Southeast Asia Team Explores U.S. ‘Wheat Store’ During Workshop Stops in North Dakota, Oregon
Hendrogiarto Tiwow, a representative of the from Wilmar Group in Indonesia, checks out a field of soft white (SW) wheat in Oregon during the Contracting for Wheat Value Workshop.
A group of flour millers from Southeast Asia recently became pioneers of sorts, making up the first international trade team to receive instruction at the new home of the Northern Crops Institute (NCI). They also were the first team to visit U.S. Wheat Associates’(USW) new West Coast Office in Portland.
More importantly, the professionals from Indonesia, Malaysia and the Philippines experienced the hard red spring (HRS) and soft white (SW) wheat crop. It has been described as one of the best crops in years.
After a successful USW Contracting for Wheat Value Workshop, the team is returning home with good news to report.
Opportunities to Meet Wheat Farmers
“Auspicious” is how U.S. Vice President for South and Southeast Asia Joe Sowers describes the participants. He points to the favorable opportunities to meet wheat farmers to discuss the crop. Insightful sessions at the Wheat Marketing Center (WMC) and a tour of grain export facilities are important parts of the workshop.
USW’s often-used catchphrase “the U.S. wheat store is always open” rang especially true.
“This Contracting for Wheat Value program has become a regular and very important workshop. We bring representatives from mills in Southeast Asia to the U.S. to help them see and identify the quality characteristics of U.S. wheat,” said Sowers. “A key part of the workshop is a comparison of how their flours perform versus other mills. We work to show them how they can improve the quality of their end products.”
Partnerships in Action
During visits to North Dakota and Oregon, the team from Malaysia, Indonesia and the Philippines was given a look at the 2024 wheat crop and the U.S. wheat marketing system.
NCI, which recently moved to the new Peltier Center on the campus of North Dakota State University in Fargo, played a vital role in the workshop. As did the WMC in Portland.
“With our partners NCI and the WMC, we were able to showcase this year’s wheat crop, but also explain the marketing system,” Sowers explained. “We give them a look at U.S. wheat from the farm to the export elevator. Importantly, we walk them through farms in North Dakota and in Oregon. Showing them how wheat is shipped via rail or via barge to the port for loading on ships is very important. And then, at the end, the most important interaction they have with the U.S. marketing system is their purchase contract. Specifications in those contracts assure they can receive exactly the wheat that they need.”
Purchase contracts are examined and explained to illustrate specific factors that can help customers of U.S. wheat extract the optimal value from each purchase. This year, large yields of HRS, SW and HRW are expected to result in lower protein content in those classes. Armed with this information, participants are better able to communicate with their suppliers to make sure they receive grain they need.
Important – and Growing – Markets
The Philippines is the largest buyer of both U.S. HRS and SW. Indonesia regularly imports between 9 million and 11 million metric tons of wheat. The source is primarily Australia and Canada. But even with a small share, Indonesia is often a Top 10 buyer of US wheat. Indonesia was the seventh largest market last year. The U.S. market share in Indonesia has risen to about 12% in recent years. It is a market with potential for large growth. Malaysia has a much smaller population and is a smaller market, but it has been a consistent buyer of U.S. wheat. There is tremendous potential, as end-product exports by baking companies in Malaysia are growing quickly.
Some of the sights and lessons offered during the USW Contracting for Wheat Value Workshop:
Mike Moran, Executive Director of the Wheat Marketing Center (WMC) in Portland, gave a tour of the WMC facility and explained the important role it plays in supporting the U.S. wheat industry.
At NCI, the Team:
- Toured NDSU’s greenhouse and received a presentation about grain exporting by Dr. Bill Wilson.
- Visited the Maple River Grain and Agronomy elevator in Casselton, N.D. and a farm in Mapleton, N.D.
- Participated in analytical testing on various U.S. wheat flour and dough, and in testing on protein and moisture, ash, and falling number.
- Heard from the North Dakota Wheat Commission on the world and U.S. wheat supply and demand.
- Learned from Shawn Thiele of Kansas State University about flour mill management to optimize profitability. Thiele offered insight into wheat blending, cleaning, tempering, KPI management, and other processes.
- Explored the differences and similarities between U.S. and competitor wheat for various food products.
At the WMC, the team:
- Explored the WMC’s facility with Executive Director Mike Moran.
- Heard from Operations and Project Manager Liman Liu about the WMC’s role in the important crop quality process for all six classes of U.S. wheat.
The team learned about the quality of each of the six classes of U.S. wheat. It was also presented information about the many end products that can be produced with each class.
