Agricultural News
US Wheat Chair Don Schieber of Oklahoma Addresses Russian Grain Conference
Thu, 09 Sep 2010 17:45:26 CDT
There was a timely interlude in Moscow, Russia, today in the ongoing global discussion about the impact of the Russian drought and the government ban on grain exports. The Russian Grain Union together with the Institute for Agricultural Market Studies held the XVI International Conference featuring the theme, "Black Sea Grain and Oilseeds 2010/11: The Role of Government and Efficiency of the Domestic Grain and Oilseed Markets."
Originally planned earlier this year in the context of what the Russian Grain Union noted as "the further destiny of giant Russian grain intervention reserves... regional governments' efforts to strengthen domestic grain vertical pipelines," the event takes on new meaning with all eyes on what happens next in Black Sea wheat production. Representing U.S. wheat producers at the conference are U. S. Wheat Associates (USW) Chairman Don Schieber, USW VP of Overseas Operations Vince Peterson, USW European Regional Director Goris van Lit, and USW Moscow Office Director/Marketing Specialist Valentina Shustova.
Schieber, an Oklahoma wheat producer, was among several speakers invited to make brief opening remarks. In thanking the Russian Grain Union for the invitation, Schieber said he shared the pain many Russian farmers felt in losing their wheat crop this year. He also said while some U.S. farmers will see higher prices for their wheat, many of them sold before prices reacted to the late-breaking news from Russia.
"No farmer wants to benefit from a crop failure on someone else's farm," Schieber said. "We would rather earn our reward from hard work and a stable but fair price for what we produce. This volatility is no good for growers and no good for our customers. That is why farmers in my country want to keep wheat markets around the world open."
While admitting to some pre-event concern about how his presentation might be judged in Moscow, Peterson gave his honest perspective on the role of governments in the global grain industry. He started with compelling background on the long-term potential for deficit wheat supplies in the face of growing demand and competition with other crops for planted area. He then reviewed several past cases in which U.S. government intervention (actions that are no longer legal) created serious market disruption difficulties for both farmers and the wheat industry. He said administrative market disruptions also undermine the confidence of buyers, which encourages volatility. His overall point: producing enough wheat to meet growing demand today and into the future will be challenging enough; government intervention in the markets will make the task much more difficult because the consequences they produce are often exactly opposite from their intention.
The Russian Grain Union expected more than 300 conference participants, including commodity traders, processors, producers, elevator operators, agri-businesses, policy decision-makers and other grain industry stakeholders.
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