05.03.2018
Category: Cash Crop
By: Elizabeth Lunik, Jeanette Malchow

Not all wheat is the same – a closer look at wheat quality


wheat

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Source: https://ec.europa.eu/agriculture/markets-and-prices/price-monitoring/monthly-prices_en

For the European Union, wheat is the most important cereal. Wheat is cultivated on about 50% of cropland; in the 2016/2017 market year approximately 134 million tonnes of soft wheat and 10 million tonnes of durum wheat were harvested in the EU. Wheat accounts for two-thirds of all EU cereal exports. It´s therefore worth taking a closer look at this grain.

To begin with, the distinction is made between soft and durum wheat. Soft wheat is used for baked goods, animal feed and industrial purposes (including bioethanol). Durum wheat is mainly used to produce pasta. The EU is actually a net importer of durum wheat, and not surprisingly, approximately 80% of EU durum wheat imports are destined for Italy. Canada (57%) and the USA (12%) were the main countries of origin in. Besides soft and durum wheat, other species such as spelt, emmer and einkorn are also grown in Europe; the latter play a negligible role in commercial trade though.

In both wheat production and trade, differences in quality within the dominant species of common wheat (soft wheat) are of great importance. In global trade, protein content is the most important factor to assess wheat quality. In simple terms, a distinction is made between bread wheat with a high protein content of >12%, biscuit wheat (10-12% protein content ) and feed wheat (generally lower protein content). In Europe, high quality wheat (>14% protein content) is often used as an admixture to other varieties to improve the overall quality. The protein content has a great influence on the baking properties of wheat flour. Other aspects of grain quality are measured by the falling numbers (FN) test. This value estimates the amount of sprout damage; a higher FN means there is less sprout damage, and that the kernel has not begun its natural process of fermentation. The milling industry requires a minimum FN, allowing them the flexibility to produce consistent flour according to market needs.

The EU as a whole still produces the largest amount of wheat globally, but Russia now dominates the export market. Bread wheat is mainly exported from the EU, and the importing countries generally expect a protein content of 12.5% to 13%, as wheat is mainly used for bread production in the importing countries. EU wheat exporters are increasingly competing with producers from Russia and Ukraine, who are catching up with EU producers not only in terms of quantity but also quality.

There is also a considerable price spread in the grades and classes of wheat, reflecting the protein content, location of supply, the expected end use, and the global supply and demand at the moment. Figure 1 shows the development of (average) wheat prices in the EU during the last 3 years.

The price differences between bread wheat, feed wheat and durum are considerable, and the price spread is even bigger in single EU-countries. increasing strength of competitors such as Russia, Ukraine and Argentina. To produce high quality wheat for export markets growers need to apply high levels of nitrogen. However, N application is strictly regulated by the recent transposition of the EU Nitrate Directive into national law. Whether and under what conditions growers will still be able to produce high quality wheat and at the same time adhere to environmental regulations remains to be seen.


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