N.D. Wheat Commission

Update

Helping North Dakota wheat see the world.

Board of Commissioners

Harlan Klein, ChairmanFran Leiphon, Vice-ChairmanBruce Freitag, Scranton - Commissioner-at-Large

BUILDING BIGGER BETTER MARKETSTHROUGH PRODUCER INVESTMENT

• OUR MISSION– Build bigger

better markets for ND premium wheats

– Promote, aid and develop marketing for state’s wheat

– Sustain and improve state ag economy

• SERVICE AREAS– Export marketing– Research/

customer service– Domestic

promotion/education

– Trade and domestic policy

– Public information

N.D. WHEAT AVERAGE GROSS RETURN PER ACRE

Source: N.D. Agricultural Statistics Service*10 NDWC unofficial projection

$ Per harvested acre(Average market price X

yield)

VALUE OF N.D. SPRING WHEAT CROP(Gross)

Source: N.D. Agricultural Statistics Service*10 NDWC unofficial projection

$Million

VALUE OF N.D. DURUM CROP(Gross)

Source: N.D. Agricultural Statistics Service*10 NDWC unofficial projection

$Million

NDWC 2010-11 BUDGET - $4,909,109

SERVING PRODUCER PRIORITIES

NDWC 2009-10 EXPENDITURES$3,083,932

EXPORT MARKETING Partnerships – U.S. Wheat Associates, N.D.

State University , Northern Crops Institute USDA Match - $2.80 : $1.00

- U.S. Wheat uses this and NDWC check-off funds to operate 17 offices around the world.

Crop Quality Survey/Report/Seminars- Key sales tools for ND crop

Customer Relationships Important- Provide valuable link from producer to

customer

U.S. Wheat Associates Foreign Offices

EXPORT MARKETING Technical Support - Customers trust and

respect U.S. Wheat staff to resolve quality and marketing issues. - Helps secure market share when U.S. is not always lowest price supplies.

EXPORT MARKETING HIGHLIGHTS

Customer base of more than 100 countries

2010-11 marketing year– HRS exports

projected to reach 360 million bushel, up 70% from 2009 and 3rd largest on record.

– Durum exports projected up 14 % to 50 million bushels, highest in 10 years.

Linking Producers to the Customer

MARKET DEVELOPMENTEFFORTS HAVE HAD HUGE SUCCESSUS HARD RED SPRING WHEAT EXPORTS TO JAPAN

(million bushels)

9% annual growth over 40+ years

Source: USDA Grain & Feed Market News

RESEARCH SUMMARY• Current year reflects over a $1 million

increase from 2009 budget year• Key Support Areas:

– Agronomic Performance– Higher yields/better bottom line

– End use performance– Customer satisfaction/increased sales

– Research Infrastructure/Equipment– Provide greater value to producers,

customers, consumers• High performance wheat – fastest growing

segment in global wheat market

RESEARCH HIGHLIGHTS• Glenn – 2005 HRS release,

N.D.’s top variety – exceptional quality

• Faller – offers elite yield potential

• Divide, Alkabo and Tioga – durum lines with improved yield and agronomics and big improvement in quality for customers

• White Wheat – in process, great domestic and international demand if it performs like HRS

• Biotech -- renewed interest from private tech providers. Promises good things for wheat. Biotech must be part of the mix for wheat producers in the future but need to protect investment in germplasm and access to varieties.

• Winter wheat – NDSU recently hired a winter wheat breeder. Joint program with Bayer and other regional entities.

• NDSU Greenhouse – NDWC has provided $750,000 to ensure wheat has a strong share of the mix in enhanced research efforts

2010-11 NDWC SUPPORTED RESEARCH AT NDSU -$1,820,864

Miscellaneous$625,000

Wheat Breeding/Geneti

cs$492,601

Disease/Pest

Management$33,463

Miscellaneous includes Biotech contingency, NCI Pilot Mill, SBARE matching contingency and the NDSU Greenhouse.

2009-10 NDWC SUPPORTED RESEARCH AT NDSU -$773,189

Miscellaneous$159,375

Wheat Breeding/Geneti

cs$279,076

Disease/Pest

Management$26,588

Miscellaneous includes Biotech Contingency funding, NCI Pilot Mill, and remaining SBARE funding.

DOMESTIC POLICY• Support domestic policy through

contracts – 2 mills of 15 mill check-off

• NDGGA & USDGA– Crop Insurance– Farm Bill– Rail Issues– National Association Membership– Environmental/Conservation– Producer Education– Chemical Harmonization

DOMESTIC MARKETINGPRODUCT PROMOTION

• Partnerships with Wheat Foods Council and National Pasta Association

• Recovery of wheat/flour consumption – post Atkins

• New dietary guidelines emphasize importance of carbs and whole wheat and enriched flour foods

• White whole grains – meeting consumer taste for white breads

• Setting the record straight – “More to the Story Than the Price of a Bushel of Wheat”

PUBLIC INFORMATION• Annual Report• Dakota Gold• Web Site• Wheat Bulletin –

email newsletter• Crop Quality Reports• Producer Meetings• Wheat Link radio

spots – statewide exposure to industry issues and successes

NDWC FINANCIAL STATEMENTJULY 1 – JUNE 30FY 08-09 FY 09-10 PROJ. FY 10-

11Begin

Balance $2,544,468 $2,932,436 $4,817,899

Checkoff Collected $3,516,749 $5,354,54

5 $5,145,000

Interest Income $26,370 $17,580 $32,000Promo

Sales/Misc. $375 $3,708 $3,500

Total Receipts $6,087,961 $8,308,26

9 $9,998,399

Refunds to Producers $228,000 $406,437 $411,600

Expenditures $2,927,526 $3,083,933 $4,909,109

Ending Balance $2,932,436 $4,817,89

9 $4,677,690

THANK YOU