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Meet the USW Technical Experts: Tarik Gahi – ‘For a Piece of Bread, Son’

Name: Tarik Gahi

Title: Milling and Baking Technologist

Office: USW Middle Eastern, East and North African Region, Casablanca Office

Providing Service to: North Africa and the Middle East

2018 – Running a Bread test at Atlantic Flour Mills in Morocco using 50% SRW + 50% HRW flour.

U.S. Wheat Associates (USW) Milling and Baking Technologist Tarik Gahi has spent his entire career working with millers from around the world. But the first person to really make his career a passion was his mother.

“The main element on the breakfast, lunch, and dinner table in Morocco is bread. Growing up, my role at home was to follow my Mom’s instructions while helping her turn the wheat into bread. We would weigh 100 kilograms of the wheat stored in the roof, which was carefully hand cleaned, water washed, and spread under the day sun for two days to dry out,” said Gahi. “Then I would take it to a traditional flour mill – meters from our house – and pass on the message that Mom sent with me: ‘Please make the flour coarser and separated from the bran.’ Because if you didn’t ask for it, the worker at the mill would produce whole wheat flour, and my Mom didn’t want the additional job of separating the bran. Without being aware of it, she was a miller.”

(L) Tarik with his Dad in 1985; (R) Tarik with his Mom in 1987

Gahi grew up in Beni Mellal, a small city in Morocco at the base of Taseemit Mountain and near the plains of Tadla, a region known for its olive, wheat, and orange production. He and his two sisters were raised by their father, a philosophy teacher and later a school director, and mother, a homemaker. Growing up, Gahi’s favorite subject was math, so he pursued and received a bachelor’s degree in mathematics from Ibn Sinaa School in Beni Mellal, Morocco. When deciding what to pursue next, Gahi turned to his uncle, who had previously been the president of the first wheat importing group after the Moroccan wheat market liberalization in the late 1990s. His uncle introduced him to the Moroccan Milling Training Institute (IFIM) and shared with him something he would never forget.

He said, “Tarik, if you ask any Moroccan in the street why he wakes up every morning and goes to work, his answer is always going to be “for a piece of bread, son.” This means that wheat, flour, and bread are in our blood, and any business related to these three may lose at times but never dies.”

Following his uncle’s advice, Gahi studied milling engineering for two and a half years at IFIM, where he was introduced to USW, seeing its logo displayed throughout the school and meeting USW Regional Technical Director Peter Lloyd. After graduation, the top five students from the class, including Tarik, were offered a job in the United Arab Emirates (UAE) with Al-Ghurair, one of the largest milling companies in the Middle East.

“At Al-Ghurair, I learned to be patient and never underestimate the people around you, no matter their position,” said Gahi.

After six years with Al-Ghurair, Gahi worked as a mill operation manager at Seaboard West Africa Limited in Sierra Leone for two years, which challenged his managerial skills and taught him the importance of building relationships with customers. Next, Gahi returned to his home country and served as a chief miller at a milling company in Casablanca for three years before finally joining USW in 2015.

2019 – Visiting Bakhresa Group in Tanzania for a trade servicing activity. Beside Tarik (far left) is Peter Muni, current Bakhresa group technical vice president and Gahi’s past colleague from their time together at Al Ghurair Group in UAE.

An Ambassador for U.S. Wheat

The first wheat Gahi ever milled was U.S. hard red winter (HRW) donated by USW through the USDA Foreign Agricultural Service’s Quality Samples Program (QSP).

“That marked my professional life a lot. The USW logo was engraved in my mind from my time at IFIM,” said Gahi. “I learned the basics of milling in a school built by USW, and to come back and work with the man who helped train me (Peter Lloyd), was something special. To technically convince people to use a product (wheat) that is a beautiful story for me is a job I want to do for the rest of my life. My story is with U.S. wheat.”

As a Milling and Baking Technologist, Gahi is involved in the development, service, and expansion of technical service for U.S. wheat and wheat products. He conducts cake and cookie courses in USW’s Middle East and North Africa (MENA) region, inviting major regional soft wheat flour users to share with them the quality of U.S. soft wheat and demonstrate its functionality as an ingredient.

2019 – Touring the Bakhresa Mill in Zanzibar, Tanzania, and answering one of the chief miller’s questions about flour extraction and bran.

The MENA region is a wide geographic area comprised of widely differing milling and baking industries. From bakers in large cookie processing companies in Egypt to large flour mills in the UAE, North and West Africa, Gahi is equally at home carrying the message of what benefits U.S. wheat can provide customers.

“My job is to represent U.S. wheat growers in our region, and USW provides the necessary tools and conditions to help me pass on the farmer message to existing and potential customers,” said Gahi.

Through QSP, the same program that Gahi encountered in his first milling training, he now trains other young millers in processing U.S. wheat and helps introduce bakers and biscuit manufacturers to the right flour ingredient for their products.

“Tarik has a really good basic grounding in flour milling technology, upon which he has added layers of technical experience both overseas and in Morocco,” said Lloyd. “He has worked in both large and small mills, both new and older plants, and has furthermore added layers of mill management, quality control, and baking expertise to his basket of skills.”

Tarik Gahi explains variations in a QSP sample during a training at IFIM in 2018.

“Tarik is doing a great job providing technical support,” said a research and development regional manager with a large snack food company in Morocco. “He brings positive and great values to the baking industry through his regular visits and always supports us when needed. We have benefited from his bakery seminars and biscuit trainings.”

Gahi also spends time meeting with bakers and millers across the MENA region to get updates on each country’s market and help troubleshoot their technical problems. These meetings give him the opportunity to build stronger relationships among U.S. wheat customers and helps identify new needs and possible customers in each market.

“Gahi brings a lot of clarification and precious advice to cereals professionals along the supply chain by emphasizing the advantages of U.S. wheat compared to other origins and helps them adapt their practices to extract the most value. And he does that all in three languages,” said a supply chain manager with a grain agency in Algeria. “It is a great honor to work and collaborate with Tarik. His value is characterized by a great education, a great dedication to his work, and a developed professional sense, which all make him an excellent ambassador for U.S. wheat.”

Family

As his mentor, Peter Lloyd has watched Gahi interact with customers and how his unique blend of skills as a “people person” and his ability to communicate in English, Arabic, and French has positively impacted many cultures and markets.

“A major part of the job is the ability to communicate effectively across a very wide range of people, from millionaire industry giants to cleaners in a mill – and here Tarik once again excels,” said Lloyd. “He has an innate ability to communicate with people in our region, putting all at ease and, most importantly – listening effectively. He is just a great guy to work with.”

A USW technical manager trip to the USDA-ARS Soft Wheat Quality Laboratory in Ohio in 2016. Pictured (L to R) Peter Lloyd, USW; Marcelo Mitre, USW; Byung-Kee Baik, USDA-ARS; Brad Moffitt, Ohio Corn & Wheat; and Tarik Gahi, USW.

Lloyd is very proud that his student, colleague, and understudy has become a part of the legacy Lloyd will eventually leave behind.

“As the person who has helped introduce Tarik to U.S. Wheat Associates and perhaps worked more closely with him than anyone – I can say that the future of technical support into the MENA region and across Africa is in excellent hands with Tarik.”

For Gahi, who enjoys playing chess and cycling in his free time (though he says he is tired of being beaten every time he plays chess), family is his most important interest. He is a husband and a father of two small children, but family will always be also woven into his passion for his career.

Tarik and his son.

“Every time I think about my career history, I think about my Mom, Uncle, U.S. Wheat Associates, and Peter Lloyd. If I were asked to give U.S. Wheat Associates a new name, I would simply add the word “family” – U.S. Wheat Associates Family,” said Gahi. “Since I joined USW, I have felt like a member of a family. People care, people respect each other, and people do what it takes to make the family happy.”

By Amanda J. Spoo, USW Director of Communications

Editor’s Note: This is the fifth 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.”

Header Photo Caption: Tarik Gahi (far left) with USW colleagues Mark Fowler, Ian Flagg and Peter Lloyd at the IAOM MEENA meeting in 2017.

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
Gerry Mendoza – Born to Teach and Share His Love for Baking
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

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Too Much Rain on a Smaller Soft Red Winter Crop

Following planting in the fall of 2018, much of the U.S. soft red winter (SRW) growing area received excessive moisture throughout the winter and spring, which also caused lengthy harvest delays in many areas. The excessive moisture adversely affected quality by reducing falling number values and increasing DON values in some areas. At an estimated 7.01 million metric tons (MMT), this is a smaller crop than in 2018 because farmers seeded less and average yield per harvested acre was below last year and the five-year average. Processors should find good qualities in the 2019 SRW crop for cookies and crackers and segments of the crop showed good cake qualities.

That is a summary of results from the U.S. Wheat Associates (USW) 2019 SRW Crop Quality Report, now posted online at https://bit.ly/SRWCQ0919. To complete the report, Great Plains Analytical Laboratory in Kansas City, Mo., collected and analyzed 261 samples from 18 reporting areas in the 11 states that account for about 72% of total 2019 SRW production. Funding for the annual survey come from state wheat commission USW members and the USDA Foreign Agricultural Service.

As always, buyers are encouraged to review their quality specifications to ensure that their purchases meet their expectations.

Wheat and Grade Data. The overall average grade of the samples collected for the 2019 SRW harvest survey is U.S. No. 2. The average test weight is 58.1 lb/bu (76.5 kg/hl), equal to the 5-year average and above the 57.9 lb/bu (76.2 kg/hl) average in 2018. The Gulf Port average of 58.5 lb/bu (76.9 kg/hl) is above both last year and the 5-year average. The East Coast test weight average of 56.9 lb/bu (75.0 kg/hl) is above last year but below the 5-year average of 57.4 lb/bu (75.6 kg/hl).

The East Coast Total Defects average of 2.5% is above last year and the 5-year average, indicating that damaged and shrunken and broken kernels are slightly higher than usual in that portion of the crop. The Gulf Port Total Defects is 1.1%, above 2018 but almost half of the 5-year average. Other Gulf Port grade factors, dockage and moisture are close to or higher than 2018 and 5-year average values.

The Composite average wheat protein content of 9.5% (12% moisture basis) is lower than 2018’s 9.9% and the 5-year average of 9.7%. Both the Gulf Port protein average of 9.4% and East Coast average of 9.7% are below the respective 2018 and 5-year averages. The Composite average falling number of 288 seconds is significantly lower than 2018 and the 5-year average. The Gulf Port average of 289 seconds and the East Coast average of 283 seconds are both significantly below 2018 and the 5-year averages. Approximately 21% of samples had a falling number below 250 seconds in 2019, with 13% below 225. The Composite DON average of 1.3 ppm is above the 2018 average and close to the 5-year average of 1.2 ppm. The East Coast value of 0.5 ppm is below the 5-year average while the Gulf Port value of 1.5 ppm is above the 5-year average. Of the samples tested for DON, 33% of the Gulf Port results and 84% of the East Coast results were less than 1.0 ppm.

Flour and Baking Data. The Composite, East Coast and Gulf Port Buhler laboratory mill flour extraction averages are below 2018 and the 5-year averages. The farinograph peak and absorption values are similar to 5-year averages, but the stability values are all below the 5-year averages. The SRC values generally indicate good quality for cookies. The Composite, East Coast and Gulf Port alveograph L averages of 81 are lower than last year and the 5-year average, indicating lower extensibility. All other alveograph averages are similar to the respective 5-year averages given the variability of alveograph analysis. The Gulf amylograph average of 392 BU and East average of 462 indicate relatively high levels of amylase activity in the crop and are consistent with the low falling numbers.

The Composite, East Coast and Gulf Port cookie spread ratios are all higher than last year and the 5-year averages, indicating good extensibility. Average loaf volumes are all lower than last year and the 5-year averages.

USW will share complete data for all classes of U.S. wheat in future Wheat Letter posts and with hundreds of overseas customers at several upcoming events, including USW’s annual Crop Quality Seminars, and in its annual Crop Quality Report.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “New drought tolerant traits have helped corn acres expand [and cut wheat area]. In looking at the adoption … drought tolerant corn traits, since 2012, have been planted at a faster rate by farmers than herbicide tolerant traits when they were released. As a smart farmer in Leoti told me, ‘These drought tolerant corn varieties look more like drought resistant.’” – Justin Gilpin, Executive Director, Kansas Wheat.

Rain Slows Spring, Durum Harvest. The North Dakota Wheat Commission reported on Sept. 17 that very little harvest progress was made in the hard red spring (HRS) and northern durum region over the last week as precipitation was widespread. The U.S. HRS crop is now 76 percent harvested, up only 5 percent from last week. Durum harvest is even farther behind. With the wet conditions, quality on the remaining crop is a concern, but will be highly dependent on maturity level in the crop. Read more on Sept. 20 in the USW Harvest Report at https://www.uswheat.org/market-and-crop-information/harvest-reports/.

Modern Bread Wheat Benefits from ‘Synthetic Hexaploid Wheat.” In a new study, scientists have found that genome segments from a wild grass are present in more than one in five of elite bread wheat lines developed by the International Maize and Wheat Improvement Center (CIMMYT). Scientists at CIMMYT and other research institutes have been crossing wild goat grass with durum wheat—the wheat used for pasta — since the 1980s, with the help of complex laboratory manipulations. The new variety, known as synthetic hexaploid wheat, boosts the genetic diversity and resilience of wheat, notoriously vulnerable due to its low genetic diversity, adding novel genes for disease resistance, nutritional quality and heat and drought tolerance. Read the full article here.

Trade Deal to Come? The Wall Street Journal recently reported that President Trump has notified Congress that the U.S. and Japan are prepared to enter a limited agreement that would lower some tariffs and set terms of digital trade. Pres. Trump and Prime Minister Shinzo Abe announced in August that they had reached an agreement in principle to lower agricultural tariffs and industrial tariffs. The two sides said they expected to sign the deal at the United Nations General Assembly this month. By sending formal notification to Congress, Mr. Trump can now sign such an agreement. The congressional letter did not spell out the terms of the deal.

Register for the 2019 World Food Prize Borlaug Dialogue International Symposium. The 2019 Symposium theme, “Pax Agricultura: Peace Through Agriculture,” will serve as an opportunity to take stock of the current state of global agriculture and food security. Learn more and register here.

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.

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USW Hosts Overseas Customers at Annual NCI Grain Procurement Course

By Claire Hutchins, USW Market Analyst  

U.S. Wheat Associates (USW) believes customer engagement, supply chain transparency and accessible global market information are the building blocks for robust relationships with U.S. wheat customers. Every year, USW partners with the Northern Crops Institute (NCI) at North Dakota State University (NDSU) in Fargo, N.D., to offer NCI’s annual Grain Procurement Management for Importers Course.

This month, USW hosted 19 U.S. wheat customers including international procurement managers, supply chain managers, mill managers, wheat traders, agronomists and other industry executives at the eight-day course focused on the grain merchandising process. The course provided an overview of the U.S. grain handling and marketing system and the risk management tools available to help buyers purchase U.S. grains that meet their quality needs at the best value possible.

Daily lectures by industry experts and distinguished NDSU professors helped customers learn about cash and futures markets, risk management strategies, contracting for wheat value, USDA grain inspection services and U.S. and global supply and demand fundamentals. In addition to classroom lectures, course participants experienced the U.S. grain handling system through farm tours, country elevator visits, grain export facility tours and short seminars held at the Minneapolis Grain Exchange and various grain merchandising company offices in the Minneapolis, Minn., area

USW Market Analyst, Claire Hutchins, and NCI Programs Manager, Brian Sorenson tour a wheat farm in Casselton, N.D. after a day of NCI risk management courses at NDSU in Fargo, N.D.

Dr. Bill Wilson, NDSU professor of applied economics, presented on the U.S. grain transportation system, export basis, normal and inverted markets, pricing spreads and buyer decision timing, and alternative hedging strategies to help importers minimize price risk. Wilson emphasized the role USW’s weekly Price Report plays in price discovery to help buyers understand current U.S. wheat market conditions.

Dr. Frayne Olsen, NDSU professor of applied economics, led participants through a futures trading simulation in NDSU’s commodity trading lab, the largest in the world, which helped participants understand the fundamentals of standardized wheat trading through the U.S. futures markets. Through a futures buying exercise, he taught buyers how to minimize risk by identifying ideal buying opportunities in the futures market. Olsen also focused on the significance of fundamental analysis (supply and demand factors) in marketing decisions. He explained how to read USDA’s monthly Supply and Demand Report so importers better understand USDA surveying and statistical analysis in building each report.

Dr. David Bullock, NDSU associate research professor, lectured participants on basic hedging principals. This section helped buyers understand how to balance cash and futures positions while keeping risk at an acceptable level. He also instructed participants on options trading, which is another risk management tool ideal for importers.

Brandon Mortensen, BNSF market manager, educated participants on the intricacies of the U.S. rail transportation system. He emphasized the efficiency of the U.S. supply chain based on railroad investments in shuttle (110 to 120 cars) trains over the past few years. Mortensen explained that exports account for two thirds of all BNSF grain shipments and that BNSF works day in and day out with shippers to keep an effective system running to the benefit of U.S commodity importers.

NCI Grain Procurement Management for Importers Course participants watch elevator experts grade spring wheat according to USDA standards at a country elevator in Alton, N.D.

USW Vice President and West Coast Office Director Steve Wirsching educated participants on contracting for wheat value. He emphasized the need for buyers to have as much information as sellers when it comes to crop quality and supply so buyers can write import tenders to get the best end-use value. Wirsching encouraged buyers to communicate regularly with sellers and to build relationships with USW overseas staff.

Mike Krueger, an independent grain industry consultant, and Jim Peterson, North Dakota Wheat Commission policy and marketing director, discussed global and U.S. supply and demand factors affecting wheat prices. Peterson emphasized the difficult planting and harvesting conditions many U.S. producers faced during the 2019 growing season, especially in North Dakota, where much of the country’s spring wheat and durum is grown.

Participants also went on several tours during the course, including a CHS export facility in Superior, Wis. In a first for the NCI course, Ryan Caffrey, CHS senior durum merchant, took participants aboard a durum export vessel bound for Tunisia After the tour, representatives from USDA and the Duluth-Superior Seaway Port Authority educated participants on USDA wheat-grading practices and on the Duluth-Superior export system.

International wheat buyers tour outbound vessel at CHS export facility in Superior, Wisc. This ship will take approximately 11,000 metric tons (MT) of durum wheat to Tunisia.

Next, officials from the Minneapolis Grain Exchange (MGEX) shared the history of the exchange and current functions of the exchange in the U.S. and global marketplace. Frontier Futures broker Adam Knosalla talked about spring wheat buying opportunities, including the fact that MGEX spring wheat futures hit ten-year lows just a few weeks ago. Participants then travelled to Cargill headquarters to learn about its history, international contracts and arbitration. There was also a visit to CHS headquarters to learn about its grain merchandising practices.

NCI is a collaborative effort among North Dakota, South Dakota, Minnesota and Montana to support the promotion and market development of crops grown in this four-state region. It is an international meeting and learning center with a mission to support regional agriculture and value-added processing by conducting educational and technical programs that expand and maintain domestic and international markets for northern grown crops. USW and NCI believe strong relationships between customers and sellers of U.S. wheat build lasting, transparent relationships that last well into the future. NCI’s 36th annual Grain Procurement Management for Importers Course, and many like it in the future, will continue to build strong connections between U.S. exporters and international importers of U.S. wheat.

Header Photo Caption: USW Regional Program and Marketing Specialist Domenique Opperman; photo courtesy of Northern Crops Institute

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Taiwan Mission Will Sign Letters of Intent for U.S. Wheat Purchases

By Dalton Henry, USW Vice President of Policy

Representatives from the Taiwan Flour Millers Association (TFMA) are in Washington, D.C. this week to sign letters of intent for the purchase of wheat and other U.S. grown commodities over the next two years. The trip is part of a biennial Agricultural Trade Goodwill Mission that takes TFMA delegates to both D.C. and major wheat-producing states. During their trip, the delegation is also making stops in Oklahoma, South Dakota and Idaho to meet with farmers, grain handlers and state officials before returning to Taiwan.

The Republic of China, known as Taiwan, is consistently a top ten market for U.S. wheat. TFMA imports wheat on behalf of all 20 Taiwanese flour mills and has imported far more wheat from the United States compared to other origins, at an average of 1.07 million metric tons (38.9 million bushels) per year since marketing year 2014/2015.

“We have long had mutually beneficial trade relations with the Taiwan milling and flour products industry,” said Vince Peterson, USW President. “They continue to be a reliable trading partner that fully recognizes the value of purchasing quality U.S. grown wheat”

Members of the Taiwan delegation in Idaho with state commissioner Joe Anderson.

This year, a team of four flour millers is joining the delegation of association representatives.

Significant hard red spring (HRS) imports reflect a need for strong gluten flour for breads, rolls and frozen dough products as well as for blending with hard red winter (HRW) to make traditional Chinese flour foods and noodles. Year-to-date sales to Taiwan in marketing year 2018/19 (June to May) are up 11% from 2017/18. Imports of soft white (SW), including Western White (a blend of SW and up to 20% club), help meet growing demand for cake, cookie and pastry flours.

Follow U.S. Wheat Associates (USW) on Facebook and Twitter for pictures from this weeks activities.

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Trade Service Helps Tip the Scales to U.S. Wheat in South America

U.S. Wheat Associates (USW) works directly with overseas buyers to answer questions and resolve issues in purchasing, shipping or processing U.S. wheat through technical support and trade service including trade delegations to the United States, regular crop and market condition updates, quality surveys and other activities.

Two examples in South America confirm that USW’s face-to-face interaction with customers has a direct influence on purchase decisions. For an large flour miller buying group in Chile, processing a sample of U.S. wheat and personally observing the U.S. supply system convinced the group to purchase U.S. wheat again. And for a large miller and wheat foods producer in Ecuador, consistent trade service led to a first-time U.S. wheat purchase.

Seeing is Believing.

Chile’s Grupo 9 (G9) purchases about 30% of Chile’s imported wheat but had for several years been importing Canadian spring wheat that was priced aggressively against U.S. hard red spring (HRS) and hard red winter (HRW) wheat. Through USDA Foreign Agricultural Service programs, USW provided a sample of U.S. hard red winter (HRW) and sponsored two G9 millers to participate in a 2017 visit to the United States. Based on the positive reaction to these activities, USW’s representatives in South America invited another influential G9 representative to join another trade team to the United States in June 2018.

In Portland, Ore., the participants made contacts with new Pacific Northwest grain traders and observed the FGIS grain inspection process. In Nebraska, hosted by the Nebraska Wheat Board, the team saw public HRW breeding research at the University of Nebraska, Lincoln, and in North Dakota they learned about the quality of the 2018/19 hard red spring (HRS) crop from the North Dakota Wheat Commission and Northern Crops Institute.

2018 Chile-Ecuador Trade Team in North Dakota at the Northern Crops Institute.

As the tour progressed, USW saw more and more interest from the participants. They learned that lower moisture U.S. wheat offers good value in their milling processes. They saw how they could use inspection data to get maximum return from their wheat import contracts. They also talked to farmers and elevator operators who showed how quality is maintained throughout the supply chain.

In September 2018, the G9 buyer told USW it was considering purchasing a full cargo of U.S. wheat. USW shared the quality data from the new harvest and past years and discussed the excellent buying opportunities. In April 2019, the buyer purchased U.S. HRW to mill into bread flour and soft red winter (SRW) to mill into cookie and pastry flour. And to continue the long-term commitment to serving the buyers group, USW sponsored the same manager to participate in the “Hard Red Spring Wheat Quality Tour” in North Dakota in July 2019.

2018 Chile-Ecuador Trade Team in North Dakota.

G9’s return to buying U.S. wheat helped significantly increase export sales to Chile in 2018/19. It is a trend that has continued into 2019/20. With a sustained effort focused on replacing Canadian supplies, USW can report that after only the first three months of the marketing year, the country’s HRW imports are already twice what they were in 2018/19 at this same time.

Constant Support

Sucesores of Jacobo Paredes M. S.A, is the largest pasta producer in Ecuador and is a major bread product producer. Its purchases represent about 10% of Ecuador’s total wheat imports for food. Mr. Xavier Sanchez is the owner of the company and is responsible for its wheat purchases. Mr. Sanchez and his team have attended virtually all the activities that USW has carried out in Ecuador. However, by tradition and experience, the company has milled only Canadian spring wheat to produce both pasta and bread flour.

USW has focused its technical support on demonstrating how the company can lower its costs and improve its bread quality by replacing at least some Canadian spring wheat with U.S. HRW. In July 2019, Mr. Sanchez participated in a USW “Wheat Purchasing Seminar,” in Quito, Ecuador. He told USW representatives based in Santiago, Chile, that USW’s constant support, along with the information he received at the seminar, had convinced him to make their first purchase of U.S. wheat. Initially, Jacobo Paredes bought 3,000 metric tons (MT) of HRW min 12% pro from the Gulf of Mexico to arrive in October 2019. Recently, the company made a second purchase of 1,500 MT of HRW to arrive in December. Mr. Sanchez said he counts on USW support, which finally made the difference in the company’s purchase decision.

2019 Wheat Purchasing Seminar in Ecuador.

Now, USW’s technical support will be applied to ensure that the U.S. wheat experience will provide the best possible value. USW will visit the mill when the first HRW wheat shipment arrives to help Jacobo Paredes with sampling, conditioning and milling, in addition to helping the company formulate the best flour blend for their bakery.

For more information about USW’s exceptional trade service and technical support, please contact your local USW office.

 

Header Photo Caption: 2017 Chile Trade Team in Washington.

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Wheat Farmers Call on Congress to Pass USMCA Trade Agreement

The U.S. wheat industry is speaking out boldly on the need to pass the United States-Mexico-Canada Agreement (USMCA) this year.

Speaking at a widely attended rally sponsored by Farmers for Free Trade on Capitol Hill today, Ben Scholz, a wheat farmer from Lavon, Tex., said agriculture and wheat farmers desperately needs a win in trade and “passing the USMCA will put us in the right direction.”

As President of the National Association of Wheat Growers (NAWG), Scholz was representing all U.S. wheat farmers and, by proxy, their loyal customers in Mexico, at the rally. Members of Congress, including House Agriculture Committee Chairman Collin Peterson and Ranking Member Mike Conaway, as well as other farm leaders attended the event to discuss how USMCA provides growers with improved market access while maintaining the zero-tariff platform.

“Over the past five years, Mexico has consistently been the top market for U.S. wheat exports,” said Scholz. “USMCA retains tariff-free access to imported U.S. wheat for our long-time flour milling customers in Mexico. Further, the Agreement takes an important step towards fixing the Canadian grain grading system which automatically designates U.S. wheat imported as the lowest grade wheat which puts America’s wheat growers at a competitive disadvantage.”

Ben Scholz, a wheat farmer from Lavon, Tex.

On behalf of wheat farmers, NAWG is a member of Farmers for Free Trade, which is very focused on getting USMCA passed, including sponsoring #MotorcadeForTrade to highlight the importance of ag trade with Mexico and Canada and passing USMCA. In June 2019, NAWG joined nearly 1,000 groups representing the U.S. food and agriculture value chain at the national, state and local levels in signing a letter supporting USMCA passage. This week, Ben was also joined by fellow NAWG growers from several other states to meet with more than two dozen congressional offices to urge swift consideration of USMCA.

NAWG and U.S. Wheat Associates (USW) applauded the three countries for working together to finalize USMCA. This agreement includes important provisions for wheat farmers. Retaining tariff-free access to imported U.S. wheat for Mexico is a crucial step toward rebuilding trust in U.S. wheat as a reliable supplier in this important, neighboring market.

USW thanks Ben and the entire NAWG organization for their efforts representing wheat farmer interests in Congress.

About NAWG
NAWG is the primary policy representative in Washington D.C. for wheat growers, working to ensure a better future for America’s growers, the industry and the general public. NAWG works with a team of 20 state wheat grower organizations to benefit the wheat industry at the national levels. From their offices in the Wheat Growers Building on Capitol Hill, NAWG’s staff members are in constant contact with state association representatives, NAWG grower leaders, Members of Congress, Congressional staff members, Administration officials and the public.

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USW Video Team Travels in North Dakota to Capture Spring Wheat Harvest

North Dakota’s farm families have a remarkable choice of crops to grow. Canola, dry edible peas, flaxseed, oats, barley, sunflowers and even soybeans are all options. Yet most farmers in North Dakota’s north central “Drift Prairie” would identify themselves first as wheat growers — hard red spring (HRS) wheat growers to be specific.

Philip and Lisa Volk and their five children of York, N.D., count themselves among the state’s wheat growers, making their farm, founded in 1942 in nearby Knox, N.D., an ideal stop for production of a video program focusing on the people who contribute to the wholesome quality of U.S. wheat for dozens of different food products around the world. With previous visits to Kansas, Ohio and Washington state, the show will eventually be completed in 2020 and include additional farm families and information about the U.S. wheat supply system.

Pride and love of their North Dakota farm life are evident on the faces of Phil and Lisa Volk and four of their five children.

Phil is currently serving a four-year term on the North Dakota Wheat Commission (NDWC) and represents NDWC as a director of U.S. Wheat Associates (USW). Earlier in 2019, Phil joined three other farmers representing USW on a Board Team visit to the vibrant milling and wheat foods industries in the Philippines and Indonesia, both major destinations for the HRS wheat Volk Farms produces. He is also the Commission’s liaison to the Wheat Marketing Center and serves as the chairman of the SBARE Wheat Granting Committee.

Lisa and Phil Volk take the time to share their family’s story for USW’s video production crew on their farm in north central North Dakota.

USW wants to thank NDWC’s Erica Olson, Market Development and Research Manager, and Jim Peterson, Policy and Marketing Director, for their help arranging this important stop. And for giving their time and effort to share their story at one of the busiest times of their year, as well as for the crops they grow for the world, the Volk family deserves special thanks.

Capturing the ultimate reward for another year of effort on the Volk family farm near York, N.D., for a video production about the people who produce U.S. wheat for the world.

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Wheat Industry News

Recent news and highlights from around the wheat industry.

Quote of the Week: “There’s a real purpose in this job … there’s a calling when you’re working for an entire industry … I’ve made a lot of relationships and worked for some great companies in the ag space, but the opportunity to represent the U.S. farmer in foreign markets is really something that appeals to me.” – Ryan LeGrand, President and CEO, U.S. Grains Council quoted in an article in “Feed Navigator.com”.

Genetic Diversity Crucial to Wheat Supply. To safeguard food supplies and ensure durable disease resistance in wheat, scientists must embrace a globally integrated strategy that deploys resistance genes in a coordinated way, according to Maricelis Acevedo, associate director of science for the Delivering Genetic Gain in Wheat (DGGW) project in International Programs in Cornell’s College of Agriculture and Life Sciences. Read more in this article from the “Cornell Chronicle.”

Brazil Wheat TRQ to Open? Reuters reported Sept. 3 that the president of the Brazil’s wheat industry group Abitrigo said at a press conference that Brazil is expected to introduce a tariff-free wheat import quota of 750,000 metric tons per year starting from 2020. The report said Brazil announced the opening of the TRQ earlier this year in connection with President Jair Bolsonaro’s visit to the United States, with U.S. wheat producers seen as potential beneficiaries, although the policy has yet to be instituted. Read the story here: https://reut.rs/2ks5BU3.

Trade War Impacts. The folks who work at USW are big fans of Michelle Erickson-Jones of Montana or, as she is known on Twitter, @bigskyfarmher. In a recent article by Helen Santoro in “High Country News,” Michelle talks about the additional strain from trade issues on Montana farmers already hit hard by low crop prices. From the article: It may still be a while before producers like Erickson-Johnson turn a profit. “I would like to keep operating,” she said, but the trade war “definitely puts a little bit of a dimmer on the future of agriculture.” Read the entire article online at https://bit.ly/2jVlpyi.

Register for the 2019 World Food Prize Borlaug Dialogue International Symposium. The 2019 Symposium theme, “Pax Agricultura: Peace Through Agriculture,” will serve as an opportunity to take stock of the current state of global agriculture and food security. Learn more and register here.

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.

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Scenes from the USW 2019 World Staff Conference

More than 90 U.S. Wheat Associates (USW) staff, stakeholders and customers recently came together in Barcelona, Spain, at what USW President Vince Peterson called the best World Staff Conference (WSC) the organization has held in many years.

The conferences provide a rare but valuable opportunity for USW overseas and domestic staff to meet in person and share challenges and opportunities associated with the organization’s mission to develop, maintain and expand international markets to enhance wheat’s profitability for U.S. wheat producers and its value for their customers.

The 2019 conference included general sessions with all participants and breakout sessions focused on “Proving the Value of U.S. Wheat.” To help bring that theme to life, USW offices brought local wheat foods to share with participants. In addition, many of the sessions also examined and celebrated the significant contribution of veteran USW staff (including special recognition for colleagues who will be retiring in the relatively near future) and welcomed the next generation of people working on behalf of U.S. wheat farmers.

USW wishes to thank the USDA Foreign Agricultural Service for their support of the 2019 WSC and our ongoing work around the world. And we thank our state wheat commission members, our board of directors and many presenters from outside the organization for their contribution to the conference.

In addition to the group photo at the top of this page, here are several scenes from the conference.

Barcelona provided a wonderful backdrop to three full days of activity and learning at the USW 2019 WSC.

 

Joao Amorin Faria of Cerealis Internacional, Portugal, adds a note of humor to his general session presentation on the wheat performance needs of end use customers at the 2019 WSC.

 

USW Regional Technical Director Peter Lloyd shares his respected knowledge with participants in a breakout session focused on identifying competitive advantages of U.S. wheat.

 

The wide range of wheat foods produced using at least some portion of flour from U.S. wheat classes shown here and below added a tasty perspective on the presentations and discussions from the 2019 USW World Staff Conference.

 

 

 

 

 

 

 

 

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