Issue 26
February 2000

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.

Copyright
Prairie Grains Magazine
February 2000

Shaffer: USW groundwork in Seattle pays off

The groundwork by U.S. wheat leaders before the World Trade Organization meeting in Seattle paid off, said Chris Shaffer, a Washington state wheat producer who serves as a spokesman of the U.S. wheat industry at the World Trade Organization negotiations. "We knew the players, and had access to them."

In fact, officials of the Australian Wheat Board sought a meeting with USW officials in Seattle, to explain how the AWB has become privatized—and in fact plans to have publicly traded stock soon—unlike the government-backed Canadian Wheat Board.  "They wanted us to get off their back, which means we're having success in elevating the issue of problems with state trading enterprises."

Shaffer, who also serves as chairman of U.S. Wheat Associates (USW), the export development arm of U.S. wheat producers, briefed attendees of the recent Prairie Grains Conference in Fargo about U.S. wheat industry involvement in the opening WTO ministerial meeting in Seattle, and objectives for when the negotiations continue next month in Geneva.

Shaffer said USW has long been preparing for the renewed WTO negotiations. Last July, USW hired a law firm that includes former U.S. Trade Representative Mickey Kantor to help the U.S. wheat industry deliver on its WTO objectives.  The move "was a sign of our seriousness and commitment to this trade issue," says Shaffer.  "We have a good team in place working to heighten the profile of where we're at and where other countries are at."

He said he is pleased with the progress of educating policy makers about U.S. wheat objectives.  "A lot of people at the table do understand our issues," including Rita Hayes, the U.S. ambassador at the WTO, who Shaffer says is "solidly behind our positions."

Still, Shaffer said that President Clinton's statement in Seattle that he would not rule out sanctions in certain circumstances "shows that we have more work to do with this administration on the sanctions issue."

It is usually ag that has been controversial, but in Seattle it was other issues that were the center of controversy and held WTO agenda-setting up, specifically labor and environmental issues, Shaffer said.  "But the negotiations are not dead.  They will continue. Just because things didn't work in Seattle doesn't mean things aren't going to happen for agriculture."

The previous GATT agreement still left Europe with a significant subsidy spending advantage over the U.S.  "We can't go par for par with these folks in the WTO.  Either we need to increase our support, or bring the EU level of support down."

USW positions on five trade issues important to U.S. wheat—economic barriers, export subsidies, state trading export monopolies, unilateral sanctions, and biotechnology—are explained on USW's website: http://www.uswheat.org. 

Cargill official: the future belongs to those who partner

How many of us actually stop and think about where our production is going when it leaves the farm gate?  That was the question posed to growers attending the Prairie Grains Conference held recently in Fargo by Cornell Slade, domestic manager of North American food grains with Cargill.

Slade challenged growers to look beyond the farm gate and try to understand as much as possible about the end-users of their products.  "When you deliver a bushel of wheat, corn or beans to elevator, try to find out where it's going.  Not specifically, but generally," says Slade.  "Maybe there is something in your management practice that you're doing right now that's adding a negative value to the downstream customer that you don't even know about."  He recommends talking to the end-use customer to discover what they value.

For example, Slade says there are a few wheat varieties that Kansas growers like to grow because of the yield, disease resistance, and harvestability.  But end-users have discovered that those varieties don't perform very well, and as a result, have begun to discriminate against wheat grown in those particular regions of Kansas.  "How many of those growers actually realize this is happening?" asks Slade.  "Probably not very many."

Slade says if growers ask questions, and work to become an expert in their customers' businesses, they may learn that there are things they can be doing to improve that business.  What's the payback?  Slade says the future belongs to those who develop partnerships with their customers.  "By understanding and dealing with the end-use customer, you can gain a competitive advantage and position yourself to meet the demands of the future."

Want to know what's going on?

Then check out the Agricultural Events Calendar, on Minnesota Wheat online, www.smallgrains.org. Click on the Calendar of Events link on the home page to access the latest schedule of what's going on in the region. The events calendar is maintained by Hans Kandel, Extension Educator with the University of Minnesota Extension Service. Comments and event notices can be directed to him at kande001 @tc.umn.edu.

Century ends with spring wheat last seaway cargo out of Duluth

The Port of Duluth-Superior's last ocean vessel of the season, and the century, departed the Superior entry at 5:32 a.m., Dec. 20, 1999, becoming the Port's second-latest departing oceangoing vessel since the St. Lawrence Seaway opening in 1959.  The record final Seaway departure was the Liberian-flag Federal Calumet on Dec. 22, 1984.

AGP Grain has the distinction of loading the last ocean ship in each of the past three years.  In 1999, it was the Hong Kong-flag, 730-foot bulk carrier Lady Hamilton, which loaded about 25,000 metric tons of spring wheat destined for Europe.

         Activities Funded in Part by the Minnesota Wheat Checkoff