The most important key in developing and strengthening markets is maintaining strong relationships built on trust. Idaho’s trade relationship with Japan goes back more than six decades and, hopefully, will continue for decades to come. Which is why, when Idaho was invited to meet with a Japanese trade team in Portland this week, Idaho’s wheat-growing families were represented at the table.
Besides Idaho Wheat, the meeting included Oregon, Washington, Montana, North Dakota, and U.S. Wheat Associates (USW) from the United States, who sat down together with representatives from the Japanese Ministry of Agriculture, Forestry, and Fisheries (MAFF) and the Japan Flour Millers Association (JFMA). The topic: soybeans in shipments of wheat.
It is true that Idaho is not a soybean state. In 2018-2019 not more than 25 acres were planted to the crop. But Idaho is positioned between soybean states like North Dakota and the Port of Portland, where wheat is shipped from the U.S. to the Pacific Rim. Still, why does Idaho need to be part of the solution to a problem to which our farmers do not contribute? Great question. Keep reading.
Japan imports 100% of its wheat annually and 45% — the majority — comes from the United States. The remainder of the supply is split between Canada (38%) and Australia (17%). Japan has consistently been a top 5 market for U.S. wheat. The longstanding relationship between Idaho and Japan depends on smooth wheat trade, cooperation, transparency, and trust. Which is why Idaho accepted the invitation to participate in the soybean admixture prevention team.
Like peanuts here in the States, soybeans are a severe allergen in Japan. The Japanese delegation came prepared with charts and graphs, compiled from reams of data, that provide a visual representation of soybean admixture in U.S. classes versus imports from Canada and Australia. This data gave a clear picture where threats from our competitors for this market exist and what classes have the highest occurrence of soybean contamination.
This is the first time the group or a similar group from Japan has come together to talk about a non-tariff trade barriers with producer and export groups in the United States or in any country. The good faith the 18 members of the delegation showed by coming to us directly to find a solution, rather than shifting purchases to competitor origins, demonstrated respect, loyalty, trust, and a genuine desire to keep trade and relationships strong between MAFF, JFMA, and U.S. wheat producers.
Sometimes market development looks like overseas customers climbing into a combine. Sometimes it looks like a farming community coming together to host a trade team with a potluck dinner. Once in a while, it looks like sharing cultural experiences like a night at a rodeo or even visiting customers in their own country. This week, Idaho Wheat Commission market development efforts looked like 30 friends sitting around a table asking difficult questions, listening intently, being curious, and working together to find a solution to a problem that threatens the relationships, trust, and loyalty built over more than half a century.