June 13, 2013

Ecuador trade team visit focuses on U.S. wheat competitive advantages

In an increasingly competitive world wheat market, U.S. Wheat Associates (USW) must be positioned to help U.S. wheat farmers take advantage of any market opportunity. Ecuador presented one such chance after the Canadian Wheat Board (CWB) lost its export monopoly control on August 1 2012. In the past year, USW has turned an ongoing relationship with flour millers in Ecuador into increased sales. This summer, USW will further foster greater demand in Ecuador by bringing a team of experienced Ecuadoran wheat buyers to the United States June 16 to 22 2013, to learn more about the advantages of U.S. wheat and the export supply system.

“Despite heavy competition from the Canadian Wheat Board monopoly, USW managed to gain a decent share of the market,” said
Alvaro de la Fuente, USW regional vice president, who will lead the trade mission. “Now, we are competing equally with Canada on the basis of quality and value and U.S. wheat commercial sales are up more than 50 percent year over year.”
Ecuador has imported more than 540,000 metric tons of wheat per year on average since marketing year 2007/08. Canadian spring wheat made up the largest share of the total, but U.S. soft red winter (SRW), hard red winter (HRW) and soft white (SW) wheat commercial sales for 2012/13 (June to May) reached more than 7.6 million bushels (205,800 metric tons), compared to a five year average of 5.1 million bushels (139,000 metric tons).

One of the goals of this trade mission is to demonstrate the value of HRW or blends of HRW and U.S. hard red spring (HRS) with SW or SRW compared to Canadian spring wheat.

“With minor adjustments, bakers can lower their costs with flour blends milled from U.S. wheat without compromising quality,” de la Fuente said.

The team’s first stop is Portland, OR, where there is access to U.S wheat supply systems from the wheat farms to end product education at the Wheat Marketing Center. Buyers will also learn how opportune it is to source multiple wheat classes and protein levels from the Pacific Northwest. In Oklahoma, the team will see HRW wheat in the field, observe how that wheat moves efficiently to market and get a first look at HRW quality for 2013/14. Price discovery, quality certification and trade considerations will be featured in the team’s final stop in Kansas City, MO.

In addition to generous support from the Oklahoma Wheat Commission and USDA’s Foreign Agricultural Service, USW worked with Kansas Wheat, the Oregon Wheat Commission, the Wheat Marketing Center, the Federal Grain Inspection Service and grain trade companies to organise the Ecuador trade team.

English: Flag of Ecuador Deutsch: Flagge Ecuadors
English: Flag of Ecuador (Photo credit: Wikipedia)

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