Something To Deal With: U.S. wheat growers’ biggest challenge still remains competition

While wheat growers are expecting lower prices, industry leaders are not yet expressing worry. U.S. Wheat Associates recently concluded their summer meeting, maintaining optimism.
However, they acknowledge that their primary challenge remains competition.

According to Vince Peterson, “Competition in terms of export competition. Also, the things we’re watching are, frankly, geopolitical dynamics. Geopolitical dynamics with Russia and China in particular— that’s a big one. China being one of the largest importers of wheat now. Russia being one of the largest exporters, and the dynamics that go together with that and the potential impact in the Asian Pacific in terms of transportation and market access. So, that’s maybe a little out of the reach of U.S. Wheat as a farmer organization, but it’s on our radar screen. It’s something we have to be prepared to deal with.”

He says that the wheat industry has its eyes on other markets like Latin and South America, but U.S. wheat growers have to be able to meet production.

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