by Ann Courtmanche, US Wheat Associates market analyst

From alcohol to environmentally friendly products, wheat and its by-products are increasingly going into alternate uses. This couldn't come at a better time, with world wheat production at nearly 616 million metric tons, its highest level in 30 years, and the world supply of wheat outpacing demand for the first time since 1999.

Wheat beers, which blend malted and flaked wheat with barley and spices, are becoming more popular in the U.S.

"In 2003, the U.S. beer industry used nearly 10 million pounds of wheat and wheat products to brew their beer," says Lester Jones, director of statistics with the Beer Institute. "Now, wheat and wheat-product use is up 6 percent from last year to 10.5 million pounds."

Ommegang, a New York brewery, recently released its first wheat beer, joining the trend of other craft brewers.

"First-year sales are going well, and we expect to increase 'Witte' beer production by 40 percent next year," says assistant brewmaster Kevin Davis.

On another front, German officials tout wheat as the best raw material for industrial alcohol production. According to a USDA report, approximately a million tons of wheat will be processed into ethanol in Germany in 2005, and more processing facilities are planned. This is especially good news this year, since Germany's wheat production is 25 MMT, 30 percent above last year. The USDA report also notes that a by-product of ethanol production is DDG, a high protein distiller used as cattle feed.

In a move conducive to environmental sustainability, EarthShell Packaging recently began commercial production of biodegradable dishware made with wheat starch. The company's cups, bowl, plates and disposable take-home containers were developed in partnership with the USDA Western Regional Research Center in California.

Sales are also increasing for wheat straw particle board which competes with non-renewable wood particle board. North Dakota's PrimeBoard was the first company in the world to produce industrial grade particle board from wheat waste. Since 1995, the company contracts with local wheat growers to buy wheat straw, blending it with an emission-free chemical binder to create a particle board used for furniture, cabinetry and boxes. David Shorma, a company representative, foresees higher demand in part because the product is environmentally friendly, and customers receive credits for high indoor air quality standards.