Bullet Point Summary of 2002-03 Spring, Durum Wheat Exports

•  USDA statistics show that 255 million bushels of hard red spring wheat were exported in the 2002-03 marketing year, which ended May 31.

•  The export market accounted for 54% of total spring wheat usage.

•  Exports of U.S. hard red spring wheat finished the marketing year 18% ahead of the year before.

•  The drought in Canada in 2002 allowed exporters of U.S. wheat to get their foot in the door and compete in markets where Canadian Wheat Board price-discounting otherwise made it impossible.

•  Exports of durum did not equal the strong pace of the previous marketing year, finishing down 30% at a total 35 million bushels. Foreign buyers bought a third of the durum used, with the U.S. domestic market taking the largest share for food, feed and seed.

•  The biggest factor behind the reduction in durum exports in 2002-03 was the large crop in Europe, which reduced their import needs and even led to some significant export competition.

•  Japan led the top 10 list of export markets for U.S. hard red spring wheat for the seventh consecutive year, with purchases of 47.2 million bushels. The Philippines is next in line with purchases of 31.3 million bushels, up 22% from the previous marketing year. Rounding out the list are Taiwan, 21.4 million bushels; Italy, 15.7; South Korea, 13.3; Venezuela, 10.9; Indonesia, 6.7; Dominican Republic, 6.1; Mexico, 6.0 and Spain, 5.9 million bushels.

•  Mexico provides opportunity because it is the only major export market that the United States can supply via rail, which means we can supply them with more specific qualities and smaller quantities than can be shipped by ocean vessel. Mexico in essence is becoming an extension of our domestic market.

•  Asia as a region remains the strongest export market for U.S. spring wheat in 2002-03, purchasing 53% of the total supply that left our country. Latin America accounted for nearly 26% of U.S. spring wheat exports and is the region where U.S. spring wheat farmers enjoyed the biggest growth, with sales up 50%. The European region and the African/Middle Eastern region were respective destinations for 15% and 6% of U.S. spring wheat sold overseas.

•  Italy was the largest export destination for U.S. durum in 2002-03, for the third year in a row.

•  While Italy was still the lead export market for U.S. durum wheat in 2002-03 with imports of 9.3 million bushels, it was not the dominating force it had been a year earlier when purchases reached a record 25 million bushels.

•  Other top buyers of U.S. durum were Algeria, 7.3 million bushels; the Costa Rica, 1.4; Venezuela, 1.3; Morocco, 1.2; Netherlands, 1.1; Cyprus, 1.0; Dominican Republic, 0.9; Tunisia, 0.9 and Belgium, 0.8 million bushels.

•  The European region and African/Mid East markets each accounted for about 40% of durum exports in 2002-03, with Latin America taking the remaining 20%.
North Africa, which almost always has a need to import durum, is a difficult market to grow for U.S. farmers because buyers still tend to be more price-conscious than quality-conscious.

•  Buyers in 55 countries imported U.S. hard red spring wheat during the 2002-03 marketing year, while durum was exported to 17 countries.

•  It is important that the U.S. wheat industry provide technical assistance for customers and maintain a strong emphasis on U.S. export credit programs to counteract Canadian and other export sources that offer discount prices.

Source: North Dakota Wheat Commission