U.S. producers see opportunity once free trade established 

It isn't every American farmer who gets to meet foreign buyers, so Idaho grain producer Scott Brown considered himself fortunate to do just that on a recent visit to Latin America.

Brown, who farms near Soda Springs, Idaho, and is vice president of the Idaho Grain Producers Association, participated in a 10-day trip to Colombia, Peru and Mexico sponsored by U.S. Wheat Associates.

The buyers he met were picky about quality and very price conscious at the same time, Brown said.

"They were very astute business men," he said. "They were educated. They knew their stuff. I was very impressed."

Producers from Montana, Kansas, Oklahoma and Texas also took part in the trip Oct. 4-15.

The Latin American buyers discussed a range of topics from phytosanitary issues to shipping and pricing, Brown said.

"We work hard to grow the best wheat that we can for them, so it was good for us to convey that message," he said.

Most of the discussions focused on hard red wheat, the kind used in pan breads, flat breads and rolls.

The group toured flour mills and baking plants and met with foreign agriculture officials.

In Guadalajara, Mexico, the group toured the Altex Mill, a modern facility less than 10 years old. It produces flour for a variety of end uses, including pasta, bread and cookies.

Latin America purchases wheat from several different countries, so there's the possibility for the U.S to increase its market share.

"I think there's a lot of untapped opportunity," Brown said.

Buyers had good things to say about Pacific Northwest wheat, he said. In general, it's cleaner than what's received from Gulf Coast ports, the visiting producers were told.

U.S. producers would get a big lift from the proposed U.S.-Colombia Free Trade Agreement, Brown said. Tariffs of about 15 percent would disappear upon ratification.

Unfortunately, Congress and the Obama administration are preoccupied with other matters, and Canada is closer to a trade agreement with Colombia, Brown said.

"We're a step behind (Canada) in getting an agreement finalized with Colombia," he said. "If we don't have a free-trade agreement, we are going to lose a lot of our volume down there."

Colombia imports 97 percent of its wheat and is the eighth-largest market in the world for U.S. wheat, according to U.S. Wheat Associates. U.S. wheat exports to Colombia were valued at $225 million last year.

Foreign buyers have recently stepped up their purchases of U.S. wheat, industry officials said. The decline in the U.S. dollar and lower prices have helped boost sales.

U.S. wheat export sales reached a marketing year high for the week ending Oct. 8, with buyers ordering 767,300 metric tons, up 43 percent from the previous week, according to U.S. Wheat Associates.

Capital Press