Grainnet

Bismarck, ND--The North Dakota Wheat Commission (NDWC) worked to expand sales of U.S. hard red spring (HRS) wheat to GRUMA, the single largest and most influential wheat buyer in Mexico, during an in-state visit by the company's top executives Aug. 26-28.

Mexico was the third largest market for all U.S. wheat classes in the 2006/07 marketing year, behind only Japan and Nigeria.

While U.S. spring wheat accounts for only a small portion of Mexico's imports, demand for HRS has been growing steadily.

"Five years ago, Mexico only imported about 3 million bushels of spring wheat annually, now they are averaging 8.5 million bushels, and set a record of just over 12 million bushels in marketing year 2005/06," said Erica Peterson, NDWC marketing specialist.

"The Mexican market is full of opportunity for North Dakota and that's reflected in the 280% increase in HRS purchases in just five years.

"The primary goal with this trade team is to reinforce the functionality of our hard red spring wheat and to provide them with the understanding and tools to purchase it."

She adds, "They are especially interested in exploring obtaining U.S. wheat through direct rail shipment."

The team also spent time at the Northern Crops Institute (NCI) and North Dakota State University, both in Fargo.

While there, the team received an overview of the quality characteristics of U.S. HRS.

The delegation also visited the Reynolds United Co-op elevator in Reynolds, ND to see the first step in the U.S. grain handling system.

The team also learned about U.S. grain marketing and transportation systems and participated in a conference call with elevators in western North Dakota that do direct rail shipments to Mexico.

Recent improvements in Mexico's rail system has helped make freight rates more economical and increased movement of U.S. wheat via rail to Mexico.

The United States on average has about a 75% market share for wheat imports in Mexico.

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