Montana Wheat and Barley Committee

Non-Traditional Barley Breeding Research & Commercialization Conference

2010-05-10T10:56:00.000-07:00

from Dave Henderson, NBGA President and Scott Brown, NBGA Vice President

A non-traditional barley breeding research and commercialization conference was held in Banff, Alberta, on April 14-15, 2010. The event was organized and hosted by the Alberta Barley Commission. US attendees included: Dave Henderson (MT), NBGA president; Scott Brown (ID), NBGA vice president; Dwight Little, Idaho Barley Commission; Kelly Olson, IBC staff; Doyle Lentz, North Dakota Barley Council; Steve Edwardson , NDBC staff; Mike Davis, American Malting Barley Association; Melvin Goffena, Montana Wheat and Barley Committee; Ralph Judd and Gary Hanning, Anheuser Busch InBev, St. Louis, MO; and Bob Brunick, MillerCoors barley breeder, Burley, ID.

April 14 focus was on Future Prospects/Need for Biotech Barley –

Dr. Bill Wilson, noted NDSU ag economist, kicked off the event with a lively discussion on the changing commodity landscape and shifts in consumer acceptance of biotech commodities:

 Fundamental change in commodity supply and demand in past 5 years.

 Countries are slowly changing GM regulations – Brazil, for example, has now approved GM production.

 Rapid increase in GM (Soy, corn, cotton) plantings globally.

 Emergence of new GM traits, i.e. RR (or HT - herbicide tolerant) sugar.

 New stacked traits in corn and soy- Monsanto goal of doubling corn yields by 2030. Corn is seeing a 3.2-3.4% growth rate in productivity annually.

 U.S. sugar beets should be viewed as good grower/industry model for developing and
commercializing new GM traits, particularly for small acreage crops (despite legal challenges that have yet to be resolved).

 Australia emerging as GM research leader in drought tolerance in small grains. Tests of the drought resistance gene in barley have shown a 20% increase in yield in non-drought stress situations.

 US/Australian and Canadian wheat growers advocating for GM wheat.

 Pressure is increasing to create biotech traits in small grains.

 All major US ag biotech companies have acquired private wheat breeding programs and will ramp up wheat breeding by about $1 billion/year. GM wheat release in 10 years? GM barley in another 10 years?

 According to his EU sources, GM crops will be widely accepted in the EU by 2022.

 US – 70-80% of U.S. foods contain some GM ingredients. Though surveys are a poor
method for determining consumer predictability, consumers’ biggest food concerns are
sanitation and food borne illnesses, with less than 0.5% concerned about GM.

Generally not willing to pay more for labeling. Trust federal food regulators.

 US wheat farmers concerned about decreasing wheat competitiveness both on yields (HRS yields up 7% from 1992 to present while soybeans are up 31% and corn up 82%) and input costs (ND wheat input costs up 166% from 2000 to present while soybeans up 111%).

 Research funding for wheat is about $.60/acre compared to about $10/ac for GM crops.

 Will need strategic partnerships between ag biotech and breeders.

 Groundwork for development of GM barley includes what needs to be done; who will do it; and how will we get there.

Dr. Charlie Pearson, ag economist with Alberta Dept. of Agriculture and Rural Development - reported on survey conducted on adoption of transgenic barley in Alberta – complete copy of survey will be available soon.

 Big difference in attitude in GM barley (benefits/costs) between various segments of supply chain, particularly between human consumption and livestock feed.

 Prohibitive introductory cost for small acreage crops like barley in terms of variety development, regulatory approvals and detection/segregation systems.

 Trait priorities – AGRONOMIC - FHB resistance, water use efficiency, salt tolerance, nutrient use efficiency; PROCESSING - uniformity of germination, extraction rates, starch level and extractability.

April 15 – Breeding techniques for barley improvement

Dr. Chengdao Li, Department of Agriculture, Government of Western Australia –

 Barley breeding is partnership between state of Western Australia and Grain Research Development Corporation (GRDC) and several private partners include Barrett Burston maltster.

 Leading varieties released from this program include: Stirling (being phased out), Baudin (largest acreage), Vlamingh, Harrelin, Gairdner.

 Baudin developed for acid soil tolerance. Standard barley variety Baudin in acidic soil yielded 20 bu/acre; after 3 years of gene crossing, acid resistant Baudin in acidic soil yielded 90 bu/acre.

 Have used Double Haploid (DH) techniques in barley breeding since 1993 with over
100,000 DH lines produced and now comprises 25-30% of total breeding effort.

 Marker assisted selection (MAS) is being used aggressively to discover new markers/genes and marker/trait combinations. Adds value, reduces costs and results in better varieties quicker.

 Active partners in International Barley Genome Sequencing Consortium

Dr. Amelie Genty, Secobra Recherches, France – largest private barley breeding company in EU –

 Using DH to breed new malting barleys, with emphasis on 6-row winter malting.

 Target traits – mosaic Y disease resistance and frost resistance.

 New variety registration process limits new variety releases.

Dr. Allen Good, University of Alberta, nitrogen use efficiency

 70% of N fertilizer is lost through leaching, volatilization, etc.

 Genetic improvement through two pathways - recovery efficiency and physiological
efficiency.

 University of Alberta developed new Alanine mutant (AlaAT) that is believed to improve physiological N efficiency. Licensed to Acadia in 2003 and sublicensed to Monsanto in 2004 for use in canola.

 Monsanto and Arcadia conducted field trials in 2004, 2005, 2008-09 – no intention at this time to release as commercial variety.

 Genetic construct based on this new gene have been introduced into canola, corn, wheat, barley (CSRIO in Australia will be trialing this year), rice, turf grass and sugar beets.

 IP issue still be resolved – patent pool versus open source DNAs Panel discussions on Challenges and Opportunities in Adopting new Barley Genetic
Technologies –

 Canadian plant breeders were adamant there are no silver bullets (like BT and HT) that will be readily available and affordable – if HT trait costs $100 million to commercialize then these new complex traits are likely to cost $1 billion or more which is out of the reach of small acreage crops.

 Opportunities - gene sequencing and new MAS technologies (RTDs) have given traditional plant breeders a better understanding of both the structure and function of genes and better/faster phenotyping techniques also have improved breeding. Dr. Rossnagle from Univ. of Saskatchewan sees only “remote possibility of solving problems that traditional plant breeding has difficulties with.”

 Challenges – GM research costs could drain funds from traditional breeding programs and lead to shortage of barley breeders; creating public-private partnerships will be necessary.

 Dedicated funding for whole and complete project development must be in place before project is even started to ensure uninterrupted completion.

 There must be measurable value to both farmers and downstream users.

 There is nothing natural about agriculture as it is!!

 There have been biotech crops since mid-90s so people have been ingesting these products for a number of years. Has to be considered the largest medical experiment ever.

 Marketability – Canadian livestock producers face severe competitiveness issues that have only worsened under US COOL regulations; need “improved feed grains at lower costs.”

Quality traits of importance include impacts of nutrition on fatty acid profiles.

Maltsters/brewers need to see “convincing evidence that there are no health differences and that GM can produce significant improvement in quality traits above and beyond traditional breeding.”

 Feed Barley: Potential to increase nutrient profile traits and ability to better exploit animal performance; Barley still equated with white marbling, preferred by Asian customers; 86% of western Canadian barley is feed, 8% of wheat is feed.

 Malting Barley: Could increase predictability and stability of barley production; Increase in sales via desirable trait enhancements; Potential for increased yields means lower contracting prices.

 UK wheat yields trend with US GM corn yield trends due to subsidized support for
maximum application of fertilizer, multiple fungicide and pesticide applications and the use of certified seed.

 Current international regulatory framework insufficient to ensure trade is not interrupted.

Conference Wrap-Up –

 Excellent discussion on the current status of barley breeding techniques and some of the opportunities and challenges for GM barley.

 Urgency of situation – declining acres across North America, lack of competitive return to growers, livestock feeders need more competitive inputs.

 Set the stage for further discussion – another meeting in a year or so?

 Alberta Barley Commission will publish an outcomes document from this conference and North Dakota State University (Dr. Bill Wilson) expressed interest in hosting a second conference in a year or so to continue the dialogue between producers, processors, end users and research community.

Question of the Day - Bread Choices

2010-04-13T08:59:00.000-07:00

If you had the choice of the following bread loaves, which one would you buy and why?

A) Organic loaf ($4)
B) Genetically modified with added antioxidant vitamins to lower heart disease risk loaf ($3)
C) Conventional loaf ($3)

Farmer workshop - Wheat Marketing Center

2010-03-19T13:27:00.000-07:00

Director Bruce Myllymaki (District 5), and 9 other producers from Montana attended the 2010 Montana Wheat Export & Marketing Workshop March 15-17 in Portland with the Wheat Marketing Center. This program is designed to show producers a small portion of how the grain export and marketing end of things works. They saw everything from a large T-5 export facility and a FGIS facility, to the tools used at WMC to educate current and prospective US wheat customers. Here is what a few of the participants had to say:

"Three things I learned at this workshop include how important of a role the whole transportation system plays, that the wheat market is a world market and we have to compete, and the importance of FGIS" - Matt Flikkema, Manhattan, MT

"I learned how a T-5 and T-6 works...it's amazing! Also I learned about gluten tests and grading, and why different countries prefer different types of wheat...Thank you for this opportunity!" - Cheri Fuhringer, Dutton, MT

"I am glad the MWBC supports the Wheat Marketing Center and this workshop. It gives us an appreciation of how our check-off money is being spent and how it benefits us. I do believe we are not aware of the many things being done to promote our products." - Willie Bernard, Scobey, MT

"I learned how important the WMC research is for markets, how vital consistency is for overseas customer, and how important the visual aspects of food are to the customers. I saw the importance of raising a good product, the coordination of all aspects of exporting, and the importance of research." - Charlie Bumgarner, Great Falls, MT

"I would recommend this workshop to my neighbors. I feel we have a better understanding of the whole picture of our operation and it makes us better producers." - Denise Conover, Broadview, MT

ASIA trip Jan. 7-21 (Buzz Mattelin)

2010-03-04T07:19:00.000-08:00

My name is Buzz Mattelin . I am a wheat and barley producer from Northeast Montana and member of the Montana Wheat and Barley Committee. Along with Shannon Schlect, US Wheat Deputy Director of Policy, Sara Olsen and Tom Zwainz producers from Colorado and Washington, I recently participated in an Asian trade mission organized by US Wheat Associates. Following a briefing at the US Wheat office in Portland we were able to visit the Wheat Marketing Center, Federal Grain Inspection Service (FGIS), and a grain export facility. Our trip included stops in China, Philippines, Thailand, and Japan, each country very interesting and very different wheat customers. Upon arriving at each country we were met by US Wheat staff and briefed on the country’s past wheat use and market potential. Visits in each country centered on baking schools affiliated with US Wheat , flour mills and or flour millers, and bakeries.

Our first stop was Hong Kong where we gained some insight into Chinese culture. I was impressed and a little envious of the Chinese Government emphasis on food security. Food scarcity has had a significant impact on Chinese culture, as evidenced by their greeting. While most westerners say “How are you?”, the Chinese say “Have you eaten?”. From Hong Kong we rode a train into mainland China to the city of Guangzhou.The train ride impressed upon us the task of providing food for a growing population of 1.3 billion people. The route which once spanned about one hundred miles of rice patties is now seemingly solid high rise apartment buildings. China plants about the same acreage of wheat as the US but has twice the production. About 70% of the wheat acres have supplemental water. With other demands for water and declining aquifers one questions how long this production is sustainable. We visited two campuses of the Sino American Baking School which is supported in part by US Wheat Associates.

Next stop was Manila where the US has had a large presence the last century. The Philippines have a young population, 85% under the age of 35. Poverty is extreme in the Philippines with 40% living below the world poverty level of $2 per day. Most of the poor eat rice but would prefer to eat wheat if they could afford to buy bread. Pan de Sol is the bread staple in the Philippines and is quite sweet at 16% sugar. Four of seven flour mills in the Philippines use 100% US wheat . This loyalty is due in part to the availability of PL 480 funds to build mills in the post World War Two era.. It was gratifying to see flour brands that prominently displayed made with “Montana spring wheat”.

Bangkok Thailand, the Venice of the East, was our next stop and we enjoyed a Sunday and our only free day of the trip. Our traveling party grew to seven in Bangkok, as we were joined by US Wheat staff from Manila, Shane Townsend,and Singapore, Mike Spier and Roy Chung.. Roy, US Wheat baking expert, acted as tour guide with a ferry ride up river to the Grand Palace. We found Bangkok to be clean and modern, with elevated rail and highways and a very good infrastructure. The Thais use the highest quality flour 13.5% protein which requires 14.5% protein wheat. Their bakeries were high tech and efficient, but continue to utilize low cost labor,$8/day, in their packaging. These bakeries export to SE Asia with the Vietnamese market experiencing very rapid growth. We visited a instant noodle bakery that produces 5.5 million packages of product per day. While most of the wheat used in production comes from Australia, these noodles represent a large potential market for hard white wheat.

Our last stop was Tokyo. Japan is our largest customer of US Wheat. Japan’s population of 120 million is declining at a rate of over 1% a year. If the current trend continues by the year 2050 the population will only be 60 million. The Japanese economy is now deflating as prices of good and services are becoming lower. I’m convinced that our largest customer will work through their problems and remain a strong customer. Our visit to a Nisshin flour mill was most impressive with top notch cleanliness, procedures and a fully automated warehouse. Our visit with the Ministry of Agriculture, Forestry and Fisheries (MAFF) yielded a couple questions and concerns with the 2009 crop including high moisture and lower proteins. MAFF also expressed their concern about genetically modified (GM) wheat entering the market place. This was the only time a real concern about GM wheat was expressed during our trip.

My participation in the US Wheat Associates trade mission to Asia was a great learning experience. Shannon and the US Wheat Associates staff throughout Asia are well qualified, dedicated and doing a great job for US wheat producers. I returned home with two dominate lessons learned. There are millions of potential customers in Asia. And the reason the millers and bakers in these countries use US wheat is because of high quality wheat that we produce.

SGL - Way to Go!!

2010-02-26T15:29:00.000-08:00

Just heard from Jeff Rumney at the State Grain Lab. They have had a great week! Congratulations to Beth who just received her official FGIS wheat grading license, and to Greg who received his official FGIS barley grading license. They join a well-known top-notch staff of FGIS graders at the lab.

SGL's two newest employees, Scott and Lauren are currently studying for their wheat licenses, so by harvest they should have a strong crew to help out!!!

Kudos to SGL!

JAPAN - last day (Cheryl)

2010-02-20T12:17:00.000-08:00

Just as the hardest part for the aerial skiers in the Olympics is to come back down to earth, so it is with us. We spent some valuable time pulling together and prioritizing the things we learned from each day's activities. With three people involved, there were sometimes three impressions of what those priorities should be.

We all agreed it will be necessary to match up business cards with photos, once we return home, as this will help us to individualize our follow-up correspondence. (Of course, eventually we want to get to the point where we can just enjoy going back over our photos and reliving certain experiences.) Before we can send this correspondence, we need to assemble a database of all the business card contact information, which will be a considerable task itself .

Pulling pieces of this trip together, it became quickly apparent that we need to now follow-up on a regular basis--not with just a one-time "thank you". Part of this last day was spent determining the most efficient way to do that and Kara is eager to put that plan into action.

We feel, on behalf of the producers we represented on this trip, that it is imperative to not only acknowledge those who assisted in making all the arrangements, but also those who agreed to meet with us and engage in meaningful dialogue. Meeting and greeting is one thing, and certainly a part of doing business, but discussing concerns and challenges and solutions---therein lies the value and we all feel we got to this deeper level in our meetings.

I have a kaleidescope of impressions ---a multiple of personal and professional "firsts" as a result of this trip. Shoot---I survived eating tripe, wild taxi rides, maneuvering through the Tokyo subway system, avoiding things I'm terribly allergic to, not breaking my neck wearing the slip-ons required to tour the flour mill we visited (that was more of a struggle than most of you could realize) and traveling with Leonard and Kara! (On that note, I hasten to add that I definitely was fortunate to have such solicitous, dedicated, fun traveling companions. We walked into meetings firm in the knowledge we were a team and could count on each other! That is nothing to "snivel" at! Finally, and I'm sure I speak for Leonard and Kara, I felt very honored to represent wheat and barley farmers and especially those from Montana who support the check-off program. They have such a passion for what they do. We found customers here who have that same passion. Being even a small part of this huge industry is a humbling experience and I walk a little taller. Thanks, to all. (Boss Kim-san-----we're coming home!)

JAPAN - Day 512 (Kara)

2010-02-19T15:14:00.000-08:00

Oh the sweet feel of Levi's!

As you can tell from the blogs, my enthusiasm for journaling was getting stomped out by exhaustion! Thankfully Cheryl has a writer's soul and has been able to put thoughts to the keys much better than I. She has done a wonderful job of trying to illustrate the emotions and agenda of our fast-paced mission. I think I can speak for both Leonard and me that her chronicle of it all is dead-on.

After all these hot and heavy days of discussion, education, and introductions I can honestly say we are leaving with more than just relationships. We are leaving with a better sense of Japan; it's people, it's culture, and it's country. I could list hundreds of differences that should matter to every farmer in Montana and the US. The bottom line, however, is the importance of consistency from the farmgate to the store shelves. The mission of this trip was to understand the future of our Japanese customer. It does not end with the grain trade or the flour millers. The men and women of Japan are our customers. One in three bushels of Montana's wheat feeds them and their children. Throughout this trip the three of us have tried to show those we have met that the Montana farmer is their partner now and indefinitely. With all the changes coming down the pike, from MAFF to biotech, our goal is to show them consistency in friendship and trust. We may not always agree, but I believe we have built a strong bridge of communication to continue discussions and figure out a plan together instead of apart. We need them. They need us.

Today, I am going to enjoy my jeans. The sun is out. And I will enjoy the company through these last hours in this magical island. I am ready to go home and kiss my husband and baby girl. Aragato Japan.

JAPAN - Day Six (Cheryl)

2010-02-19T13:14:00.000-08:00

I'm not sure if Leonard and Kara agree but based on yesterday's activities, I feel the only thing that could be a better indication of our success on this mission is the announcement that Japan will no longer buy Canadian and Australian wheat or barley and that they want to pay us the highest premiums to insure they receive quality US wheat. (We can dream, can't we?!)

The day started off with our first visit to the U.S. Wheat Associates office which is strategically close to the ANA Hotel International where we stayed. Charlie briefed us before our visit with representatives of the Ministry of Agriculture, Forestry and Fisheries. As most of you know who are reading this, this is the government buying agency and they had some pointed questions about Montana's average protein and moisture levels and, of course, biotech wheat. They had obviously done their homework and had visited with their millers. They take their commitment to their domestic rice producers very seriously and, of course, they want to insure a consistent, safe supply of grain to feed their people. The gentleman leading the proceedings was the Deputy Director and he recalled I had picked him up at the Great Falls airport years ago.

We went by subway train out in the countryside to the Nippon Quality Lab, again meeting people who had been in Montana---some numerous times. Once more they demonstrated their friendship and loyalty to our farmers. We left realizing just how particular Japanese customers are when it comes to their food products and the kinds and numbers of tests performed on each lot of flour to determine quality. These chemists and professionals were so knowledgeable and candid and we enjoyed their quick humor.

The return trip was, in part, on a special train which is similar to the bullet train. That leg of our journey was a peaceful preparation for the last segment---- subway train travel in Japan on Friday afternoon at rush hour! I don't think any of us were prepared for the press of humanity and we should probably have all been tethered together like kindergarten students with
Charlie as it was most difficult to keep him in sight as we pressed forward with the masses. Leonard, ever famous for his observations, stated there were more people on the one subway train than there are in his whole county.

Our last business presentation was again with good friends of the industry, the Japanese Flour Millers Association. They were most appreciative that we took the time to come brief them personally. It is hard to describe, but the evening alternated between jovial, good natured banter and serious, deep discussions. Again, the executive director of the association had been to Montana numerous times and inquired sincerely and specifically about people they had met. I was most surprised when one of our guests pulled out my business card from his wallet that he had obtained on a 1998 visit. All of this should just underline the importance of personal contacts to our main buyers and friends in Japan. Even as the evening ended very late, Leonard, Kara and I reviewed the things we felt important about the day's meetings. Leonard's insistance on this nightly "debriefing" has really been a key factor in us remembering what things we need to follow up on when we return home.

I will have to admit that at one point yesterday I wasn't so certain I would see home again. We had a most invigorating (translation--hair-raising) taxi ride on the narrowest road I've ever seen! I am certain only a gnat's hair width separated us from a close encounter of the worst kind with a cab coming from the opposite direction. Charlie assured us he had experienced worse things in New York but I fail to see how the situation could have been any worse unless the cab driver was blindfolded. Our fearless driver didn't even slow down as all of us sucked in air simultaneously, trying subconsciously to make more room to pass.

Again, speaking of home, we will soon be preparing to go back to the States and our respective homes but we leave with not only important business impressions and fond memories of genuine friends, but a stronger appreciation for just what is involved in marketing one our wheat and barley to the world. We most definitely are proud of the folks we have working in our behalf in the Tokyo U.S. Grains Council and U.S. Wheat Associates offices, particularly Hiroko Sakashita and Wataru "Charlie" Utsunomiya and their staffs. They made such excellent arrangements for us and made our schedule their schedule, even though that meant they did not get to see much of their families. We thank them and hope to soon return the favor when they come to Montana.

JAPAN - Day Five (Cheryl)

2010-02-18T12:41:00.000-08:00

"If it is Tuesday, this must be Belgium." (For the younger set, this is an old, old movie depicting travelers who had such a hectic schedule the only way they could tell where they were on their agenda was by associating the day of the week with the place on their itinerary.) There is a little bit of that with us as we find ourselves reviewing with whom we've met already and where we are headed next. The trip has been rich with contacts and experiences.

The snow we awoke to dusted roof and tree tops and then quickly melted. Everyone assumed we Montanans are used to so much colder that we weren't phased, and, to some degree, that is true but, from my vantage point, at least, the cold was a damp cold coming off the ocean and permeated bones and soul alike. I'm just as glad we didn't have too long to stand out on subway platforms, etc.

We spent basically the whole day with different facets of the Nippon Flour Millers and, as Kara summarized it, truly a good friend to Montana producers. We were warmly welcomed with a sign to the Wheat and Barley Committee at the entrance of the most automated flour mill in Japan, and, as far as I'm concerned, the world. (Buzz evidently visited this same site on his recent trip and they all remembered him.) Several plant managers and quality control people accompanied us on our tour and it was evident they gave a contingent of their people time off to sit in on our briefing. Because Kara prepared the report and was responsible for assembling the bulk of the data, she has had to take the lead on the briefings and she has done a remarkable job in reading the needs of each group and tailoring her remarks. (I think she would say that our nightly briefing sessions help us to focus, as well, but sometimes, things came at us that we hadn't anticipated and so we "go with the flow." Leonard and I view our part in the presentations more as aides to the process and we interject pertinent information as needed.

As for the mill itself-- it was quite amazing that every aspect of the process was automated. The mill was pristine and it was obvious they all took well-deserved pride in it. The palletting process, with 35 foot tall shelves serviced by a machine which could pick out the right bags of flour for specific companies and move them through to the waiting trucks was "slick" for lack of a better descriptive word. Sensors in the floor helped guide little "golf cart-like vehicles to their destinations and each "cart" played a happy little tune to announce its progress. Leonard wondered if they could automate his harvest process to function so smoothly. We saw jars of wheat in various stages of the milling process and precision in the sieving makes for the very uniform and fine finished product. They make over 200 types of flour at this mill. As an aside, Nippon is Pasta Montana's (Great Falls) parent company and we elicited promises from some of their officials to come to the Wheat and Barley Committee whenever they are in town.

They seemed very eager for the updated varietal information and were taking copious notes, giving us the indication we were being relevant in our presentations.

Without revealing too much before we have a chance to brief Kim and our board, the three of us feel that important "seeds" have been planted regarding how the millers might be able to deal with upcoming changes dictated by the diminishing role of the government in import purchases.

We also gave a presentation at the corporate headquarters before joining some of their management for a most unusal dinner with all manner of novel ( to us) and uniquely-presented foods. It is a tough job, but someone has to do it! :-)

JAPAN - Day 4 (Kara)

2010-02-17T13:47:00.000-08:00

Yesterday was a world-wind. To put it into perspective, I felt like a hamster on a wheel. I ran and ran and ran, but am not sure if I went anywhere. This is partly due to the delirium of little sleep, but also due to the fact that the Japanese wheat buying system is very complicated. I come from a free-market nation. We are free to try and make as much money as possible. It seems after a day of meeting with clients, and learning from our US Wheat director, Charlie, the Japanese system plays by a completely different philosophy. It would be difficult to explain verbally, let alone in a journal.

Yes, our buyers care about quality. Yes, they care about price. BUT, through MAFF they pay a set price that only changes twice a year. The wheat they receive is simply a portion of the boat load. I point these things out because it puts us in a completely different marketing scheme. For example, Nisshin flour pays the same price regardless of whether the market goes up or down. They don't hedge or play the trends (yes they watch them, but they do not try to make anything extra). They receive the same 14% protein wheat shared with 5 other companies in a single shipment. The idea of tracking down problems is impossible.

We also heard more complaints than before today. We met with the #1 and #3 mills, as well as the 8 major trading houses, and the grain/shipping desk for UH. They are still receiving wheat that fits within their specifications, but we have historically sent better wheat than the bare minimum. This year, because of the glut of lower protein, they are receiving the bare minimum, and it is forcing them to change their flour blend composition. Point being, for years we have sent them better wheat than they were paying for. These major points will be huge once MAFF becomes less and less powerful.

On an optimistic note, all customers were extremely happy to see us. The effort made to visit them was greatly appreciated by all. They very much liked the fact that we took time to learn about their history and culture. As always, building and strengthening relationships will be the absolute key to keeping the 2/3 share the US has in the Japanese market...with or without MAFF.

JAPAN - Day Four (Cheryl)

2010-02-17T10:10:00.000-08:00

We had quite a day yesterday meeting up with old business friends who have come to Montana and making new ones we hope to have convinced to come visit us. Our briefing sessions have generated some good discussion. We have developed a certain cadence, if you will, so that we three know when we need to pose questions, step in and provide more specific examples, etc. Leonard, as the producer, is afforded great respect and he offers great observations and analogies that drive home points most effectively, judging by the resultant interaction. The presentos we have given out (Leonard's personal photos and the wheat penny tie tacs/lapel pins we made) have been well received.

I'm not proficient yet in the use of chopsticks, but I haven't had to request silverware yet, either. A very lovely lunch with the Grain Importers Association was served on gold-rimmed, flowered china and the forks and knifes were constantly being replaced with fresh, and, in some cases unique looking implements.

We remarked that one of our guests reminded us of "Marky" Mark Walberg and immediately after he returned to work he emailed us that he had googled the name, saw the actor's picture, and agreed with our assessment! Little things like this help our contacts to remember us and differentiate us from all the other competing factions and, we hope, will give us an edge when purchasing time comes.

I did check out the website tracking earthquakes and found that locations off Japan's shore have indeed been involved on the day I felt my computer walk away from under my fingers. I guess that was only yesterday. (The time blurs.) That information doesn't really serve any purpose other than giving me the "I told you so" rights.

Charlie took us to a couple very unique stores so we could see products made with the various classes of wheat and see for ourselves which ones rely on very white color, which ones are more dependent on texture, etc. We all lamented not being able to take pictures of everything. There was such an array of food items, fresh, handmade, processed----I couldn't begin to tell you the variety and uniqueness and the colorful presentations and the creativity---particularly of the breads and the sweets products. We did see some very high-end, exclusive items like a single cantelope that cost over $200 U.S.! We saw some definite examples of value-added marketing, for sure.

Kara and Leonard took the opportunity to try eel in a couple of forms, squid, and all manner of venturesome items I had to avoid. I did have some goose, which we don't often see as a menu item here. I'm sure my problems with fish and seafood presented some major challenges for our US Grains Council and US Wheat Associates directors and their efforts have kept me out of some serious trouble, for which I am most grateful. Kara and Leonard have kindly offered to be my official taste testers, as well, and have both taken the time to familiarize themselves with my EpiPen and procedures if I were to have inadvertantly eaten some fish.

A few random observations: There are almost no American cars on the very busy roads. Bikes are not as prevalent, at least in downtown Tokyo, than I had assumed (later understanding that they leave them in lots at the rural stations). Little Vespas and scooters are more prevalent. A taxi ride, on what we consider the "wrong" side of the street, can be a real thrill. I think some of our drivers delight in giving us the ride of our lives. Cabbies here have a real "ownership" of their vehicles and do not like it if one takes hold of the door to shut it. They do that themselves, from inside. One may only enter and exit from one side. I'm sure this is a safety factor so those like me don't end up flattened by oncoming traffic.

The little children we've had the good fortune to see are absolutely adorable --as all little children are, and we've all commented that the Japanese work ethic is such that they often work 12 hour days and do not get to, as one gentleman told us, "see the face of his son except on Sundays. " There are long commutes for many---making their 12-hour work days up to three hours longer.

We look forward to a train trip to a state-of-the art flour mill outside Tokyo and seeing how Leonard's wheat from Vida, Montana is used on this end of the chain.

JAPAN - Day Three (Cheryl) (A little shake, rattle and roll)

2010-02-16T11:43:00.000-08:00

We intended to "tag team" this blog but it has only just been now that I have been able to get technology to cooperate.

Kara summed up the news from yesterday quite thoroughly so I'll keep this post from me fairly brief.

The days are indeed long in that, even when we do get back to the hotel, our day isn't over. It has been our habit, and an essential one, I might add, to get together with Leonard and try to summarize not only the "take home" messages for the day, but any things we feel we can follow up on, This is helpful because in these meetings, with several participants, sometimes one of us is engaged in a conversation the others aren't privy to and in these "debriefing" sessions, we can all be on the same page. It helps, as well, if we share our perceptions because the importance I, for example, would put on a piece of information, might not be the same emphasis Leonard would attach to the information.

We also plan our messages for the upcoming day of meetings so that we are coordinated in the focus we want to bring to the table.

On a more personal note, enroute from our lunch meeting yesterday to meet with a great friend to the U.S. farmer, Toru, from Itochu, Hiroko made it possible for us to walk for about 20 minutes around the Emperor's palace--such a beautiful spot with such history. For whatever reason, I was particularly taken with the "life sized" bonzai trees---a huge grove of them all manicured by Japanese specialists.

I have to say that as I was typing this I felt what I'm sure was an earth tremor and I am only just now "collected" enough to continue. (I made a dash for the bathtub, for whatever reason. I didn't know I could move so rapidly--especially at this hour of the morning! ) My computer literally moved under my hands and the curtains next to the desk I'm working on bowed in and out. I know earthquakes are common here, and while what I felt was obviously not a full-fledged quake, it is close enough, in my book--especially since I'm on the twentieth floor and visions of poor Haiti are quite vivid in my mind.

Another first for me, at least, was the "remove shoes, dine sitting on the floor" experience we had at a wonderful "barbecue" place last night. There were grills built into the table and we could prepare our own vegetables and melt-in-your-mouth white marbled beef--attributed to good, firm white barley used in the feed composition. We were most honored to have guests spend so much time with us away from their work and families. Many of them faced an hour and a half commute, once they left us around 8:30 p.m. (20:30). We also had "Charlie" Utsunomiya, Director of U.S. Wheat Associates, Japan office and Hiroko Sakashita, Associate Director of U.S. Grains Council, Japan Office, our two foreign market development organizations join us--a most welcome addition to the evening.

We are eager for today's activities. For now, I'll dazzle you with my profound mastering of the Japanese language: Gambatte Kudasi---which I hope means "good luck". Rest assured, I will find out how to say, "Help, I'm in the bathtub!

JAPAN - Day 3 (Kara)

2010-02-16T05:32:00.000-08:00

Exhaustion is settling in. 3 days with 14 hours of sleep is wearing me down a bit. Today was a very long day of meetings with our barley customers. Knowing that the US claims only 1% of the Japanese barley imports, meant enthusiasm was tough to muster from the start. I am so glad we had the opportunity to see their lifestyle yesterday. It allowed me to find a new open mindedness I personally did not have before. I think it is vital to understand what being one in 12 million feels like.

We began the day with briefings by both the US Grains Council and US Wheat offices in the morning. We then met with one of the major food barley buyers, Zenbakuren and the All Japan Barley Processors Association. The major problem is that consumer use has declined in Japan much like that in America recently. The key to this problem would be to get mainstream manufacturers (ie: General Mills, McDonalds, Kelloggs, etc.) to help promote the health benefits of barley. Also, the fact that Australian barley is so much cheaper and meets the quality parameters better is the biggest hurdle. We are now not only fighting Canada for the #2 spot, but also Russia and the Ukraine. They're everywhere!!!

We then rushed to a meeting with Itochu, another large barley importer. Again, price has taken us out of their feed market completely. There are prospects in food barley for their rice extender market. We would be again competing with Canada. The sochu market is very quality specific and seems to have been developed around the Australian crop...as they say, it's a tough nut to crack.

Thankfully we ended the day with our friends at Zennoh and Unicoop. Mainly a feed barley importer, this meeting held more hope than the others. They are currently working on a contract with Australia, but we hopefully shared new information relevant to the decision.

We met with old friends and new today. This goodwill mission had set a goal of reconnnecting and building on the relationships we have worked so hard to create and maintain. It is my observation that these customers highly respect the Montana farmer, and would love to purchase from us, however right now the cost efficiency is just not there. We have found a niche market for the high beta-glucan varieties, but they are still in the developmental and testing phases. Japan purchased 500 MT of this class last fall and they are currently developing a higher priced barley tea product for it. While it is a limited market, it is encouraging. Many of the barley traders seemed excited about US/Montana stock information, but price is the end decision factor. Right now the US has 1% of the Japanese barley import market, but we have 96% of the corn market. If we didn't have a marketing presence here though the Grains Council we would probably have no portion of the market at all.

Tomorrow we jump into the wheat side of things. Still too much to digest right now regarding MAFF and the changes ahead. Hopefully a good night's rest will shed some new light and ingenuity in my brain. A long 15 hour day behind us, and ready for another one ahead.

JAPAN - Day 2 (Kara)

2010-02-15T11:29:00.000-08:00

To start today's adventure I need to put something into perspective...here's more about the crack-shot team you've sent to Japan: we are all stuck on Montana time, and I mean that quite literally. I brought my cell phone to use as my watch thinking it would automatically switch over to Tokyo time. It did not. Leonard usually wears two watches on trips like these, but he didn't bring the second along because the band broke. He likes to keep the one he has on Montana time so we don't get too out of whack. Cheryl also has a watch stuck on Montana time. Soooo, we end up adding 16 hours and doing the math in our heads. Not the most efficient set up, but we haven't been late yet!

With that said, day two of our journey was wonderful, adventurous, and wet. The three of us met up early for breakfast and toured the local area via foot. We found that our US Embassy is just down the street. Leonard figures that if I stand on Cheryl's shoulders and heft him over the wall he should make it okay in case of an emergency. I'd share pictures of the Embassy, but no pictures allowed, and there were plenty of guards outside the fortification to make sure we weren't breaking the rules. Nice to know that a little plot of American soil is just down the street.

We saw a couple local bakeries and watched our wheat in action. We also got the hang of working with Yen. Seems much simpler than the US dollar/cents program. We went into the subway to take a peek and were fish swimming upstream. I told Leonard "I think we came in the wrong one." He responded "there's a source to this mass somewhere! We're gonna find it!" And that we did. One interesting thing about this little rendevous. We were in the subway at about 8 am, everyone was going to to work. Not kidding we probably passed thousands of people. The only thing we heard were their footsteps. We were the only ones talking. Very eery. Many people here wear the masks you see on TV. I understand it to be a preventative measure for both the wearer and general public.

Hiroko met us at 11:30 and we headed back to the subway. Overall the subway system is very similar to DC and others. Just with many more lines. As Hiroko said, "it's like spaghetti." The ticketing system is very simple, but reading the maps is unreal. We headed to Kamakura, a very historically important city southwest of Tokyo. We hopped 3 different trains on the way there. Seeing the endless sea of housetops and apartments, you can quickly see how this society maximizes space. Hiroko made a very important statement about the Japanese. "Everthing is little. Little homes, little tables, and little worries. We don't have room to be 'big'. This philosophy carries into every aspect of our life. This is why what may not seem like a big problem to you, is a very big worry to us." Maybe this is why people seem more polite and gracious here. They litterally don't have room to be too boisterous. People are kind on the train because, quite simply, there isn't the space for bad behavior. Even noise. "Most people live in apartments. Walls are very thin. Loud behavior isn't tolerated at home, and that has become a part of our society," Hiroko added. Maybe knowing these things can help us understand why one kernel can be perceived as contamination in Japanese quality specs.

In Kamakura it began raining. It rained all afternoon. Hiroko gave us a brief background of history and the importance of the city. We walked along the skinny streets to the largest Buddha statue in Japan. Quite a remarkable site! Buddhism is still the major religion here, and we saw many offerings. Frankly, the ritual of it all reminded me very much of Catholicism. They even have "holy water" bowls to cleanse yourself before entering the site.

After Buddha, we walked and shopped our way to a Buddhist shrine and Japanese garden. This especially tickled my green thumb to see the hydrangea and azaleas. Even though this is the end of winter, a handful of plants are in bloom, including the plum trees. The shrine was to Kannon, the goddess of mercy. The garden included an area where people can honor babies lost in miscarriages. It was quite moving.

At this point we were pretty well soaked and needed some hot tea. We headed back to the train station and made the journey back to Tokyo. It took three trains to get us to Kamakura, but 3 to get us only half way back. The mood on the train was much different than earlier in the day. People were chatting. Children were laughing in their school uniforms. Older people were trying to sleep. It was a much more relaxed state of affairs.

In a Tokyo suburb we stopped for dinner and Hiroko's husband Michael met up with us. He is a Montana native from Loma, who has spent over 25 years in Japan. He even wore his Griz t-shirt to give us a feel of home. It was nice hearing his stories and thoughts.

Back at the hotel the three of us were able to wrap our heads around the day. While we saw only a small portion of Japan and its historic culture, we were able to get a glimpse into their daily life. Again, small worries are big, and big spaces don't exist. I can only imagine what our trade teams think when they land in Montana and see endless fields of openness.

In all of today's travels I saw only one piece of garbage on the street, and only one transient on the steps of the subway. They don't have room for clutter.

JAPAN - Day 1 (Kara)

2010-02-14T17:40:00.000-08:00

Feb 14, 2010 -

Wow! In a heartbeat we lost an entire day. We left Great Falls at 6:30 am (13th), and arrived at our hotel in Tokyo at about 6:30 pm the next day (14th). The flight was good, but no matter how comfortable the try to make you, those seats are no bed! It was interesting to see the ocean and boats on the bay as we decended into Tokyo. The first thing that stood out to both Cheryl and me was how many fields of agricultrure there are here. A largely smaller scale, but the countryside is peppered with different crops. I'd love to know what they are! In fact, the airport is out in the middle of farming county...you drive by bus another hour to Tokyo. Last night the pillow and bed were heaven!

The area reminds me very much of Portland or Seattle. Very green and very lush. It is winter here (about 40 degrees F) and you see the definite contrast between the evergreen trees and brown grass. I did see some golfers out and about! I am anxious to get ot today and see some of this unique countryside.

So far all of the people I have been in contact with have been extremely gracious and friendly. It's out of my custom not to tip...that will take some getting used to when I see the service people getting my stuff in order.

Yes, the toilets are a bit different, but so far no major hurdles. It did take about 5 minutes to find the flusher at the airport, but after hitting every possible button I finally found it. It looked like one of my husbands giant Rapela fishing lures attached to the wall about 3 feet away. Overall, they are much like ones you find in a camper...with more buttons.

I am anxious for today. I didn't get as much reading done on the plane regarding culture and appropriate behavior. Luckily our friend Hiroko from the Grains Council will be with us today and as always, she will be great at guiding us down the right path. 'Til tonight, Cheers!