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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.

Wheat importers from China and Hong Kong have a better understanding of ordering the type of wheat they want from the US, as well as how US wheat is processed and marketed, following a visit to Minnesota this fall.

Minnesota wheat producers, through their wheat checkoff, hosted a delegation consisting of four wheat purchasing managers and flour quality control personnel from the Garden Company and Lam Soon Foods.

The Garden Company, with operations in Hong Kong and China, is a major end user of flour processed from US wheat for wheat foods and confectionery food items. The company, which is McDonald’s main bakery supplier in southern China, wants to upgrade its cake and snack foods products to meet a growing interest in American-style pastry items. They wish to upgrade their premium product lines and diversify product availability using flour processed near Hong Kong at Lam Soon’s Mill.

Lam Soon Foods is a Chinese food company that owns a flour milling company just across the border from Hong Kong. Due to restrictions on West Coast exports related to TCK, a minor fungal disease of wheat grown in the Pacific Northwest, Lam Soon now imports mainly hard red spring wheat from the US Gulf. However, the company wants to return to importing US West Coast origin wheat also, as they find their customer base disliking flours made from wheat originating in other countries, which is good news for the US, says Matt Weimar, with US Wheat Associates’ (USW) regional office in Hong Kong.

USW is the foreign market development organization for U.S. wheat producers supported by the wheat checkoff in 18 states, including Minnesota.

Weimar says US wheat producers need to maintain a strong relationship with Lam Soon, as its milling company is viewed by its competitors as an industry leader. USW is working with Lam Soon to help address the TCK issue, so the region will buy more US wheat.

In Minnesota, the wheat checkoff allowed the Chinese/Hong Kong wheat importers to visit with a US spring wheat merchandiser, several leading bakeries, a pastry mix manufacturing company, and the Minneapolis Grain Exchange.

"We hope the trade team gained better insight on the availability of U.S. wheat types, the relationship between flour mills and end user processors in the wholesale and retail sector, and the different wheat food products retailed in the US" says David Torgerson, executive director of the Minnesota Wheat Research and Promotion Council, which administers the state’s one-cent per bushel checkoff for wheat research and promotion, who hosted the team.

"We hope too that they have a stronger understanding of quality control procedures taken here across all segments of the US wheat industry, from the central quality control laboratories used by industrial food processors to their ability as US wheat importers to select the purchasing and quality criteria that meet their needs."

US and Taiwan sign agreement for wheat purchase

Taiwan and the U.S. signed an agreement this fall for Taiwan to purchase 750,000 metric tons (MT) to 850,000 metric tons of US wheat from Jan. 1, 1999, to Dec. 31, 1999. The agreement was signed between U.S. Wheat Associates (USW) and the Taiwan Flour Mills Association during a ceremony in Washington, DC. In addition to wheat, Taiwan signed agreements for the purchase of varying amounts of U.S. corn, soybeans, sorghum and barley for a total of 7.45 million metric tons of these products, valued at $1.15 billion. In 1997/98, Taiwan was the 7th leading importer of US wheat, most of it hard red spring wheat.

"We are pleased with the signing of this agreement and Taiwan’s continuing recognition of the US as a reliable supplier of quality wheat," says Alan Tracy, president of USW. "US wheat producers are now assured that once again next year, they will supply a lion’s share of wheat to this important market."

USW assisting small bakers in South Africa

USW/Cape Town is continuing its assistance to small bakeries in South Africa. The increase in the number of small independent franchise bakeries, in-store bakeries and particularly entrepreneurs in the black townships has been phenomenal in the last four years. USW/Cape Town has been inundated with requests for assistance and advice from entrepreneurs on planning, technical and training matters. USW/Cape Town has conducted baking seminars countrywide over the past few years, providing invaluable assistance to these bakers, who hopefully will become customary users of US wheat.

Private Algerian traders begin importing wheat

Two traders in Algeria recently bought over 50,000 metric tons of hard red winter wheat representing one of the initial private purchases by Algeria since private transactions were legalized over three years ago. Both of the buyers have been targeted for USW activities by USW/Casablanca in anticipation of purchases. One of these activities was a marketing conference which provided the opportunity for the traders to meet with the eventual wheat supplier.

Morocco makes first HRW purchase since 1994

Morocco recently purchased 25,000 tons of US HRW, representing the first purchase of HRW by Morocco since 1994. USW’s regional office in Casablanca attributes the purchasing decision at least in part to sustained USW efforts with that importer and his supplier to consider HRW as an "improver" wheat. Dissatisfaction with the new French wheat crop quality prompted the importer to follow USW’s advice.

Chile buys US wheat for first time in two years

A Chilean company recently purchased 34,000 metric tons (MT) of durum and soft white wheat, representing the first direct purchase of US wheat since Chile halted imports of American wheat following the discovery of Karnal bunt in the spring of 1996. Although the government officially announced in October 1997 that imports could resume, Chilean importers were hesitant to make purchases due to fears, largely unfounded, about the risk associated with a cargo of wheat being rejected because of the presence of Karnal bunt. Prior to halting imports in 1996, Chile imported 296,000 metric tons of wheat from the US.

USW has been instrumental in working with US and Chilean government officials and Chilean importers to resolve this issue. Last year, USW sponsored a team visit of Chilean government phytosanitary officials to the US to view the U.S. government’s comprehensive measures to control and eradicate Karnal bunt. Most recently, USW worked with Chilean importers to ease their import concerns and to implement an insurance policy to cover importers’ risks.

"American wheat producers are most pleased that Chile has finally returned to the US for some of its wheat import needs. By accessing the US marketplace, Chilean millers can assure themselves of competitive prices on top of quality wheat," says USW President Alan Tracy said.

Wheat bran extrusion technology seminar held in Korea

USW and the Korean Society of Food Extrusion Research recently conducted an extrusion seminar for wheat bran breakfast cereal production at the Korea Food Research Institute in Seoul, Korea. During the seminar, recent extrusion technology research was presented to 60 scientists from livestock and feed, confectionery, baking, noodles and milling companies. The seminar emphasized using US wheat in wheat bran breakfast manufacturing, and using US wheat as a desirable raw material.