US Wheat Crop Tour

by US Wheat
Associates

The trust between

USW and the
Japanese industry
allows for open
dialogue between
the two countries,
to foster a mutually
beneficial, long-term
trading relationship

72 | Milling and Grain

Annual US Wheat Crop Tour Strengthens Relationships with

Japanese Executive Millers

Building mutual trust and long-term business relationships takes time and commitment. As a
part of its market development activities, one important activity US Wheat Associates (USW)
employs to create stronger partnerships with overseas customers is to invite them to have a
first-hand look at the US wheat crop. That is what a team of six-flour milling executives from
Japans leading milling companies will do during travel to the Pacific Northwest April 30 to May
8, 2015.
Japan imports large amounts of US wheat so it is important for the Japanese flour milling
industry to regularly exchange views and information with US wheat organisations and
businesses, said Mr Masaaki Kadota, executive director of Japans Flour Millers Association.
We really appreciate your efforts to support our needs as your customers.
USW collaborated with the Montana Wheat and Barley Committee, Oregon Wheat
Commission and Washington Grain Commission to organise and host this trade team.
The Oregon Wheat Growers League (OWGL) established the first overseas US wheat export
office in Tokyo in 1956 and in that same year, the first Japanese millers team visited the United
States to learn about its markets. After it was established, USW continued the tradition and for
well over a decade, this particular activity has become an annual trip for Japanese executive
millers. According to Kadota - who has accompanied this team for many years - there is always
something new to learn and discuss.
There is nothing better than strengthening the mutual trust I have with those whom I meet
each year, said Kadota.
The team will make stops in Oregon, Washington and Montana. During meetings with wheat
farmers, grain industry representatives and university researchers, the team will discuss the US
wheat supply and demand picture,
including potential quality, availability
and price. The team will also discuss
current views on competitive markets,
dietary trends and the role innovations
in wheat breeding will have in
balancing future world food supply
demands with the need for less impact
on the environment.
This exchange of dialogue and
information is essential to US trade
with Japan, said USW West Coast
Office Assistant Director Shawn
Campbell. When questions and
concerns arise, we rely on the trust
built during these activities to guide
us toward decisions that have a
positive impact for both US wheat
farmers and the Japanese milling
industry.
USW is the industrys market
development organisation working in
more than 100 countries. Its mission is to develop, maintain, and expand international markets
to enhance the profitability of US wheat producers and their customers. USW activities are
made possible through producer checkoff dollars managed by 19 state wheat commissions
and cost-share funding provided by USDAs Foreign Agricultural Service. USW maintains
17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat

food processors and government officials understand the quality,

value and reliability of all six classes of US wheat.
The US Wheat Industry Relationship with Japan
In 1949, the OWGL organised a trade delegation to investigate
ways to expand US wheat sales to Japan. That trip ultimately
resulted in a variety of marketing and education activities
conducted by Western Wheat Associates, including a Kitchens
on Wheels school lunch program that promoted wheat foods to
Japanese consumers in rural areas. Western Wheat Associates
merged with Great Plains Wheat in 1980 to become USW.
Today, those efforts continue to pay off with US wheat enjoying
the largest market share in a well-established and quality
conscious market. Japan has purchased significantly more US
wheat than any other country over the years, including more than
3.50 million metric tons (MMT) on average the last five years.
Japan issues consistent, large, weekly tenders for US hard red
spring (HRS), hard red winter (HRW) and western white, which is
a blend of soft white (SW) and up to 20 percent club wheat, a SW
sub-class.
Japans milling and baking industries are highly advanced. A
modern baking plant produces 600 to 700 different items daily
from more than 30 blends of flour of various classes while
meeting strict quality and food safety restrictions. As a result,
Japanese millers demand very high standards of cleanliness and
uniformity - and US wheat producers consistently meet those
standards.

USWs efforts in Japan focus on providing up-to-date market

information and collaborating with Japanese industry groups. The
Ministry of Agriculture, Forestry and Fisheries (MAFF) carries
out all wheat purchases in Japan and then sells the wheat to
Japanese flour mills.
The Japanese grain trade acts as intermediaries between
MAFF and overseas sellers, and MAFF relies on the Federal
Grain Inspection Service to certify that its specifications are
met. The Portland, OR, office of OMIC USA Inc., conducts
stringent residue testing for MAFF as the wheat is loaded and
its offices in Japan test the wheat again when it arrives at its
destination.
Japanese customers value consistency and reliability. Their
keen concerns include food safety issues. Flour millers want to
increase their knowledge about the quality and supply chain of
US wheat.
As an Overseas Variety Analysis (OVA) program participant,
Japan is a part of a collaborative effort of wheat breeders, wheat
commissions, government research agencies, domestic partners,
and overseas millers and bakers that add more value to US wheat
varieties each year. Historical OVA program results show that new
wheat varieties typically rank higher in processing characteristics
than older ones, demonstrating that US wheat quality is
continuously improving.
The trust between USW and the Japanese industry allows for
open dialogue between the two countries, to foster a mutually
beneficial, long-term trading relationship.

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6/21/12 3:47 PM

May 2015 | 73