The move follows recent talks in Jordan between the growers' association (USW) and Iraqi officials, which resulted in Iraq purchasing some 350,000 tonnes of US wheat. Iraq has also taken in US wheat under its latest Oil-for-Food deal. The Iraqi market had been closed to US wheat since 1998, but following the fall of the old regime, the USW has been working hard to re-establish a foothold in the country.
Last year, world wheat production fell for the sixth consecutive year, although a very large US crop helped cover some of the reduced production. Australia was one of the countries to suffer, and the USW accused the country of inflating wheat prices by millions of dollars per shipload under the Iraqi Oil-for-Food programme, although Australian officials countered the claim.
USW Vice President Paul Dickerson said there were still lengthy discussions to be had with the Iraqis, but has so far been impressed by their enthusiasm. "We offered some suggestions on their specifications in wheat tenders so they could solicit wider participation than under the Oil-for-Food programme," he said. The Iraqi party is set to visit Texas, Kansas and Washington DC, and will meet government and trade officials in the capital who will offer assistance on future business frameworks.
Dickerson said that the US wheat marketing system was designed to ensure fairness in multi-million dollar transactions. "During the Iraqi team's stay here we intend to demonstrate that the US system works to our customers' benefit, and we will suggest ways to write tenders so that they can accrue those benefits."
The US Department of Agriculture forecasts that US wheat exports will drop by 20 per cent in the coming year because of tight domestic supplies and increased competition.