturno Eguren, Ivan Goh, Joe Sowers and Matt Weimar.

The seminars and technical visits to the mills were intense, and included presentations on Cereal Chemistry at the Mill, Biochemistry Behind Solvent Retention Capacity (SRC), and Food Safety in the Mill and Understanding Mycotoxins. These presentations are likely baffling to any that don’t have a cereal chemistry or cereal science degree, so it may be hard to understand how this type of activity helps U.S. wheat producers.

Wheat milling and baking with flour may seem like simple, straight forward tasks, but in reality, getting the correct flour from various classes and grades of wheat that corresponds into the end-use products consumers want is a complicated task.

“Dr. Simsek presents information to overseas millers and bakers that gives them an advantage in producing superior products,” says Joe Sowers, USW Regional Vice President for the Philippines and Korea. “The Philippine wheat foods industry is expanding very quickly, creating a huge demand for training and information. Dr. Simsek’s specialized expertise of HRS [hard red spring] is incredibly useful for the Philippine millers and bakers. She offers a depth of knowledge in cereal chemistry useful to the most experienced miller and baker while still accessible to newer entrants to the industry.”

All of the seminars, meetings and trainings were arranged by U.S. Wheat Associates.

Over a century of investment in HRS breeding has yielded an ideal raw material for Philippine baked goods while nearly 60 years of market development work has helped make it the largest foreign market in the world for the class. In 2018/19, the Philippines imported 68 million bushels of HRS, a historic record for any country in the world. Total U.S. sales of all wheat classes to the Philippines were almost double that at 120 million bushels.

Sales of HRS into Indonesia are not quite as robust due to a strong U.S. dollar and low flour prices. However, successes by USW in familiarizing the milling industry with the U.S. marketing system and gaining confidence in U.S. grain inspection protocols have led to average annual total wheat sales exceeding 35 million bushels, up nearly five-fold from the previous 5-year average. HRS sales last year were about 7 million bushels.

Matt Weimar, USW Regional Vice President for South Asia sees potential for growth of HRS sales. “We are optimistic that current economic and demographic trends will increase disposable income and consumer interest in higher quality end products, which often involve using HRS,” says Weimar. “Also, the Indonesian industry is quite different from others. The bread baking industry is dominated by thousands of small entrepreneurs, which represent about 65% of the bread market and their mixing equipment isn’t ideal for handling HRS.”

USW is working diligently through training programs such as this and targeted short courses to show customers the benefits of using U.S. wheat. Programs carried out by USW helps U.S. producers gain and maintain a foothold in some of the most competitive wheat markets in the world.

Header Photo Caption: Dr. Simsek (middle) discusses bread quality in Indonesia.

/by
thumbnail
,

Milling Executives from the Philippines Start Their Tour of the U.S. Wheat Supply Chain in Oregon

By Claire Hutchins, USW Market Analyst

U.S. Wheat Associates (USW) believes customer engagement, supply chain transparency and free access to market information are the building blocks for robust relationships with U.S. wheat overseas customers. Every year, USW hosts several foreign trade delegations on trips to the United States to help foster these relationships. These delegations of millers, bakers, wheat buyers and executives from overseas mills and end-product manufacturers visit many stops along the U.S. wheat supply chain including wheat farms, state wheat commissions, export inspection facilities, export elevators, test labs, wheat breeding programs, bakeries and more. These trips are designed to assure overseas customers of the quality, abundance, end-use versatility and value of U.S. wheat.

This week, I joined my USW colleagues in Portland, Ore., who hosted a trade delegation of milling executives, including vice presidents, marketing directors and quality control and plant managers, from the Philippines. Many participants were from companies that are customers of U.S. wheat, yet had never been to the United States themselves. On day one, I asked each participant about what they wanted to learn on the 10-day trip. Interests ranged from supply chain management to best practices in flour milling and quality control measures to visiting export terminals and wheat farms Others were looking forward to learning more about quality benchmarks at U.S. bakeries and discussing new marketing insights which could appeal to the growing “foodie” generation of Filipino consumers. Each trade delegation experience is a little different, but each offers a variety of tours, meetings and seminars to address the diverse needs of each group.

The delegations first visit was to the Wheat Marketing Center (WMC), where they met Managing Director Janice Cooper, Technical Director Dr. Jayne Bock and a team of technical specialists. WMC demonstrates U.S. wheat quality and marketing differentiation by providing flour and end-use research and technical training. The delegation watched WMC specialists use a new solvent retention capacity (SRC) testing machine that creates a “fingerprint” analysis of the wheat. The delegation was very interested in the test’s ability to accurately predict end-use functionality for high volume samples of soft and hard wheat flours. Participants emphasized that flour consistency is a high priority for consumers and wanted to know more about research in the United States addressing this issue. WMC staff explained that U.S. wheat farmers use precision agriculture tools to better regulate and monitor nitrogen application, which minimizes fertilizer waste and helps stabilize wheat protein levels. WMC is also conducting tests to determine if wheat with different protein levels can be still be used to create similar end-products like cakes and cookies. Members of the delegation also asked about recommended wheat and flour tests, significant issues facing the future of consistency in wheat production and what is next for the future of wheat quality testing.

Watching a demonstration at the Wheat Marketing Center.

Next, during a tour with the Federal Grain Inspection Service (FGIS), the delegation had a first-hand look at the third-party, impartial testing procedures conducted by government inspection specialists at export elevators. FGIS falls under the USDA’s Agriculture Marketing Service and assures, through rigid testing procedures, the quality and quantity of every grain order placed through U.S. export terminals. Through random sampling, compared to the size of the wheat shipment, FGIS specialists test for moisture, protein, unusual odors, insects, dockage, test weight, shrunken and broken particles, class and dark hard vitreous levels of each outbound wheat shipment.

Touring FGIS with commodity grader, Sam Stanley

At the Oregon Wheat Commission (OWC), the delegation met with Walter Powell, Oregon wheat farmer and OWC chairman, and Blake Rowe, OWC chief executive officer. Together, Powell and Rowe gave an excellent presentation on Oregon’s soft white (SW) wheat crop quality and marketing conditions, trade issues facing the industry and the Commission’s Wheat Quality Program. They explained that the program creates a “quality loop,” in which public crop quality data is used to inform customers, whose feedback in return directs private and public wheat breeding initiatives to improve end-use versatility and value. Powell and Rowe assured the delegation that customers have ownership in the quality development process by voicing their unique needs to members of the U.S. wheat industry.

The delegation started its second day at Franz Bakery, a large-scale U.S. bakery that services grocery stores, schools and chain restaurants in the Pacific Northwest (PNW). At the 113-year-old Portland facility, the delegation asked about marketing techniques, product differentiation and transportation logistics that allow the bakery to maintain its large PNW presence. Jodie Kelley, a Franz Bakey tour guide, emphasized that the business has been family-owned and operated since its inception, which gives it a unique marketing edge in the United States. By offering a variety of products, the bakery caters to a large customer base, including fast food chains and customers with different dietary restrictions and preferences.

The delegation’s next stop, Little T Bakery—a small, artisan bakery—gave the team a more intimate look at end-use versatility for locally-sourced SW wheat, spelt and whole-wheat flours. Unlike Franz Bakery, Little T Bakery caters to a much smaller community, baking only what it needs for the day and distributing minimally to local restaurants. Participants were greeted by the owner and baker, Tim Healea, who talked about local wheat sourcing and the challenges of marketing simple, traditional recipes in a trend-oriented industry. Team members asked about the popularity of GMO-free and gluten-free products. Healea believes the trend in gluten-free labeling is on the decline and does not market gluten-free products in his bakery.

Sampling artisan bread goods at Little T Bakery with owner and baker Tim Healea.

After the bakery tours, the delegation visited United Grain Corporation (UGC) export elevator, the biggest in the PNW at a 220,000 metric ton total storage capacity. UGC grain traders took the delegation through the technical control room that oversees all yard operations, the inspection facility that performs similar quality tests to FGIS, the rail unloading yard and the barge unloading dock. Participants asked questions about insect control, grain cleaning, quantity differentials at loading, the effects of rail costs on export and country elevator prices and the potential for rain damage during loading. At lunch, with members of the Pacific Grain Export Association (PGEA), UGC traders and a trader from Columbia Grain International gave crop quality reports on SW and hard red spring (HRS) wheat—top classes imported by the Philippines. In marketing year 2018/19, the Philippines was the largest importer of U.S. HRS and SW wheat and the second-largest overall importer of all U.S. wheat classes. The delegation was interested in hearing the traders’ long-term projections for SW wheat growth in the United States and traders shared that production should remain stable in the future as white wheat remains a “boutique” wheat on the global market, is unique to the PNW and highly valuable as an exportable commodity. Traders also forecast that customers will have access to large available supplies at reasonable prices as harvest in the PNW starts in the next few weeks. In return, to better understand the needs of their customers, traders asked the delegation about common blending practices, potential fumigation issues at delivery and vessel delays.

Touring UGC Vancouver, WA, export facility.

During the next eight days of their trip, the delegation will travel to Washington to visit wheat farms, a grain barge loading terminal, Washington State University’s Western Wheat Quality Lab and the Washington Grain Commission. Next, they will head to Idaho to visit a flour mill, a country elevator and the Idaho Wheat Commission. Finally, the delegation will finish its tour in Nebraska, where they will visit more wheat farms, another flour mill and the Nebraska Wheat Board.

Follow USW on Facebook and Twitter for pictures and updates about the delegation’s travels.

/by
thumbnail
, , ,

Meet the USW Technical Experts: Gerry Mendoza – Born to Teach and Share His Love for Baking

Name: Gerardo “Gerry” S. Mendoza

Title: Baking Consultant

Office: USW South Asian Regional Office, Manila

Providing Service to: Republic of the Philippines and Korea

Regional Profile: Southeast Asia, particularly the Philippines, has become one of the most important export markets in the world for U.S. wheat. The Philippines is the second-largest market for all classes of U.S. wheat and has been the largest importer of soft white (SW) and hard red spring (HRS) wheat since 2013. A robust population and income growth are driving increased demand for wheat-based foods. The growing middle class has an increased ability to pay for high-quality products, while end-product manufacturers and consumer preferences give U.S. wheat classes a strong advantage. U.S. wheat farmers have invested for nearly six decades in training Philippines millers and end-product manufacturers, helping the wheat foods industry achieve world-class sophistication and expertise. Given the quality and diversity of U.S. wheat supplies, USW’s focus on increased technical service and assistance is paying dividends as the region’s demand for wheat continues to grow.

There is one thing that everyone who crosses paths with Gerry Mendoza agrees on: he is just a really positive, nice guy.

“One of Gerry’s greatest assets is a positive attitude and sincere willingness to do whatever it takes to carry a project to completion,” said Joe Sowers, USW Regional Vice President for the Philippines and Korea, of his Filipino colleague.

While his attitude may come naturally, Mendoza’s interest in baking started in high school when his family got an oven with a gas range.

“I started messing around with the equipment by baking simple cakes (batter type) that were manually mixed,” said Mendoza. “Eventually, I moved on to kneading dough to make pizza and apple strudel.”

Gerry Mendoza was born into a large family in Baliuag, Bulacan, an agricultural town 50 kilometers north of Manila, known for growing rice, corn, and other vegetables. The town is also famous for its baked product “Pandesal,” a traditional Filipino breakfast bread typically consumed after rice. Once at Adamson University in Manila, he received a bachelor’s degree in industrial engineering.

“My decision to take up industrial engineering was highly influenced by my peers rather than a first choice,” said Mendoza. “I became quite interested in the food processing industry to the point that my final engineering feasibility study was about a chicken processing plant.”

A Love for Baking

Upon finishing school in 1982, Mendoza started in real estate housing development and then as a medical sales representative for a pharmaceutical company, where he says is where he gained his sales and account servicing skills. For a short time, during economic unrest in the Philippines under martial law, Mendoza spent a few years with a small craft bakery that produced traditional Filipino breads and cakes. A few years later, Mendoza returned to the bakery industry and never looked back.

For the next 25 years, Mendoza used his baking, engineering, and sales backgrounds in the bakery industry to sell and promote baking ingredients, supplies, and equipment used to produce bakery goods. During his tenures with Bakels Philippines Inc. and AB Mauri Philippines, he identified new markets, helped expand product portfolios, and developed and executed technical services that included product development programs, baking seminars, product demonstrations, recipe application development, and technical sales training.

Ultimately, one could say his combined interest in playing badminton and baking led Mendoza to U.S. Wheat Associates (USW). Sowers first met him in 2012, when he (Gerry) was running a World Bread Day badminton tournament fundraiser for the Philippine Society of Baking.

“His enthusiastic personality, strong character, and high esteem within the baking community and other industry partners led us to invite Gerry to join USW in 2016, and ever since, he has been an absolute pleasure to work with,” said Sowers. “He came to USW with more than 30 years of experience in baking and allied industries, a background that gives him a profound ability to provide relevant advice and actionable solutions to Philippine mills and end-product manufacturers.”

Committed to Customers

As a USW Baking Consultant, Mendoza’s primary responsibility is providing technical assistance and training to commercial bakeries.

“I saw this (USW) as an opportunity for me to share my baking knowledge and skills that I have nurtured and developed for most of my professional life,” said Mendoza. “Ultimately, I saw it as an opportunity to continue my passion for baking.”

That passion and Mendoza’s wealth of knowledge are what resonates with customers.

“It has always been great working with ‘Sir Gerry,’ as part of our common goal of sharing baking knowledge,” said a bakery owner in the Philippines. “By sharing his expertise with our fellow bakers in the Philippines, we are now more equipped to face the different challenges of a more globalized and competitive baking industry.”

“He guided us through our SRC (solvent retention capacity) project,” said a milling quality control manager. “From the first time we did the streaming, he joined us, collecting flour samples from each stream in the mill. It’s a very tiring process, but he was there with us until we finished collecting almost 50 samples.”

Meant to Teach

After spending many years as a regular resource speaker at the Asian Baking Institute and Philippine Foremost Milling Corporation’s Basic Commercial Baking Course, conducting lectures on different ingredients such as yeast, bread improvers, and chemical leaveners; as well as continuing to regularly conduct baking science short courses for the Philippine Society of Baking—where he serves as an officer and instructor—Mendoza has developed his natural affinity for teaching and mentoring. 

“He teaches and discusses baking in a manner that even a newcomer can easily grasp. He answers all questions [precisely], showing patience and even baking his signature ‘Madeleine’ bread for us,” said a chief operating officer for a large mill in the Philippines. “When we were organizing a baking seminar together, I found Gerry’s coordination and attention to detail excellent.”

“Working with Mr. Mendoza is really inspiring because of his approach to teaching from years of experience,” said another milling executive. “With his extraordinary way of being organized and systematic, his guidance and encouragement helps deliver excellent results for companies.”

Every customer who shared their experience working with Mendoza—the badminton player who also enjoys bike riding, karaoke, and cooking and baking at home—noted his kindness and love for working with bakers.

“He is very approachable, and you can easily feel his sincerity and general concern with whatever you are discussing,” said a chief operating officer for a large mill in the Philippines. “He displays passion in educating people with what he has mastered in his career.”

Mendoza enjoys being able to provide technical assistance and services to the thriving Philippine baking industry.

“My direct contact with millers, bakery owners, operators, and bakers through technical training and baking workshops gives me the opportunity to highlight the value of using flour made from U.S. wheat,” he said.

Another manager said, “Gerry is very easy to work with. He is very approachable, not hesitant to share his knowledge, and very quick when asked for data. He always assures us that he is always available and will always accommodate our inquiries and request. He has never failed us, and he knows how to deal pleasantly and effortlessly with everyone he meets.”

Sowers added, “Gerry Mendoza 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.”

By Amanda J. Spoo, USW Director of Communications

Editor’s Note: This is the fourth 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’
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
Wei-lin Chou – Finding Harmony in the Wheat Industry

/by
thumbnail
, , , ,

Some Positive News on Wheat Trade with Japan, Mexico and China

Headlines on the trade front this week have direct bearing on the U.S. wheat industry’s desire to reaffirm our trade relationship with long-standing customers in Japan and Mexico, and to renew our relationship with customers in China. For now, at least, the news is positive.

U.S. Trade Representative (USTR) Ambassador Robert Lighthizer this week told members of Congress that the Trump Administration hopes to “wrap up” an agricultural trade agreement with Japan “later this year.” That is good news for flour millers in Japan, who do not want to continue paying incremental effective tariffs for U.S. soft white (SW), hard red spring (HRS) and hard red winter (HRW) relative to Canadian and Australian wheat under the new TPP-11 agreement. Repairing this potential breach with Japan is essential for wheat farmers who, with their partnership with the USDA Foreign Agricultural Service have invested countless resources for more than 60 years to serve the demanding Japanese flour and wheat foods industries.

Amb. Lighthizer also reached out to members of Congress who have expressed concerns about the new U.S. Mexico Canada Agreement on Trade (USMCA). In a description of his remarks, Agri-Pulse reported that the USTR “bent over backwards to assure Democrats on the Senate Finance Committee that he was hearing and addressing their concerns, both about enforcing labor rules in Mexico and about whether the trade pact would hamstring efforts to lower pharmaceutical prices.” At the U.S. Wheat Associates (USW) 2019 Mexico Wheat Trade Conference early this month, our colleagues and our customers in Mexico identified that supporting the USMCA will be our shared focus. They took another big step today with news that Mexico’s Senate on Wednesday passed the USMCA, making it the first country to ratify the new trade pact. Mexico’s imports are the foundation of farm family incomes throughout the southern and central U.S. Plains. Losing it because of trade policies beyond their control is unthinkable.

On June 18, President Trump raised expectations for some positive trade outcome from his planned meeting with Chinese President Xi Jinping at the upcoming G-20 summit. He said he had a “long talk” with Pres. Xi and, according to news reports, said “China very much wants to discuss the future and so do we.” In this case, “we” definitely includes U.S. wheat farmers who have been all but shut out of exporting wheat to China following the imposition of retaliatory tariffs in March 2018. Before then, Chinese flour millers and their baking customers were demanding more high-quality U.S. wheat to blend with domestic wheat. Now, China has replaced our wheat with competing supplies of Canadian spring wheat.

As Amb. Lighthizer said during his congressional testimony on negotiations with Japan, “I think we are making headway and we’re in a situation where we if we don’t make headway quickly, people will lose market share and never get those customers back.”

USW continues to support the need to enforce commitments made in multi- and bilateral trade agreements and, given this week’s upbeat news, look forward to a speedy resolution of these challenging situations.

/by
thumbnail

A Message to Our Customers and Friends

The announcement from the U.S. Animal and Plant Health Inspection Service (APHIS) on June 7 that genetically engineered (GE) wheat plants were discovered growing in an unplanted (fallow) field in Washington State came with many emotions for wheat farmers, their domestic and overseas customers and for those of us who work on behalf of U.S. farmers.

We know there is frustration over why and how this has happened, and not for the first time. There is a sense of helplessness, not knowing how to resolve the situation. And there is plenty of concern about how it will affect your interests. We share the same emotions with farmers, customers and colleagues.

We also hope you find reassurance from an independent resource like APHIS that there is no indication wheat from these plants has entered commercial supplies nor the food system, and that detailed U.S. Food and Drug Administration investigations found no human or animal health risks from the GE wheat that was last tested about 15 years ago.

Respectfully, our customers have a right to take an abundance of caution related in this matter. Korea’s Ministry of Food and Drug Safety and Japan’s Ministry of Agriculture, Forestry and Fisheries are expecting an identification of the specific GE trait, known as an “event,” in the wheat plants identified in Washington State. Our organization requested the same information and urged officials to complete their testing, reach conclusions and provide those results to our customers as quickly as possible.

APHIS had confirmed the plants in this situation have a GE event for resistance to glyphosate but at the time had not yet identified the specific event. Identification is important because Korean and Japanese government agencies have been testing all imported U.S. wheat for two glyphosate resistant events since 2013. That testing had never identified those two traits in about 30 million metric tons of U.S. wheat.

We want to assure you that U.S. Wheat Associates (USW) and every stakeholder in this situation has been and will continue taking all appropriate actions to ensure that U.S. wheat, wheat flour and wheat foods remain safe, wholesome and nutritious for people, and in animal feed, around the world.

Nothing is more important to the U.S. wheat industry than the trust we have earned with customers at home and around the world by providing a reliable supply of high-quality wheat.

We thank you all for your reasonable and patient approach to this unfortunate situation.

 

/by
thumbnail
, , , , , , ,

U.S. Wheat Exports End Year Close to USDA Estimate

By Claire Hutchins, USW Market Analyst

Despite challenging market factors, U.S. wheat exports for marketing year (MY) 2018/19, which ended May 31, totaled 25.8 million metric tons (MMT) (948 million bushels), in line with USDA’s adjusted export volume estimate. That is 9% ahead of MY 2017/18 and 1% ahead of the 5-year average of 25.5 MMT (937 million bushels). Commercial sales of all classes of wheat in MY 2018/19 exceeded 2017/18 levels due to abundant exportable supplies, excellent harvest qualities, competitive export prices and sustained service from U.S. Wheat Associates (USW) representatives supported by its state commissions and USDA’s Foreign Agricultural Service programs. This offset the bearish factors including a strong U.S. dollar, competitor’s advantages, uncertainty about U.S. trade policies and difficult inland transportation logistics.

Hard Red Winter. USDA reported hard red winter (HRW) 2018/19 sales totaled 9.40 MMT (345 million bushels), 1% above 2017/18 and 1% above the 5-year average of 9.30 MMT (342 million bushels). Customers took advantage of the highest quality HRW crop in several years at attractive export prices compared to 2017/18. Out of the Gulf, between Jan. 1 and May 31, 2019, the average export price of U.S. HRW 12.0 protein (12% moisture basis) cost $227/metric ton (MT) compared to $257/MT over the same period in 2018. Sales to Mexico and Nigeria were up 6% and 36% respectively, while sales to Japan were down 6%. Sales to Mexico totaled 2.15 MMT (79.0 million bushels), 44% above the 5-year average of 1.49 MMT (55.0 million bushels), once again making Mexico the top HRW buyer. Commercial sales to Iraq, now the fourth-largest consumer of U.S. HRW, were in line with 2017/18 levels at 674,000 metric tons (MT) (24.7 million bushels).

Soft Red Winter. 2018/19 soft red winter (SRW) sales increased 33% year-over-year to 3.33 MMT (123 million bushels), still 14% below the 5-year average of 3.92 MMT (144 million bushels) despite difficult inland transportation logistical issues due to major flooding on the Mississippi River and its tributaries. The 2018/19 SRW crop boasted higher protein levels and good extensibility, making it a valuable blending ingredient for cookies and cakes. A steady decline in SRW futures prices between mid-December 2018 and mid-May 2019 encouraged strong commercial sales to top SRW-importing regions. Export sales to three of the top five SRW purchasers increased or remained steady compared to 2017/18. Sales to Mexico, the top importer of U.S. SRW, increased 25% over last year to 917,000 MT (33.6 million bushels) and sales to Peru, the fifth-largest importer of U.S. SRW, increased 13% over last year to 175,000 MT (6.46 million bushels). Export sales to Nigeria held strong at 272,000 MT (9.96 million bushels).

Hard Red Spring. By the end of MY 2018/19, hard red spring (HRS) export sales totaled 7.15 MMT (263 million bushels), 16% ahead of last year’s pace, despite a 94% decrease in commercial sales to China, formerly the fourth-largest importer of U.S. HRS. A 60% year-over-year increase in HRS production, at 16.0 MMT (588 million bushels), higher ending stocks, high protein content and competitive export prices all supported export sales. Gulf exports of HRS 14.0 protein between Jan. 1 and May 31, 2019, cost, on average, $263/MT compared to $305/MT over the same period in 2018. Seven of the country’s top ten HRS-importing partners increased commercial sales year over year. Commercial sales to the Philippines, the top importer of U.S. HRS, jumped to 1.85 MMT (68.0 million bushels) in 2018/19, 39% ahead of last year and 38% ahead of the 5-year average of 1.34 MMT (49.2 million bushels).

White wheat. Total commercial sales of soft white (SW) and hard white (HW) wheat climbed to 5.45 MMT (200 million bushels) in 2018/19, which includes about 165,000 MT of HW sales to Nigeria. That is slightly ahead of last year’s pace and 21% ahead of the 5-year average of 4.51 MMT (166 million bushels) due to increased production, increased exportable supplies and below-average protein levels compared to years prior. Sales to the Philippines and Japan, the top two importers of U.S. SW, respectively, increased 13% and 7% over 2017/18 levels. The Philippines purchased 1.32 MMT (48.9 million bushels) of SW compared to 1.17 MMT (43.0 million bushels) in 2017/18. White wheat sales to Japan increased to 889,000 MT (32.7 million bushels) compared to 829,000 MT (30.4 million bushels) in 2017/18.

Durum. USDA reported 2018/19 durum sales at 504,000 MT (19.8 million bushels), up 24% from the year prior, but 12% below the 5-year average of 573,000 MT (21.0 million bushels). Increased production, high protein content, excellent kernel characteristics and competitive prices throughout the marketing year all supported northern durum export levels. Increased sales to four of the five top markets for U.S. durum boosted export figures. The European Union (EU) purchased 290,000 MT (10.7 million bushels) of U.S. durum in 2018/19, up 71% year-over-year following a drought that cut production in many EU countries.

/by

Think Farm Export Programs Don’t Matter? Think Again.

GET THE REST OF THE STORY

DTN Wheat Detail
DTN Corn Detail

2008-2013 U.S. Wheat Associates. All Rights Reserved
Privacy Policy | Non-Discrimination Statement