What is in this article?:
- U.S. wheat exports grow as Brazil waives tariff
- Quickly turn to U.S.
• A temporary tariff change in Brazil is signaling an opportunity for U.S. wheat farmers to regain competiveness in South America’s largest wheat importing market.
Quickly turn to U.S.
“Experience shows that with this knowledge, they quickly turn to the dependable U.S. wheat store when the need is there.”
Aside from the fiscal advantage of the duty free wheat quota, many of Brazil’s buyers are also in a good location to import U.S. wheat.
Several important flour mills are located in northeast Brazil and its northeastern port is the same distance away from southern U.S. ports as it is from Argentina’s ports. This leaves U.S. wheat at no disadvantage when it comes to shipping costs and Brazil’s buyers are responding again.
Commercial sales of hard red winter and soft red winter to Brazil as of March 28 for 2012/13 are more than 400,000 MT compared to commercial sales at the same time in 2011/12 of only about 112,000 MT.
Though Brazil’s duty free wheat quota is only temporary, it provides an opportunity for the U.S. wheat industry to gain new market access —important for U.S. wheat farmers who rely on export markets to consume nearly half of their total annual production.
In addition, expanding markets has a positive effect on the overall U.S. economy with each additional billion dollars in agricultural export creating 8,000 to 9,000 jobs, according to USDA.
A more permanent elimination or reduction of Brazil’s CET would greatly benefit the U.S. wheat industry.
USW works closely with the USDA’s Foreign Agricultural Services (FAS) and the Office of the U.S. Trade Representative to ensure favorable terms for wheat exports in all negotiations.
USW is the industry’s market development organization working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers and their customers.”
USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by FAS. USW maintains 17 offices strategically located around the world to help wheat buyers, millers, bakers, wheat food processors and government officials understand the quality, value and reliability of all six classes of U.S. wheat.
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