News Releases for September 2005
September 16, 2005
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Hoeven, Taiwanese Officials Sign Joint Agreement For $372 Million Wheat Deal
BISMARCK , N.D. - Gov. John Hoeven, Wheat Commission Chairman Harlan Klein and Taiwanese officials today signed a joint communiqué committing Taiwan Flour Mills Association, an organization of more than 20 mills, to buy 1.7 million metric tons of U.S. wheat worth approximately $372 million. The purchase will be made during the period from 2006 to 2007. The agreement also pledges the State of North Dakota and Taiwan to maintain and strengthen "permanent friendship and trade relations." Taiwan has previously made similar pledges, almost always exceeding targeted levels.
Signing the formal communication for Taiwan were Hsin-Hong Kuo, executive director of the association, and Jack Chen, director general of the Taipei Economic and Cultural Office. Gov. John Hoeven and Harlan Klein, chairman of the North Dakota Wheat Commission, signed the agreement for the state of North Dakota and thousands of wheat producers.
"The value that Taiwan places on being able to purchase a reliable supply of high quality wheat from this region year after year is an example of what can be accomplished and the beneficial relationship that can develop when farmers work with their customers to promote their products," Hoeven said. "Our trade mission to Taiwan last year furthered our relationship with Taiwan and laid the groundwork for this and other substantial trade deals overseas."
According to U.S. Wheat Associates, which operates an export market development office for American farmers in Taipei, the United States last year filled 96 percent of Taiwan's wheat import needs, of which about 60 percent is spring wheat. North Dakota produces more than 40 percent of the nation's spring wheat, and 60 percent of the nation's durum.
"North Dakota farmers greatly appreciate Taiwan's loyalty to the United States and to buying quality wheat from our state," Klein said. As the third ranking export market for U.S. hard red spring wheat in most years, Taiwan's significance as a customer cannot be overstated. "Taiwan buys the equivalent of about 10 percent of our state's spring wheat crop and they're in the market every year," he noted, "with average annual purchases of 22 million bushels."
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