Chilean Wheat Team to visit Lewiston, Idaho Wheat Commission, June 15, 2017

[vc_row][vc_column][vc_column_text]Contact: Tereasa Waterman (208) 334-2353
Idaho Wheat Commission

(BOISE, ID) — Idaho wheat growers will host four executives from major wheat purchasing and flour producing companies in Chile Friday, June 23, as part of a trade team sponsored by U.S. Wheat Associates (USW) and the Idaho Wheat Commission to learn more about the quality, value and reliability of U.S. wheat imports. The team will visit CHS Primeland and Lewis and Clark Terminal. For more information, contact [Tereasa Waterman (208-334-2353 or [email protected]].

Idaho wheat growers and wheat commissioners Bill Flory and Ned Moon will help host the team while in Lewiston.  “It’s a wonderful opportunity for wheat growers to rub shoulders with their customers, and it’s a great opportunity for buyers to learn more about the crop and the supply chain in the state of Idaho,” said Flory.

While in Lewiston, the team will tour Lewis and Clark Terminal, where the 465 commercial waterway to Portland, Oregon begins.  The Columbia Snake River System is the top wheat export gateway in the United States, and the third largest grain export gateway in the world.

Chile is a sophisticated wheat food market where bakers demand specific flour quality for a wide variety of products – led by bread consumption. In order to meet the demand unmet by domestic production, Chile imports an average of 850,000 metric tons (MT) each year. In calendar year 2016, the United States was the top supplier of wheat to Chile, at 397,000 MT, accounting for 46.5 percent of the market share. Hard red winter (HRW) wheat accounted for 89 percent (353,000 MT) of total U.S. wheat sales to Chile in CY16, up from 35 percent in CY15. Over the past five years, the United States was the top supplier of wheat to Chile three times, with an average of 383,000 MT.

Team Members and Titles

Mr. Eduardo Bustamante, Director Importadora de Granos G9Mr.

Sergio Morales, General Manager, Cia. Molinera San Cristobal

Mr. Juan Enrique Ojeda, General Manager Molino Cunaco S.A.

Mr. Jose Grohnert, General Manager Molino La Estampa S.A.

Ms. Casey Chumrau, Marketing Manager USW/Santiago

Country Background: The U.S. Wheat Industry Relationship with Chile

Chile is a well-developed wheat food market with a wide variety of products – led by the consumption of bread. In this sophisticated market, bakers demand specific flour qualities, which the mills find challenging to deliver. Fierce competition among bakeries has forced mills to invest in increasing product variety, which has helped maintain consumption. Competition among Chile’s almost 6,000 traditional bakeries has also increased as a result of the growing number of supermarket bakeries. In Santiago, where approximately 40 percent of the country’s population, and half of the traditional bakeries, are concentrated, 126 of the 184 supermarkets have in-store bakeries.

Total wheat consumption (including food, seed and industrial use) has been relatively flat for several years at approximately 2.1 MMT. Chile imports an average of 850,000 metric tons (MT) to meet the demand unmet by domestic production. Chile’s main wheat supplier changes depending on market conditions. In the past five years, the United States was the top supplier three times with an average of 383,000 MT. Canada was the top supplier twice, averaging 253,000 MT per year. Argentina is the other major supplier and exported an average of 206,000 MT to Chile in the last five years.

Chile has 72 mills located primarily in the central area of the country with an installed milling capacity of 2.9 MMT of wheat per year. Flour consumption has been steady over the past 12 years, reaching just under 2.0 MMT, indicating a capacity utilization of about 80 percent.

Chile currently has 26 free trade agreements (FTAs) with 64 countries including the United States, an agreement that allows duty-free imported U.S. wheat. Chile’s FTAs represent 64 percent of world population and 86 percent of global GDP. Chile is currently a negotiating partner in the Trans-Pacific Partnership.

Chile and the South America Region is supported by staff in the USW Santiago Office.

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