Grainnet

Kansas City, MO--Iraq purchased 300,000 metric tons of hard red winter wheat Oct. 3, less than one week after returning home from a two-week trip to the United States, as guests of U.S. Wheat Associates.

Kansas Wheat hosted the group during a visit to Kansas City, MO.

On Oct.3, private exporters reported to the U.S. Department of Agriculture export sales of 200,000 metric tons of hard red winter wheat for delivery to Iraq during the 2006/2007 marketing year.

This was followed by an additional purchase of 100,000 metric tons on Oct. 4.

News of the Iraq wheat purchases, news of a declining wheat crop in Australia and Argentina, and continued drought in the plains states have pushed the price of hard red winter wheat over the five dollar mark at the Kansas City Board of Trade in recent days.

Abdul Hadi K. Al-Hamiri, director general, Private Sector Development Directorate, Iraq, was a member of the group of wheat buying officials from Iraq, which was in Kansas City on Sept. 26.

"American wheat is good and tasty, but expensive," said Al-Hamiri.

"We’ve tasted American wheat and it will continue."

U.S. Wheat Associates had been working for several years to get the team to the United States to see the grain marketing system in action, learn details of how it works, and to develop trust and confidence in the United States as a reliable supplier of consistent quality wheat to meet their demand.

The U.S. marketing system is unique relative to other suppliers and often times is not easily understood by new importers.

Wheat consumption in Iraq is about 4 million metric tons per year.

Iraq grows about 1 million metric tons per year.

The remaining 3 million metric tons must be imported from outside sources, including the United States.

Iraq was the second largest customer for U.S. Hard Red Winter wheat in marketing year 2005/06, purchasing approximately 2.3 million metric tons.

Wheat importation is the sole responsibility of the Grain Board of Iraq (GBI) that operates under the Ministry of Trade.

The GBI distributes the wheat to either private or government mills, which take milling fees and return the finished product for distribution.

Flour is subsidized through a “Food Basket” that includes 9 kilograms of flour for each citizen every month.

The team members were from the Grain Board of Iraq and from the Iraq Ministry of Trade.

James Smith, of Foreign Agricultural Service in Baghdad, Iraq and Dick Prior, Regional Vice President for the Middle East/East Africa office of U.S. Wheat Associates in Cairo, Egypt, accompanied the group.

While the team was in the United States, they were able to meet with a number of grain trade companies, government officials in Washington D.C., including U.S. Secretary of Agriculture Mike Johanns, and wheat trade organizations.

Al-Hamiri concluded his remarks by stating, "American wheat will stay in Iraq."

See Related Websites/Articles:

• U.S. Wheat Associates

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