Nigerian Trade Team Surveys U.S. HRW Wheat Crop
May 30, 2013
ARLINGTON, Virginia — Nine representatives from the top milling and food companies in Nigeria will travel to four states to survey the new wheat crop from June 2 to 12 as part of an annual trade team visit. On average, Nigeria is the second largest buyer of U.S. wheat.
For a firsthand look at this year’s hard red winter (HRW) and hard white (HW) crops, the team will meet with university researchers and tour grain and wheat foods facilities in Oklahoma, Colorado, Nebraska and Kansas. Trade team members will also talk with wheat farmers in the field, including a stop at the farm of USW Vice Chairman Dan Hughes in Venango, NE.
“Trade teams bring together both the beginning and end of the grain chain,” said Gerald Theus, assistant regional director for the U.S. Wheat Associates (USW) Sub-Sahara African Office in Cape Town, South Africa. “Visits like this one allow our Nigerian customers to make a personal connection with U.S. wheat farmers – who consistently produce the high quality wheat Nigeria’s industry needs.”
Theus and Muyiwa Talabi, USW’s marketing consultant based in Lagos, Nigeria, will accompany this year’s team. The Nigerian team was sponsored in part by the Oklahoma Wheat Commission and funding from the U.S. Department of Agriculture’s market development programs. USW also collaborated with the Colorado Wheat Administrative Committee, Nebraska Wheat Board and Kansas Wheat to organize this year’s Nigerian team. Trade teams like this one reinforce the reliability, quality and value of the U.S. wheat crop to wheat buyers from around the world.
This team includes representatives from the Nigeria’s leading flour mills. One of the companies, Flour Mills of Nigeria, is the world’s largest importer of HW wheat, shipped from its own export elevator in Corpus Christi, TX. This company and other Nigerian flour mills also import significant amounts of HRW, hard red spring (HRS), soft red winter (SRW) and durum.
For more information on USW’s work in Nigeria, view “U.S. Wheat and Nigeria: A Trade Success Story” at http://bit.ly/mtuNcV.
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 USDA’s Foreign Agricultural Service. 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 Nigerian Trade Team – Trade Members
Head of Commodities, Dufil Prima Foods
Dufil Prima Foods is the leading noodle producer in Nigeria. Dufil Prima Foods is a Singaporean company that began operating in Nigeria in 1990. Dufil operates three production plants in Nigeria and is currently working to establish flour milling operations in Nigeria to supply flour to its noodle production plants.
Financial Controller, BUA Flour Mills
BUA Flour Mills is Nigeria’s newest entrant to the flour milling industry, commissioning its first mill in Lagos in September 2005. Today, BUA Flour Mills also operates mills in Kano, Tincan Island and Port Harcourt. BUA Flour Mills buys 100 percent HRW for bread flour.
Production System Manager, Flour Mills of Nigeria Ltd.
Flour Mills of Nigeria (FMN) is Nigeria's largest miller and the world's second largest miller. FMN is Nigeria's only importer of SRW and HW wheat, the main importer of HRS and produces pasta from Desert Durum®. FMN is able to import small quantities of HW shipped in combination with HRW from its own export elevator in Corpus Christi, TX. This is the result of contacts made by FMN's milling director during a USW-sponsored visit to the United States in 2008.
Assistant General Manager, Bendel Feeds and Flour Mills
Bendel Feeds and Flour Mills has an integrated flour, semolina and feed milling. After high quality wheat is processed into bread flour, valuable by-products from the flour mill and other production plants are processed into animal feed in the feed mill.Aderoju Ogunwole
National Sales Manager, Honeywell Flour Mills
Procurement & Supply/Head Logistics, Honeywell Superfine Flour Mills
Honeywell Flour Mills commissioned its first commercial scale mill in 1998. Recognizing an increased demand for instant noodles, Honeywell commissioned a noodle line at its new factory operating as Honeywell Superfine Foods, Ltd. (HSF) and, in 2008, Honeywell installed two more noodle lines. At its full capacity, the plant would use 30,000 MT of HRW annually.
Vice President/Olam International, CEO, Crown Flour Mills
Crown Flour Mills is owned by Singapore-based Olam International and produces bread flour and instant noodles. In 2012, Olam purchased Okay foods, a large Nigerian biscuit manufacturer. Olam is also building mills in Ghana, Senegal and Cameroon.
Product Technology, Dangote-TigerBrands Milling Group
Commercial Director, Dangote-TigerBrands Milling Group
The Dangote Group’s first commercial scale mill was built in Lagos in 1998. Dangote operates five flour mills in Nigeria. In 2005, believing that demand would continue to increase for pasta and noodles, Dangote expanded its production capacity. In 2010/11, Dangote was one of the largest importers of HRW wheat in the world.
Marketing Consultant, USW/Lagos
Working as a marketing consultant, Muyiwa Talabi operates the USW Lagos Office in Nigeria. Prior to joining USW in 1994, he worked as the agricultural specialist for USDA/FAS at the U.S. Embassy. Talabi has a deep knowledge of Nigerian business and culture, including degrees in public administration and international relations from the University of Lagos.
Assistant Regional Director for Sub-Sahara Africa, USW/Cape Town
Gerald Theus is the assistant regional director for Sub-Sahara Africa, having been with USW since 1993. In addition to Theus, the USW Cape Town Office in South Africa is staffed by Regional Vice President Ed Wiese, a full-time flour milling consultant and three support staff. The USW Cape Town Office is responsible for USW market development programs in the 36-country Sub-Sahara Africa region. The region has three official languages and more than 3,400 local ethnic dialects. Prior to his current position, Theus was the producer/distributor for Pioneer Hi-Bred Seeds International in the Ivory Coast.
The U.S. Wheat Industry Partnership with Nigeria
Nigeria is the ultimate success story for the U.S. wheat industry, with a rapidly expanding flour milling industry that is undaunted by a lack of steady electricity, a transportation infrastructure that is yet to be created and national poverty beyond the understanding of the average American.
USW’s long-term presence in Africa, market research, and strategy targeting the local milling industry helped build this market and led to opening an office in Lagos, Nigeria in 2001. USW also works collaboratively with leading Nigerian millers to develop the local market for products made with U.S. wheat flour and semolina.
Nigeria has imported all six U.S. wheat classes. The United States dominates Nigeria’s wheat import market with close to a 90 percent market share, despite increased price competition from Canada and the Black Sea region. Nigeria was the United States’ largest wheat export market in the 2009/10 marketing year (June-May). As of May 16, Nigeria has purchased 110 million bushels (2.98 million metric tons) of U.S. wheat for the 2012/13 marketing year.
USW's in-country service office in Lagos and a long-term commitment to technical training and exchanges have combined to build strong Nigerian loyalty to U.S.-origin wheat. Yet, Nigeria has tremendous untapped potential for increased milling capacity and, along with continued purchases of HRW, an interest in increasing consumption of other U.S. wheat classes, particularly HW.
That commitment to building lasting trade partnerships — coupled with USW’s long-standing presence throughout the African continent — has earned U.S. wheat a reputation for high quality and reliability.
U.S. Wheat Sales to Nigeria by Class
1,000 metric tons
(June - May)
Data current through May 16, 2013