Wheat farming weathers pandemic

Even though COVID-19 has hit many businesses in the U.S. hard, the grain industry appears to be holding its own and maybe even enjoying an increase.

“In many regards our exports are up this year, since June, compared to last year,” said Glen Squires, chief executive officer of the Washington Grain Commission, noting it’s difficult to pinpoint a particular reason for the growing market.

“I think it’s hard to have a one-to-one direct connection, because so much of what happens in the international market” depends on crops in other parts of the world, such as Australia and the Black Sea region. “All of that stuff becomes part of the whole picture,” Squires said. “COVID is just another part.”

There’s no doubt the side effects of the pandemic, resulting in stay-at-home orders, restaurants shutting down, and inaccessibility of goods have had a day-to-day effect on personal incomes. But when people are staying home more, that might translate into a bump in sales for grain products.

“We have heard that in places like Japan where people can’t go out, restaurants have decreased in demand. But at the same time a lot of (Asian countries) have individually wrapped products, so they’re safer” with stay-at-home food preparation.

“People are still trying to figure out how to deal with the whole issue. But grain is still being harvested, it’s still being moved downriver in barges and everybody’s implementing protocols on how to be safe. Everybody’s doing things to minimize the COVID effect, so in that way I think people are taking precautions to keep grain moving, which is awesome.”

This year the biggest customer for Pacific Northwest soft white wheat and all classes of wheat in the U.S. has been the Philippines, with purchases of 2.4 million metric tons. That’s followed by Mexico, which has purchased 2.2 million metric tons and China — which only two years ago bought nothing and last year bought 386,000 tons, topping out at 2 million metric tons.

“We had a bigger crop this year — we had a great crop and it’s very good quality,” Squires said. “And I think they’re recognizing that, too. It is good news.

“When you put it all together, the grain market is working. Wheat is being exported and being utilized, and I’m sure people overseas are probably adjusting their distribution channels, but it’s still working.

“I think we have to remember that wheat and all the other commodities are food, and that food and the ingredients for food, people are putting those things together and still eating.”

Hedberg may be contacted at kathyhedberg@gmail.com or (208) 983-2326.