Agriculture Reference
In-Depth Information
Table 19.2
US wheat production and usage.
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
Area
Planted
Million hectares
24.40
25.13
24.16
23.15
23.19
24.44
Harvested
18.54
21.49
20.24
20.28
18.94
20.64
Supply
Beginning stocks
Million tonnes
21.15
13.38
14.87
14.70
15.55
12.42
Production
43.71
63.82
58.74
57.29
49.32
56.25
Imports
2.11
1.71
1.92
2.22
3.32
2.45
Total supply
66.97
78.91
75.54
74.20
68.18
71.12
Usage
Food
Million tonnes
25.00
24.82
24.76
24.90
25.40
25.72
Seed
2.30
2.16
2.11
2.11
2.22
2.34
Feed and residual
3.15
5.52
4.96
4.35
3.42
2.99
Total US usage
30.45
32.51
31.82
31.36
31.04
32.66
Exports
23.14
31.53
29.01
27.29
24.73
32.66
Total usage
53.59
64.04
60.84
58.66
55.77
63.72
Ending stocks
Million tonnes
13.38
14.87
14.70
15.55
12.42
7.40
States wheat exports have fallen steadily since
peaking in the 1980s. According to the
USDA
Wheat Situation Outlook Yearbook
, US wheat
exports fell from a high of nearly 50% of the
global wheat export market (48 million tonnes)
in 1981 to about 25% (28 million tonnes) of
world exports in 2005 (USDA 2006). The quan-
tity of US wheat exports as a percentage of US
wheat production also has decreased (Table
19.3). In the 1988-1989 marketing year, US
wheat exports, as a percentage of total produc-
tion, peaked at 78%. Since the 1999-2000
marketing year, the proportion of US wheat
production that was exported has remained
steady at approximately 50%.
During this same period, increased privatiza-
tion of the global milling industry resulted in
fewer public (government) tenders for large
quantities of grain and more purchases by private
fl our milling companies, though in smaller quan-
tities. Private fl our milling companies, by nature
of their proximity to the end user, place a greater
emphasis on specifi c wheat quality characteris-
tics. In contrast, public buyers tend to focus
on price as the primary driver in a purchase
decision.
New exporting countries (i.e., nontraditional
competitors) represent the largest percentage
increase in global wheat exports (USDA 2006).
Similar to the US, other major wheat exporting
countries—Argentina, Australia, Canada, and
countries in the European Union—experienced
little or no growth in wheat exports during the
same period. The EU reported a small increase
in recent exports, but this is mainly due to the
addition of countries to the European Union.
India, Russia, and other former Soviet Union
Republics reversed their role in the global wheat
market by becoming net exporters. More coun-
tries exporting wheat creates a more competitive
global wheat market. Buyers have become more
quality conscious and more sensitive to price
fl uctuations.
Of the major exporting countries, the US and
Argentina are the only countries that do not
include chemical or functional quality factors,
such as protein content, as a part of their offi cial
classifi cation and grading system. This informa-
tion void must be fi lled in other ways. Com-
monly, nongrade quality measures are written
into contracts as specifi cations for the exporter
to meet. The montage of price versus quality
