Special Section: Wheat

Bred for bread
Genetics and coproducts could help a wheat industry facing serious challenges

By E.M. Morrison

Wilkin County, Minn. - Galen Affield used to plant spring wheat on half his 1,500 acres in west central Minnesota. But now, it’s mostly soybeans and corn - on his farm and many others in the traditional wheat-growing Northern Plains region. “Who ever thought we’d be raising 150-, 160-bushel corn up here?” says Affield, who has been farming since 1973.

The U.S. wheat sector, which produced 2.1 billion bushels of grain in 2004, is facing tough challenges, says Affield, vice-president of the Minnesota Association of Wheat Growers and a director of the National Association of Wheat Growers.

Wheat acreage has dropped nearly a third since 1981. In Minnesota, seventh nationally in wheat production, acreage fell to 1.65 million acres in 2004. That’s “one of the lowest in about 30 years,” says Dave Torgerson, executive director of the Minnesota Association of Wheat Growers.

Lower profits than corn, beans

Why the decline? Wheat has been less profitable than corn and soybeans, Torgerson and Affield say. In 2003, for example, Northern Plains wheat returned an average of $63 per acre after operating expenses, according to the USDA Economic Research Service. Corn returns averaged $91 and soybeans, $113.

Lower returns have discouraged investments in research and breeding, so there has been little improvement in wheat yields, Torgerson says. Meanwhile, the corn and soybean industries have made rapid genetic advances, producing varieties that can be planted farther west and north in traditional wheat-growing regions.

When an epidemic of Fusarium head blight, or scab, struck in the 1990s, many Minnesota wheat growers switched to new corn and soybean varieties - with good results, Torgerson says.

Market share slipping

Adding to wheat’s woes, domestic use has slipped as consumer food preferences change and low-carbohydrate diets flourish. U.S. wheat consumption has declined from 147 pounds per capita in 1996 to 136 pounds in 2003, the USDA reports.

Bread preservation technology is improving, too, doubling and even tripling the shelf life of a fresh loaf. That means less flour use.

American producers also face intense foreign competition for export markets. “The whole world raises wheat,” Affield says. Australia, Argentina and Canada are increasing their exports, and the European Union, Ukraine and Russia are adding to export pressures. Even though world consumption is rising, the United States’ share of the global wheat trade has fallen by one-third since the 1980s, to about 30 percent, Torgerson says. “Historically, the U.S. exported about 60 percent of the wheat crop.” Today, it’s a little less than half.

Responding to low returns, falling domestic consumption, and eroding export share, farmers in America’s Bread Basket are turning away from wheat. But Affield says wheat’s outlook could brighten with improved genetics, new uses for wheat coproducts, and identity-preserved marketing.

New food products

Most U.S. wheat is milled into flour. That’s no surprise for a grain that, for thousands of years, has been “bred for bread,” Torgerson says. Three-fourths of all domestic grain products are made from wheat flour, according to the Wheat Foods Council.

AURI has worked with dozens of Minnesota entrepreneurs on new wheat foods, says Charan Wadhawan, AURI’s cereal scientist. Snacks, breads, desserts, meat substitutes, and lots of other foods containing wheat have been developed and tested at AURI’s Crookston food lab. Many of these new products have found successful markets, Wadhawan says.

Cat litter

The wheat industry hasn’t had the same success as corn and soybeans in developing new industrial products.

One exception is cat litter - pioneered in Minnesota.

Pet Care Systems of Detroit Lakes produces Swheat Scoop Natural Wheat Litter, a scoopable, flushable kitty litter made from nonfood-grade wheat.

Natural wheat enzymes control litter box odors. Wheat starch clumps firmly. And wheat litter is safe for plumbing. AURI worked with the start-up company for a decade on product development and manufacturing. Swheat Scoop, now co-owned by Farmers Union Marketing and Processing Association of Redwood Falls, is sold in pet stores and retail chains nationwide.

Straw for wood

Wheat coproducts - especially straw - may also have industrial potential, says Michael Sparby, AURI project director. Minnesota wheat growers are already supplying straw to a North Dakota company that makes pressed straw board.

The Minnesota Biofibers Consortium, a coalition of farmers, researchers and private companies, is exploring ways to substitute straw and other ag fibers for wood pulp. And scientists at the University of Minnesota are developing refining methods for many plant fibers, including wheat straw.

Genetic improvements  

In the near term, Minnesota wheat growers are focusing on production improvements and disease control. “There’s a lot of effort to increase yields, to make wheat more competitive with other crops,” Torgerson says. In Minnesota, wheat yields were up in 2003 and 2004 and “we’re turning the corner on scab,” he says. “If we can string together a few good years, growers will be more confident about raising wheat.”

The wheat industry is also focusing on genetic improvements. New varieties with disease resistance, high protein or better baking qualities could raise profits and lift demand, Affield says. Hard White Wheat, for example, yields more flour per pound and earns a premium.

Wheat growers are moving cautiously in this arena, though, to avoid endangering sensitive export markets. Herbicide-tolerant wheat varieties have been developed, but not released, Affield says, because of fears that bio-tech wheat “would not be acceptable to foreign markets.”

Still, Torgerson says, in the coming years, “we think there will be a lot more identity-preserved wheat grown for specific end users, with the particular traits they need.” At the same time, he adds, the wheat sector will need to develop marketing and distribution systems to segregate identity-preserved wheat.

National wheat growers identify value-added opportunities

A 2002 report from the National Association of Wheat Growers outlined opportunities for adding value to wheat. Recommendations included possible new or improved uses, products, and grain traits. Among the potential opportunities identified:

• Wheat (Weiss) beer

• Aquaculture and turkey feed

• Meat substitutes

• Cat litter

• Low-carbohydrate wheat varieties

• Non-allergenic varieties

• Hard White and Waxy varieties

• Wheat-straw composites

• Ethanol from straw or middlings

To read the full report, go to www.wheatworld.org