An online training series developed by U.S. Wheat Associates (USW) in the early days of the COVID pandemic continues to have success in its effort to educate South American bakers and millers about the value and quality of U.S. wheat.

Specifically, the Online Baking Certification program promotes baking methods and processes that highlight all six U.S. wheat classes. What is significant about the program is that it’s able to reach a large number of bakery and milling staff who otherwise would not be able to take part in educational workshops. The virtual format allows participants to study at their own pace before testing through a handful of modules to earn certification.

Funded by the Agricultural Trade Promotion Program (ATP) – a USDA Foreign Agricultural Service (FAS) program created in 2018 to help U.S. agricultural exporters enhance their work in international markets and mitigate other obstacles to trade – USW’s online trainings have made great strides toward reaching the goal of boosting awareness of U.S. wheat.

Bakers and millers in Colombia, Peru, Chile, Ecuador, Bolivia and Brazil have been getting a thorough introduction to U.S. wheat and are learning how they can utilize it to improve the quality of breads and other baked goods.

The goal for U.S. wheat is ambitious yet simple: Sharing ways to improve baked products made with U.S. wheat could result in increased consumption in South America, which could lead to more customers for South America’s bakeries.

It could also potentially lead to a greater demand for U.S. wheat.

Putting U.S. Wheat ‘Top of Mind’

USW’s Online Baking Certification program build’s upon an effort to create awareness of U.S. wheat in South America. Pictured here is an in-person workshop conducted in USW’s Santiago office in 2019, prior to the COVID pandemic.

USW’s Online Baking Certification program builds upon an ongoing effort to create awareness of U.S. wheat’s value and quality in South America. Pictured here is an in-person workshop conducted in USW’s Santiago office in 2019, prior to the COVID pandemic.

Miguel Galdos, USW’s regional director in South America, says the goal of the Online Baking Certification program is to create better awareness of U.S. wheat.

“We want U.S. wheat to be top of mind for more bakers in the region, as well as for the technical staff at the milling companies,” he said. “We want to place a higher emphasis on reaching bakers

and technical people to perhaps give them a voice when it comes to wheat purchasing decisions.”

The fact that both bakers and milling staff are registering for the online course, too, is a sign that many in the industry want to take advantage of the opportunity to get experience working with U.S. wheat.

USW, the wheat industry’s export market development organization, works with wheat buyers, millers, bakers, food processors and government officials in more than 100 countries to promote the reliability and value of the six U.S. wheat classes. The new emphasis on creating awareness in South America and educate the people who work directly with wheat and wheat flour inside of bakeries is strategic.

Creating awareness – putting U.S. wheat top of mind of bakers – opens all kinds of opportunities.

“The key is that once they learn one aspect of U.S. wheat’s quality, they want to see what else there is to learn,” explained Galdos. “In this program, they must test out of one module to be able to move on to the next. Before earning the certification, they must complete a two-day practical course in person. Soon, after moving through the program, they are an expert on our product. At that point, U.S. wheat has developed a customer.”

Virtual Training has Become Commonplace

The virtual baking training includes six different modules that allow bakers and milling staff to progress at their own pace. Participants must pass a module to move on to the next, assuring they are exposed to all of U.S. wheat’s positive attributes.

The Online Baking Certification program includes six different modules that allow bakers and milling staff to progress at their own pace. Participants must pass one module to move on to the next, assuring they are exposed to all of U.S. wheat’s many positive attributes.

Launched in October 2020 as an alternative to in-person training workshops during the height of the COVID pandemic, the Online Baking Certification program has grown rapidly. USW recently added a Portuguese version to the original Spanish version to attract more Brazilian participation. USW also has plans to add a master-level course in the near-future.

The current program has registered nearly 5,500 students in two years. Thanks to a partnership between U.S, Wheat Associates, the Brazilian Wheat Industry Association and the Brazilian Bakery and Confectionery Industry Association, further growth is expected.

The six South American countries targeted by USW are the six that purchase U.S. wheat.

“The biggest wheat buyer in Colombia has had 15 staff members go through the whole program and earn certification,” said Galdos. “Chile has been another active participant, so we are seeing interest from a good portion of the region. Brazil is promising. We have met with the millers and bakers’ associations and U.S. Wheat Associates is going to be recognized by those associations at an upcoming event.”

The birth of the program came by necessity after in-person trainings and workshops were eliminated because of COVID. By March 2020, USW’s staff in Santiago, Chile, were putting together educational materials to complete the online bakery course – courses featuring baking theory, video instruction and assessment platforms were assembled. USW Baking Consultant Didier Rosada played a key role in the production of baking videos for the modules, which were finished in May 2020 and then sent to selected baking staff around the region for testing.

Opportunity for a Competitive Edge

Those who have completed USW’s Online Baking Certification are reporting they gained greater knowledge of traditional baking methods that work well with U.S. wheat.

Miguel Galdos, USW regional director in South America

Miguel Galdos, USW regional director in South America

Galdos emphasized that the online courses provide U.S. wheat with an advantage over competing wheat growing and exporting countries.

One example is the value of U.S. hard red winter wheat compared to Canadian wheat.

“One thing we stress to the bakers in South America is that many of the products they are baking do not require Canadian wheat that is higher in protein but more expensive,” Galdos said. “U.S. hard red winter wheat is a better option, and the content in the online baking courses teach them why. We show them how to bake with it. The problem is that the bakers are not trained. We want more bakers in the region exposed to the value and quality of U.S. wheat and how using it can benefit their products and their businesses.”

Along with putting U.S. wheat top of mind for South American bakers, Galdos pointed out a valuable additional benefit to USW’s online baking program.

“Through this certification process we are working with bakeries, collaborating with millers, collaborating with the people who either are or could be buying and using U.S. wheat,” he said. “We are educating them and creating awareness for U.S. wheat. At the same time, we are building relationships.”

Image shows grain rail cars by a country elevator to illustrate USW comments to the Surface Transportation Board.

U.S. Wheat Associates (USW) recognizes that direct rail shipments of U.S. wheat to millers in Mexico provides a significant advantage over competing wheat exporting countries. USW has been increasing its efforts to facilitate these types of sales by educating Mexican buyers about the rail shipping process and efficiencies.

In June 2022, USW’s Mexico City Office used Agricultural Trade Promotion Program (ATP) funds to organize and lead a trade team from a Mexican company that is a major buyer of U.S. wheat to meet with U.S. farmers, grain cooperatives and grain elevators in Ohio and Kansas that have direct rail shipment capabilities. The trade team included the company’s wheat purchasing manager and production manager.

Improved Infrastructure

Expansion of U.S. exports to the market via rail has been made possible by significant investments and dramatic improvements in the Mexican rail infrastructure over the last 15 years. Today, there are 46 shuttle train facilities, including 9 new facilities that were inaugurated in 2020-2022, and 12 milling companies have the capacity to receive shuttle trains.

Along with demonstrating the capabilities of shipping U.S. wheat directly to mills in Mexico, the trade team led by USW was educated on the quality and supply of U.S. soft red winter (SRW) wheat and hard red winter wheat (HRW).

As a result of discussions with the trade team – both during and after the visits to Ohio and Kansas – the company bought SRW for the first time in more than three years. The estimated total for the 44,160 metric tons (MT) of SRW purchases that resulted from the trade team was $15.7 million.

 

 

U.S. Wheat Associates (USW) works to help wheat food companies expand product lines in which U.S. wheat classes have an advantage. This strategy demonstrates that bakers have the power to demand flour products made with imported U.S. wheat and helps increase total wheat consumption. From February 2021 through July 2022, USW leveraged its regional technical expertise and Agricultural Trade Promotion (ATP) funds to expose Philippine bakers to production methods and new products from South Korea.

Webinars on Korean Wheat Foods

USW hosted three webinars in February, May and June 2021 featuring baking demonstrations of trendy Korean baked goods with USW Seoul Food/Bakery Technologist, David Oh. Oh taught popular U.S. wheat flour Korean bread and confectionary product recipes formulated for the Philippine market. Nearly 2,000 Philippine commercial bakers participated and through surveys most said they could apply the recipes in their business. USW has identified 12 Philippines bakery retailers that added products from the seminars made with U.S. wheat flour.

In July 2022, USW technical staff serving the Philippines and South Korea organized and held a comprehensive bakery workshop in Seoul in cooperation with the Korea Baking School. The purpose again was to familiarize Philippine millers and bakers with Korean-baked products, recipe formulations, and production methods.  As a result of the workshop, four of the participants created a total of eight new bakery products made with flour milled from U.S. hard red spring (HRS) and soft white (SW) that are still on sale.

The Philippines remains the largest importer of HRS and SW in the world and, including hard red winter imports, purchases a total average annual volume of about 3 million metric tons of U.S. wheat.

U.S. Wheat Associates (USW) frequently uses the unique U.S. grain inspection system to demonstrate a competitive advantage to the world’s wheat buyers. Now, with additional funding from the Agricultural Trade Program (ATP), USW is expanding its effort to demonstrate the integrity of the U.S. wheat supply chain in cooperation with the Federal Grain Inspection Service (FGIS).

The international affairs office of FGIS provides educational training programs to overseas buyers explaining the mission of the agency to certify the physical and contractual integrity of U.S. wheat and other grains. In July 2019 in Peru, a country the imports a total of 2.0 million metric tons (MMT) of wheat each year, USW worked with FGIS agent José Robinson to conduct half-day seminars for 53 quality control managers from the country’s five largest wheat importing companies. The participants also shared their processes with Robinson, showing examples of the wheat they inspected in plant. As a result, the managers were able to test their abilities to conduct similar inspections with guidance from directly from FGIS.

Under ATP, the USW South American regional representatives based in Santiago, Chile, plan to repeat this training activity in four other South American countries over the next two years.

USW believes this service for wheat importing customers gives them a deeper understanding of and increased trust and confidence in the FGIS inspection and certification process. The changes implemented in the mills following the training sessions should result in fewer discrepancies between the FGIS grade and the results of local, in-plant inspections, leading to increased satisfaction with U.S. wheat.

In addition, USW has earmarked ATP funds to conduct a similar FGIS Grain Inspection and Certification training session at the African Milling School in Nairobi, Kenya, in 2019. This session will be in part a “train the trainer” session for faculty members from the African Milling School and from the IFIM flour milling school in Casablanca, Morocco. Technical officials from the Office of Cereals in Algeria, the agency that plans and purchases the country’s wheat imports, and other participants from selected organizations in Sub-Saharan Africa will also participate.

Working with these schools extends knowledge of U.S. wheat value to flour millers throughout North and East Africa, as well as the Middle East. That is increasingly important in these competitive markets, especially in educating millers and processors in the growing cake and confection markets that need the specific information about the differential performance of U.S. soft red winter (SRW) and soft white (SW) wheat classes.

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U.S. Wheat Associates (USW) is applying funds from the Agricultural Trade Promotion (ATP) program to expand its ability to conduct technical support to wheat buyers and end users in rapidly growing South Asian markets.

USW has had a long-term effort to help customers improve their products and processes through technical support, funded in part by the Market Access Program (MAP) and Foreign Market Development (FMD) program. There is a strong connection between increased imports of U.S. wheat and the investment in milling and food production support. Looking at the highly sophisticated wheat food industries in Japan, Korea and others, USW’s long-term investment has benefited consumers in those countries while establishing strong and consistent export markets for U.S. wheat producers.

In such markets as Vietnam, Malaysia, Myanmar, Thailand and Indonesia, the imported wheat customer base is expanding, and USW saw a need to increase its technical capabilities to match the growth. At the same time, USW knew that some senior technical staff were planning retirements.

The addition of ATP funding gave USW the opportunity to add a new Bakery Technician position to work with customers across the South Asian region. Adrian Redondo, an experienced food technologist and account manager, joined USW in June 2019. He will train with his experienced colleagues and build customer contacts through 2021 when the current USW bakery consultant based in the Philippines plans to retire. Without additional ATP funding, USW would have had to fund a new technician position from a limited pool of FMD funds that would, in effect, cut its ability to fund customer activities.

South Asian imports of U.S. hard red spring (HRS), soft white (SW) and hard red winter (HRW) wheat from family farms in the Pacific Northwest to the Northern Plains have grown from an average of about 3.0 million metric tons (MMT) per year 10 years ago to about 5.0 MMT in 2018/19. Future demand for wheat foods is expected to keep growing in the region. ATP funding provides a wide range of additional opportunities to continue differentiating U.S. wheat in markets like those in South Asia, with no local wheat production and where increasing incomes and urbanization are driving a rapid expansion of wheat food demand.

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U.S. Wheat Associates (USW) is applying Agricultural Trade Promotion (ATP) program funding to hold five “Cereal Chemistry Seminars” in 2019 and 2020 for the milling industries in Southeast Asia. USW believes that with a more complete understanding of the functional value of wheat proteins, carbohydrates and other properties, flour milling quality control managers will become more receptive to the high-quality characteristics of U.S. wheat compared to competing supplies.

In Malaysia, Indonesia, Vietnam, Thailand and Myanmar (Burma), the flour milling industry is expanding to meet the fast-growing demand for wheat food. However, many new managers lack the experience with U.S. wheat to evaluate its differential characteristics relative to its premium price, which puts a constraint on upside U.S. wheat export potential.

To provide the knowledge that will help fully understand the true value of U.S. wheat supplies, USW is developing a comprehensive seminar that will be conducted over the next two years. Seminars targeting about 50 technical staff from the milling and allied industries in each of the five markets will include such topics as Wheat Chemistry and Structure; Wheat Protein Analysis and Functionality; and Wheat Carbohydrate Chemistry and Functionality.

USW anticipates that after the seminars, participants will have enhanced skills to assist co-workers, suppliers and customers in developing new formulations requiring more specific flours and increased volumes of U.S. wheat classes. Participants will gain expertise in flour analysis and the importance of specifications required in large production bakeries. And quality control staff will have enough technical capabilities to defend the functional value of high-quality flour from U.S. wheat.

South Asian imports of U.S. hard red spring (HRS), soft white (SW) and hard red winter (HRW) wheat from family farms in the Pacific Northwest to the Northern Plains have grown from an average of about 3.0 million metric tons (MMT) per year 10 years ago to about 5.0 MMT in 2018/19. Future demand for wheat foods is expected to keep growing in the region. By funding opportunities like Cereal Chemistry Seminars, ATP is helping USW continue to give flour milling and baking managers the information they need to build a preference for U.S. wheat supplies.

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Ecuador’s per capita consumption of wheat foods has rapidly increased in recent years, supported in part by governmental regulations limiting imports of finished products. Over the years, USDA Foreign Agricultural Service cooperator U.S. Wheat Associates (USW) has focused on demonstrating how using flour from U.S. hard red winter (HRW) can improve bread quality while reducing variable costs to build U.S. wheat share of Ecuador’s growing bread flour market.

The main constraint in this segment is a long-held reliance on higher protein Canadian wheat. To demonstrate the value of HRW wheat flour, USW used MAP funds in 2017 to conduct a baking seminar with a large commercial operation in Quito that supplies frozen dough and par-baked dough to fast food chains and the largest supermarket in Ecuador. The USW consultant demonstrated how the bakery could modify its processes using flour with a higher proportion of HRW wheat rather than with straight high-protein Canadian wheat flour and additives. This year, the company reported it has developed new products and will produce sliced bread and hamburger buns using HRW blended flour.

In September 2018, USW held seminars with two other bakeries with similar results. The seminars proved that U.S. HRW wheat flour reduced costs and improved the taste and quality of bread products. Both bakeries are changing their processes to product new products from the HRW blended flour. In 2019, USW also established its first contact with the largest commercial bakery in Ecuador that resulted in an agreement with USW to hold in-plant demonstrations of U.S. wheat flour blends.

To ensure HRW flour is available to those bakeries, USW has also conducted trade servicing and technical support for the largest flour miller in Ecuador. In June 2018, USW invited the main buyer from the premium mill to join a trade team to the United States. As a new employee of the mill, the buyer’s mind was more open to new opportunities and immediately after the trip he purchased a shipment of more than 11,000 metric tons of HRW and, in 2018, U.S. HRW and soft red winter (SRW) wheat made up 80% of the mill’s purchase volume. In 2019/20, under the Agricultural Trade Promotion (ATP) program, USW will start to chip away at the Canadian wheat dominance at a large mill in Ecuador by bringing samples of HRW and in-plant technical support to demonstrate the value of the U.S. alternative.

USW has also expanded its activities with medium-sized mills that produce about 30% of Ecuador’s annual flour production. Since 2016, USW has conducted a variety of activities to help them purchase and process U.S. wheat as efficiently as possible. As a result, U.S. wheat is gaining a foothold, growing from 6.3% of the mid-sized mill purchases in 2017/18 to 15.8% in 2018/19.

Ecuador’s average annual purchase of HRW the past three marketing years is 101,000 metric tons, a significant increase over the three-year average of 46,200 metric tons in 2015/16 and SRW purchases of about 224,800 metric tons in 2018/19.