June 18, 2004

 

 

US Growers Eye Mideast Wheat Market

 

American wheat growers are hoping to grab a greater share of some of Australia's biggest traditional markets. United States Wheat Associates regional vice president Dick Prior said his nation's growers had increased their sales of grain to the Middle East and East Africa by 180 per cent.

 

He revealed that in the key market of Egypt, the US had won 53 per cent of the 4.6 million tonnes on offer - Australia had claimed the remaining 47 per cent.

 

The US was also gaining in other key markets, particularly in Iraq, which had been largely supplied by Australia until this year.

 

But Australia's monopoly wheat exporter, AWB, said it was unconcerned about America's sudden prominence in the region.

 

A spokesman for the company said AWB had won half of the initial 200,000 tonne contract offered by the Iraqi government, with the prospect of more to come.

 

"Going forward we'll continue to work with Iraq. It's a major market for us and it could be worth up to three million tonnes," he told AAP.

 

"We will be working to win at least half of that."

 

The share of the Egyptian wheat market is worth about $500 million to AWB.

 

The spokesman said there were no signs that the US was pushing AWB out of any key markets.

 

He said Iran, often a buyer of Australian wheat, was self-sufficient in grain this season.

 

The small Kuwait market continued to be supplied by Australia.

 

"We have about 19 million tonnes to sell and we are advancing our sales quite well," the spokesman said.