A Tale of Two Continents:Report from the Africa-Europe Board Team

Jason ScottMaryland Grain Producers Utilization Board

Brent RobertsonNebraska Wheat Board

Overview• Meet the Team

• Country Overview, Meetings & Lessons Learned

– Nigeria & Ghana – Jason Scott

– Spain & Italy – Brent Robertson

The Team

Left to Right: Jason Scott (Maryland), Julia Debes (USW), Brent Robertson (Nebraska), Larry Hunn (California)

Nigeria

• Prior to 2013/14, largest importer of HRW seven years running

• Behind only Southeast Asia in per capita consumption of instant noodles

HRW SRW HRS White Durum Total0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

Five-Year Average Sales 2013/14 to Date

Nigeria• Relationship based market• West Africa is a huge growth

market• Need FAS to maintain a strong

presence – moving to Ghana• Challenges – Government,

Turkish Flour, Training, Cassava issue

• Opportunities/Strengths – pasta/instant noodles, vertical integration, growth market

Ghana

• Rapidly expanding market for bread and instant noodles

• Small-sized bakers = big competition for mills AND origins

• Strong Canadian preference

HRW SRW HRS White Durum Total0.05.0

10.015.020.025.030.035.040.045.050.0

Five-Year Average Sales 2013/14 to Date

Ghana• FAS presence very strong

= Kurt Seifarth• Small bakers who do not

change their recipe and also do not always use a standard recipe

• Consistency is key• Challenges – Monetary

policy, maintaining consistency

• Opportunities/Strengths – pasta/instant noodles, vertical integration

African Lessons Learned• Nigeria and Ghana are very similar markets

although Ghana is much smaller in terms of total market size.

• USW staff has great relationships and were very impressive throughout the trip.

• New Ag Attaché will be an asset. • FAS move to Ghana may hinder relationships

in Nigeria• Cassava issue seems to be a non issue• Vertical integration will continue in both

markets

Spain

• 99% of mills are family owned• Flat consumption = milling over-capacity• Uses HRS for high quality artisan products

HRW SRW HRS White Durum Total0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Five-Year Average Sales 2013/14 to Date

Spain

• Because of over-capacity, mills have to diversify

• Increase in frozen dough and artisan breads good for HRS

• Would purchase SRW if duty was lifted for low & med protein wheat

Italy

• Pasta, pasta, pasta + pandora and panettone• Quality = most important parameter• All mills in Italy are family owned

HRW SRW HRS White Durum Total0.0

100.0

200.0

300.0

400.0

500.0

600.0

Five-Year Average Sales 2013/14 to Date

Italy - Meetings

• Millers adding lots of vital gluten = price!• Sustainability increasingly important• Barilla – looking for improvement in protein

quality for northern durum

European Lessons Learned

• Millers are looking for how to specialize– Bigger is not necessarily better– Adding in specialty ingredients

• Sustainability measures increasingly important for millers– Water– even though cooking pasta is highest impact!– Mixed messages on biotech

Barilla

Questions?

Thank You!