WHAT DO OUR
CUSTOMERS WANT?
Matthew D. Schuster
Minidoka County Extension Educator
Two ocean freighters, each carrying 40,000 metric tons of wheat, to our Asian exporting countries, will hold almost half of the wheat production in Minidoka County. The sheer volume alone indicates that our exporting partners have several expectations:
Producers in the Pacific Northwest have been producing quality wheat for years. However, only recently has the idea of consistent end-use quality been given its due attention. What is end-use? End-use quality includes milling characteristics such as ease of milling, flower yield, flower protein, and color. But it also includes baking characteristics such as bread loaf volume, cookie diameter, texture, color, noodle strength, mixing characteristics, and a variety of other attributes.
To a miller and baker, the number of bushels per acre that a wheat variety yields doesn't matter. What matters is how that wheat performs once they have it and if their customers, including you and me, are accepting of the final product. One of the problems in the Pacific Northwest is that we have too many varieties. Once those varieties are blended together, it is almost impossible to predict how that wheat will perform.
A strong dollar has obviously been hurting our ability to export commodities. However, our inability to guarantee consistent end-use quality, once it reaches our port terminals, also keeps us at a competitive disadvantage compared to other countries like Canada and Australia. For example, the U.S. dollar continues to hold its strength compared to the Japanese Yen, but in 2001 our malt barley exports to Japan increased. Why? A major reason is that the Pacific Northwest produces some of the best malt barley in the world. Logic dictates that our market share will increase if we can deliver wheat with superior and consistent end-use quality. Ask yourself this question. Wouldn't you rather buy your product from someone that is trying to satisfy your needs?
The question is, now that we know there's a problem how do we correct it? In many areas, such as research and education, this issue is being targeted. In our wheat-breeding program more emphasis is being placed on end-use, as well as yield. In addition, the Idaho Wheat Commission has identified several varieties in each class of wheat that will help deliver consistent end-use quality; it's called the 'Idaho Preferred Mix.'
Working with our domestic mills to establish a common denominator for end-use quality would also help in bringing more consistency to our market. This would allow producers to deliver wheat based on end-use quality characteristics; and at the same time, develop a stronger market share.
The next question is, will price follow end-use quality? Probably not in the short run, but economics comprise more than just price. In the export market, buyers shouldn't need to pay more. If the Pacific Northwest can't deliver quality then they have the option of buying from Canada or Australia. Under that scenario, producers have lost money and market share. The same principles apply to our domestic market. Stored grain loses value over time. If producers in southern Idaho can create a strong demand and increased market share based on end-use quality, that insures less storage time, strong market demand, and money in the pocket.
Shifting wheat production with more emphasis on end-use quality will not be a simple task, but it can be done. We already produce for quality in malt barley, potatoes, alfalfa, silage corn, and many others. Wheat can be an economically viable crop, but developing a strong market share will be key. Idaho has the ability to produce some of the best quality products in the U.S., and developing market share is what keeps buyers coming back.
For more information contact the Idaho Wheat Commission, the University of Idaho wheat breeding team, your local elevators, or a milling or baking facility.