March 1997
A $1 billion growth market for U.S. wheat producers
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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.
Since 1972, domestic demand for wheat has increased by 360 million bushels – the size of an entire Kansas wheat crop. After bottoming out at 110 pounds per capita in 1972, per capita flour disappearance reached 142 pounds in 1995. It is expected to go even higher in 1996.
"From 1972 to 1996, domestic demand for wheat rose from 523.7 million bushels to 883.8 million bushels," said Darrell Hanavan, executive director of the Colorado Wheat Administrative Committee. "This increased demand meant an extra 69 cents per bushel for wheat producers in the 1995-96 marketing year."
Even though domestic demand has increased much in the past 25 years, the Wheat Foods Council says it has the potential to increase again by just as much. That’s because Americans still fall short of meeting the USDA’s six to 11 daily servings recommendation for grain-based foods. The USDA’s Healthy Eating Index reports that fewer than one in 10 Americans eats the recommended number of servings for grain foods daily.
Judi Adams, a registered dietitian and president of the Wheat Foods Council (WFC), said that if Americans ate just the minimum recommendation of six servings of grain foods daily, up from the three they say they are now consuming, domestic consumption of wheat flour would increase to 185 pounds per person — a 25% boost from the current 142 pounds per person.
"In monetary terms, an increase of three servings per person would mean an extra 300 million bushels of wheat consumed domestically and an additional $1 billion
in income for the producers," said Adams. "When population growth is added to this equation, the potential market expands to $1.25 billion in additional returns for producers."
Moreover, Adams said, the recommendation of six servings of grain foods daily is really only for sedentary people and older adults. The rest of the population actually needs nine to 11 servings daily, which would create an even larger growth potential for U.S. wheat producers.
The domestic market is important to all classes of wheat and to all growing regions. The WFC, supported in part by the wheat checkoffs in the Dakotas and Minnesota, is the only national organization promoting increased consumption of wheat foods domestically. It is continuously working to increase consumption of grain foods through nutrition, education and promotional programs. With the help of wheat producers, millers, bakers, and cereal, cracker, pasta and tortilla manufacturers, the WFC’s educational pro
grams reach the consumer through a strong media relations program and key opinion leaders.
During the Council’s 1995/96 year, the Council garnered 387.6 million in total print circulation, not including pass-along. For magazine hits alone, the advertising equivalency totaled more than $5.3 million – nearly four times the Council’s $1.3 million budget – in just one segment of the council’s program.
Through strong efforts with key government officials and policy makers, the Council helped achieve a 50 percent increase of grain foods in school meals – a 3-cent-per-bushel return for the wheat producer. As a direct result, wheat consumption could rise from 16 million bushels in 1993 to 30 million bushels when the program is implemented in 1998.
The WFC helped strengthen the emphasis of grain foods in the Dietary Guidelines for Americans by working with government officials and health and nutrition opinion leaders. With a greater emphasis on grain foods, this road map to good nutrition now urges Americans to "choose a diet with plenty of grain products, vegetables and fruits."