Issue 105
Prairie Grains

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

Copyright Prairie Grains Magazine
March 2010

Mission of Northern Crops Institute

Expanding and Maintaining

Markets for Northern-Grown Crops

One educational partner with U.S. Wheat Associates is the Northern Crops Institute (NCI) in Fargo, ND. In 2009, NCI educated over 300 course participants from over 36 countries at the Fargo campus, not to mention the hundreds more educated through outreach programs. The mission of the NCI is to increase markets for crops produced in Minnesota, Montana, North Dakota and South Dakota.At the 2009 NCI Grain Procurement Management Course, 39 buyers from 17 nations learned to navigate their way through the U.S. grain markets. “One of our main objectives for this course is to help our customers understand the markets and how to purchase grain, so that they will be long-term ustomers of U.S. grains,” says Brian Sorenson, NCI Director.

U.S. Wheat Associates, Hong Kong, Regional Vice President Matt Weimar accompanied several Chinese participants to the course. “In Asia, and in China particularly, the people who are selected to come to this course often have a very basic understanding about how to use the futures market, and even with the cash market, how to monitor and analyze it,” says Weimar. “China has an artificially high price because they are trying to subsidize producers and use the market by setting minimum values for wheat in different classes and varieties. Spring wheat and soft while have recently become competitive with new crop prices. We have inquiries about hard red spring and hard red winter wheat, so there’s lots of interest, “ Weimar concludes.

Visiting farms in the region to see the crops in the field is an important segment of the course. During the first week of the course, the group toured the Hunter (N.D.) Grain Company Elevator with Paul Skarnagel and the Jim Howe farm near Casselton, N.D. At the end of the

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first week, course participants traveled to Duluth, MN, where they toured the Duluth Seaport Authority with Executive Director Adolph Ojard, and the CHS Export Grain Terminal with Supt. Dick Carlson.

At the Minneapolis Grain Exchange (MGE) during the second week, short course participants met with grain traders, who discussed commercial grain export trading practices. Roger Hipwell, MGE Vice President for Business Development, explained the MGE’s historical open-outcry trading floor. Randy Bailey hosted a tour of the CHS Cash Marketing Laboratory. Participants also toured the CHS Barge Facility at Savage, MN where Superintendent Greg Oberle explained the grain transport system on the Mississippi River.

Once wheat buyers begin to understand the U.S. grain procurement system, their education at the NCI can continue with course offerings such as Pasta Production and Technology, Basics of Wheat and Flour Quality and the Baking With Soy. In 2009, 54 participants from seven countries attended pasta courses. In addition to lectures and laboratory work, the participants toured regional pasta production facilities. “People are very interested in learning more about the utilization of durum wheat from this region and how to make the best quality pasta. This course allows us to showcase the quality of the durum and other crops from this region,” commented Sorenson.

In 2007, the Northern Crops Council formed a committee to look at the future of NCI’s technical capabilities in milling, and they identified a definite need for a pilot flour mill. The council voted to move forward with the project in 2008, and the mill was designed and installed in less than a year. A ribbon cutting ceremony was held on November 24, 2009.

“NCI’s new flour mill represents another great opportunity to promote northern-grown crops and create new and expanded domestic and international markets for producers in this region,” said ND Governor John Hoven. NCI has a pilot durum mill that was converted into a dual-purposed or “swing mill” to give the region to capability to mill pilot-scale or test-scale quantities of bread wheats (Hard Red Spring, Hard Red Winter and Hard White) into flour for quality and test baking/processing evaluations. Importantly, the mill retains the capability to mill durum wheat into high quality semolina.

The new mill is capable of milling flour, durum semolina and whole wheat flour. Flour milling capacity of the new mill is 200-300 pound/hour, a larger quantity than a laboratory scale mill can produce. Flour quality closely matches flour from a commercial flour mill.

In addition to milling and testing flour, the new pilot mill will be used for educating millers about hard wheats. NCI’s pilot scale durum mill, built in 1991, was one of the few facilities in the nation dedicated specifically to educating and training durum millers.

The existing building and much of the pilot scale durum mill equipment was used in building the new mill. Additional equipment to improve grain handling, cleaning, tempering, and purifying was purchased or donated.

The next phase of the renovation will begin when funding is secured. The second phase will include a flour mixer, storage bin, and flour packing equipment that will fill 50# bags.

The NCI already has a tentative course schedule for 2010, with course topics including; Barley Malt Quality Evaluation, Baking with Soy, Pasta Production and Technology and Grain Procurement Management for Importers. For the more up to date information, you can check their website at www.northern-crops.com.

Whether it is hosting a wheat team from Israel, traveling to Morocco to participate in a durum collaborative, or teaching U.S. bakers the importance of wheat and flour quality, the Northern Crops Institute always operates under its mission: Supporting regional agriculture and value-added processing by conducting educational and technical programs that expand and maintain domestic and international markets for northern-grown crops.