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N.D. Wheat Commission Update

Helping North Dakota wheat see the world. N.D. Wheat Commission Update. Board of Commissioners. Harlan Klein, Chairman Fran Leiphon, Vice-Chairman Bruce Freitag, Scranton - Commissioner-at-Large. BUILDING BIGGER BETTER MARKETS THROUGH PRODUCER INVESTMENT. OUR MISSION

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N.D. Wheat Commission Update

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  1. Helping North Dakota wheat see the world. N.D. Wheat Commission Update

  2. Board of Commissioners Harlan Klein, Chairman Fran Leiphon, Vice-Chairman Bruce Freitag, Scranton - Commissioner-at-Large

  3. BUILDING BIGGER BETTER MARKETSTHROUGH PRODUCER INVESTMENT • OUR MISSION • Build bigger better markets for ND premium wheats • Promote, aid and develop marketing for state’s wheat • Sustain and improve state ag economy • SERVICE AREAS • Export marketing • Research/customer service • Domestic promotion/education • Trade and domestic policy • Public information

  4. N.D. WHEAT AVERAGE GROSS RETURN PER ACRE $ Per harvested acre (Average market price X yield) Source: N.D. Agricultural Statistics Service *10 NDWC unofficial projection

  5. VALUE OF N.D. SPRING WHEAT CROP(Gross) $Million Source: N.D. Agricultural Statistics Service *10 NDWC unofficial projection

  6. VALUE OF N.D. DURUM CROP(Gross) $Million Source: N.D. Agricultural Statistics Service *10 NDWC unofficial projection

  7. SERVING PRODUCER PRIORITIES NDWC 2010-11 BUDGET - $4,909,109

  8. NDWC 2009-10 EXPENDITURES$3,083,932

  9. EXPORT MARKETING • Partnerships – U.S. Wheat Associates, N.D. State University , Northern Crops Institute • USDA Match - $2.80 : $1.00 - U.S. Wheat uses this and NDWC check-off funds to operate 17 offices around the world. • Crop Quality Survey/Report/Seminars - Key sales tools for ND crop • Customer Relationships Important • Provide valuable link from producer to customer

  10. U.S. Wheat Associates Foreign Offices

  11. EXPORT MARKETING • Technical Support - Customers trust and respect U.S. Wheat staff to resolve quality and marketing issues. - Helps secure market share when U.S. is not always lowest price supplies.

  12. EXPORT MARKETING HIGHLIGHTS • Customer base of more than 100 countries • 2010-11 marketing year • HRS exports projected to reach 360 million bushel, up 70% from 2009 and 3rd largest on record. • Durum exports projected up 14 % to 50 million bushels, highest in 10 years.

  13. Linking Producers to the Customer

  14. MARKET DEVELOPMENTEFFORTS HAVE HAD HUGE SUCCESS US HARD RED SPRING WHEAT EXPORTS TO JAPAN (million bushels) 9% annual growth over 40+ years Source: USDA Grain & Feed Market News

  15. RESEARCH SUMMARY • Current year reflects over a $1 million increase from 2009 budget year • Key Support Areas: • Agronomic Performance • Higher yields/better bottom line • End use performance • Customer satisfaction/increased sales • Research Infrastructure/Equipment • Provide greater value to producers, customers, consumers • High performance wheat – fastest growing segment in global wheat market

  16. RESEARCH HIGHLIGHTS • Glenn – 2005 HRS release, N.D.’s top variety – exceptional quality • Faller – offers elite yield potential • Divide, Alkabo and Tioga – durum lines with improved yield and agronomics and big improvement in quality for customers • White Wheat – in process, great domestic and international demand if it performs like HRS • Biotech -- renewed interest from private tech providers. Promises good things for wheat. Biotech must be part of the mix for wheat producers in the future but need to protect investment in germplasm and access to varieties. • Winter wheat – NDSU recently hired a winter wheat breeder. Joint program with Bayer and other regional entities. • NDSU Greenhouse – NDWC has provided $750,000 to ensure wheat has a strong share of the mix in enhanced research efforts

  17. 2010-11 NDWC SUPPORTED RESEARCH AT NDSU -$1,820,864 Miscellaneous $625,000 Wheat Breeding/Genetics $492,601 Disease/ Pest Management $33,463 Miscellaneous includes Biotech contingency, NCI Pilot Mill, SBARE matching contingency and the NDSU Greenhouse.

  18. 2009-10 NDWC SUPPORTED RESEARCH AT NDSU -$773,189 Miscellaneous $159,375 Wheat Breeding/Genetics $279,076 Disease /Pest Management $26,588 Miscellaneous includes Biotech Contingency funding, NCI Pilot Mill, and remaining SBARE funding.

  19. DOMESTIC POLICY • Support domestic policy through contracts – 2 mills of 15 mill check-off • NDGGA & USDGA • Crop Insurance • Farm Bill • Rail Issues • National Association Membership • Environmental/Conservation • Producer Education • Chemical Harmonization

  20. DOMESTIC MARKETINGPRODUCT PROMOTION • Partnerships with Wheat Foods Council and National Pasta Association • Recovery of wheat/flour consumption – post Atkins • New dietary guidelines emphasize importance of carbs and whole wheat and enriched flour foods • White whole grains – meeting consumer taste for white breads • Setting the record straight – “More to the Story Than the Price of a Bushel of Wheat”

  21. PUBLIC INFORMATION • Annual Report • Dakota Gold • Web Site • Wheat Bulletin – email newsletter • Crop Quality Reports • Producer Meetings • Wheat Link radio spots – statewide exposure to industry issues and successes

  22. NDWC FINANCIAL STATEMENTJULY 1 – JUNE 30

  23. THANK YOU

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