Domestic Market Means Much to Wheat Growers
By Aase Hamnes, Wheat Foods Council Representative
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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.
Increasing wheat foods consumption and promotion in the domestic market are primary goals of the Wheat Foods Council, funded in part through checkoff dollars administered by the Minnesota Wheat Research and Promotion Council.
Even though exports are important for U.S. wheat, the influence of the domestic market on wheat prices can't be overstated.
In fact, the increase in flour demand from 1980 to 1994 raised average wheat prices by 45 cents per bushel.
And that's why ongoing WFC promotional activities are so important: If we could help in urging all Americans to consume the minimum USDA recommendation of six servings of grain products daily instead of the average of four servings they are currently consuming, consumption would increase to 180 pounds per person.
That would be a 30 percent increase in the domestic wheat market, with the increased consumption comparable to a five-mile strip of wheat running from San Francisco to New York.
Every hundredweight of flour demand creates demand for 139 pounds (2.3 bushels) of wheat. Every 100 million bushels of wheat impacts domestic prices 15 cents per bushel.
The domestic market represents an additional $1 billion potential for U.S. growers, and when population growth is added to the equation, opportunity expands into a $1.25 billion market.
These are exciting statistics, and they are achievable. The wheat growers, millers, bakers, cereal and pasta makers who work together on the Wheat Foods Council have made great strides in achieving a larger share of the consumer food dollar, and optimism holds that we're not done yet.