Milling & Baking News - May 18, 2010 - 7

Editorial



Little reason for hope from new export initiative

hile Secretary of Agriculture Tom Vilsack is dollar strength, especially compared with the artificounted as one of the senior officials on the cially depressed currencies of competing sellers, has
Export Promotion Cabinet named by Presi- had a huge role in seeing the United States drop from
dent Obama, the likelihood of any sector of agricul- being the world's leading exporter of wheat flour to
ture actually benefiting from these moves to bolster its current position quite literally at the bottom of the
American exporting is remote. That goes especially list. In the case of exports of wheat as grain, the Unitfor the parts involving grain-based foods where much ed States has lost out mainly to shipments from Black
that has happened in the Obama administration, as Sea countries, especially Russia and Ukraine, where
well as in the predecessor administration of George governments have declared their desire to replace
W. Bush, did almost nothing that counts as a net America as the world's leading exporter.
benefit for exports of wheat or wheat flour, the two
Particularly astounding is the failure of U.S. shipprincipal industry products moving in world trade. pers to participate in sales to countries whose budEven domestic food manufacturers who have tended gets depend on American aid. Afghanistan and Iraq
to look askance on the value of exports because of come most immediately to mind as nations with a
their strengthening effect on marforeign trade that is subject to U.S
For grain-based foods, it is
kets have adopted a more supportinfluence, but where their rank as
necessary to look no further
ive attitude as an encouragement
leading flour importers has been
than America's shrinking
to reverse the recent downward
of scant benefit to American millposition in wheat and wheat
trend in acreage planted to wheat.
ing. If the Obama administration
flour exporting to grasp why
President Obama's action last
wants to have an export program
steps are needed to reverse
March in creating the Export Prothat stimulates employment, it
America's exporting.
motion Cabinet made up of senior
need look no further than wheat
government officials as well as reviving the Presi- flour. The likely impact of a surge in export flour busident's Export Council, originally started during the ness on employment in this sector of American indusNixon administration, drew little acclaim. Indeed, the try would be immediate.
administration was said to be setting unrealistic tarThat American mills are at the bottom of world exgets - to double U.S. exports in five years and thus porters at a time when the total of global flour trade
adding millions of new jobs - and with seeking to has chalked up two record years speaks not only to
build trade by minor adjustments of the bureaucracy the absence of U.S. government assistance in spurinvolved in trade. All of this is part of a "new" Na- ring this business, but to several other negatives. One
tional Export Initiative that has been met by sharp of these is the relative strength of the dollar that has
criticism, not just for political reasons but for sound made competitive sellers like the two flour export
economics. This administration, it seems, finds itself leaders, Kazakhstan and Turkey, easy victors in the
unable to take solid steps that might stimulate ex- battle for business. Also important here is the geoports like supporting completion of the Doha Round graphic proximity of these two exporting countries to
of trade negotiations and recognizing that foreign ex- the principal importing nations. A fundamental shift
change variations and domestic savings rates have as has occurred in global export flour business due to
much to do with exporting as anything else.
factors that may either be reversed or are beyond the
For grain-based foods, it is necessary to look no impact of any government. Regardless, a shallow profurther than America's shrinking position in wheat gram like that launched by the Obama White House
and wheat flour exporting to grasp why steps are has little or no chance of helping when a focused and
needed to reverse America's exporting. Recent thoughtful effort could produce positive outcomes. MBN

MORTON SOSLAND, EDITOR-IN-CHIEF
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