Taiwan Goodwill Mission to Sign Letters of Intent for Wheat Purchases
September 05, 2013
ARLINGTON, Virginia — The Taiwan Flour Mills Association (TFMA) will sign a letter of intent in Washington, DC, Sept. 10, to purchase up to 62.5 million bushels (1.7 million metric tons) of U.S. wheat, worth an estimated $484.5 million, over two years between 2014 and 2015.
The signing ceremony at the U.S. Capitol Visitor Center kicks off Taiwan’s formal Agricultural Trade Goodwill Mission to the United States to purchase grains and other agricultural products for the people of Taiwan. The Mission will also sign letters of intent with the U.S. Grains Council and the American Soybean Association and will call on members of the U.S. Congress and policy makers in the executive branch. TFMA will then continue its part of the Mission with visits to North Dakota, Montana, Idaho and Oregon to meet with state wheat commission and government representatives before returning to Taiwan Sept. 17.
U.S. Wheat Associates (USW) President Alan Tracy and Wei-Chang Chang, manager of Thai Ho Milling Co., Ltd., and executive director of TFMA, will co-sign the letter. Tracy said the U.S. wheat industry and Taiwan have a long history of mutually beneficial trade relations.
“Western Wheat Associates, one of the legacy organizations to USW, opened the first overseas marketing office in Taipei in 1966,” Tracy said. “Since that time, U.S. wheat farmers and Taiwan flour millers have built an enduring and successful partnership.”
Taiwan is the sixth largest market for U.S. wheat, purchasing 520 million bushels (14.2 million metric tons) since 1998, worth an estimated $3.27 billion. Significant hard red spring (HRS) imports reflects a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with hard red winter (HRW) flour to make traditional Chinese flour foods and noodles. Soft white (SW) imports, including western white, help meet growing demand for cake, cookie and pastry flours.
USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.” USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by FAS. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.
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2013 Taiwan Goodwill Mission – Wheat Group Team Members
Mr. Wei-Chang Chang, Team leader
Executive Director, Taiwan Flour Millers Association
Manager, Thai Ho flour mill
Mr. Ching-Hsin Lin
President Assistant, Tan Yang flour mill
Mr. Chia-Yuan Yang
Project Manager, Tung Jung flour mill
Mr. Hans Chiao
Executive Secretary, Taipei Economic and Cultural Representative Office in the United States (TECRO)
Mr. Ronald Lu
Country Director, Taiwan, U.S. Wheat Associates
U.S.-Taiwan Partnership in Wheat
Taiwan is the sixth largest market for U.S. wheat, purchasing 14.2 million metric tons (520 million bushels) since 1998, worth an estimated $3.27 billion. USW Country Director Ron Lu and his Taipei-based staff have an excellent working relationship with Taiwan Flour Mills Association (TFMA) and the Taiwan baking industry.
TFMA imports wheat on behalf of all 26 Taiwanese flour mills. U.S. wheat represents nearly 80 percent of Taiwan’s total imports, an estimated annual value of about $280 million. Heavy use of hard red spring (HRS) reflects a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with hard red winter (HRW) flour to make traditional Chinese flour foods and noodles. Soft white (SW) imports, including western white, help meet growing demand for cake, cookie and pastry flours.
Recognizing an opportunity to increase bread consumption, USW and other U.S. cooperators, with excellent support from USDA Foreign Agricultural Service (FAS) staff posted in Taiwan, developed a Global Broad-Based Initiative project under the Market Access Program in 2010/11. USW, the California Raisin Administrative Committee, the U.S. Highbush Blueberry Council and U.S. Grains Council are working with the Taiwan Bakers Association and the China Grain Products Research & Development Institute (CGPRDI) to develop new healthy, whole wheat breads and high fiber noodle products to professional bakers and noodle makers. USW and the other cooperators are also helping the commercial bakeries and processors introduce the products to consumers through events including a news conference co-sponsored by the Taiwan Baking Association at a popular Taipei shopping mall.
Additionally, USW helps provide technical assistance and education to millers and bakers to help them produce better quality, better tasting whole wheat products.
U.S. Wheat Sales to Taiwan
1,000 Metric Tons
(June - May)
Data current through August 22, 2013
One metric ton = 36.74 bushels