Prairie Grains Nov 97 - US Wheat Associates

Issue 10
November 1997
WHEAT WORLD

Activities Funded in Part by the Minnesota Wheat Checkoff

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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.

Jordan Makes First Private Wheat Purchase
The Jordanian Ministry of Supply, previously the country's sole wheat buyer, recently began an ambitious plan to eliminate its import monopoly on wheat, rice and sugar. In doing so, Jordan joins many other countries throughout the world that have or are in the process of privatizing wheat imports. In August, the first purchase of wheat was made by a private buyer, consisting of 30,000 metric tons (MT) of wheat and 20,000 MT of corn.

Ag Exports to Rise in FY98
U.S. agricultural exports are expected to rise in fiscal year (Oct.-Sept.) 1998 to approximately $58.5 billion, a $2 billion or 3.5% increase. According to a U.S. Department of Agriculture report, grain, meat and horticultural products are expected to account for the majority of the gain.
Educating Brazilian bakers
U.S. Wheat Associates (USW) recently sponsored the participation of 18 bakers in a five-day bakery seminar in Rio Branco, Brazil. Course topics included bakery quality, productivity and sales techniques. The activity was an effective way to educate Brazilian bakers about the quality of U.S. wheat.
Taiwan lowers dockage limits
The Taiwan Feed Manufacturers Association is lowering its maximum dockage limit on wheat imports from 0.8% and 0.7% to 0.5%, beginning Feb. 1, 1998. The new limit will apply to dark northern spring, hard red winter, durum and white wheat. USW has long been working with foreign importers and the U.S. grain trade since the 1980s to reduce the dockage level of U.S. wheat exports. In 1995, Japan announced similar changes in dockage limits, also following urging from USW. Buyers in Japan and other countries have complained about the high dockage content of U.S. wheat in comparison to Canada and Australia, major competitors in the world wheat marketplace.

Vietnam makes first purchase of U.S. wheat
Last month Vietnam received its first delivery of commercially purchased U.S. wheat since the United States lifted its 19-year trade embargo with Vietnam in 1994.
The Binh Dong Flour Mill, currently the only operating flour mill in Vietnam, made the landmark purchase of 10,000 metric tons of U.S. wheat in August, 1997: 5,000 tons each of hard red spring and hard red winter for October delivery. Approximate value: $1.7 million.
Vietnam has historically been primarily a flour importer and currently does not import a large amount of wheat. However, the country is expected to open a second flour mill this fall, and other mills are in various stages of development. The country has the potential to become a one million metric ton wheat importer within the next several years.
Although Vietnam currently has a low wheat consumption level, technical and trade servicing programs by U.S. Wheat Associates could help double consumption in the next four to five years. USW estimates that Vietnam has the potential to become a one million metric ton wheat importer, which could mean up to $200 million in additional sales for U.S. wheat farmers.

(Vietnamese food industry leaders visit the Avisco Bakery in Ho Chi Minh City to learn more about wheat quality needs. Last month, Vietnam received its first delivery of commercially purchased U.S. wheat since the U.S. lifted its 19-year trade embargo with Vietnam in 1994 - USW file photo)

Wheat sale to Vietnam didn't come out of the blue
"It's important to note that this U.S. wheat export achievement didn't come out of the blue. The sale was a direct result of market development activities with Vietnam that paved the way for U.S. wheat export business," says Cliff Keller, a wheat producer from Fergus Falls, Minn., and chairman of the Minnesota Wheat Research and Promotion Council (MWRPC), which helps to fund USW through the Minnesota wheat checkoff.
In early 1992, the U.S. government granted limited exceptions to the long-standing economic embargo. Later that year, USW began conducting checkoff-funded fact finding missions to Vietnam. When the U.S. government lifted trade embargoes against Vietnam in early 1994, U.S. wheat leaders were meeting in Vietnam with government officials when the announcement was made.
Ever since, USW has conducted a variety of activities to help the Vietnamese improve their milling and noodle making technology, and to educate them about U.S. wheat and purchasing and contract mechanisms. Most recently, USW conducted a South Asian Buyers Conference in Singapore, attended by trade representatives from the Vietnamese Binh Dong Flour Mill. Buyers from the mill indicated that information obtained through the conference was helpful in their purchase negotiations.
Growing market in Mexico
Total Mexican wheat imports have increased significantly during the last five years, establishing an elevated range of 1.2-1.7 million metric tons. U.S. wheat exports to Mexico during the 1996/97 marketing year totaled 1.491 mmt making it the sixth largest importer of U.S. wheat. There is an increasing demand for quality in Mexico, and a trend to purchase more stringent contract quality specifications and to source wheat from U.S. origins that can provide acceptable milling quality wheat.

Trade teams visit area
South African wheat buyers were among the overseas trade teams to visit the Northern Plains this summer, sponsored in part by the Minnesota Wheat check-off. The four participants were Executives of the Bokomo/Sasko Group which owns and operates both flour mills and bakeries. Their trip allowed them to learn more about the U.S. wheat marketing system and understand the advantages that U.S. wheat has over our competition.
A group of Italian hard red spring and durum millers also visited the area, to learn more about the U.S. wheat marketing system. Their visit included terminal elevator facilities at Duluth.

American Quality Wheat Seal Awareness Level High
Approximately 85% of the Egyptian population is aware of the "American Quality Wheat Seal," which is being utilized by the USW office in Cairo as part of its quality seal campaign in Egypt. The awareness level was determined as part of a survey arranged by USW to test consumer attitudes about the seal and the campaign, which includes advertising and a partnership program with wheat foods companies to create consumer-driven demand for U.S. wheat. USW/Cairo currently is developing a retail sales component of the promotion program.
On average, Egypt imports over six million tons of wheat each year, with approximately one-half to two-thirds supplied by the U.S. Egypt's economic strides over the last decade have allowed the country to move from buying wheat on credit to become a cash buyer of U.S. wheat.

Chile To Allow US Wheat Imports
USDA announced last month that Chile would allow U.S. wheat importation, so long as the wheat originates from areas found to be free of Karnal bunt. Upon review of the current APHIS Karnal bunt survey, Chilean officials seem to be satisfied with USDA certification. According to sources in Santiago, the trade in Chile is comfortable with a ruling on Karnal bunt and buyers intend to seek US offers next July, when US wheat is competitive in the Chilean market. In years past, Chile has imported large quantities of US wheat. However, such activity was halted, upon the discovery of Karnel bunt in the US, in March of 1996.

Northern Crops Institute educates buyers
Through the Minnesota wheat checkoff, the MWRPC funds two ongoing overseas market development programs: 1) U.S. Wheat Associates (USW), an export market development organization supported by wheat growers through 18 state wheat organizations, including Minnesota; and 2) the Northern Crops Institute (NCI), a center based in Fargo, N.D. that educates overseas customers how to buy and use northern-grown crops.
Last May, a top executive with the Binh Dong Flour Mill in Vietnam participated in the first flour mill management course conducted at the NCI for exclusively Vietnamese participants. The course emphasized U.S. wheat quality in addition to mill management practices.
"The NCI staff and I are pleased that our involvement may have played some small part in this purchase," says Pat Berglund, NCI director. "We continue to look for opportunities to assist our region and U.S. Wheat Associates in developing markets for U.S. wheat."

(USW file photo of NCI in Fargo, North Dakota)

Copyright Prairie
Grains Magazine
November 1997
WHEAT WORLD is brought to you by the producer-funded Minnesota Wheat Research and Promotion Council, provides insight about U.S. Wheat Associates, the export market development organization representing U.S. wheat growers through 18 state wheat organizations:AZ, AR, CA, CO, ID, KS, MN, MT, NE, NC, ND, OK, OR, SD, TX, VA, WA, and WY.

Issue 10 November 1997	WHEAT WORLD Activities Funded in Part by the Minnesota Wheat Checkoff

Library Home E-Mail Back 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.	Jordan Makes First Private Wheat Purchase The Jordanian Ministry of Supply, previously the country's sole wheat buyer, recently began an ambitious plan to eliminate its import monopoly on wheat, rice and sugar. In doing so, Jordan joins many other countries throughout the world that have or are in the process of privatizing wheat imports. In August, the first purchase of wheat was made by a private buyer, consisting of 30,000 metric tons (MT) of wheat and 20,000 MT of corn. Ag Exports to Rise in FY98 U.S. agricultural exports are expected to rise in fiscal year (Oct.-Sept.) 1998 to approximately $58.5 billion, a $2 billion or 3.5% increase. According to a U.S. Department of Agriculture report, grain, meat and horticultural products are expected to account for the majority of the gain. Educating Brazilian bakers U.S. Wheat Associates (USW) recently sponsored the participation of 18 bakers in a five-day bakery seminar in Rio Branco, Brazil. Course topics included bakery quality, productivity and sales techniques. The activity was an effective way to educate Brazilian bakers about the quality of U.S. wheat. Taiwan lowers dockage limits The Taiwan Feed Manufacturers Association is lowering its maximum dockage limit on wheat imports from 0.8% and 0.7% to 0.5%, beginning Feb. 1, 1998. The new limit will apply to dark northern spring, hard red winter, durum and white wheat. USW has long been working with foreign importers and the U.S. grain trade since the 1980s to reduce the dockage level of U.S. wheat exports. In 1995, Japan announced similar changes in dockage limits, also following urging from USW. Buyers in Japan and other countries have complained about the high dockage content of U.S. wheat in comparison to Canada and Australia, major competitors in the world wheat marketplace. Vietnam makes first purchase of U.S. wheat Last month Vietnam received its first delivery of commercially purchased U.S. wheat since the United States lifted its 19-year trade embargo with Vietnam in 1994. The Binh Dong Flour Mill, currently the only operating flour mill in Vietnam, made the landmark purchase of 10,000 metric tons of U.S. wheat in August, 1997: 5,000 tons each of hard red spring and hard red winter for October delivery. Approximate value: $1.7 million. Vietnam has historically been primarily a flour importer and currently does not import a large amount of wheat. However, the country is expected to open a second flour mill this fall, and other mills are in various stages of development. The country has the potential to become a one million metric ton wheat importer within the next several years. Although Vietnam currently has a low wheat consumption level, technical and trade servicing programs by U.S. Wheat Associates could help double consumption in the next four to five years. USW estimates that Vietnam has the potential to become a one million metric ton wheat importer, which could mean up to $200 million in additional sales for U.S. wheat farmers. (Vietnamese food industry leaders visit the Avisco Bakery in Ho Chi Minh City to learn more about wheat quality needs. Last month, Vietnam received its first delivery of commercially purchased U.S. wheat since the U.S. lifted its 19-year trade embargo with Vietnam in 1994 - USW file photo) Wheat sale to Vietnam didn't come out of the blue "It's important to note that this U.S. wheat export achievement didn't come out of the blue. The sale was a direct result of market development activities with Vietnam that paved the way for U.S. wheat export business," says Cliff Keller, a wheat producer from Fergus Falls, Minn., and chairman of the Minnesota Wheat Research and Promotion Council (MWRPC), which helps to fund USW through the Minnesota wheat checkoff. In early 1992, the U.S. government granted limited exceptions to the long-standing economic embargo. Later that year, USW began conducting checkoff-funded fact finding missions to Vietnam. When the U.S. government lifted trade embargoes against Vietnam in early 1994, U.S. wheat leaders were meeting in Vietnam with government officials when the announcement was made. Ever since, USW has conducted a variety of activities to help the Vietnamese improve their milling and noodle making technology, and to educate them about U.S. wheat and purchasing and contract mechanisms. Most recently, USW conducted a South Asian Buyers Conference in Singapore, attended by trade representatives from the Vietnamese Binh Dong Flour Mill. Buyers from the mill indicated that information obtained through the conference was helpful in their purchase negotiations. Growing market in Mexico Total Mexican wheat imports have increased significantly during the last five years, establishing an elevated range of 1.2-1.7 million metric tons. U.S. wheat exports to Mexico during the 1996/97 marketing year totaled 1.491 mmt making it the sixth largest importer of U.S. wheat. There is an increasing demand for quality in Mexico, and a trend to purchase more stringent contract quality specifications and to source wheat from U.S. origins that can provide acceptable milling quality wheat. Trade teams visit area South African wheat buyers were among the overseas trade teams to visit the Northern Plains this summer, sponsored in part by the Minnesota Wheat check-off. The four participants were Executives of the Bokomo/Sasko Group which owns and operates both flour mills and bakeries. Their trip allowed them to learn more about the U.S. wheat marketing system and understand the advantages that U.S. wheat has over our competition. A group of Italian hard red spring and durum millers also visited the area, to learn more about the U.S. wheat marketing system. Their visit included terminal elevator facilities at Duluth. American Quality Wheat Seal Awareness Level High Approximately 85% of the Egyptian population is aware of the "American Quality Wheat Seal," which is being utilized by the USW office in Cairo as part of its quality seal campaign in Egypt. The awareness level was determined as part of a survey arranged by USW to test consumer attitudes about the seal and the campaign, which includes advertising and a partnership program with wheat foods companies to create consumer-driven demand for U.S. wheat. USW/Cairo currently is developing a retail sales component of the promotion program. On average, Egypt imports over six million tons of wheat each year, with approximately one-half to two-thirds supplied by the U.S. Egypt's economic strides over the last decade have allowed the country to move from buying wheat on credit to become a cash buyer of U.S. wheat. Chile To Allow US Wheat Imports USDA announced last month that Chile would allow U.S. wheat importation, so long as the wheat originates from areas found to be free of Karnal bunt. Upon review of the current APHIS Karnal bunt survey, Chilean officials seem to be satisfied with USDA certification. According to sources in Santiago, the trade in Chile is comfortable with a ruling on Karnal bunt and buyers intend to seek US offers next July, when US wheat is competitive in the Chilean market. In years past, Chile has imported large quantities of US wheat. However, such activity was halted, upon the discovery of Karnel bunt in the US, in March of 1996. Northern Crops Institute educates buyers Through the Minnesota wheat checkoff, the MWRPC funds two ongoing overseas market development programs: 1) U.S. Wheat Associates (USW), an export market development organization supported by wheat growers through 18 state wheat organizations, including Minnesota; and 2) the Northern Crops Institute (NCI), a center based in Fargo, N.D. that educates overseas customers how to buy and use northern-grown crops. Last May, a top executive with the Binh Dong Flour Mill in Vietnam participated in the first flour mill management course conducted at the NCI for exclusively Vietnamese participants. The course emphasized U.S. wheat quality in addition to mill management practices. "The NCI staff and I are pleased that our involvement may have played some small part in this purchase," says Pat Berglund, NCI director. "We continue to look for opportunities to assist our region and U.S. Wheat Associates in developing markets for U.S. wheat." (USW file photo of NCI in Fargo, North Dakota)
Copyright Prairie Grains Magazine November 1997	WHEAT WORLD is brought to you by the producer-funded Minnesota Wheat Research and Promotion Council, provides insight about U.S. Wheat Associates, the export market development organization representing U.S. wheat growers through 18 state wheat organizations:AZ, AR, CA, CO, ID, KS, MN, MT, NE, NC, ND, OK, OR, SD, TX, VA, WA, and WY.

WHEAT WORLD

Copyright Prairie Grains Magazine November 1997

Copyright Prairie
Grains Magazine
November 1997