Manhattan, Kansas
March 24, 2005
When it comes to hard white wheat
production in the United States, two key ingredients are still
missing: a consistent supply and a liquid market, according to
speakers at a recent Kansas State
University (K-State)conference.
"We've got people interested, but there isn't a consistent
supply," said Seaboard Corp.'s Roy Loepp, referring to overseas
buyers and U.S. hard white wheat. "Hard white wheat production
in the United States needs to reach a critical mass point where
it becomes a consistent part of the landscape."
Loepp, who is the quality director of milling operations at
Seaboard, was speaking at the K-State International Grains
Program's Hard White Wheat Export Contracting Conference and
Trade Show, held March 14-16 on the Manhattan campus. The
conference, also sponsored by U.S. Wheat Associates, brought
together producers, grain handlers, domestic and export wheat
buyers, and flour millers to discuss the challenges and
opportunities facing the industry.
Despite overseas buyers' strong interest in hard white wheat for
such products as noodles, tortillas and breads, the United
States continues to produce much more hard red winter and other
types of wheat than it does hard white wheat, said Mark Fowler,
IGP miller and conference coordinator.
Hard white wheat production in Kansas this year is estimated to
be about 5 percent of total state wheat production, with hard
red winter wheat making up the rest of the crop, said David
Frey, administrator of the Kansas Wheat Commission.
U.S. hard white wheat production this year is an estimated 1.01
million metric tons, said Ron Stoddard, executive director of
the Nebraska Wheat Board. That compares with the U.S. Department
of Agriculture's estimate of 2004 hard red winter wheat
production at 23 million metric tons.
Kansas-based Seaboard is widely known as a hog production
company, Loepp said, but it has a long history in the milling
industry. He listed several factors that would help the U.S.
wheat industry expand HW wheat production, including:
* Promoting white wheat to make it safer for millers to gain
experience with it;
* Having enough varieties that will work year in and year out;
and
* Proliferating performance data so everyone in the marketing
chain has a better understanding of what he or she is growing,
buying and selling.
Kelly Spitzer of Tempel Grain Company said five of Tempel's 11
elevators in southeastern Colorado will handle hard white wheat
this year. Spitzer is the vice president and grain merchandiser
at Tempel, which is based in Wiley, Colo. Two of its locations
(in Towner and
Sheridan) will be devoted to hard white wheat only, while its
elevators in Haswell, Wiley and Springfield will take in HW
wheat and others. Tempel will take steps to segregate the HW
wheat from other cultivars.
"We've made this commitment to the producers in the area," she
said, adding that Trego, a variety of hard white wheat, has
outperformed some types of hard red winter wheat in recent
Colorado trials. Southeast Colorado has a fairly arid climate
that averages 11 to 12 inches of rain annually.
Tempel is looking to California and Mexico as its best market
prospects, Spitzer said.
Keys to success for HW wheat are a liquid market, competitive
yields and incentives for growers, she said. "What growers want
is to be able to call up an elevator or mill at any time and get
a bid."
Trego was developed by wheat breeder Joe Martin at K-State's
Agricultural Research Center at Hays. It is the most widely used
hard white wheat variety in the country, said Frey of the Kansas
Wheat Commission. The KWC has supported hard white wheat
research at K- State for 20 years.
"Hard white wheat enhances the strength of the U.S. in the world
wheat market," said Seaboard's Loepp. "Some synergies will be
realized with hard red winter wheat and perhaps with northern
spring or even other commodities."
Seaboard needs a minimum of 8,100 metric tons or 300,000 bushels
at one time to put together shipments, he said, adding, "If we
don't do it (expand HW wheat production), others will and U.S.
strength in the market will be diminished."
From Kansas State University's hard white wheat export
conference
Kansas State University's International Grains Program teamed
with U.S. Wheat Associates to hold a Hard White Wheat Export
Contracting Conference and Trade Show March 14-16. In attendance
were speakers and participants from 12 states and Egypt, Mexico,
the Philippines, Taiwan, Thailand and South Africa. Following
are some of the speakers' comments:
" Florentino Policarpio, vice president for flour business, San
Miguel Pure Foods, Philippines - Philippines ranked No. 8 among
the top 10 customers for U.S. wheat with 1.2 million metric tons
in 2004. The predominate wheats used are spring and soft
cultivars, but changes are occurring. With a 70 percent market
share, San Miguel is the leader in instant noodle flour
production. It currently buys hard white wheat from Australia,
but sees opportunities for U.S. HW wheat.
" Ron Stoddard, executive director, Nebraska Wheat Board, and
chairman of the Hard White Wheat Advisory Council - To reach
critical mass in hard white wheat production will take (1) fully
funding the 2005 crop year with the Hard White Wheat Incentive
Program and continuing the program for another three years; (2)
encouraging country elevators to be enthused participants and
partners along with the producer; and (3) development of public
and private varieties that must be equal to or out-yield the
best varieties of competing wheat classes
" Terry Garvert, Specialty Food Grains team leader, Cargill -
The biggest problem is not that there's not a market for it.
It's the supply. Obstacles to developing a viable U.S. hard
white wheat export program are the lack of a consistent sizeable
crop and unsuccessful management of cross contamination between
white and red wheat. You shouldn't think about putting hard
white wheat in the ground unless you've talked to your elevator
about how you're going to handle it.
" Bonnie Fernandez, California Wheat Commission - Hard white
wheat is not new to importing countries. Australia has shipped
HW wheat to 84 countries over the past four marketing years. The
U.S. wheat industry should ban the phrase "But we've always done
it this way." Perhaps we cannot always assume that we can push a
product through the marketing chain. Perhaps we should try to
engage the full marketing chain to help pull the product
through.
Story by:
Mary Lou Peter
White wheat issues
discussed at Kansas State's International Grains Program
conference
Hard white wheat production in the United States is at a
critical juncture, and to address the challenges and
opportunities facing the wheat industry, the International
Grains Program at Kansas State University hosted a Hard White
Wheat Export Contracting Conference and Trade Show March 14-16.
The conference was held at the IGP Executive Conference Center
in Manhattan, Kan.
K-State's IGP, along with U.S. Wheat Associates and other hard
white (HW) wheat-producing states presented the conference to
facilitate dialogue with originators, processors, exporters and
international end-use customers of U.S. HW wheat. From Texas to
the Pacific Northwest, 12 HW wheat producing states were
represented at the conference.
"Hard white wheat production in the United States is at a
crossroads," said David Frey, Kansas Wheat Commission executive
director.
The topic is particularly important now because a
federally-funded incentive program to encourage hard white wheat
production in the United States will end with the 2005 harvest,
said Mark Fowler, IGP flour milling specialist. Any incentive
for continued or expanded production of hard white wheat must
now rely solely on the marketplace.
"We've always focused on the farmers, but their incentives come
from the country elevator," said Dick Prior, U.S. Wheat
Associates Middle East/East Africa Regional vice president.
Prior to this gathering, two hard white wheat summits for
producers were held in Colby, Kan., and Guymon, Okla. The IGP
event was focused on elevator managers.
"The purpose of previous summits and this one was to
collectively look at HW wheat and determine whether there is a
demand for it," said John Oades, U.S. Wheat Associates West
Coast director. "And there is."
The crowd of nearly 100 consisted of producers, grain handlers,
domestic and export wheat buyers and flour millers. Wheat buying
countries represented were Egypt, Mexico, Philippines, Taiwan,
Thailand and South Africa.
Panel discussions encouraged participant debate on highlighted
topics. Panel moderators included John Oades, U.S. Wheat
Associates; John Gillcrest, president of Bartlett Milling and
past chairman of the North American Millers Association; Tom
Willis, Right COOP, Wright, Kan.; and Vince Peterson, U.S. Wheat
Vice President of Overseas Operations.
A common problem mentioned by many of the presenters was that
the United States has struggled to achieve production levels
sufficient to supply both domestic and export demands.
Development of high- performing HW wheat varieties has made this
class of wheat a recent option for wheat producers in some areas
of the Plains and mountain states and California.
Oades said the road forward involves ramping up production: "We
want to create solutions to the constraints (limiting
production).
"We have to stay up with everybody else – customer demands and
competition," said Bonnie Fernandez, executive director of the
California Wheat Commission. She discussed the depth of the U.S.
wheat industry and people involved in it. "It takes getting the
different sections of the spectrum educated for it to be
successful," she said. "Elevator managers are critical in making
this wheat class happen."
K-State Research and Extension is a short name for the Kansas
State University Agricultural Experiment Station and Cooperative
Extension Service, a program designed to generate and distribute
useful knowledge for the well-being of Kansans. Supported by
county, state, federal and private funds, the program has county
Extension offices, experiment fields, area Extension offices and
regional research centers statewide. Its headquarters is on the
K-State campus in Manhattan.
Story by:
Nicole Young |