Grain News

AMEROPA Reaches Agreement to Deliver 32,000 Tons of U.S. Wheat to Iraq

Date Posted: January 7, 2004

Washington, D.C.--AMEROPA, an international grain and fertilizer trading company, is pleased to announce that it has completed arrangements with the UN World Food Program and Iraqi Ministry of Trade authorities to deliver 32,000 metric tons of U.S. wheat to Iraq in early 2004.

This is a significant event as it is the first commercial export of U.S. wheat delivered to Iraq in over six years and is representative of the establishment of agribusiness in Iraq under the new government, which is different from the non-traditional trading terms used under the UN Oil-For-Food Program in past years.

This requirement of 32,000 metric tons was originally part of a UN Oil-For-Food contract with the World Food Program, which AMEROPA was responsible for executing for the Russian company ALFA-ECO.

The deliveries of Russian wheat under the contract were interrupted by the events of Operation Iraqi Freedom last year.

During the renegotiation of these contracts, AMEROPA, with ALFA-ECO’s concurrence, approached the Iraqi Ministry of Trade, the World Food Program, the U.S. Department of State and the U.S. Department of Agriculture with a proposal to substitute high quality U.S. Hard Red Winter Wheat for the remainder of the contract deliveries.

While this quantity of U.S. wheat is small in comparison to Iraqi wheat import requirements of about 2 million metric tons annually, it is symbolic and represents an opportunity for Iraq to demonstrate that procedures for future wheat purchases will be on a competitive basis in the world market -- which should enable U.S. farmers to compete for Iraqi contracts in the months and years ahead.

AMEROPA’s initiative to substitute U.S. wheat received strong support from the American Farm Bureau Federation, U.S. Wheat Associates and Members of Congress representing farm states and was equally endorsed by the Iraqi Ministry of Trade to complete this historic event.

The AMEROPA Group, headquartered in Binningen, Switzerland, near the city of Basel, has been a privately owned international grain and fertilizer trader since 1948 with offices and affiliated companies in fifteen different countries including the United States.

To learn more about AMEROPA as well as this U.S. wheat initiative, call Ron Carlberg, AMEROPA U.S. Representative, Alexandria, Virginia at 703-299-6649.

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