Breaking report-New Study Shows 23-to-One Return on Producer Wheat Export Promotion

ARLINGTON, VA — U.S. wheat producers invested an average of about $10 million per year to promote their products overseas between 2000 and 2007, and for every one of those dollars they received $23 back in increased net revenue. That is the principal conclusion of a new economic analysis of wheat export promotion released today by U.S. Wheat Associates (USW), the wheat industry’s export market development organization.

USW commissioned the study with funding from the USDA/Foreign Agricultural Service (FAS) Market Access Program. Dr. Harry M. Kaiser, the Gellert Family Professor of Applied Economics and Management at Cornell and director of the Cornell Commodity Promotion Research Program (CCPRP), designed and conducted the research using established methods he and the CCPRP team developed.

“The study showed that U.S. wheat export promotion had a large and beneficial impact for producers and the economy that far exceeded its cost,” Dr. Kaiser said. “One of the econometric models we used showed that the overall average revenue benefit to the entire wheat industry from the combined producer and FAS expenditures was estimated to be about $115 for each dollar spent.” The study also predicted that increasing the promotion investment has the potential for even greater returns to wheat producers, the wheat supply chain, and the U.S. economy.

Dr. Kaiser quantified the impact of wheat export promotion through a model that accounts for several factors affecting commodity export demand. The study determined that cutting promotion by 50 percent between 2000 and 2007 would have reduced wheat exports by 17.1 percent, a total export loss equal to almost 1.4 billion bushels or almost 172.7 million bushels per year. The value of that loss was determined, then compared to total wheat export promotion cost to calculate a series of benefit-to-cost ratios (BCR). The producer BCR from the total promotion cost averaged 11.5 to 1. Because producers contributed about half the total in checkoff dollars and in-kind support, the BCR for their half of the spending averaged about 23 to 1.

“Our organization is accountable to wheat producers and other taxpayers who fund the market development work we do,” USW President Alan Tracy said. “Dr. Kaiser’s research methods are well respected, so we are very confident about the analysis and very pleased with the results.” Tracy said the findings were similar to results from a study USW commissioned five years ago showing that wheat exports would decline by 28 percent with no promotion investment, and to a study FAS conducted in 2006.

USW will use additional results from the study to help plan and manage its future activities. The organization has posted full study results on its Web site, www.uswheat.org.

U.S. Wheat Associates is the industry’s market development organization working in more than 100 countries on behalf of America’s wheat producers. The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions, in-kind support, and cost-share funding provided by USDA’s Foreign Agricultural Service. To qualify for federal funds, USW is required to prepare and submit an annual, comprehensive Unified Export Strategy that details specific market development plans for every country and region. For more information, visit www.uswheat.org or contact your state wheat commission.

Wheat Commission Approves Resolutions and Passes Motion

Here is the text from an official press release the OWC JUST sent out to state and national media outlets. Please contact our office at 405-608-4350 with questions, or via our blog.

   The Oklahoma Wheat Commission hosted other state wheat and agricultural organizations for their monthly board meeting Jan. 20, 2010.

   The event, held at 3800 N. Classen Blvd., was attended by Oklahoma State University, the Oklahoma Wheat Growers Association, Plains Grains, Inc., National Agricultural Statistics Services, Oklahoma Genetics, Inc, American Farmers and Ranchers, Oklahoma Crop Improvement Association, and USDA-ARS.

   The agenda held two items pertaining to future public and private wheat research collaborations. Discussions in recent meetings were about building partnerships between land grant universities and private wheat breeding companies, resulted in the creation of two resolutions, which were also passed later that afternoon by the OWGA board of directors.

   The first resolution agreed upon read:
   “The Oklahoma Wheat Commission strongly urges Oklahoma State University to recognize the investment by Oklahoma Wheat producers in variety development with the Oklahoma State University wheat breeding program.”

   Chairman Don Schieber, Ponca City, said the Wheat Commission wants to protect the interests of Oklahoma’s wheat producers.

   “The Oklahoma Wheat Commission invests lots of producer dollars to research through OSU and we are extremely interested in the path it takes during the many steps of research,” he said. “We trust the University and want to ensure that our wheat producers prosper from the outcome.”

   The second resolution read:
“Given the positive role wheat producers can play in fostering collaborations, the Oklahoma Wheat Commission urges Oklahoma State University to include Oklahoma wheat producers in discussions regarding potential partnerships with private parties.”

   Jimmie Musick, Oklahoma Wheat Growers Association president and Sentinel wheat producer believes in creating partnerships to better enhance the discovery and use of technology.

   “These partnerships are important in order to increase yield, quality and marketability of our product,” he said. “I see this as the potential to create a working relationship through a cooperative partnership that desires our input to give wheat a competitive edge with other crops from a technology standpoint.”

   The Oklahoma Wheat Commission board also passed the following motion:
   “The Oklahoma Wheat Commission supports the “Principles for Collaborations in Wheat Breeding and Biotechnology” adopted by the Public Breeders of the Hard Winter Wheat Improvement Committee, and strongly urges Oklahoma State University to use the Principles to guide their collaborations and agreements with private industry. The Oklahoma Wheat Commission urges the National Wheat Improvement Committee and the National Association of Wheat Growers and U.S. Wheat Associates to adopt these Principles and promote research collaborations that benefit the entire U.S. wheat industry.”

   Executive Director Mike Schulte sees the importance for Oklahoma and U.S. wheat producers to have better technologies made available to compete in the global marketplace.

   “The opportunity for greater quality wheat will be made possible with new research and technologies that could be made available from private industry,” said Schulte. “The Oklahoma Wheat Commission and the Oklahoma Wheat Growers Association wants to make sure potential future partnerships will benefit all producers.”

   The Oklahoma Wheat Commission works to promote greater utilization of wheat in both domestic and international markets through research, market development and public education. Five wheat producers representing designated districts across the state serve as the Oklahoma Wheat Commission’s board of directors. Current officers are; Don Schieber, Chairman, Ponca City; Keith Kisling, vice- chairman, Burlington; Tom Stephens, secretary-treasurer, Guymon; Tom Glazier, member, Loyal and Jeff Krehbiel, member, Hydro.

We survived Enid!

 After 18 hours of serving over a two day period, we are alive and well at the office. As usual, the KNID Agrifest was a very well ran farm show drawing a huge crowd from around the state and even surrounding ones! People braved the “artic blast” to venture out and around the trade show booths. Fortunant for us, we were in our normal spot with control of the thermostat!

Waiting in line with baited breathe!

I just ran the numbers on some things from the weekend:

* We made 24 batches of dough- using 240 pounds of flour, half whole wheat and half baking flour.

We start early to get our dough going! This is our actual mixer and how we start each batch!

*We served 12 batches of cinnamon rolls or the equivilant of 1260 whole cinnamon rolls- we give out half rolls for samples so that puts us at handing out 2520 samples of our oooeeeyyy goooeeyyy cinnamon rolls.

This is only one half of one batch! We have to cut each batch in to two halves so it will work and fit on our table.

OH man!! Does all this heart healthy perfection make your stomach growl, too?!?!

*We shaped and baked 168 loaves of bread, handing out 1632 slices to everyone.

* Once again, we teamed up with the Buss family to serve samples of their Grandma Opal’s cookies. We served 150 pounds of their amazing whole wheat, pre- portioned cookie dough in chocolate chip and oatmeal raisin. We were asked many times for the recipe, so I should stress their mission. They are protecting their grannies recipe by selling the dough in the freezer section of various food outlets. Give us a call if you are interested and we can get you the information on locations.

During our two days, we had plenty of help…..

We couldn’t do it without the help of our commissioners and their wives.

or their cute families! Their help and support to the state’s wheat crop is amazing and never failing.

Thank you, everyone! From the help we got to the converstations we had, it made for a great few days. Congrats!

Pioneer Woman and wheat bread

I love, love, love the Pioneer woman blog! You can find her, and her millions of followers, at http://thepioneerwoman.com/. I searched to see if she has a whole wheat bread recipe and was sad to find that she didn’t. I think I am going to send her ours since she is so good at giving credit where credit is due. Her cinnamon rolls look delish, but I would venture to say ours are better:)

However, she does show off a nice, scrumptious looking piece of whole wheat bread in the pictures that accompany her Egg in the Hole recipe. Check it out…..http://thepioneerwoman.com/cooking/2008/07/egg-in-a-hole-see-alternate-names-below/ My daddy always made these for me as a kiddo, but he never used wheat bread. I grew up in a white bread house, but I am now the head of a whole wheat house! Egg in the Hole’s are awesome to begin with, but using wheat bread helps keep the from getting too soggy and you will feel better about yourself!

What other ways can we put whole grains in our diet, you ask???? (I know you were thinking this!) Well, try whole wheat crackers, wheat noodles with your spagetti, English muffins that pack an extra kick with whole wheat. There are many ways and I know we can do it.

Toodles for now as I am on my way to forwarding our small version of the whole wheat dough to the Pioneer Woman. If you need it again, check out our Web site- www.wheat.state.ok.us. Click on the recipe link. And, coming soon- our new cookbook! It will be posted there, too!

Enid Full Steam Ahead!

The trailer is packed, the ingredients are purchased and the booth space is reserved. Sounds like we are on for another great KNID Agrifest this weekend. We hope you can make it to see us and the other great events, even if we never leave our booth and can’t tell you what they are! LOL.

This year, we will be doing our traditional serving of the rolls in the a.m then switching to samples of our whole wheat bread. As we have the past two or three years, we will fill the air with the aroma of whole wheat chocolate chip and oatmeal raisin cookies. The Buss family from the Hunter area will be on hand to sell you their product if you sample ‘em and can’t get enough. Let us tell you- we don’t like “normal” cookies, but we can’t keep our pals off Grandma Opal’s whole wheat, preservative free little trip to heaven!

Our booth will also be full of cookbooks, lapel pins, educational materials and other recipes, too. Feel free to grab what you need, chat our staff up, tell us about your wheat or even your family. We work for you, you know;)

So, to prepare you for this wonderful weekend  we will show you some snapshots from past events. And, if the weather is a chilly as they say, please stop by with a cup of coffee for KC!

Current OWC Chairman, Don Schieber.

David Buss, Upper Redfork Innovations, talks to show goers about his family’s cookie product.

This is the type of reaction we LOVE to see when someone samples our cinnamon roll!

USW Reaches Out to Saudi Arabian Wheat Buyers

Here is a press relase from the US Wheat Associates headquarters in D.C. Please enjoy! We like to work with them in the efforts to promote their national organization. Feel free to contact the OWC if you have any questions or concerns. We work with producers for producers in every way possible.

Arlington, Virginia — U.S. Wheat Associates (USW) recently conducted a seminar in Riyadh, Saudi Arabia, to introduce U.S. wheat and the U.S. marketing system to the Saudi Arabian wheat buying organization, Grain Silos and Flour Mills Organization (GSFMO). Conducted in cooperation with local USDA/Foreign Agricultural Service and State Department officials, the seminar was the first ever held exclusively with this new international wheat buyer, and was designed to build confidence in U.S. wheat crop quality, handling, and commercial reliability.

The Kingdom of Saudi Arabia has decided to end domestic wheat production by 2016 and may eventually need to import more than 2.5 million metric tons (91 million bushels) of wheat per year.

“Competition for this market is intense,” said Dick Prior, USW Regional VP, Cairo, Egypt. “The Canadian Wheat Board monopoly is allowing select traders to offer comparable quality Canadian wheat at delivered prices well below what our exporters can offer so establishing the value of U.S. wheat with GSFMO is critical.” Saudi Arabia purchased almost 60,000 metric tons (2.2 million bushels) of U.S. hard red winter wheat in marketing year 2008/09 (June-May).

Prior said the seminar was a full year in planning. With perseverance from the USW Cairo staff and strong personal support from GSFMO Director General Waleed El Khereiji and U.S. Ambassador to Saudi Arabia James Smith, about 20 GSFMO staff and Saudi authorities met at the GSFMO offices in Riyadh in late November.

The USW team leading the seminar included Prior, VP John Oades, Assistant Regional Director Ian Flagg, and Regional Marketing and Special Projects Manager Hesham Hassanein. Royce Schaneman, Executive Director of the Nebraska Wheat Board, also participated.

USW is the industry’s market development organization working in more than 100 countries on behalf of America’s wheat producers. The activities of USW are made possible by producer checkoff dollars managed by 19 state wheat commissions and through cost-share funding provided by USDA’s Foreign Agricultural Service. For more information, visit www.uswheat.org or contact your state wheat commission.

Words from Dr. Kim Anderson

Okay- so I am in the Christmas mood and can’t focus. I read this whole article, attempted to put my two-cents in and came up with nothing. So, I decided to copy and paste the wisdom of Dr. Anderson right into my blog. Remember- this isn’t a piece generated from any of us at the OWC, so just chug along and digest:)

2010 wheat harvest price expected to be $4.75

At this writing, the Kansas City Board of Trade July wheat contract price is $5.90. Some elevators in central Oklahoma and the Texas Panhandle are offering about 0.90 less than the KCBT July wheat contract for 2010 harvested wheat ($5.00).

The expected June 20, 2010 central Oklahoma wheat price is $4.75. The potential price range is $3.70 and $6.50. Problems with this prediction are that this range may not be wide enough and there are a tremendous number of uncertainties.

The 2009 Argentine and Australian wheat harvests are essentially complete. The next wheat to be harvested is in India, China, Pakistan and the Middle East. India’s wheat harvest is normally between March and mid-May. Harvests in Pakistan and the Middle East begin the first of April and run through June. China’s winter wheat harvest is normally between mid-May and mid-June.

About 24 percent of the world’s 2010-2011 wheat marketing-year production will have been harvested by June 1, 2010. Wheat production in India, Pakistan, the Middle East, and China will impact Oklahoma’s June 2010 wheat price.

To predict the June 2010 wheat price, estimates must be made for the value of the dollar, U.S. wheat exports and ending stocks, planted wheat acres, yields, and how much outside money (new term for funds) invested in wheat contracts will also impact 2010 harvest prices. The price impacts of the dollar value, wheat exports and ending stocks are related.

Since June, the U.S. dollar index has declined from about 81 points to about 74.5 points. This is an 8 percent decline in the dollar’s value relative to other major currencies. Since mid-September, the dollar index has declined from about 76.5 points to 74.5 or about 2.6 percent.

Between June and mid-September 2009, wheat prices fell $1.10, about 20 percent. Since mid-September, wheat prices have increased $0.80 or about 17 percent. The change in the value of the dollar may not have a direct impact on wheat prices. However, the declining value of the dollar may be one reason that outside investors are buying commodities.

A good example of the price impact of a declining dollar and outside investors is the $1.58 price rally (28 percent) between mid-April 2009 and mid-June 2009. There was little if any fundamental (supply and demand) reason for prices to increase.

During the April to June period, estimates of both U.S. and World wheat stocks were increasing. Estimates of 2009 world wheat production were also increasing. There was little change in expected demand.

During the $1.58 wheat price rally, the dollar index declined from 86.5 points to 78.5 or 9.2 percent. There was not a big increase in export demand.

Outside investor buying was the major reason for the $1.58 rally. Investors may have been buying commodities because of the declining dollar value and possibly because of inflationary fears. There is no way to know what outside investors will be investing in next spring and summer.

The 2010 U.S. winter wheat crop has been planted. Early estimates indicate that hard red winter planted acres may be slightly lower than last year. Estimates of soft red winter wheat planted acres indicate significantly less planted acres.

For reduced winter wheat production to have a major impact on wheat prices, 2010 winter wheat production needs to be about 1.3 billion bushels. The five-year average is 1.54 billion bushels. Given the current wheat crop condition, below average production is not very likely.

For 2010 wheat prices to remain at current levels, total U.S. wheat production needs to be below the 1.22 billion bushel average. Average or above production would result in another increase in wheat stocks and lower prices.

If you can’t afford lower wheat prices, consider forward contracting some (up to 20 percent) of the expected 2010 wheat production and selling wheat that is in storage.

Teachers! Look in! Deadline Approaching!

I love the Oklahoma Ag in the Classroom program and their coordinators. As I was thinking of something, anything, to blog about today I found this morsal of information……

Dec. 18, 2009 is the deadline to send in applications for the 2010 AITC Teacher of the Year awards.

I love going to schools and using the AITC PASS aligned assignments. All over the state, those programs are put to good use every day by teachers who hold agriculture near and dear to their hearts. Teachers that aren’t from rural areas find time to teach our youth about agriculture and that means WHEAT!

So, during this holiday season do a good dead and nominate a teacher! Here is the link to the application, more details and addresses. The Oklahoma Wheat Commission supports the AITC program by being a part of their Advisory Council and their  multiple projects.

http://www.clover.okstate.edu/fourh/aitc/teacher/toy.html

Please get your nominations in. If you have any questions, please feel free to ask myself this weekend at the OKLAHOMA WHEAT GROWERS ANNUAL CONVENTION ON SATURDAY!

Much to be thankful for….

Tis the season to count your blessings. A few that I know our office is thankful for is the great report just put out by our NASS office! We have plenty of moisture throughout the state and have gotten 95 percent of our crop in the ground, with 85 percent of it emerged. That is slightly behind normal, but an encouraging progression from their last report. The report also shines a light on the fact that 80 percent of our crop is currently rated good to excellent, which is about a 20 percent increase from last year.

Our board member Jeff Krehbiel keeps progressing and updating his care pages site. Since it is the holiday season, we ask that you continue to keep him and his family in your thoughts and prayers. And, I know he enjoys to read all of the comments left on his care page, so cheer him on.

The Oklahoma Wheat Growers announced their annual convention. It is always a great gathering of wheat minds, producers and staff to help expand your horizons. Feel free to register and show up on Dec. 12, 2009. You will be thankful that you attended!

If you are setting here with me, cruising the Internet, than you should be thankful for your ability to make ends meet. I know at times I forget, but watching a segment on the news this a.m. about the Jesus House and the increase in the need for their services really hit home. Please take time to donate canned goods, loaves of bread or your time this season. Go to the store, buy some loaves of whole wheat bread and deliver to a church or shelter in your area. Do it because it is healthy for your heart and soul!

Be thankful that there are people out there trying to find a healthy alternative to Eggo waffles, in case their shortage hits home! HAHA. No, on a serious note, you can start providing a bit more whole grain nutrition to your family by reading this article and trying some alternatives. Your heart and brain will thank you!      http://www.mnn.com/food/markets-groceries/blogs/taste-test-frozen-waffles

I could go on and on, but I am a bore! Please let us know what makes you thankful! Keep your loved ones in your thoughts and do good for others!

Have a safe and healthy Thanksgiving week and weekend! CHEERS!

 

 

Other ag blogs and OWC News

I don’t know about you, but I am still getting my feet wet on this whole blogging deal. I thought it would be easily concured, but here I am once again struggling for content. Please bear with me as I tackle my blog:)

Ironically, as I was trolling the Internet for some inspiration for wheat “stuff”, or more professionally blogging content, I got a phone call from the folks at www.agblog.com and they want to do more wheat talk. Upon hanging up, I surfed on over to their site and found a ton of helpful and interesting content.

Now, my question is: What are your favorite ag blogs? Where do you go? I visit the Oklahoma Department of Ag’s blog, the Pioneer Woman one, one my creative and talked pal Crystal puts together and various wheat/work related sites. Help me out folks!

Other related business….

We were ever present at the Farm Bureau convention last weekend and we thank everyone for stopping by and chatting. They said our smell was all over the Cox Center…. our GOOD smell! We love providing our amazing product made from our amazing, high quality Oklahoma wheat. Thank a farmer if you ever get a chance to sample our goods. We gave out about 1260 cinnamon rolls and 1344 samples of our bread. What a couple of days!

 

Don’t forget that November is National Peanut Butter month and nothing can tempt a person or make their day brighter than a great PB&J made with whole wheat bread. If I do say so myself, our little recipe makes some great bread to put your peanut butter and jelly on. Here you go….http://www.wheat.state.ok.us/Web%20Site/Recipes/bread_and_rolls.pdf

 

WARM BREAD MAKES FOR HAPPY SANDWICHES!