05/30/07 Getting to know new wheat export competitors

Farm and Ranch May 30, 2007 In war they say you need to know your enemy and in the economic marketplace it pays to know your competition. That's why the Washington Wheat Commission has included 40-thousand dollars in its budget for the next fiscal year starting in July to fund a mission to the Black Sea Region. Since the fall of the Soviet Union Black Sea wheat has become a competitor to U.S. wheat exports and particularly to soft white wheat sales to the all important Mid-east market of Egypt. So Washington Wheat Commission Chairman Randy Suess says this project is about getting to know the competition. Suess: "It is not like we are trying to get any wheat into that area. We are wanting to find out what they are doing there. Let's find out exactly. Let's go take a look at some of that wheat over there and see what kind of quality they really have. That way we can explain to our customers are you really comparing apples to apples? Just because we have maybe a higher cost are you really getting your best bang for your buck by buying that cheaper, poorer quality, higher dockage, possibly higher moisture content wheat than buying from the United States." In its recent world supply and demand report for wheat the USDA said the former Soviet Union is projected to have higher wheat production this year. Russia and the Ukraine are exported to have higher exports. Production problems last year limited exports from the Ukraine and it has been dry there this spring. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest ag Information Network.