For Customers, Buying Wheat is Like Farmers Buying Farm Equipment.

By David Clough

I’m a first generation farmer so don’t call me an expert, although I graduated from North Dakota State University with a BS in Mechanized Agriculture. My wife Aileen and I farm in central North Dakota near Fessenden, raising wheat, sunflowers and edible beans. We also have sold & serviced Vermeer haying equipment off the farm for 33 years. I’ve been a Commissioner on the North Dakota Wheat Commission for 3 ½ years, and am currently chairman of the Northern Crops Council that governs the Northern Crops Institute in Fargo, ND.From March 24-April 4, 2008, I had the privilege to be on a U.S. Wheat Associates Board Team to Columbia, Peru, Costa Rica and Mexico. At the end of September 2008, Neal Fisher, the Administrator of the NDWC, asked if I would consider going to Southeast Asia, since the person scheduled had a conflict. If no one else could go, I would, since after being on a board team, I knew a farmer representative of HRS wheat was important. On October 1st he said I would be going to Asia on November 5-20. My sunflowers were kill-sprayed on October 2, with harvest finished just days before flying to Portland, Oregon.

Before a Board Team leaves, briefings are given by several people on the markets in the countries of travel. The South American, Latin America Team met in Washington, DC for briefings with USDA and FAS (Foreign Agricultural Service) staff. The General Sales Manager of FAS reported on operations, and said the world could not be fed without biotechnology.

Before leaving for Korea, Taiwan, Indonesia, and Vietnam, we met with FGIS (Federal Grain Inspection Service) and learned the U.S. inspection system is the best in the world, with the customer getting what they order. We learned about the shipping system, and saw FGIS in operation with a ship being loaded for Korea. As a farmer, I have always heard how junk is added before shipment, but it isn’t true. With FGIS, it does not happen at all.

On both Teams, our main mission was to meet with millers and bakers to promote our wheat, and to thank them personally for their business. We also got to see how U.S. Wheat staff works overseas with our customers to promote the use of our wheat. At most of the meetings, our foreign customers, who buy millions of dollars of our grain every year, were excited to meet farmers and would like to meet more farmers.

In Asia, they mostly use hard white and soft white wheat that is used for noodles and biscuits (cookies), but it is a growing market for HRS wheat. A lot of questions were asked about the use, production and quality of spring wheat. Asia is increasing their consumption of bread products; therefore, the higher protein spring wheat is needed for blending for better quality flour for better breads.

While touring the Uni-President Mill in Vietnam, we sampled some bread baked in their quality lab made with Australian wheat. This lower protein wheat doesn’t have the gluten strength that our wheat does, so a quick time method is used for bread making. After tasting it, I decided if that was the only kind of bread to eat, I would be on a gluten free diet, since it was like eating a sponge.

At most meetings, we did talk about biotech wheat, and most were OK with it coming, since Australia is very close to releasing biotech wheat. We do need to educate the consumers first about the safety and benefits of the biotech wheat. A miller in Mexico said “A lot of my customers require a GMO free certificate, without even knowing what it is about”, so we must educate the millers, bakers and consumers.

At every stop we were met by the U.S. Wheat regional staff and then they traveled with us in their region. The staff is an amazing group of people who have so much knowledge to answer questions about quality, milling and marketing our wheat to help our overseas customers in their regions.

To customers, buying wheat is like farmers buying farm equipment. You buy for price, quality, and service! The U.S. Wheat staff does an outstanding job of service to our customers. The farmers’ check- off dollars are matched by FAS. For every $1.00 the farmer puts in, the FAS matches $2.50-$3.00 varying yearly. Dr Harry Kaiser of Cornell University just completed a study on Economic Analysis of U.S. Wheat Export Promotion stating the wheat program has one of the highest benefit-cost ratios he has seen. For every $1.00 put in for promotion, we receive an average net return of $23.00 back. So you see, the staff of U.S. Wheat is doing a great job, and they deserve our thanks for making good use of our check off dollars.

If anyone would like to read the full report on both teams E-mail me at: cloughs@gondtc.com and I will e-mail a copy back to you.