(Evening folks! I meant to post this last night from the airport in Bogota, before our flight to Lima, but my Internet connection ended and we had to board. We had a late night, but we got into Lima all safe and sound. I'll post on our day in Lima, Peru, later tonight.)
Before I forget, thanks to those folks who've left questions and comments on the blog. I promise tonight when I get to the hotel I'll be sure to look up the information you asked for and post it. Meanwhile, keep those posts going and tell your friends to come visit here!
So, here's the update on our hectic day in Bogota.
Now, our morning in Bogota started out with a breakfast with our Agricultural Attache Richard (Todd) Drennan and Alberto Restrepo, an Agricultural Specialist with the U.S. Embassy at our hotel. Drennan re-inforced the message we took home from yesterday's meeting with FEDEMOL—an approved U.S.-Colombian free trade agreement is vital to both countries' continued economic success. And especially before Canada has a chance to pass its own agreement with Colombia that includes zero tariffs on wheat.
"Colombia's positive growth will continue and there are great opportunities in agricultural production with or without an agreement," Drennan said. "Except, if Canada gets its agreement signed with zero tariffs, we'd be at a disadvantage." The Canadian agremeent is caught
Our morning continued with a meeting just three blocks from the hotel with Felipe Laserna, president of CIGSA S.A., a wheat importer who buys wheat for 16 small and medium mills in Colombia. He imports about 7 million bushels of wheat annually, through two of the country's ports.
From there, it was a one hour jaunt across town, to Productos Alimenticios de Occidente, or Doria, a milling company with 48 percent of Colombia's pasta market and imports of 65,000 MT of wheat.
We learned a lot in Colombia. First, the trade agreement is a vital necessity for this country. Everyone we talked to understood that it was a political matter on the part of the U.S. Congress, but they wanted our producers to take the message to their Representatives and Senators that action is needed, and soon. If not, the U.S. will lose market share to Canadian wheat.
Second, we learned Colombia's millers like U.S. wheat, but they wish they could get the same quality as that they can buy from Canada. It was apparent at the FEDEMOL board meeting that importers and millers are tired of paying extra freight for dockage, whether it's the fault of U.S. producers and grain movers or not.
Also, as far as genetically modified wheat's potential in the export market, Colombian millers would be wary of the product. Not because of any scientific issues, so much, but more because they'd worry that their consumers wouldn't understand the issue. Education is needed on the subject, and Colombians encouraged U.S. Wheat to work to educate consumers and users about GM wheat.
Finally, it was also apparent that Colombia, especially Bogota, is a country and city on the rise. Bogota was clean and vibrant and as one of our board members described it, "very cosmopolitan." It's a small country, but it's one that has a great future. And, U.S. wheat farmers most definitely want to be in on it.
It's a late night for us tonight. We catch a three-hour flight over the Andes to Lima, Peru, and then we have a day of five meetings around town with millers, importers and government officials discussing U.S. wheat and the Peruvian free trade agreement that is in the process of final implementation.
Thanks to everyone for keeping up with our travels. Hasta luego!
Thursday, March 27, 2008
Wednesday, March 26, 2008
The sites of Colombia
When you land in Bogota, you enter a world where there are 8 million people living 8,000 feet above sea level. It's hectic, yes, but it also has a unique charm, too.Our van met us at the airport and our driver must have been training for NASCAR—along with every other driver on the road.
But, in a town with this many people, it makes sense that you have to drive like that just to get anywhere around town within any sort of time frame. The road is shared with horse-drawn carts, motorcycles, random pedestrians, and they all just accept the zooming and the honking and the near collisions without a blink.
It's amazing.
Here are a few shots of the local color. Just thought you'd like to see some of what I'm seeing here.
Here are a few shots of the local color. Just thought you'd like to see some of what I'm seeing here.
Meeting with FEDEMOL
Today, the team met with the Colombian Millers Association, for FEDEMOL, which was having its meeting in Bogota. Over lunch, the group discussed the pending Colombian trade agreement with the U.S., as well as wheat quality and dockage issues from the U.S. and how to improve consumer demand of bread in Colombia.Here, Carlos Paz, the general manager of Harinera del Valle, which imports 280,000 MT of wheat, and owns 25 percent of the market share in Colombia, discusses the issues he and his fellow millers face. (Journal photo by Jennifer M. Latzke.)
Our day in D.C.
Our first day in Washington, D.C. was packed with information. We started our day at the offices of U.S. Wheat, where Alan Tracy, president of USW, met us to begin our orientation. Tracy explained the value of this trip is in the relationships made between our foreign customers and U.S. producers. In choosing the four countries of Colombia, Peru, Costa Rica and Mexico, USW wanted to give producers an understanding of the opportunities available to U.S. wheat in those markets.
Tracy also discussed the supply and demand situation in the world wheat market, and the recent price concerns of millers.
"Wheat prices are down, and the market works," Tracy said. "Spring wheat prices are down $10 and the price has dropped more than the price we were at one year ago." Tracy explained there should be a 20 percent increase in wheat acreage in the United States this year, and increases in overseas plantings as well. This will help to correct the market.
"The worst thing would be to have the government involved at this point," Tracy explained, in response to the recent millers picketing of D.C. to protest high wheat prices. "Decreases in wheat itself is not important in food inflation in the U.S.," Tracy said. He added that if the price of wheat were to increase by $1, then that would end up translating into an increase of one cent per day to the average consumer.
While at USW we also discussed the Latin America market situation and the USW market development efforts with Vince Peterson, and an update on the negotiated trade agreements with Peru and Colombia from Rebecca Bratter.
Then, it was off to U.S. Department of Agriculture, for even more dicussions on the Colombian and Peruvian trade agreements, and overviews of the world supply and demand and U.S. supply and demand of wheat.
The overall message for the day was clear. If Congress doesn't act on the negotiated Colombian trade agreement before the end of this session, the agreement will expire and the U.S. stands to lose opportunity for trade into Colombia to Canada, which is negotiating its own agreement.
And, by all accounts, this is a lot of wheat trade. Bratter explained that Colombia is a large U.S. wheat export market and if Argentina and Canada wind up with preferential trade agreements before the United States, growers will find themselved out of the Colombian market.
So, what's the hold up on the Colombian agreement? Bratter explained that it really is a political issue. A Democratic Congress does not want to pass the agreement because it has humaninatarian concerns with Colombia's treatment of its labor officials. Also, there's added pressure because of the presidential election cycle and how passing or not passing the agreement would help or hinder either the Democratic or Republican party.
Colombia, Bratter added, is a longtime ally of the U.S. "Not signing the agreement doesn't send a good signal," she said. And, if the agreement expires? It will be a long time, if not nearly impossible to negotiate another. (Journal photos by Jennifer M. Latzke.)
Tracy also discussed the supply and demand situation in the world wheat market, and the recent price concerns of millers."Wheat prices are down, and the market works," Tracy said. "Spring wheat prices are down $10 and the price has dropped more than the price we were at one year ago." Tracy explained there should be a 20 percent increase in wheat acreage in the United States this year, and increases in overseas plantings as well. This will help to correct the market.
"The worst thing would be to have the government involved at this point," Tracy explained, in response to the recent millers picketing of D.C. to protest high wheat prices. "Decreases in wheat itself is not important in food inflation in the U.S.," Tracy said. He added that if the price of wheat were to increase by $1, then that would end up translating into an increase of one cent per day to the average consumer.
While at USW we also discussed the Latin America market situation and the USW market development efforts with Vince Peterson, and an update on the negotiated trade agreements with Peru and Colombia from Rebecca Bratter.
Then, it was off to U.S. Department of Agriculture, for even more dicussions on the Colombian and Peruvian trade agreements, and overviews of the world supply and demand and U.S. supply and demand of wheat.
The overall message for the day was clear. If Congress doesn't act on the negotiated Colombian trade agreement before the end of this session, the agreement will expire and the U.S. stands to lose opportunity for trade into Colombia to Canada, which is negotiating its own agreement.
And, by all accounts, this is a lot of wheat trade. Bratter explained that Colombia is a large U.S. wheat export market and if Argentina and Canada wind up with preferential trade agreements before the United States, growers will find themselved out of the Colombian market.
So, what's the hold up on the Colombian agreement? Bratter explained that it really is a political issue. A Democratic Congress does not want to pass the agreement because it has humaninatarian concerns with Colombia's treatment of its labor officials. Also, there's added pressure because of the presidential election cycle and how passing or not passing the agreement would help or hinder either the Democratic or Republican party.
Colombia, Bratter added, is a longtime ally of the U.S. "Not signing the agreement doesn't send a good signal," she said. And, if the agreement expires? It will be a long time, if not nearly impossible to negotiate another. (Journal photos by Jennifer M. Latzke.)
We're in Colombia... and it's simply beautiful
So, yesterday we spent the day in Washington, D.C. visiting with U.S. Department of Agriculture folks and such. We learned about the trade agreement with Colombia that's in jeopardy if this Democratic-led Congress doesn't act before the end of the term, and about the wheat export potential of Peru once its agreement is implemented.
It was a busy day of travel. The team made it into Miami International Airport just in time to get a few hours of sleep at the airport hotel and then make our 7:30 a.m. (EST) flight to Bogota.
We're in Bogota, and we'll be meeting with the millers shortly. I'll try to post more tonight when we get in. Meanwhile I'll try sending you a few pictures of our day in D.C.
Thanks for all the good wishes from all of our readers! Don't worry, we're fine, happy and healthy and the board members are excited about representing their fellow wheat growers. You should be really proud of them!
It's so beautiful and green and lush down here! Granted, we're in South America and I didn't expect it to be a desert, but coming from western Kansas, after a long winter, the colors of the flowers around here are simply intoxicating to the eyes. Most of their "weeds" I don't see outside of greenhouses in the states. What lucky people!
It was a busy day of travel. The team made it into Miami International Airport just in time to get a few hours of sleep at the airport hotel and then make our 7:30 a.m. (EST) flight to Bogota.
We're in Bogota, and we'll be meeting with the millers shortly. I'll try to post more tonight when we get in. Meanwhile I'll try sending you a few pictures of our day in D.C.
Thanks for all the good wishes from all of our readers! Don't worry, we're fine, happy and healthy and the board members are excited about representing their fellow wheat growers. You should be really proud of them!
It's so beautiful and green and lush down here! Granted, we're in South America and I didn't expect it to be a desert, but coming from western Kansas, after a long winter, the colors of the flowers around here are simply intoxicating to the eyes. Most of their "weeds" I don't see outside of greenhouses in the states. What lucky people!
Tuesday, March 25, 2008
Made it to D.C.!
Well, folks, I made it out of Kansas at last! With all the pre-flight prep work I thought March 24 would never arrive!
We're starting out this little adventure from Washington, D.C., home of U.S. Wheat's headquarters, USDA and all things political. Our group gathered for a meal last night, and got to know a little bit more about each other as well. My travel companions are Russell Nemetz, a broadcaster from Montana; Richard Starkebaum, a USW Board Member from Colorado; Chet Edinger, a USW Board Member from South Dakota and David Clough, a USW Board Member from North Dakota. And, of course, the ever efficient Steve Mercer, our USW coordinator and Communications Guru. (Okay, so the Communications Guru is a title I gave him, but give me a break folks, It's early in the a.m. and we have to be in the lobby by 8:15 to start our day!)
Now, today we're headed to the U.S. Department of Agriculture for pre-trip information on the FAS, the Free Trade Agreements with Colombia and Peru, the overall U.S. and World Supply and Demand Situation, and the Federal Grain Inspection and Standards for Wheat. Then, we go to USW's new headquarters for a briefing on the do's and don'ts of foreign travel. (Memo to self: Try to avoid an international incident and use the interpreters instead of relying on my own language skills!)
Once we've had all our briefings then we head to Miami, Fla., for a quick few hours of shut-eye and then it's off to Bogota, Colombia. In Bogota, we're going to meet with the Colombian Millers Assocation, or FEDEMOL—pretty much straight off the plane. It's a small group, but very powerful. Some of the members in attendence will be Carlos Arcesio Paz, general manager, Harinera del Valle, which has 25 percent of the market share in Colombia, and 35 percent of the pasta market. His company imports 280,000 MT of wheat for use in their facilities.
Also, present will be the general manager of Rafael del Castillo, the largest mill on the Caribbean coast, Jairo Velez, and it imports 90,000 MT of wheat. Generoso Mancini will be represented by Bernardo Mancini, manager, and this family company imports 60,000 MT of wheat.
We're really hitting the ground running!
As always, if you all have questions, comments, or thoughts on who we'll be meeting, or what we'll be learning, just post them here.
Now, on a personal note, lesson number one for this trip: Don't overpack. Usually I'm a one-checked-bag kind of girl, but this time I got ambitious and checked two bags and have a carry-on roller. Yeah, not so smart on my part. But, in my defense, I really wasn't sure until last night where all we'd be going. Our itinerary wasn't finalized so I wanted to be prepared. It's all well and good, though. I'm hoping to mail back a suitcase home of the culled items.
Have a good day everyone!
We're starting out this little adventure from Washington, D.C., home of U.S. Wheat's headquarters, USDA and all things political. Our group gathered for a meal last night, and got to know a little bit more about each other as well. My travel companions are Russell Nemetz, a broadcaster from Montana; Richard Starkebaum, a USW Board Member from Colorado; Chet Edinger, a USW Board Member from South Dakota and David Clough, a USW Board Member from North Dakota. And, of course, the ever efficient Steve Mercer, our USW coordinator and Communications Guru. (Okay, so the Communications Guru is a title I gave him, but give me a break folks, It's early in the a.m. and we have to be in the lobby by 8:15 to start our day!)
Now, today we're headed to the U.S. Department of Agriculture for pre-trip information on the FAS, the Free Trade Agreements with Colombia and Peru, the overall U.S. and World Supply and Demand Situation, and the Federal Grain Inspection and Standards for Wheat. Then, we go to USW's new headquarters for a briefing on the do's and don'ts of foreign travel. (Memo to self: Try to avoid an international incident and use the interpreters instead of relying on my own language skills!)
Once we've had all our briefings then we head to Miami, Fla., for a quick few hours of shut-eye and then it's off to Bogota, Colombia. In Bogota, we're going to meet with the Colombian Millers Assocation, or FEDEMOL—pretty much straight off the plane. It's a small group, but very powerful. Some of the members in attendence will be Carlos Arcesio Paz, general manager, Harinera del Valle, which has 25 percent of the market share in Colombia, and 35 percent of the pasta market. His company imports 280,000 MT of wheat for use in their facilities.
Also, present will be the general manager of Rafael del Castillo, the largest mill on the Caribbean coast, Jairo Velez, and it imports 90,000 MT of wheat. Generoso Mancini will be represented by Bernardo Mancini, manager, and this family company imports 60,000 MT of wheat.
We're really hitting the ground running!
As always, if you all have questions, comments, or thoughts on who we'll be meeting, or what we'll be learning, just post them here.
Now, on a personal note, lesson number one for this trip: Don't overpack. Usually I'm a one-checked-bag kind of girl, but this time I got ambitious and checked two bags and have a carry-on roller. Yeah, not so smart on my part. But, in my defense, I really wasn't sure until last night where all we'd be going. Our itinerary wasn't finalized so I wanted to be prepared. It's all well and good, though. I'm hoping to mail back a suitcase home of the culled items.
Have a good day everyone!
Friday, March 21, 2008
Lots of thanks to KS, CO, OK, TX, and NE Growers!
Before I forget, I really want to take a moment to say thank you to the five state wheat commissions who so generously have sponsored my portion of this wheat tour.
I know how hard you all work for your checkoff dollars and how you watch closely how you spend them for your producers. I just hope that this blog and the following stories in High Plains Journal, when we return, will be a great return on your investments in sending me to Latin America.
For my non-farm readers, and those of you unfamiliar with state checkoffs, here's a simple explanation. Each bushel of wheat a farmer markets is assessed a few pennies. All those pennies add up after harvest and get put into a fund. A state wheat commission uses that money to fund research, promotion and market development of the crop. A wheat commission is a group of elected grower representatives who are approved by a governor, and who make the best decisions for the greater good of their growers. Of course, each state has different ways of conducting their checkoffs and such. You can find more information on checkoffs through your state's department of agriculture.
If you're toodling around on the Internet, why don't you go check out their websites and find out the latest news from Texas, Oklahoma, Colorado, Kansas and Nebraska?
—Texas Wheat Producers Board and Association: www.texaswheat.org
—The Oklahoma Wheat Commission: www.state.ok.us/~wheat/
—Kansas Wheat (the Kansas Wheat Commission and Kansas Association of Wheat Growers: www.kswheat.com
—Colorado Wheat (the Colorado Wheat Administrative committee, Colorado Wheat Research Foundation, Colorado Association of Wheat Growers): www.coloradowheat.org
—Nebraska Wheat (Nebraska Wheat Board and Nebraska Wheat Growers Association): www.nebraskawheat.com
Thanks again to all the people who've had a hand in sending me to Latin America. I'll be sure to make you proud!
I know how hard you all work for your checkoff dollars and how you watch closely how you spend them for your producers. I just hope that this blog and the following stories in High Plains Journal, when we return, will be a great return on your investments in sending me to Latin America.
For my non-farm readers, and those of you unfamiliar with state checkoffs, here's a simple explanation. Each bushel of wheat a farmer markets is assessed a few pennies. All those pennies add up after harvest and get put into a fund. A state wheat commission uses that money to fund research, promotion and market development of the crop. A wheat commission is a group of elected grower representatives who are approved by a governor, and who make the best decisions for the greater good of their growers. Of course, each state has different ways of conducting their checkoffs and such. You can find more information on checkoffs through your state's department of agriculture.
If you're toodling around on the Internet, why don't you go check out their websites and find out the latest news from Texas, Oklahoma, Colorado, Kansas and Nebraska?
—Texas Wheat Producers Board and Association: www.texaswheat.org
—The Oklahoma Wheat Commission: www.state.ok.us/~wheat/
—Kansas Wheat (the Kansas Wheat Commission and Kansas Association of Wheat Growers: www.kswheat.com
—Colorado Wheat (the Colorado Wheat Administrative committee, Colorado Wheat Research Foundation, Colorado Association of Wheat Growers): www.coloradowheat.org
—Nebraska Wheat (Nebraska Wheat Board and Nebraska Wheat Growers Association): www.nebraskawheat.com
Thanks again to all the people who've had a hand in sending me to Latin America. I'll be sure to make you proud!
Thursday, March 20, 2008
Pre-flight jitters
Well, this is it folks. Just three days before we venture into Latin America with U.S. Wheat Associates. I wish I could say I was all prepared, but I don't think anyone is ever really prepared for an adventure like this. I just know I'm going to forget something....
I've tried to get my ducks in a row here at work and at home. In the process of gathering clothes, arranging for Shiloh the Wonder Schnauser's care, and finding camera gear for the trip, I also had a surprise visit from my folks. Mom and Dad Latzke are thrilled that I'm getting to go out of the country. But, I noticed Mom hugged me a little harder before they left this time. I guess it's an entirely different thing putting your kids on a plane across the hemisphere, and not just across the country.
In the coming days I'm going to try to post some background information on the four countries we'll be visiting, Colombia, Peru, Costa Rica and Mexico. And, I'd love to get some pre-tour questions from everyone—especially the wheat growers from the five states sponsoring my portion of the trip, Kansas, Oklahoma, Texas, Colorado and Nebraska. Anything you'd like to ask our foreign counterparts in the wheat industry? I'll post any answers here in the next few weeks or so.
In the meantime, take care and thanks for taking the time to follow along on our journey!
I've tried to get my ducks in a row here at work and at home. In the process of gathering clothes, arranging for Shiloh the Wonder Schnauser's care, and finding camera gear for the trip, I also had a surprise visit from my folks. Mom and Dad Latzke are thrilled that I'm getting to go out of the country. But, I noticed Mom hugged me a little harder before they left this time. I guess it's an entirely different thing putting your kids on a plane across the hemisphere, and not just across the country.
In the coming days I'm going to try to post some background information on the four countries we'll be visiting, Colombia, Peru, Costa Rica and Mexico. And, I'd love to get some pre-tour questions from everyone—especially the wheat growers from the five states sponsoring my portion of the trip, Kansas, Oklahoma, Texas, Colorado and Nebraska. Anything you'd like to ask our foreign counterparts in the wheat industry? I'll post any answers here in the next few weeks or so.
In the meantime, take care and thanks for taking the time to follow along on our journey!
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