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Though Kansas wheat production reached near record lows this season, working with international buyers is a crucial piece of securing long-term markets. Because of this, members of the Colombian wheat technical mission traveled to Kansas in mid-August to explore the quality of this year’s wheat harvest. Participants had the opportunity to hear more about assistance provided to foreign leaders in business, government and trade, as well as the quality of the 2023 hard red winter (HRW) wheat crop.
“Even though exports of U.S. HRW wheat are down due to market conditions, it’s important to stay in front of buyers like millers from Colombia to remind them about the value of U.S. Wheat,” said Aaron Harries, Vice President of Research and Operations for Kansas Wheat Commission. “Colombian millers appreciate U.S. HRW wheat, and recent price drops for HRW have allowed them to resume purchases.”
Upon their arrival in Kansas, the team participated in several tours and informational discussions. After touring the Kansas Wheat Innovation Center, members of the team had a chance to hear an overview of International Grain Program (IGP). The team received a tour of Kansas State University’s grain science facilities, including the full-scale pilot flour and feed mills. They also spoke with Brad Seaborn from the USDA’s Center for Grain and Animal Health Research about the quality of the 2023 hard red winter crop.
Colombia imports wheat from Canada, the United States, the Southern Common Market, locally known by the abbreviation Mercosur and the European Union without tax. Wheat exported to Colombia from the U.S. is duty-free, due to the U.S.-Columbia Trade Promotion Agreement. Currently, Colombia produces less than 10,000 MT (0.367 million bushels) of wheat per year, putting them in a position to be 100 percent dependent on imports from other countries.
Consumption of wheat is reflected at about 1.7 MMT-1.9 MMT (62-70 million bushels) annually. Over 70 percent of these imports are used for bread flour, 14 percent for cookies and crackers and 11.5 percent for pasta. The U.S. wheat market share varies between 20-40 percent per year, with the fluctuation following the Canadian wheat prices.
In the 2022 calendar year, HRW accounted for 49 percent or 296,172 MT (10.9 million bushels) of total U.S. wheat sales to Colombia, slightly increased from the 2021 calendar year, which was 266,337 MT (9.8 million bushels). Soft red winter wheat exports were just behind HRW exports at 291,665 MT (10.7 million bushels). Hard red spring wheat exports reached 16,619 MT (0.6 million bushels), all exported from the Gulf.
In addition to reminding international buyers of the value of U.S. wheat, Harries highlighted the work of U.S. Wheat Associates, the U.S. wheat industry’s market development organization.
“U.S. Wheat Associates is working hard to increase the U.S. share of the wheat market in Colombia through farmer-funded activities,” Harries said.
U.S Wheat Associates is diligent in promoting the reliability, value and quality of the six classes of U.S. wheat to buyers, millers, bakers, food processors and government officials in more than a hundred countries around the world. The organization sponsors participation in webinars, workshops, in-person seminars and technical courses to improve the trade process, from milling and storage to handling and end-product industries. It also provides personalized consulting in milling, baking, pasta production and more.
While the buying opportunities for this market will be limited by the short supply of HRW wheat this year, building and maintaining relationships with overseas customers through trade teams and other market development efforts will continue to contribute to the long-term growth of opportunities for Kansas wheat farmers.
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Written by Jenna Fiscus, Kansas Wheat Communications Intern