02 Features
Cereal Foods World, Vol. 65, No. 5
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The Changing Trade Landscape in Asian Grain Markets: A U.S. Perspective
T. Randall Fortenbery1

School of Economic Sciences, Washington State University, Pullman, WA, U.S.A.

1 Professor and Thomas B. Mick Endowed Chair, School of Economic Sciences, Washington State University, P.O. Box 646210, Pullman, WA 99164-6210, U.S.A. Tel: +1.509.335.7637; E-mail: r.fortenbery@wsu.edu


© 2020 Cereals & Grains Association

Abstract

Wheat markets on the Asian continent represent the most important destinations for U.S. wheat—both by volume and value. In addition, projected increases in population and incomes in Asian countries suggest there are significant growth opportunities for U.S. wheat exporters going forward. As Asian incomes grow, the transition from buying “wheat” to buying “quality wheat” will work in favor of U.S. producers. The key to maintaining current Asian markets, and growing in expanding markets, is developing and maintaining a stable and equitable trade environment. Although the United States is well positioned to compete in such an environment, it does face significant competition from other exporters. According to U.S. Department of Agriculture projections, the U.S. share of the world wheat trade is expected to decline over the next decade. Thus, maintaining current Asian relationships and expanding where growth opportunities exist will be key to the future of U.S. wheat exports. Any bilateral trade frictions between the United States and current or potential wheat customers could erode any competitive advantage the United States has in a more stable trade environment. The key to success, then, is a continued focus on quality and building strong, stable, and favorable relationships with U.S. customers.





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