One tour stop was at Ohlde Seed Farms near Palmer, where Shane Ohlde showcased the arm's demonstration Plots and commercial fields, where lush, green plants will produce high-quality Kansas wheat. Ohlde also showed the visitors seed conditioning equipment at the seed farm, illustrating the importance of providing quality seed to ensure that farmers get the wheat crop off to a good start.
"It is important to stay engaged with Brazil's buyers, keeping them informed about our crops and supporting them with technical information," USW President Alan Tracy said. "Experience shows that with that knowledge, they quickly turn to the dependable U.S. wheat store when the need is there."
Advantages for Brazil's buyers
Aside from the fiscal advantage of the duty free wheat quota, many of Brazil's buyers are also in a good location to import U.S. wheat. Several important flour mills are located in northeast Brazil and its northeastern port is the same distance away from southern U.S. ports as it is from Argentina's ports. This leaves U.S. wheat at no disadvantage when it comes to shipping costs and Brazil's buyers are responding again. Commercial sales of hard red winter and soft red winter to Brazil as of March 28 for 2012/13 are more than 400,000 MT compared to commercial sales at the same time in 2011/12 of only about 112,000 MT.
Though Brazil's duty free wheat quota is only temporary, it provides an opportunity for the U.S. industry to gain new market access - important for U.S. wheat farmers who rely on export markets to consume nearly half of their total annual production. In addition, expanding markets has a positive effect on the overall U.S. economy with each additional billion dollars in agricultural export creating 8,000 to 9,000 jobs, according to USDA.