IP Crop Network, May report

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This monthly feature from SSGA’s Agronomy Action team highlights growing conditions for Identity Preserved crops from different regions around the country. Thanks to the states/regions that have contributed so far. If you would like to contribute, please get in touch with us by emailing David Kee or Shane Frederick. 

Illinois 

Illinois has seen quite a variation across the state in planting conditions and planting progress.  

As with most years, many growers in the eastern part of the state have completed 100% of their planting. Progressing west, that dwindles to about 25% complete. Corn and soybeans went in around the same time, as there has been much press recently about planting soybeans early. No doubt the northern Illinois sees that advantage. Moving south, especially south of I-64, the results have been a little more inconsistent. 

The crop has been slow to emerge with the cooler–than–normal temps. Coming out of Mother’s Day weekend, some areas to the north reported widespread frost. Overall stand establishment has been in the adequate range so far. A few areas have caught heavier rainfall events, and there could still be some replant decisions to be made in the next week or two. The emerged crop needs sunshine and heat. Once the temps go up and the clouds disappear, this crop will respond with some pretty extraordinary growth.  

The wheat crop began pollinating in the south at the beginning of last week. The maturation line will progress north at about 75-100 miles per week. So, what happened in Cairo last week will happen in Springfield next week. Many growers in these pollinating areas have been busy applying fungicides for Fusarium Head Blight, a potentially devastating disease. As with most fungicide applications, we are betting on conditions post-application to see if the pathogen will be at economic levels. Although the temperatures were a touch lower than optimum for fusarium, we definitely had a conducive environment from a moisture standpoint. 

Michigan 

The Michigan soybean crop is off to a strong start this spring.  About one-third of the expected 2.5 million acres have been planted as of the first week of May which is about 25% ahead of the five–year average. Some of these acres were planted very early (late March and early April). Most of those are just now emerging, while some emerged previous to a couple nights of temperatures in the low 20s. It is interesting to continue to learn about the ability of soybeans to handle cold temperatures,. In most cases they are more hardy and resilient that previously thought. 

Field conditions at planting have been very good in most fields with less soil moisture than normal. For some droughty soils, this is a little concerning as soil moisture at the seed level may not be adequate for germination. Other fields that normally struggle with excessive moisture are near ideal in planting conditions. 

Strong soybean market prices and a good start to the planting season have built an optimistic outlook for the industry in 2021.  

Minnesota 

Minnesota farmers are busy planting! Planting progress of most crops is slightly behind 2020 but well ahead of the five-year average. Minnesota’s drought–impacted area (D0-D3) has shrunk from 87% of the state (mid-April) to 37% in mid-May. In the first week of May, soil temperatures, at 4–inch depth, ranged in the low to high 40s (oF) in the north (Crookston) and upper 40s to mid 60s in the south (Lamberton).  

Reports are that crop emergence of early planted fields are somewhat variable, but emergence is improving rapidly as soil temperatures rise. Due to the excellent planting conditions (dry soil) seedling disease issues are not currently common, however, farmers frequently report concerns with pre-emergent herbicide efficacy and thus future weed control issues. Tillage decisions are critical as it impacts management of three variable issues: residue, emerging weeds and soil moisture. Optimal management of all three will impact yield and crop quality. 

More information: USDA NASS Minnesota Crop Progress & Condition 

Missouri 

April did turn out to be a wet month for Missouri. It also ended up being a bit of a temperature roller coaster. Missouri had an average temperature of 54.5°F, which was 1.1°F below average. A cold snap with freezing temperatures did happen on April 21-22, causing vegetative growth damage, plus forage crop lodging. The statewide rainfall total was 4.76 inches. More details on our climate for the month of April can be found here. 

Heading into the last week of April and first few days of May, there was a big rush for corn planting due to favorable temperatures and soil conditions. We also can attribute this to our large–scale planting equipment placing many rows of corn in the ground per pass. We are still behind our five-year average for corn acres being in the ground. Our average is 62% planted, but we saw only around 50%. Only 15% of this year’s corn has emerged. Soybean planted equated to 10% complete, compared to the five-year average of 8% at this time. An estimated 2% of soybean had emerged by May 2. Around 65% of the Missouri rice crop has been planted, and cotton planting was only 3% completed as of May 2. Winter wheat was 31% headed, and the crop was rated 5% poor, 36% fair, 53% good and 6% excellent. However, the soft red winter wheat in Central Missouri has not begun to head but is at flag leaf to boot stage (Feekes 8 to 10) with serious wheat producers using targeted fungicide for scab (FHB). 

More information: USDA NASS Missouri Crop Progress & Condition

North Dakota

North Dakota is extremely dry, and a nice general rain would help the crops germinate. The dry and cold conditions are slowing emergence of small grains and early seeded corn.

Corn planting is progressing rapidly and at around 40% statewide.

Sugarbeet planting is at 85% or greater.

Wheat planting is at 90%

Barley planting is at 75%

Soybean planting is at 10%

With the dry conditions planting can progress quickly.

IP crop report

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Note: This is a new, monthly feature from SSGA’s agronomy action team, highlighting growing conditions from different regions around the country. To contribute or for more information, please email us at dkee@agmgmtsolutions.com. 

Michigan
The past two weeks have been abnormally warm in many parts of Michigan. This fact, combined with drier–than–normal soil conditions, has allowed some farmers to get a start on planting soybeans. Most growers who have planted soybeans have been planting small fields or small areas as their confidence in the weather for the next 30 days can be described as cautious. One weather station in southern Michigan has reported soil temperatures above 50 degrees (at 2-inch depth) for 16 of the past 18 days, while other stations in central Michigan have reported three to five days above 50 degrees with most of those occurring after April 6. Because of good planting conditions and warm soil, germination and shoot elongation have been progressing in early planted fields. 

The planted soybeans are the exception as the vast majority of the expected 2.25 million acres to be grown in Michigan are not planted. There is a lot of activity in farm equipment preparation, seed delivery, fertilizer applications and some early tillage, as weather and field conditions have allowed.  There is a general optimism among growers and the field crops industry to start this growing season. 

Minnesota
Minnesota is dry, as 85% of the state is rated abnormally dry (D0) to severe drought (D2). A small section (0.11%) of the state in the northwest corner (Kittson County) is rated extreme drought (D3). Drought appears more severe in western Minnesota, compared to the east side of the state. The dry conditions are allowing growers’ time to finish manure applications and complete tillage operations. Soil temperatures (4–inch depth) are increasing with highs ranging in the upper 30s for Crookston to the lower 60s at Waseca. Mid- to late last week (April 7-10,) 0.5 to 2.0 inches of rain was reported by farmers, with snow in the forecast for the northwestern portion of the state. Farmers are still cautiously optimistic for an early planting season; several have started planting small grains.  

Missouri
Two weeks in February brought a harsher–than–normal winter in Missouri, averaging 20 degrees below normal, which equated to a state temperature average of 10.2 degrees, according to the Missouri Climate Center. Missouri finally experienced some above–normal temperatures in early April, and corn planting got off to a good start. Soft red winter wheat planting last fall was up considerably from the previous year – 650,000 acres, compared to 480,000 acres. The wheat crop survived the extreme winter cold temperatures very well, as there was adequate snow cover during the coldest periods. The largest areas of wheat in Missouri are in the southeast, southwest and central portions of the state. Wheat is generally in good condition, with no particular disease concerns at this time. 

The USDA has Missouri predicted for 3.4 million acres of corn and 5.8 million acres of soybeans. The USDA projection is steady for both major crops in Missouri. Soybean planting for 2021 will be underway soon. Many producers across the state are planting an earlier soybean crop, which is trending to what we’re seeing across the Midwest.

SSGA ‘IP B2B’ Philippines event kicks off

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The Philippines moved up the charts in 2020, rising to No. 8 in U.S. export value, Morgan Haas, agricultural counselor at the U.S. Embassy in Manila, told attendees of the Specialty Soya and Grains Alliance’s (SSGA) U.S. Identity-Preserved Soya and Specialty Grains Virtual Seminar, which began Monday evening (Tuesday morning, Philippines time).

Haas said during his opening remarks that U.S. ag exports to the Philippines set a record, totaling $3.2 billion in 2020.

“It’s an important market and a growing market, and it’s growing more and more,” Haas told the group of U.S. IP soya and specialty grains exporters and Philippines food manufactures. Representatives of those companies will be meeting individually later today (Tuesday, Wednesday in the Philippines) in a new SSGA business-to-business event called “IP B2B,” as part of the seminar.

According to Haas, the only country that gained more in U.S. ag export value than the Philippines in 2020 was China.

Following Haas was SSGA Chair Bob Sinner, president of SB&B Foods, who spoke about the IP process U.S. producers, processors and shippers go through. Sinner called U.S. IP “the gold standard of supply.”

“These are specific varieties for specific food use,” Sinner explained, “with full transparency and traceability as they follow the entire value chain.”

Timothy Loh, U.S. Soybean Export Council regional director for Southeast Asia, presented on sustainability initiatives, including the U.S. Soy Sustainability Assurance Protocol, which assures buyers that guidelines have been followed for responsible farming.

Manuel Sanchez, U.S. Grains Council regional director for Southeast Asia, gave a U.S. corn harvest quality report, stressing that the Philippines are a top-five country for U.S. corn exports.

The final speaker was Adam Sackett, director of sales operations and business development for Insta-Pro International, who gave a presentation on extrusion technologies.

The program was moderated by Hoa Huynh, SSGA technical adviser for Southeast Asia, and SSGA Executive Director Eric Wenberg delivered the closing comments.

Day 2, which takes place 7-9 p.m. CST Tuesday (09:00-11:00 PHT Wednesday) will feature the IP B2B meetings, following a report on the Philippines market from Ryan Bedford, agricultural attaché from USDA Foreign Agricultural Service-Manila.

There also will be presentations for attendees not participating in the IP B2B, including Chrissy Harris of Rabbit/broadhead on SSGA’s U.S. IP branding project, Ingrid Rix of Spire Research and Consulting on research conducted for SSGA on the Philippines market for IP field crops and Brian Sorenson of Northern Crops Institute on NCI’s upcoming educational courses.

Demand for traceable products keeps growing

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Demand continues to grow for traceable products such as identity-preserved field crops, and that growth brings some challenges now and for the future, says Lee Steinhauer, SSGA Market Development Project Manager.

Earlier this month, Steinhauer attended a virtual webinar by the Institute of Food Technologists entitled “Traceability in the Age of Supply Chain Digitization.”

Steinhauer reports that the primary goals for food traceability are food safety, improved public health, and better FDA response times.

One of the main topics was on the increased demand for traceable products. A lot of this focus is currently on aquaculture, but demand is quickly being required for all commodities, especially specialty grains. Some countries and products are requiring increased regulation and rules related to traceability information.

The biggest challenges at this time include the inconsistent regulatory landscape, the money required for hardware and software to be effective, and incompatible software that prevents the sharing or exchanging of data throughout the globe. It is projected there will be significant changes over the next 12-36 months with increased regulation and implantation on food traceability.

“I was a grain merchandiser and can definitely see the importance and challenges with food traceability,” Steinhauer said. “Logistics are a major part of farm to fork, and being able to trace those products adds value and confidence in the product to the end user. Transportation delays or damaged equipment can cause the quality of food and products to be compromised. With traceability implementation this could be monitored by buyers and sellers, as well as verifiable origination. To make this achievable, there would need to software that is compatible on a global level and have a level of simplicity to use.”

SSGA members could benefit from Ag Innovation Campus

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A first-of-its-kind crush facility under construction in northwest Minnesota could be a boon to the identity-preserved soya and specialty grains industry.

Ground was broken for the Ag Innovation Campus in late October, a 67,000-square-foot complex that will serve as a hub for the next generation of value-added processing. That could include identity-preserved (IP) field crops. The Campus, which will be located in Crookston, Minn., is on an ambitious schedule to begin production in late 2021.

Ag Innovation Campus (AIC) officials say Specialty Soya and Grains Alliance members could use the facility to process IP soybeans and specialty grains or to develop specific products for their farms and companies to offer.

“There are opportunities that this facility can bring the IP industry,” said Tom Slunecka, CEO of the Minnesota Soybean Research & Promotion Council, one of the AIC’s three founding members, along with the Minnesota Soybean Growers Association and the Agriculture Utilization Research Institute. “The plant will serve as an incubator for agricultural innovation, with a goal to foster new and novel products.”

The Ag Innovation Campus will feature a specialty crushing facility that will allow public and private ag groups, such as commodity organizations, universities and seed developers, access to affordable processing that aims to lower costs while promoting growth of value-added products.

The aim is for the AIC to produce about 64,000 tons of soybean meal per year (240 tons per day), crushing approximately 28,000 bushels of soybeans per day. That adds up to 2.5 million bushels a year. The 15,600-square-foot crush facility will support three separate crushing lines that can be operated all on organic, non-GMO or GMO soybeans as well as separately for different types of soybeans, such as the premium IP specialty crops contracted to food manufacturers in the U.S. and abroad.

Each line can be completely cleaned to avoid cross contamination with other lines, allowing for the segregation and full traceability that U.S. IP producers take so much care to ensure. The AIC will also set aside time for processing small quantities of “research” soybeans.

“Having a facility that’s larger than just a testing crusher but smaller than building one’s own facility – if you run a small- to medium-sized business – can be very beneficial to IP growers and processors,” SSGA Executive Director Eric Wenberg said, “especially those located in the Red River Valley region, which is home to one of the largest supplies of food soya in the world.”

In 2018, the Minnesota Soybean Research & Promotion Council invested checkoff funds in a feasibility study to support a regional soybean crush and research facility in northwest Minnesota.

In 2019, the Minnesota Legislature approved $5 million in state funding toward the AIC in a bipartisan omnibus agriculture finance bill signed by Gov. Tim Walz. Funds were released to the AIC in September of 2020, and the official groundbreaking took place in a ceremony on the AIC’s 10-acre site on Oct. 28.

Walz, who attended the groundbreaking, called the AIC “bold,” adding, “There’s no place in the world that has something like this.”

Once fully in operation, the AIC is projected to support 60 jobs and feature state-of-the-art laboratory and classroom space for hands-on agriculture production and technology training, and it will be open for tours with a biosafe observatory from which visitors can see processing in real time.

“There will be a lot of synergy that will come out of this facility,” AIC Project Manager Jim Lambert said. “(The AIC) is really more of an agricultural business incubator than anything. … There are a lot of good things going on here.”

SSGA featured on Philippines online food directory

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The Specialty Soya and Grains Alliance (SSGA) is part of Great American Taste PH, an online directory of virtual stores and supermarkets that showcase U.S. foods, beverages and ingredients in the Philippines.

The directory, compiled by the U.S. Department of Agriculture Foreign Agricultural Service in Manila, includes several downloadable recipes and includes a Facebook page to promote sponsors and participants.

SSGA’s recipe entry includes the videos it made with chef David Bonom for the U.S. Soy Global Trade Exchange & Specialty Grains Conference. The dishes, all influenced by soy, included coconut shrimp with mango ketchup, harissa apricot pork chops, honey miso tofu stir fry and lemon rosemary spatchcock chicken.

Technically Speaking: Trends signal opportunities for specialty grains in Japan, Korea

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By Alyson Segawa, SSGA Technical Adviser, North Asia

Japan and South Korea are recognized as global leaders in sustainable development. As these governments have displayed a commitment to environmental sustainability, a growing interest in sustainability has been reflected among consumers as well. This increased awareness has extended to increasing demand for ecologically sustainable, healthy foods.

Health consciousness and high income, combined with an aging population, fuels consumer demand for health-oriented foods in Japan. Japan is the No. 1 buyer of U.S. buckwheat, rye and barley. There may be further adaptation of specialty grains in these countries as there is growing interest in the benefits of complex carbohydrates and whole grains.

Illustrative of this shift is the recent rapid growth of U.S. food barley sales to Japan in recent years. The USDA Annual Grain and Feed Report forecasts, “FSI barley consumption in Japan is forecast at 410,000 metric tons in MY2020/21 to reflect continued popularity of glutinous barley consumption.” High beta-glucan barley is primarily used as a rice extender, and Japanese food processors are incorporating it into other products as well.

It is not just barley that is being utilized as a rice substitute. Zakkoku mai is a variety of different specialty grains mixed with white rice and another example of the trend toward incorporating more whole grains in Japanese diets.

South Korea is the No. 2 importer of U.S. buckwheat and quinoa and the fourth-largest importer of U.S. millet. Specialty grains are sometimes used as a rice substitute and marketed as “super grains” for their health benefits. Sales of U.S. barley to South Korea increased due to the implementation of the Korea-U.S. Free Trade Agreement (KORUS FTA), and South Korea is the third-largest importer of U.S. barley, according to the USDA.

These market trends and related data appear to suggest growing interest by the health food industry in food-grade barley. The data therefore suggests there may be significant opportunities to increase sales of U.S. IP specialty grains in the near term.

Technically Speaking is an SSGA feature that includes news and information from SSGA’s technical advisers for North Asia (Alyson Segawa), Southeast Asia (Hoa Huynh) and Europe (Eugene Philhower). They want to hear from you! Contact them via email: info@soyagrainsalliance.org.

Technically Speaking: Increased non-GMO specialty grains use in North Asia is reason for optimism

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By Alyson Segawa, SSGA Technical Adviser, North Asia

The North Asian countries of Japan, South Korea, Taiwan and China hold continued potential for the U.S. specialty grains market. While overall human consumption of some grains remains relatively small compared to feed use, data suggest that the North Asia region may present an opportunity for IP grains.

Prompted by the U.S.-China Phase One deal signed in January, China opened to U.S. exports of barley in May following the approval of a phytosanitary protocol by both countries. Japan is the largest importer of U.S. barley among North Asian countries, and the market for U.S. food grade barley has been growing rapidly in recent years.

Japan is also the largest annual importer of U.S. buckwheat and purchased 95% of total U.S. buckwheat exports to North Asia in 2019. Japan is the top market for U.S. rye in North Asia with South Korea and Taiwan purchasing rye in recent years as well. Taiwan and Japan together comprised 81% of U.S. oat exports to North Asia in 2019.

Millet has a long history in Asia, particularly in China, and U.S. millet exports to North Asia increased 286% from 2017 to 2019. Significant increase in purchases by China, combined with sales to South Korea and Japan, comprised 92% of North Asia’s millet imports from the U.S. in 2019.

Overall, food use of specialty grains in Asia may be on an upward trend. Further trade promotion efforts, with stabilized containerized shipments and inventories, may further expand market share of SSGA-covered specialty grains in North Asia over the long term.

Technically Speaking is an SSGA feature that includes news and information from SSGA’s technical advisers for North Asia, Southeast Asia and Europe.

SSGA highlights EU market opportunities for specialty grains

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Recent consumer research has shown that a majority of Europeans are willing to pay more when it comes to greater transparency in their food.

According to the research firm DNV-GL, 60% of global consumers are willing to pay at least 5% more for assurance of transparency in the foods they buy. Transparency is at the heart of the U.S. identity-preserved field crop system that SSGA promotes, along with consistency, quality and safety in those products exported worldwide.

“There’s clearly an appetite for (transparency) in the EU,” said Dave Miller, specialty grains consultant for the Specialty Soya and Grains Alliance (SSGA). “They’re hungry for more information on food safety, environmental issues and social issues.”

It’s because of that appetite that SSGA conducted a webinar for its members and others hoping to learn more about specialty grains export opportunities to Europe. The online event, which was held on Oct. 8, drew around 25 participants, including SSGA members who handle a variety of specialty grains.

“We’re building insights and building market development,” Miller said. “There are data sources we have access to that will help (members) better understand the markets and to work on their own market development.”

The webinar featured three presenters who each shared a perspective on the opportunity for IP specialty grains in the EU:

  • Jacob Golbitz, managing director of Agromeris, a food and agricultural industry consulting firm
  • Alyson Segawa, SSGA IP technical adviser and founder and CEO of Eliasan Consulting
  • Anne Dettmer, founder of Artisanne’s, a London-based public relations and marketing firm

Golbitz spoke about the growth of specialty grains usage in the European Union and the United Kingdom, using data from the Mintel Global New Products Database, a collection of information of consumer products that includes food products grouped by type (bakery, snacks, desserts, etc.) and searchable by product information (ingredients, flavors, sizes, etc.).

Using searches of specific specialty grain ingredients, information gleaned from the database was used to highlight intersections of the most-active European markets and top product categories. That information shows a very promising target market for U.S. suppliers of specialty grains.

Segawa gave an oversight of Europe as an upward-trending market for specialty grains, focusing primarily on a top six of sorghum, barley, oats, rye, triticale and quinoa.

Analyzing data and consumer trends from 2012 to 2018, Segawa echoed that EU customers are willing to spend more healthier choices, and that may present a unique opportunity for SSGA suppliers to continue building the U.S. market share in Europe.

Dettmer, who works with trade associations, focusing specifically on the United Kingdom and Ireland, talked about breaking into the UK market with a particular focus on planning and research. It’s imperative that U.S. exporters understand their target markets and how food manufacturers in those markets make their ingredient decisions.

SSGA Executive Director Eric Wenberg said the webinar had good participation and encourages feedback from attendees.

“We’re just getting started,” Wenberg said. “We have to figure out how to get, as we say in the West, ‘belly to belly’ with Europe and show that IP is the value that adds value. We know that, not from hunches anymore, not from instinct, but from the data that’s coming into us and the research that’s being done.”

SSGA to host EU specialty grains webinar

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Join the Specialty Soya and Grains Alliance (SSGA) for a webinar on Thursday, Oct. 8 at 10 a.m. CDT to explore the specialty grains market in the European Union. This informative event will highlight the grains, product categories and countries that are driving innovation, as well as highlight the opportunities, import sources and company perspectives on the specialty grains business in Europe. The event will also highlight two of the data resources available to SSGA members as they explore new markets.

Scheduled speakers include:

  • David Miller, moderator, SSGA Specialty Grains Action Team
  • Jacob Golbitz, Agromeris
  • Alyson Segawa, SSGA Technical Adviser – North Asia
  • Farmer – TBD
  • Overseas Market Representative – TBD

Use the link below to join the meeting.

SSGA Specialty Grains in the EU Webinar
Thu, Oct 8, 2020 10:00 AM – 11:30 AM (CDT)

Please join my meeting from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/557247237

You can also dial in using your phone. For supported devices, use a one-touch number below to join instantly.

United States: +1 (408) 650-3123
– One-touch: tel:+14086503123,,557247237#

Access Code: 557-247-237