Issue 41
January 2002

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Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association and South Dakota Wheat, Inc.

Copyright Prairie Grains Magazine January 2002

MWC 2000-2001 Annual Report

Export Promotion, Market Development Highlights
Domestic Promotion Highlights
Wheat Research Highlights
Other Program Highlights
Financial Statements


Export Promotion, Market Development Highlights

U.S. Wheat Associates and WETEC Boards Meet in Minneapolis
U.S. Wheat Associates (USW) and the Wheat Export Trade Education Committee (WETEC) held their summer board meetings this year in Minneapolis, MN.

USW conducts market development work in 130 countries around the world to boost overseas wheat consumption and encourage purchases of American-grown wheat.  WETEC, which is affiliated with USW, educates policy makers in the U.S. and internationally about trade issues that affect the U.S. wheat industry.

It is customary for the USW and WETEC summer meetings to be held in the state of the outgoing USW chairman, which in 2001 is Bruce Hamnes, Stephen, MN. During the meetings in Minnesota, USW overseas directors presented their region’s wheat export outlook, prospects and constraints.  USW maintains 15 offices around the world in an effort to service the vast number of markets that purchase U.S. wheat. The overseas staff represent the “front line” for America’s wheat producers who export nearly half of the wheat they produce each year. These offices provide a dizzying array of services to customers of U.S. wheat, from providing technical assistance on milling and baking to providing better relationships between exporters and customers, to solving many potential problems involved in exporting.

At the Minnesota meeting, several overseas USW directors raised the importance of progress in global trade negotiations to further liberalize markets and to meet the current unfair trading practices of our competitors. Another area of concern to many of the regional directors was the use of unilateral trade sanctions. They see up close the losses the U.S. takes at the hands of our competitors by voluntarily sitting on the sidelines of potentially lucrative markets. The point was also stressed that once the U.S. loses a market, it is incredibly difficult to get it back.

In addition to these concerns, each director raised the issue of quality, and the need to ensure that U.S. customers are being provided with wheat that best provides their desired end use characteristics. Several regional directors stressed the importance of aggressively funding trade programs to meet increased competition, and praised the USW Quality Samples Program, which surveys wheat crop quality. A separate Overseas Varietal Analysis Project enables overseas wheat users to evaluate the milling and baking performance of flour from U.S. wheat varieties. Canadian western red spring wheat is tested as well for milling and baking performance comparison.

Establishing Trade Contacts
Throughout the year the Minnesota Wheat Research and Promotion Council hosts trade missions involving wheat users and prospective buyers from other countries who visit the U.S. to establish trade contacts and get a better understanding of the U.S. wheat industry. In one visit this summer, Marco P. Hernandez, foodgrains technical service specialist at the Cargill Wheat Quality Laboratory in Wayzata, MN (see photo above), shows a member of a Peruvian trade team bread samples freshly baked from the 2001 wheatcrop. Cargill uses the baking data and other forms of analysis to identify the wheat quality in various locations throughout the U.S. and Canada.  Juan Luis Ibarra, a Peruvian miller looks on as Mr. Hernandez explains the different qualities. 

The MWRPC, along with wheat checkoff groups in the Dakotas and Montana, fund a regional quality survey each harvest.  This year’s survey indicates a regional spring wheat crop with high quality and excellent color.  Details on specific grading, kernel and processing characteristics, broken out by crop producing area, is available on the North Dakota Wheat Commission’s web site at www.ndwheat.com.

 

Art Brandli, Chairman of the Minnesota Wheat Council (far right) presented Bruce Hamnes, Stephen, MN, with a sculpture as a thank you for his service as chairman of U.S. Wheat Associates over the past year. In his message as chairman in USW’s 2001 Annual Report, Hamnes said that: “As a farmer I do not have the time or resources to visit our international customers to ensure they understand how to source U.S. wheat, understand what specifications to ask for to get the product they need, or what technical problems may be inhibiting the importation of U.S. wheat to a particular market.  In order to service these markets I must count on U.S. Wheat Associates, our market development organization. As an officer of USW, I had the opportunity to visit overseas markets and see first hand how important it is to have a presence in the market.  Our customers can, and do, turn to our overseas staff and receive the help they need and desire.”

U.S. Ag Journalists See Market Development Firsthand
Earlier this year the MWRPC and other state wheat checkoff groups along with USW sponsored a group of U.S. farm journalists to learn first-hand about USW market development activities in Asia. These print and broadcast journalists then summarized their experiences and firsthand evaluations about U.S. wheat checkoff programs in Pacific Rim countries.

Farm and Ranch Guide Editor Mark Conlon was one of the participants. Conlon snapped the photo left where a flour technician from a portside lab of United Flour Mills in Bangkok, Thailand, is testing a sample of wheat to ensure the company is getting the quality of wheat it specified in its export purchase.

 

The photo at right is at the China Grain Products Research and Development Institute in Taiwan, where students from across Asia—using equipment sponsored in part by USW—learn to use U.S. wheat in different baking applications.  Conlon said he was impressed with the respect that USW staff have amongst Asian wheat industry leaders.  Gauging from what he saw, Conlon said he believes U.S. wheat checkoff investments for market development in Asia are worthwhile.

 

 

 

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Domestic Promotion Highlights

High-Protein Diet Hype Waning?
Per capita wheat flour consumption in 2000 climbed back to 150 lbs per person, according to figures released earlier this year by the U.S. Census Bureau.  It’s a positive sign that the high-protein diet craze that discourages carbohydrate consumption may be waning.

Fighting anti-carb fad diets that can hurt domestic grains consumption has been job #1 for the Wheat Foods Council in recent years. The Minnesota wheat checkoff helps fund the WFC, which promotes increased consumption of grain-based food through nutrition, education and promotional programs.  The WFC targets media and opinion leaders, including physicians/nurses, health/nutrition leaders, fitness leaders and policy makers with its health messages. 

Among the informational efforts this year was a television show called Healthy Solutions featuring a special segment on fitting sandwiches into a healthy diet. The TV show, anchored by Mariette Hartley, featured WFC President Judi Adams talking about carbohydrates, folic acid, whole and enriched grains, and grain food selections.  CNBC and The Health Network aired the program nationwide in November.

Goal: Keep Top Customers, Gain New Ones
The ten largest U.S. commercial wheat export customers in the 2000/01 marketing year were Egypt, Japan, Mexico, Philippines, European Union, Nigeria, Korea, Taiwan, Indonesia, and Israel. USW works to maintain traditional markets such as Egypt and Japan, and develop new ones.

Vietnam has imported 92,500 tons since the U.S. eased sanctions on agricultural products five years ago.  Two separate donation programs have introduced U.S. Dark Northern Spring wheat to the Vietnamese baking industry, resulting in the commercial purchase of DNS by competitive mills and the establishment of HRS flour as the premium and highest paid flour in the market.

In another market breakthrough, Cuba in November made its first purchase of U.S. wheat in forty years. ALIMPORT, the Cuban agency responsible for wheat purchases, had requested assistance from USW in seeking wheat after the island was ravaged by Hurricane Michelle earlier in the month. USW has made several market exploration visits to Cuba in the last three years and has helped to facilitate humanitarian shipments of wheat flour in 1998. While sanctions are still in place, though eased, the U.S. government made an exception to the regulations for this sale because of the humanitarian situation.

U.S. Wheat Export News, USW newsletters, USW’s annual crop quality report and other U.S. wheat export information can be found online at www.uswheat.org

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Wheat Research Highlights

Strong Emphasis on Wheat Research
The MWRPC continues to place a strong emphasis on wheat research, funding projects not only at the University of Minnesota at St. Paul, Crookston, and Morris, but also at North Dakota State University and South Dakota State University. Investing in out-state efforts helps support research and outreach that comes back as dividends to Minnesota growers, such as the NDSU fungal disease forecasting system (on the web at www.ag.ndsu.nodak.edu/cropdisease and wheat varieties from SDSU that are suited for production in southern and west central Minnesota.

A key project this year was the printing of a Small Grains Field Guide in cooperation with the U of M. About 10,000 copies of the 160-page, spiral bound field guide were printed, containing information covering all facets of wheat production, from pre-plant to post-harvest. 

Earlier this year, the MWRPC sponsored University of Minnesota Small Grains Specialist Jochum Wiersma as a member of a wheat quality improvement team, which traveled to Latin America to gather information about the wheat quality needs and concerns of customers in the area. The group met with milling, baking and pasta manufacturing representatives in Mexico, Venezuela, Colombia and Peru.  Wiersma brought back information useful to Minnesota spring wheat breeding and producer education programs.  “It’s important for our wheat researchers and Extension specialists to understand first hand how our major customers use the wheat that we grow, so they can help us produce and deliver the wheat that best meets the needs of our overseas customers,” says Art Brandli, Chair of the MWRPC.

The MWRPC has been instrumental in organizing fusarium head blight (scab) research efforts at the state and federal levels. Scab research at the U of M involves 20 principle investigators and in all, about 75 people in four departments and three campuses (St. Paul, Crookston, Morris).

At the federal level, Tom Anderson, a Barnesville, MN, farmer, is co-chair of the U.S. Wheat and Barley Scab Initiative, which coordinates FHB research nationally. More information on research conducted under the U.S. Wheat and Barley Scab Initiative can be found on the Internet at: www.scabusa.org.

Anderson also chairs Minnesota’s Small Grains Research and Communications Committee, which involves a cross-section of the state’s wheat industry and advises the MWRPC on research projects funded by producers through Minnesota’s wheat checkoff.

Each December, the MWRPC hosts a research reporting session in Fargo for producers and the public.  Researchers present updates on research projects funded in part by the Minnesota wheat checkoff. The latest research results are published in the booklet, “2001 Wheat Research Review,” which is free to Minnesota producers and may be requested by contacting the MWRC, 800-242-6118.

Wheat Quality Council
Based in Pierre, S.D., this is a coordinated effort by the wheat and baking industries to affect wheat quality issues domestically and abroad. It tests up and coming wheat varieties of all U.S. wheat classes to evaluate milling and baking quality.  Flour samples milled from elite lines are tested for functional and nutritional needs of food processors before they are released as varieties.  Results of these tests are then published and sent to all WQC members. These tests allow breeders to make adjustments in their potential varieties. They also allow millers and bakers to become cognizant of the milling and baking characteristics of different future varieties, and provide information about how each variety’s processing performance can be influenced by environmental conditions.

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Other Program Highlights

Online “Toolshed” Building Market Basis Database
The MWRPC last year created the online Toolshed Ag Information Network as a system for sharing ag-based information over the internet. It includes regional ag news and weather information, futures and local market prices, Red River Farm Network radio broadcasts and archives, commodity marketing Q&As, LDP information, and industry contacts.  This year, Toolshed began building a database of local basis (difference between the cash and futures price) trends for grain elevators in the region.  Toolshed can be found online at www.smallgrains.org, as well as on other affiliated web sites.

Earlier this year, the MWRPC joined with Syngenta and Northland Community and Technical College to produce an educational computer CD available to producers at no charge. The CD includes information on improving Internet application skills, commodity marketing information, the U of M Small Grains Production Guide and tutorials on how to use the Toolshed Ag Information Network. For more information about Toolshed or the CDs, contact program director Tara Gillespie, ph. 1-800-242-6118, e-mail: tdagman@gvtel.com

Northern Crops Institute
Located on the campus of North Dakota State University in Fargo, NCI is funded in part by commodity groups in four states, including the MWRPC, to teach foreign buyers and users how to purchase and process hard red spring wheat and other northern-grown crops.

Marketing Groups Share Grain Selling Ideas
The MWRPC continues to support marketing groups in the region. Betsy Jensen coordinates information and activities among the groups.  Her efforts are sponsored by the MWRPC and the Northland Community and Technical College’s farm business management program.  For more information about marketing groups,contact Jensen at 1-218-689-5375 or by email, bjensen@nctc.mnscu.edu

Cooperating for Administrative Efficiency
The MWRPC and MAWG cooperate through a program agreement for administrative efficiency. Many wheat states have separate staffs and different office facilities for their wheat checkoff commissions and wheat growers associations.  In Minnesota, however, the Wheat Council and the Growers Association have two separate boards of directors, but share staff, office equipment, and facilities, to maximize administrative efficiency.

Education and Information
The Council works closely with the Minnesota Association of Wheat Growers to educate and inform growers and the public about wheat-related issues.  Working together, the Council and the MAWG have established a top-notch communications network, including a twice-monthly newsletter, the Prairie Grains magazine, and an award-winning web site, www.smallgrains.org

MN Agri-Growth Council
Membership in this Twin Cities-based organization enables the MWRPC to help promote education on food and agriculture, and to encourage research regarding agriculture in a united effort involving other Minnesota agricultural commodities.

Ag in the Classroom
The 2000/01 school year marks the 15th anniversary for this unique public/private partnership dedicated to increase agricultural literacy in Minnesota classrooms.

 American Coalition for Ethanol
The Council through membership in this organization helps to promote the use of ethanol across the nation.

Regional Agricultural Support
The Council provides funding support, wheat foods, or wheat-promotional materials for many shows and events in Minnesota each year, including county crop shows and fairs, American Cancer Society health and nutrition educational displays, the University of Minnesota Ag Awareness Day, Agri-Women’s Conference/Harvest of Knowledge, farmers share breakfasts, and MN Farmers Elevator Association functions.

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Annual Report (adobe pagemaker)