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WTO Adds Efficiency, Cost Savings Through Trade Facilitation Agreement

By Ben Conner, USW Director of Policy

Members of the World Trade Organization (WTO) have taken a major step toward making trade procedures more efficient and less costly for importers and exporters.  On Feb. 22, WTO announced that its new Trade Facilitation Agreement (TFA) entered into force. So far 112 of 164 member countries have ratified the agreement, which meets the two-thirds majority required for implementation.

TFA is the first multilateral agreement reached by WTO members since the organization’s founding in 1995. The World Economic Forum estimates that $1.6 trillion in additional annual global trade could result from this agreement. Overall, the WTO estimates a 14.5 percent reduction in trade costs through TFA implementation, while the average applied tariff is less than 10 percent.

The WTO traditionally dealt with tariffs and discriminatory measures at borders, but it was mostly silent on a major impediment to trade – inefficient trade procedures that can often be worse than tariffs in terms of their opacity and cost.

The purpose of TFA, as its name suggests, is to facilitate the movement, release and clearance of goods across borders. Red tape, delays and other regulatory measures can be a significant cost in today’s fast-paced supply chains. Demurrage can be very expensive and the risk of delay or rejection can inflate exporter bids in certain markets.

Some of the key TFA provisions will apply to all WTO member governments once the agreement is fully implemented and can help reduce the port costs of wheat trade. Under TFA, member governments must:

  • Publish all fees, laws, and regulations in an easily accessible manner;
  • Provide the right to appeal any administrative decision issued by customs;
  • Allow for additional testing in the event of an adverse first test;
  • Make transparent all fees and charges connected with imports and exports ;
  • Allow for release of goods prior to final determination of duties, taxes, fees, or other charges;
  • Coordinate border agencies to improve clearance and simplify procedures;
  • Review formalities and documentation requirements to expedite clearance periodically;
  • Encourage use of a single window to avoid having to interact with multiple agencies to clear imports;
  • Return or allow re-consignment of goods rejected for sanitary, phytosanitary, or technical reasons.

Not everything in TFA applies to all countries at the same time. “Developing” and “Least Developed Countries” as defined by the WTO are allowed some flexibility to customize their implementation process.

Still, wheat buyers in all WTO member countries should be aware that their governments have certain obligations under the TFA. It is important to ensure that each country complies with its TFA obligations to avoid major trade issues that may escalate later on.

The WTO has had a difficult time reaching new agreements that benefit world trade. TFA is a reminder that it can still be done and provides hope that the WTO will become a more vigorous institution in the future.

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Harvest Report
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Central and Southern Plains HRW is Generally Dry and Vulnerable to Frost Damage

By Stephanie Bryant-Erdmann, USW Market Analyst

USDA reported state planted area statistics for hard red winter (HRW), soft red winter (SRW) and soft white (SW) winter wheat in its Jan. 12 Winter Wheat and Canola Seeding Report. At this week’s Wheat Quality Council and Plains Grains Inc. board meetings in Kansas City, MO, however, HRW producers shared state updates of crop conditions, soil moisture conditions and planted area. A summary of what we learned from the producers supplemented with current USDA data by state follows.

Colorado. Colorado farmers planted 891,000 hectares (2.20 million acres) of wheat in the fall of 2016, down 6 percent from 2015. Farmers reported that southeast Colorado planting conditions were very dry, but the rest of the state had ample moisture. According to USDA data, topsoil moisture is short or very short for 35 percent of the state, compared to just 22 percent short or very short at the same time last year. Subsoil moisture is 42 percent short or very short across the state compared to 23 percent last year. Farmers noted warm weather has pushed the crop 7 to 10 days ahead of normal across the state, which makes it more vulnerable to late frost damage. On Jan. 30, USDA rated 36 percent of Colorado winter wheat in good to excellent condition compared to 47 percent good to excellent when the wheat went into dormancy last fall.Kansas. Farmers reported western Kansas is very dry. Subsoil moisture is rated at 41 percent short or very short, compared to 22 percent last year. USDA rated 37 percent of topsoil moisture as short or very short, compared to 19 percent in 2016. Early planted wheat established good stands last fall, but later planted wheat condition is more uncertain. On Jan. 30, USDA rated 45 percent of winter wheat as good to excellent compared to 52 percent good to excellent reported on Nov. 28. Last fall, Kansas planted 3.00 million hectares (7.40 million acres), down 13 percent year over year and the lowest planted area in 60 years.

Montana. Last fall, wet field conditions prevented some wheat planting in Montana. With a poor outlook for winter wheat prices, strong competition from peas and lentils shifted more acres in Montana. They planted 770,000 hectares (1.90 million acres) of wheat in 2016, down 16 percent from 2015. Farmers noted normal crop development and sufficient soil moisture, though some areas had below normal snow cover that increased the risk of winterkill. USDA rated topsoil moisture supplies at 13 percent short or very short, 77 percent adequate and 10 percent surplus, compared to 17 percent short or very short, 79 percent adequate and 4 percent surplus last year on the same date. On Jan. 30, USDA rated 70 percent of Montana winter wheat in good to excellent condition compared to 77 percent good to excellent when the wheat went into dormancy last fall.

Nebraska. Farmers reported good stands last fall, but western Nebraska is dry. The last measurable precipitation for that region occurred on Christmas day. USDA rated subsoil moisture supplies at 31 percent short or very short, compared to 19 percent on the same date last year. Topsoil moisture supplies are 23 percent short or very short, compared to 14 percent last year. With wheat now 5 to 7 days ahead of normal, the Nebraska crop is also more vulnerable to late frost damage. USDA rated 47 percent of Nebraska winter wheat in good to excellent condition on Jan. 30, compared to 53 percent good to excellent last November prior to dormancy. Nebraska farmers planted 441,000 hectares (1.09 million acres) of wheat in 2016, down 20 percent from 2015 and the lowest planted area on record for Nebraska.

Oklahoma. Most of Oklahoma received precipitation over the last few weeks that prevented further depletion of soil moisture, but it was insufficient to alleviate drought conditions. USDA rated topsoil moisture supplies at 38 percent short or very short compared to 60 percent short or very short last year. Subsoil moisture supplies are 56 percent short or very short, compared to 70 percent one year prior. Farmers noted wheat development is 12 days ahead of normal making it more vulnerable to late frost damage. Oklahoma farmers planted 1.82 million hectares (4.50 million acres) of wheat in 2016, down 10 percent from the prior year because late-season rain prevented some wheat planting. USDA rated 33 percent of Oklahoma winter wheat in good to excellent condition on Jan. 30, compared to 53 percent good to excellent when the wheat went into dormancy last fall.

South Dakota. Beneficial moisture last fall allowed for good stand establishment in South Dakota. Abundant snow cover is protecting the wheat and limiting winterkill risk. Topsoil moisture supplies rated 84 percent adequate, compared to 79 percent adequate last year. Subsoil moisture supplies rated 23 percent short to very short, 76 percent adequate and 1 percent surplus compared to 26 percent short or very short, 72 percent adequate and 2 percent surplus in 2016. USDA rated 62 percent of South Dakota winter wheat in good to excellent condition compared to 51 percent good to excellent when the wheat went into dormancy last fall. South Dakota farmers planted 364,000 hectares (900,000 acres) of winter wheat, down 24 percent year over year.

Texas. Last fall, Texas farmers planted 1.82 million hectares (4.50 million acres) of wheat, down 10 percent from the prior year in very dry field conditions. In the past two years, Texas planted wheat area has dropped by 20 percent. Early planted wheat emerged last fall, but the later planted wheat did not emerge until after beneficial precipitation fell in December. Farmers estimate the earlier planted wheat is 7 days ahead of normal development, while the later planted wheat is still emerging. USDA reported 93 percent of winter wheat had emerged by Jan. 30. On Jan. 30, USDA rated 29 percent of Texas winter wheat in good to excellent condition compared to 41 percent good to excellent when the wheat went into dormancy last fall.

USDA will release its next crop progress update Feb. 28 and will resume weekly crop condition reporting April 3.

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Improving the Policy Environment for Agricultural and Food Trade in the Asia-Pacific Region

By Ben Conner, USW Director of Policy

With the U.S. withdrawal from the Trans-Pacific Partnership (TPP), U.S. agriculture groups are looking for other ways to improve trade policy across the Asia-Pacific region. This week, U.S. Wheat Associates (USW) joined 86 other food and agriculture organizations in a letter to President Donald Trump highlighting the importance of this region for U.S. agriculture.

Noting the large and growing markets in the Asia-Pacific region, the organizations wrote that reducing or eliminating tariffs and other restrictive agricultural policies would help consumers see more of the higher quality food and agricultural products they desire but cannot supply locally.

The letter also highlights the importance of free trade for agriculture, especially given the context of aggressive trade negotiations by competing countries looking for markets in the region.

“While many in our sector strongly supported the Trans-Pacific Partnership, we hope future agreements build upon the valuable aspects of that agreement to increase our market access in the Asia-Pacific,” the organizations wrote. “We welcome an opportunity to work with your Administration to ensure that America’s farmers, ranchers, processors and food companies do not fall behind … in this vitally important economic region.”

With unprofitable farm gate prices, a challenging volume of grain stocks and a strong U.S. dollar, remaining competitive in the growing overseas markets like those in the Asia-Pacific region is vital to the economic health of U.S. farmers. And USW believes healthy food and agriculture sectors are also a vital part of meeting demand around the world.

That is why the letter, with USW among the signatories, specifically expresses the willingness of these sectors to work with the Administration to “preserve and expand” trade policy gains, both for the sake of U.S. farmers and their customers who benefit from expanded access to quality products.

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U.S. Wheat Farmer Leaders Meet in Washington, DC

Wheat farmers came together in the nation’s capital last week to participate in joint meetings between the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW). These industry leaders discussed many issues facing wheat farmers and many of them visited their members of Congress to share long-term goals for the future of the crop and their farm livelihood.

Official business was called to order Tuesday, Jan. 31, and continued through Thursday, Feb. 2. USW and NAWG directors first met in joint committee meetings to learn more about plant breeding innovation and international trade policies that affect wheat farmers. USW’s individual committees also met, focusing on long-range planning, sanitary and phytosanitary issues affecting wheat trade, reports on hard white (HW) wheat production and export demand, and issues related to wheat quality.

An important topic at these meetings was the long-term status of the public-private partnership between the federal government and farmers supporting export market development activities. USDA’s Foreign Agricultural Service administers two programs that fund trade service, technical support and other activities that educate overseas customers about the value of U.S. agricultural products like wheat. The Market Access Program (MAP) and Foreign Market Development (FMD) have specific budgets that have not changed substantially since 2002; however, mandated cuts the past few years and inflation have reduced the effective value of the program budgets. Meanwhile, farmer contributions have increased.

USW, as a member of coalitions that advocate for MAP and FMD, explained to the farmer directors that more program funding is needed to continue serving our long-term customers and to introduce U.S. wheat quality and value to new customers.

“With new technology and farmers becoming more efficient, we are growing more and more wheat, even on less planted area,” said USW Chairman Jason Scott of Easton, MD. “But domestic consumption cannot keep pace with the production so the growing demand for wheat is overseas in the large population centers with rising disposable incomes.”

Scott said wheat growers need to join other farmers, ranchers and small agricultural businesses to voice support for increased MAP and FMD funding in the next Farm Bill to keep competing on an even playing field in the global market.

In other action, the USW board approved the organizations annual budget and elected the new 2017/18 board leadership for the upcoming fiscal year.

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Harvest Report
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Winter Weather and Strong U.S. Grain Demand Add Up to Unusual Port Delays

By Stephanie Bryant-Erdmann, USW Market Analyst

The sharp inverse in export basis between March delivery and April delivery for U.S. wheat at both Gulf and Pacific Northwest (PNW) ports indicates that exporters have faced logistical challenges during a brutally cold and snowy winter. It also provides a savings opportunity for those customers who can wait for delivery until April or May.

USDA data shows that in January, U.S. grain export inspections increased 18 percent year over year and are on par with the 5-year average. The bad winter weather began slowing rail and barge arrivals at both Gulf and PNW ports in December. Those delays worsened as January brought frigid temperatures and snow to the U.S. Northern Plains, Midwest and, unusually so, to PNW ports. This year’s snowfall is the largest in Portland, OR, since 1995.

Railcar supply tightened in December and January, as the bad weather slowed train movement across the Northern Plains. In severe cold, railroads must decrease the number of cars pulled by each locomotive for safety reasons. During January, the U.S. rail system round trip rate slowed according to Surface Transportation Board data. In turn, the higher demand for rail freight pushed secondary rail freight rates dramatically higher.

In calendar 2016, barges delivered 43.2 million metric tone (MMT) of grain to U.S. Gulf ports, the largest volume recorded since USDA began tracking in 2003. This year, demand for barge space continued into January rather than tapering off after fall harvest. Year to date in 2017, barges moved 2.81 MMT of grain on the Mississippi River, up 18 percent year over year and 21 percent above the 5-year average.

While U.S. export facilities have some storage on-site, a consistent flow of grain from the interior is needed to keep up with vessel loading. Since 2010, PNW export terminal storage capacity has increased 27 percent to 1.08 MMT, yet PNW export terminals turn their inventory about every 12 days. Gulf export terminals have roughly 2.2 MMT of capacity and on average turn over their inventory about every 10 days.

With the delays in grain delivery, vessels waiting to load have increased significantly. In its Feb. 2 Grain Transportation Report, USDA said 65 vessels were at port in the U.S. Gulf, compared to the 2016 weekly average of 43 vessels. Throughout January, the U.S. Gulf had an average 58 vessels either loading or waiting, up 14 percent from January 2016 and 25 percent above the 5-year average. As of Feb. 2, there were 37 vessels at port in the PNW, up 85 percent from the same time last year.

Looking ahead, exporters believe they can work through the backlog by the end of March barring any additional severe weather events. In January, an average 43 vessels per week loaded in the Gulf, compared to an average 40 vessels per week in 2016. Though PNW vessel loading slowed to an average 10 vessels per week for the first three weeks of 2017, Federal Grain Inspection data showed 31 vessels were loaded between Jan. 26 and Feb. 2.

As exporters continue to load vessels, U.S. wheat customers are likely very aware of demurrage and dispatch clauses in their contracts. All types of export contracts include incentives for exporters to load as quickly as possible to avoid incurring demurrage. U.S. law ensures customers’ contracts will be fulfilled as soon as physically possible because it is in the exporter’s financial interest to do so. According to traders, demurrage on current charters in the PNW and Gulf are averaging $12,000 per vessel per day.

This year’s weather has certainly been worse than normal, but the issues that come with such challenges are well-known. That is partly why U.S. railroads, ports and waterway associations continually invest in infrastructure to improve the flow of grain from U.S. farmers to overseas customers.

Customers who have adequate supplies can save between $6 to $20 per metric ton at current export basis levels depending on the class and port of origin by pushing new wheat business deliveries out to April or May. As always, the U.S. wheat store remains open and transparent. And, as always, U.S. Wheat Associates (USW) representatives are available to answer any questions customers may have about U.S. export logistics and how they can continue to get the best value possible from U.S. wheat.

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Mexico Stands as a Leading U.S. Wheat Buyer

By Steve Mercer, USW Vice President of Communications

U.S. Wheat Associates (USW) represents the interests of U.S. wheat farmers in international markets. The organization is grateful to all its overseas wheat buyers, flour millers and wheat food processors for their strong preference for U.S. wheat and for their friendship. At a time when new circumstances have generated some uncertainty about trade, USW believes it is important to provide perspective on the long-standing, loyal relationship U.S. wheat farmers have with one of those customers: our neighbor to the south, Mexico.

Simply put, Mexico is one of the largest U.S. wheat buyers in the world, importing just under 3.0 million metric tons (MMT) on average going back many years. Mexico’s U.S. wheat imports typically only fall just short of the volume Japan imports. Not this year, however. In the first 7 months of marketing year 2016/17 through Feb. 2, Mexico’s flour millers have imported 2.4 MMT of U.S. wheat, which is more than any other country. That volume is up 5 percent over last year at the same time.

Breaking down their purchases by class, flour millers in Mexico generate strong demand for U.S. hard red winter (HRW) wheat. In 2015/16, they were the leading HRW importers and are taking advantage of the favorable prices and high quality of the 2016/17 HRW crop. At a current volume of about 1.4 MMT, they have imported 71 percent more HRW this year and again lead buyers of that class. A rising number of industrial bakeries, along with traditional artisanal bakeries, account for about 70 percent of wheat consumption according to CANIMOLT, the association representing Mexican millers. That puts HRW producers in a good position to meet that demand. Being closer to HRW production and having a highly functioning ability to import a large share of HRW directly via rail from the Plains states is an advantage for Mexico’s buyers.

In addition, Mexico is home to Bimbo, the world’s largest baked goods company, and an increasing number of cookie and cracker companies. The low protein content, soft endosperm and weaker gluten of U.S. soft red winter wheat (SRW) is well suited to the production of cookies, crackers and pastries, and serves as an excellent blending wheat. Millers supplying this growing market imported an average of 1.2 MMT of SRW between 2011/12 and 2015/16. With imports from the Gulf of more than 730,000 MT of SRW so far in 2016/17, Mexico is the top buyer of SRW again. USW and state wheat commissions from the PNW are also helping demonstrate how millers and bakers can reduce input costs by blending with U.S. soft white (SW).

As it does with all U.S. wheat importing customers, USW focuses on helping Mexico’s buyers, millers and food processors solve problems or increase their business opportunities with U.S. wheat classes. This effort, supported by wheat farmers and the partnership with USDA’s Foreign Agricultural Service, has fostered a productive relationship that has endured for decades through many challenges. More than 22 years of duty free access to the Mexican market under the North American Free Trade Agreement (NAFTA) certainly helped build the relationship.

Yet our customers there have many other sources of milling wheat to which they can turn. In response to rising world grain prices in 2008, Mexico lifted a 67 percent import tariff on wheat from outside the United States and Canada. In 2009/10, France made the first non-NAFTA origin wheat sale to Mexico since the trade agreement was implemented in 1995. Russian and Ukrainian wheat has been imported, too. To date, the tariff has not been reapplied and the Mexican import market is currently tariff-free for wheat from all qualified origins. Just this week, the leaders of Brazil and Argentina, both large grain exporting nations, said they would pursue closer ties with Mexico and other Latin American nations.

Looking ahead, NAFTA will likely be renegotiated. USW and wheat farmers understand that there are a number of elements of the trade agreement that need to be re-examined and modernized. The successful story of how U.S. wheat farmers and their customers in Mexico have worked together in a mutually beneficial way must be shared as part of the effort to update NAFTA. For now, U.S. wheat continues to flow to our customers in Mexico. During upcoming trade negotiations and beyond the eventual outcomes, wheat farmers, through USW, will continue to help and support the buyers from Mexico, as they would help and support their own neighbors.

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New Trade Policies Generate Some Whiplash

As promised, on the first working day of his presidency, Donald J. Trump fulfilled his campaign promise to withdraw from the Trans-Pacific Partnership (TPP), and gave notice to Mexico and Canada that the United States intends to renegotiate some parts of the North American Free Trade Agreement (NAFTA).

For decades, U.S. presidents of both parties have been largely consistent in their views on trade agreements. The TPP vision began under President George W. Bush, and was almost fulfilled under President Barack Obama — two presidents who agreed on few other policy areas. They both believed that opening borders to (mostly) free flow of trade in goods and services would benefit its TPP partners in the Asia-Pacific region and, in turn, U.S. industries.

As producers of high quality wheat classes, U.S. wheat farmers are oriented towards international markets. Through decades of experience, the industry also recognizes that free trade agreements like TPP and NAFTA are good for our customers looking to expand their milling and wheat foods enterprises in part with U.S. wheat quality and value. For exporters and importers, these agreements also offer rules to ensure that the resulting “free trade” is also “fair trade” or close to it.

It is clear that the Trump Administration does see some value in the existing trade agreements. Its next action on trade was to request a panel at the World Trade Organization (WTO) dispute settlement body in the U.S. trade enforcement case about excessive Chinese subsidies. This request, made on January 25, starts the official litigation process under WTO rules.

One could be forgiven for experiencing a bit of trade policy “whiplash.” On Day 1, President Trump withdrew from TPP alleging it is not strong enough for American workers; on Day 3 his Administration used WTO rules to act on behalf of American farmers. The new trade enforcement rules under TPP would have been much stronger than WTO rules in most respects. Now that TPP is gone, the United States must work within rather cumbersome WTO rules across most of the Asia-Pacific, at least until new trade deals are negotiated.

The statement directing the Office of the U.S. Trade Representative to withdraw from TPP also directed it “to begin pursuing, wherever possible, bilateral trade negotiations to promote American industry, protect American workers, and raise American wages.” USW continues to support new agreements that expand free, rules-based trade, as TPP would have done, and encourage that agricultural interests be able to continue to provide input into those negotiations.

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International Grains Council Sees a Smaller 2017/18 Wheat Harvest

By Stephanie Bryant-Erdmann, USW Market Analyst

USDA will issue its first 2017/18 world wheat supply and demand estimates in May, but on Jan. 19 the International Grains Council (IGC) provided an early look ahead at the next marketing year. IGC pegged 2017/18 world wheat production at 735 million metric tons (MMT), down 2 percent from the estimated 752 MMT produced in 2016/17. If realized, it would still be the third largest wheat crop ever, but would be the first year over year decline in 5 years. For comparison, USDA estimates 2016/17 global wheat production at 753 MMT.

IGC expects just two of the major exporting countries, Russia and Ukraine, to harvest more wheat in 2017/18, even though their estimates are up only 1 percent and 2 percent, respectively. IGC predicts European Union harvested area will remain stable in 2017/18. Harvested area is forecasted to fall 3 percent in Argentina, Australia and Canada, while IGC expects farmers in the United States and Kazakhstan to harvest 8 percent and 10 percent less wheat, respectively.

Harvested area in Morocco is expected to rebound to a more normal level after widespread rain eased drought conditions that cut its 2016/17 harvested area by 26 percent in 2016/17 to just 5.19 million acres (2.1 million hectares). Projected increases in India, North Africa, Turkey, Iran and Egypt will offset the expected decreases in harvested area among the major exporters according to IGC data.

2017/18 carry-in stocks are estimated at a record large 235 MMT, up 6 percent year over year, if realized. However, the larger carry-in stocks are not anticipated to offset the forecasted decrease in production, and total world supply would decline 3 MMT to a projected 970 MMT.

For the first time since 2012/13, IGC expects total consumption to be greater than total production. Total consumption is forecast at 737 MMT, down an estimated 1 MMT from 2016/17. Food use will climb over 500 MMT for the first time ever, partially offsetting an expected decrease in feed and residual use due to smaller production in Canada and the United States.

IGC believes 2016/17 world wheat trade will shrink to 164 MMT, down 4 percent from the prior year, if realized. With consumption outpacing production, IGC expects carryout stocks to decrease marginally year over year to 234 MMT.

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Plant Breeding Innovations to Help Meet Increasing Demand for Safe, Affordable Food

Through advancements in agriculture and the development of new crop varieties, humans have historically strived to meet the needs of a growing population and to develop a safe, reliable and sustainable food supply. How will we continue to meet this challenge, while dealing with a changing climate and threats of new pests and diseases? The American Seed Trade Association (ASTA) affirms that continued innovation is paramount to the future of agriculture and to our shared quality of life. Plant breeders including those who develop new wheat varieties will need access to available tools to responsibly meet these challenges.

The fundamental practices of plant breeders have not changed over time, ASTA notes. Plant breeders still select the best plants for their desired goal, which may be higher yields, disease resistance, improved end use characteristics or better nutrition. However, the tools and information that plant breeders use have evolved, allowing them to take advantage of the growing understanding of plant science and genetics. Today, with the capability to sequence plant genomes and the ability to link a specific gene or genes to a specific characteristic, breeders are able to more precisely make improvements in plant varieties. Breeders can also make specific changes in existing plant genes in ways similar to changes that could occur in nature.

Innovative breeding methods include a variety of tools that mimic processes that have been used in traditional breeding since the early 20th century. ASTA reports that breeders may opt to use the newer methods rather than classical breeding to reach the same endpoint more accurately and efficiently. As with more traditional breeding methods, some of the newer methods focus on using a plant’s own genes, or genes from the plant’s wild relatives, to create a desired characteristic, such as disease resistance or drought tolerance. It is a more precise way of creating genetic variation — a longtime goal of plant breeders. To read more about innovations in wheat breeding, visit https://www.heartlandinnovations.com/about-us/kansas-wheat-innovation-center.

It is important to note that seeds are comprehensively regulated by USDA. A key feature of the plant breeding process is extensive testing and evaluation starting early in the process and continuing until the final product is commercially available. These tests are based on procedures breeders have used for many decades to create new plant varieties that are safe to grow and eat.

The world’s farmers and food manufacturers understand that America’s agriculture producers face the very real challenge of providing for a growing population so future generations have access to the same diverse, nutritious and high quality food we enjoy today. ASTA believes improved breeding methods will help meet these needs more efficiently and economically through agriculture practices that preserve natural resources and biodiversity. These new breeding methods are accessible to both public and commercial plant breeders in developed and developing countries, and they can be used across all agriculturally important crops, including food, feed, fiber and fuel crops.

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Farmer Leaders to Meet with Customers in Thailand and the Philippines

By Amanda J. Spoo, USW Communications Specialist

Every year USW sends teams of U.S. farmers overseas to visit markets they supply with wheat. These regional visits highlight the day-to-day work and marketing strategies of USW’s overseas offices and connect the farmers to their customers and industry stakeholders.

“The feedback we hear consistently from our customers is how much they appreciate getting to know the farmer firsthand,” said USW Vice President of Overseas Operations Vince Peterson. “These team visits give farmers the opportunity to follow their wheat overseas, and as businessmen and women, those personal connections are invaluable.”

USW Communications Specialist Amanda Spoo will lead USW’s 2017 South Asia Board Team to Thailand and the Philippines in February. The team includes Dustin Johnsrud, a wheat farmer from Epping, ND, serving his first four-year term on the North Dakota Wheat Commission; Denise Conover, a wheat farmer from Broadview, MT, and a director on the Montana Wheat and Barley Committee; and Clint Vanneman, a wheat farmer from Ideal, SD, and a current USW director representing the South Dakota Wheat Commission.

The team will first meet at the USW West Coast Office in Portland, OR, for briefings by USW and the Wheat Marketing Center, as well as visits to the Federal Grain Inspection Service and the local United Grain export terminal. During three days in Thailand, the team will visit the United Flour Mills (UFM) Baking and Cooking School as well as tour a flour mill, a bakery and an international food manufacturing plant. The second leg of the trip features two days in the Philippines, which includes tours of a mill and a food manufacturer. The team will also have the opportunity to attend the Filipino-Chinese Bakery Association Inc. (FCBAI) Bakery Fair.

The Thai milling wheat market has grown at a robust 5 percent for the past two years. USDA estimates that milling wheat demand reached 1 MMT for the first time in the 2012/13 marketing year and has increased to 1.24 MMT in 2016/17. Customers there imported about 50 percent of their milling wheat from the United States in 2015/16. In an evolving Thai market, consumer preferences are changing and there is increased demand for baked goods, biscuits and noodles. Over the past four decades, USW has worked closely with the UFM Baking and Cooking School in Bangkok to train and provide technical assistance to South Asian bakers and demonstrate the quality and value of U.S. wheat classes.

The Philippines was the third largest buyer of U.S. wheat in the 2015/16 marketing year with total imports reaching almost 2.2 MMT and was the largest buyer of both soft white (SW) and hard red spring (HRS). In this dynamic market, USW continues to help the milling and baking industry navigate changes by providing technical assistance and marketing training, and investing in activities to increase wheat flour consumption. USW established an office in Manila in 1961, allowing USW to maintain close, long-term relationships with industry leaders in the Philippines.

“Visiting these markets will give the farmers a unique look at the value of using high quality U.S. wheat and why these markets prefer it for their end-products,” said Peterson.

The team will post regular travel updates and photographs, and will report to the USW board. Follow their progress on the USW Facebook page at www.facebook/uswheat and on Twitter at @uswheatassoc.

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