JUNE 1996
Prairie Short Cuts
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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
Meeting tighter dockage standards
Japan will go to a 0.5 percent maximum dockage specification on all U.S. wheat purchases beginning Nov. 1, 1996, and other cash Pacific Rim customers including Taiwan and Korea seem likely to follow, says John Oades, director of U.S. Wheat Associates' west coast office in Portland.
Oades says 40 percent of the wheat movement off the Pacific Northwest will sell at maximum 0.5 percent dockage as soon as that level of cleanliness can be supplied. Within two years of the 1996 harvest, it could be 60 percent, with hard red and winter wheats accounting for as much as 75 percent of the total.
Farmers, elevators, and grain handlers will need to take steps to avoid almost unavoidable dockage discounts to come, and to help the U.S. stay competitive in Pacific Rim markets. Options may include:
- Optimizing cleanliness from the combine, including custom harvesting.
- Segregating cleaner wheat (under 0.5 percent dockage) as it goes into farm, elevator, and sub-terminal storage.
- Installing and using supplemental cleaning equipment at storage and handling facilities. "There is strong evidence that cleaning is less expensive in the country than at the export terminal," says Oades.
MN Council election results
In commodity council elections held this spring, Mike Seeger, Red Lake Falls; and Leroy Backman, Herman, were re-elected as directors of the Minnesota Barley Council. Ellsworth Danielson, Fosston; Cliff Keller, Fergus Falls; and Francis "Butch" Buschette, Renville, were elected to the board of the Minnesota Wheat Council. Bob Starr, Redwood Falls, steps down from the MWC board after serving for 15 years.
Ciba women's leadership program
Aase Hamnes, Stephen, MN; Jo Ann Young, Onida, SD; Ellen Huber, Bismarck, ND; and Jolene Beehler, Mandan, ND; participated in a leadership development program this past spring. Targeted to help women become more effective leaders and communicators in the wheat industry, the program was sponsored by the National Association of Wheat Growers Foundation and Ciba-Geigy, and held at Ciba headquarters in Greensboro, N.C.
"It was an extremely worthwhile experience. I think women can be more effective for the wheat industry on certain issues than men can be," says Hamnes. "On environmental issues, for example, we can be more sincere in saying that farm families aren't going to poison the environment in which we send our children." Women interested in attending the Ciba program next year may contact the MN Assn of Wheat Growers, 800-242-6118; ND Grain Growers, 800-932-8822; or SD Wheat Inc., 1-WHEATSD.
USDA: Cass, Polk counties prime farmland
Of the nation's 3,141 counties, Cass in N.D. has the most acres of prime farmland, followed by Polk in Minn., according to a USDA report. Illinois counties fill the next six slots in the list of top 10 counties with the largest number of productive acres, followed by two N.D. counties, Richland and Barnes.
Wheat Foods Council online
The Wheat Foods Council now has a presence on the World Wide Web of the Internet, thanks to the Nebraska Wheat Board's special funding for the web site start-up costs. Designed to enhance dialogue exchange with key target audiences such as media and health and nutrition leaders, the site will contain a nutrition resource center of information, quizzes, contests, recipes, and more. The site can be accessed at: http://www.wheatfoods.org
A breakdown of barley use
About 48 percent of the U.S. barley crop is used for livestock feed, 28 percent for malt production, 17 percent for export, about 4 percent as seed, and about 3 percent in food production, according to Craig Corbett, National Barley Growers Association president.
USW: dramatic impact in China
The impact of trade servicing by U.S. Wheat Associates, which conducts market development activities in close to 130 countries, can be quite dramatic. In 1983, USW introduced instant noodle technology in China through installation of the first instant noodle facility in the region. Twelve years later, more than 1,000 noodle plants are in operation, and wheat consumption in southern China has almost doubled-mostly the direct result of activities conducted by USW, which is supported in part by the wheat checkoff in North Dakota, South Dakota, and Minnesota.
Wheat mids 101
For every 100 pounds of wheat that is ground and sifted at a flour mill, only about 75 pounds becomes white flour, according to the Kansas Wheat Commission. The rest is middlings, or mill feed. Oklahoma researchers have found the protein value of wheat middlings to be similar to soybean meal, making it an effective protein and energy source for beef cows.
According to the Pillsbury Co., it was not until about 1930 that wheat middlings were used extensively as a feed ingredient. Prior to that time, middlings were even dumped into landfills or river bottoms. Today, wheat midds are second only to soybean meal as a by-product most used in feed manufacturing, according to the USDA.
1996 USDA Ag Outlook Forum gleanings
The value of world ag trade (excluding trade within the European Union) is approaching $250 billion and is steadily growing, particularly in the case of high-value products, which make up the bulk of that trade. The U.S. share of this total is now estimated at about 23 percent, up six percentage points or more than one-third since 1986.
The value of total U.S. ag exports is projected to rise substantially, approaching $80 billion by 2005. U.S. ag import values will also rise, but with exports increasing more, net ag export value will be up about $15 billion over the next 10 years.
High-value products will gain a larger share of total ag exports, rising from 57 percent in 1995 to 64 percent in 2005.
World trade in most major bulk ag commodities is projected to expand more rapidly over the next 10 years than during the 1980s or early 1990s.
Retail food prices are projected to rise less than the general inflation rate, continuing a long-term trend. Expenses for meals eaten away from home will reach almost half of total food spending by 2005.
Subway, McDonalds call on USW
A representative from the Subway franchise (which depends on a good share of U.S. hard wheats) recently called on U.S. Wheat Associates' regional office in Capetown, South Africa, for assistance. Subway is one of the growing number of companies wishing to open outlets in South Africa.
Other U.S. franchises that feature bread products in their menus have also worked with USW in developing new outlets in various places around the globe, including McDonalds, which recently opened its second restaurant in South Africa. McDonalds encountered some problems with locally supplied flour prior to the opening of one of the outlets, which resulted in the company flying in a 747 loaded with U.S. flour. The two McDonalds restaurants used 210,000 buns in the first 10 days of operation.