March 4, 2005

US wheat exports to Sub Sahara Africa double in 5 years

Exports of US wheat to the US Wheat Associate's Sub-Sahara Africa marketing region doubled in the previous five marketing years, and the hard red winter wheat class has filled the bulk of that business, reported USW in a weekly newsletter.

According to the latest report from USW regional vice president Ed Wiese, US wheat exports to the Sub-Sahara African region grew to 3.2 million tonnes in the 2003-04 marketing year, up from just 1.6 in 1999-2000. Eighty-four per cent, or 2.7 million tonnes, of the 2003-04 business consisted of HRW wheat.

The Sub-Sahara marketing region for USW includes Nigeria, South Africa and the countries in southern Africa and West Africa.

Much of the growth during the last five years has been in Nigeria, where imports of US wheat have nearly doubled from 1.2 million tonnes to 2.3 million. US wheat exports to South Africa during the same five-year span increased from 137,000 tonnes to 490,000 tonnes, and in West Africa from 185,000 tonnes to 300,000 tonnes.

As of 39 weeks into the 2004-05 marketing year, the US Department of Agriculture lists total commitment to Nigeria at nearly 2.2 million tonnes, running nearly 11 per cent ahead of the previous year's pace. Included in the Nigerian sales is 1.8 million tonnes of HRW wheat or 82 per cent of the Nigerian commitments.

But as of Feb. 24 in the current marketing year, the USDA reports that sales to the entire African region are running 33 per cent below the previous year's pace. This is primary because sales to Egypt are running 50 per cent below the 2003-04 pace due to increased competition from Argentina and the European Union. US wheat sales to Morocco, Mozambique and the Republic of South Africa are also currently lagging the previous year's pace.