Top Buyers Visit North Dakota Break Date: 6/25/2010 8:19:16 AM Last Edit: 6/25/2010 8:19:16 AM
Top Buyers From North Dakota Representatives from Italy, the largest importer of U.S. durum, and Japan, the largest buyer of U.S. hard red spring wheat (HRS) recently visited the state to get an update on quality research, variety development and outlook for the 2010 crops.
ITALIAN YOUNG MILLERS TEAM An Italian Young Millers team was hosted by the North Dakota Wheat Commission (NDWC) in late April. The team consisted of representatives from family-owned mills and the Italian Milling Association. Team members represented the new generation of flour millers who will eventually become key decision makers in their respective companies. A similar team visited the state in 1997 and the NDWC and U.S. Wheat Associates have maintained a strong business connection with former team members. The team provided an opportunity to build good working relationships with the new generation of Italian mill managers and helped to collect information on attitudes about U.S. wheat quality and value. The main goal for the team was to obtain a better understanding of the U.S. marketing system, quality of HRS and durum and breeding efforts to enable them to make purchasing decisions.
To accomplish these goals, the team met with the durum and HRS variety development team at North Dakota State University (NDSU), and also received information pertaining to the U.S. durum and HRS supply and demand situation, U.S. wheat classes, and cash and futures marketing. In addition, the group visited the Todd Ellison farm near Mapleton, the Northern Crops Institute, Reynolds United Co-op, and the ND Mill. Italy is the number one importer of U.S. durum with average purchases of about 11 million bushels and also buys a significant amount of HRS. Preliminary numbers indicate purchases of durum in 2009-10 at 12.5 million bushels and HRS at just under one million bushels. The team was accompanied by Goris van Lit and Rutger Koekoek of the U.S. Wheat Associates Rotterdam office.
JAPANESE FLOUR MILLERS Representatives of four flour mills in Japan were accompanied by Wataru "Charlie" Utsunomiya, Director of the U.S. Wheat Associates Tokyo office, on a visit to North Dakota in mid-June. Japan is consistently the top buyer of U.S. HRS, with annual average purchases of 56 million bushels. The U.S. generally accounts for 60-65 percent of total Japanese wheat imports, with the remainder coming from Canada and Australia. Japan is a consistent buyer of U.S. high quality wheat. Customer visits to key production areas are essential to assuring our top customer that the U.S. (and North Dakota) will continue to provide them with the safe, clean and reliable wheat supply they demand. This is especially important as world wheat production and export activity has become increasingly competitive in recent years.
The team met with the HRS breeder and HRS and durum quality specialists at NDSU. NDWC staff provided an outlook for the 2010 HRS and durum crop. The team was also updated on the progress of biotech wheat research and visited Alton Grain Terminal and the Northern Crops Institute. Team members expressed continued satisfaction with the quality of U.S. HRS, but stressed the need for more consistent quality among shipments. Japan currently imports only a small amount of U.S. durum, but there is potential for future demand as recent changes have been made to their buying system. Japan will remain a significant customer of U.S. wheat, but continued focus on breeding and quality efforts for both HRS and durum are necessary to maintain high quality customers like Japan, a market that accounts for over one-quarter of total U.S. HRS exports.
Additional trade teams from Japan and the Philippines will visit the state in coming months. These events will provide additional opportunities for information exchange and updates on the 2010 crop condition and market opportunities for producers and customers alike.
For more information, contact us at ndwheat@ndwheat.com
North Dakota Wheat Commission - 2401 46th Avenue SE, Suite 104 – Mandan, ND 58554-4829
Phone: 701-328-5111 - Fax: 701-663-5787
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