19/12/2014: Trade with Cuba is opportunity for Kansas US wheat

The possibility of renewing relations with Cuba could mean a significant change in one of the state’s largest commodities, wheat, the KSN website reports.

Wheat is Cuba’s second largest import.

“Right now they’re getting that all from Europe and Canada,” said Gary Millershaski, President of the Kansas Association of Wheat Growers.

The US is the largest exporter of the grain, not to mention one of Cuba’s closest neighbours.

“It’s really not made a lot of sense in the past for, for example, Canada to sell wheat to Cuba,” explained Ron Suppes, a representative of Kansas on the US Wheat Board. 

“They go around the US to get down there so [they] have a lot higher freight rates.”

Which means the US could sell wheat at a competitive price or keep the price the same and make more money.

“We’ve tried doing what we’ve been doing for 50 years, and it hasn’t worked, so maybe something new needs to be tried,” Suppes said.

At this point, numbers are speculative, but wheat farmers agree that opening trade with Cuba could mean big business for agriculture. If Cuba could buy from the US, wheat growers could potentially be selling them 500,000 metric tons of wheat every year.

“We’re talking close to 15 percent of what we raised last year could go to Cuba,” said Millershaski.

Because of their location relative to the Gulf, Kansas, Texas, and Oklahoma could be the states to provide the wheat.

“If the market opens up so that there is a possibility, it’s got to be a long term positive for the state,” Millershaski said.

Read more HERE.

 

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