Partner Spotlight
One of Montana’s most consistent trading partners is Taiwan. Taiwan is a very quality sensitive buyer, and Montana’s high protein spring wheat and low-PPO winter wheat varieties are extremely valued by end users. Taiwan grows very little wheat domestically, due to less than favorable climate conditions for small grains and relies heavily on imports to meet demand for food and feed.
The United States held 94% of the Taiwanese flour market share in MY 2019/2020, so although it is a country that has shown continued loyalty to US wheat, defending that market share remains a priority as competitors continue to target such a lucrative market. Our biggest competitor is Australia, as the white wheat grown there is seen as superior for noodle making with its bright white color, and high flour extraction rate. Last year, Australian production saw a major increase after suffering three years of severe drought, and that could definitely affect overall U.S. share through the next marketing year. Providing a viable alternative to Australian Prime Hard will be essential to maintaining Taiwanese market share.
Similar to our other partners in the North Asian region, Taiwan has very high standards for food safety. The Taiwan Food and Drug Administration requires all food manufacturers to register their product information and ingredients in a database. This information is supplied to flour millers and bakeries by US Wheat Associates through the Export Cargo Sampling Program.
The Taiwan Flour Millers Association (TFMA) procures wheat for all 17 of Taiwan’s flour mills as a purchasing group, and ten of these mills account for 90% of the flour market in the country. Montana and Taiwan have maintained a strong trade relationship for many years, and Montana is often a stop for the Taiwanese Flour Mills Association during their visits to the US. Every other year the TFMA signs a letter of intent with the United States to express their continued interest in purchasing US wheat. Additionally, Montana recently re-opened the Montana Asia Trade Office in Taipei, further stabilizing this already highly