New U.S. Wheat analytical lab opens in Chile

Published 5:00 pm Wednesday, December 15, 2021

Darren Padget, chairman of U.S. Wheat Associates, recently returned from a trip to Chile to mark the opening of the organization’s new analytical lab serving customers there.

“This new lab takes U.S. Wheat’s presence in South America to another level,” the Oregon wheat farmer told the Capital Press.

U.S. Wheat is the overseas marketing arm for the industry.

The lab, on the campus of Universidad Mayor in Santiago, includes a test flour mill, wheat and flour analysis instruments and bread ovens.

The Dec. 3 dedication was attended by Chile’s Minister of Agriculture, U.S. State Department and Foreign Agricultural Service officials, the university rector and executives from several Chilean flour mills.

U.S. wheat must compete in Colombia, Peru, Chile, Brazil and other South American countries with wheat from Canada and Argentina.

“We’ve got kind of a one-stop shop now,” Padget said. “They can grind the flour, (technical manager) Andres Saturno can help people do everything in the lab, from raw product to finished product, all in one spot. That’s going to be huge — now we don’t have to outsource that kind of stuff. We have control over it every step of the way.”

It was Padget’s first trip overseas as chairman, and his first to South America. He began his term in July 2020, but travel was limited due to the COVID-19 pandemic. U.S. Wheat and the National Association of Wheat Growers extended the terms of their board members for an additional year.

Padget was able to visit several mills while in Chile and meet with the U.S. Wheat staff based there.

“That was nice, just to sit down and chat,” he said. “We all enjoyed a face-to-face, and my knowledge of the South American market improved greatly. … There’s just a lot going on. It’s ready to break out and go, and show why U.S. Wheat is the best, in person.”

The South American market is growing, Padget said.

“U.S. wheat is always a little bit more expensive, so the purpose of all this is to show them why there’s really good value … that (it) may end up costing them less money in the long run,” Padget said, pointing to transportation problems in Canada and government instability in Argentina.

He was also able to convey to customers that farmer costs are increasing, from chemicals and fuel to parts and tires.

“We’re hanging in there, but it’s not all sunshine and roses on the production end,” Padget said. “Of course, the millers and end-users are being stretched a little bit, too, simply because of the price being up where it is.”

Soft white wheat ranged from $10.50 to $11.25 per bushel this week on the Portland market.

U.S. Wheat will next hold export strategy meetings for South America and Sub-Saharan Africa in Mexico in January and for Asia in Hawaii in February.

Export strategy plans are used to help U.S. Wheat secure funding from USDA Foreign Agricultural Service’s Market Access Program and Foreign Market Development programs, Padget said.

Padget’s term as chairman ends in June.