1. U.S. Wheat Associates Serving Wheat Producers North Dakota Wheat Commission County Representatives Meeting John Oades, Vice President U.S. Wheat Associates

2. The USW Mission: -”Develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers.” USW-NDWC partnership -USW is an extension of the NDWC and 18 other state wheat commissions for conducting overseas market development Technical Assistance Product Demonstrations

3. Serving Your International Customers As wheat growers you know the importance of your international markets –On average 57% of U.S. HRS production is annually exported Average HRS production is 13.0 MMT (478 mb) annually Average HRS exports are 7.42 MMT (273 mb) annually Columbia Grain

4. Investing to Grow Overseas Markets Increasing sophisticated buyers Extremely competitive marketplace Like you, our customers are seeking “VALUE” –They want the best possible quality and service for the lowest possible cost –U.S. are frequently “price challenged” USW delivers programs that demonstrate the superior value of U.S. wheats

5. Selling Value to Your Customers USW operates programs in more than 90 countries worldwide from a base of 15 international and two stateside offices

6. Selling Value to Your Customers U.S. Wheat Associates funding –19 member states contributing $4.785 million NDWC contributing $857,800 –USDA FAS contributing $12.250 million USW provides 2.6:1 leverage on producer funding U.S. Wheat Associates activities –Market analysis UNITED EXPORT STRATEGIES AND APPLICATION FOR FISCAL YEAR 2011

7. Selling Value to Your Customers U.S. Wheat Associates Activities: –Trade Servicing Relationship dev. Problem solving Trade teams –Technical Assistance Information sharing Technical training “Coaching”

8. Selling Value to Your Customers U.S. Wheat Associates Activities –Consumer education Promotions Product branding –Policy development Trade agreements Credit facilities Food Aid SPS issues

9. What Is The USW Program Costing You? Producer cost is $0.0028 per bushel* Is this a good investment? (value) –The same questions your commissions ask themselves during NDWC budget prep Let’s look at some examples of USW value delivery for your producers *U.S. Wheat Associates 2009/10 Financial Report

10. Nigerian Effort Proves Valuable USW identified Nigerian opportunity in 1990s Provided focused, hands- on service and training Great results: –Exceptionally loyal buyer (90% U.S market share) –#1 buyer of U.S. wheat last two years at 3.5 MMT (130 mb) –Imports all six U.S. wheat classes –Flour milling, 2 nd largest industry in Nigeria

11. What if USW Had Not Done This Work? We might sell 30 million bu. less per year Stocks grow by around 100 million bu. The gap = 15¢ per bu. less* (all classes) Multiply that times your production... 20,000 bu x $0.15 = $3,000 That is the impact of just one market! * “Price Determination for Corn and Wheat: The Role of Market Factors and Government Programs” USDA/Economic Research Service V

12. Market Development: Saudi Arabia Saudi market remerged in 2009 –100 mb potential Educated the buyer –Middle East Buyers Conference –Crop Quality Seminar –Trade Team visit 6 million bushels HRS and HRW sold so far ($40 million)

13. Heads Up Builds HRS Wheat Sales USW advice to South Asian buyers: “Book 14% protein HRS” Option to buy at contract price for 14% or pay less lower protein Helping Philippine millers test low protein HRS South Asian HRS sales YTD are 67% ahead of 2009/10

14. Keeping the Durum Moving to the EU Durum sales to the EU at risk from incorrectly applied $25/MT tariff Demonstrated a resolution and EU officials drop tariff Prevented $3 million cost on committed durum sales U.S. durum stayed in the EU market EU Headquarters, Brussels

15. World Turns to U.S. Wheat 1 st Forecast: Flat at 24 MMT Current Forecast: 34 MMT U.S. Supply & Demand Estimate (USDA)

16. Export Sales Tracking Much Higher Export sales as of November 25 +98% +84% +25% -18% -17% Total sales +57%

17. Net Return to the Producer per $1 Invested* *Producer Net Return on Producer Investment, 2000 to 2007 An Economic Analysis of U.S. Wheat Export Promotion, Dr. Harry M. Kaiser, Cornell University January 2010

18. Gross Return to the U.S. Economy per $1 Invested* *Industry Gross Return on Total Investment, 2000 - 2007 “An Economic Analysis of U.S. Wheat Export Promotion” Dr. Harry M. Kaiser, Cornell University January 2010

19. Learn More at www.uswheat.org

20. Keep the Wheat Flowing and Prices Strong From your farm To the world