Idaho and Taiwan sign $576M wheat deal

North central Idaho wheat farmers are the big winners in a $576 million export agreement that was signed between the Idaho Wheat Commission and the Taiwan Flour Mills Association on Monday.

During a signing ceremony at the Idaho Capitol in Boise the Taiwan Flour Mills Association agreed to buy 1.8 million metric tons, or 66.1 million bushels, of Idaho wheat between 2023 and 2024.

Clark Hamilton, chairperson of the Idaho Wheat Commission, said the importance of maintaining the trade relationship with Taiwan “cannot be overstated. We greatly value the Taiwan Flour Mills friendship and commitment over the past 40 years and look forward to cooperation in the years to come.”

Chanel Tewalt, spokesperson for the Idaho Department of Agriculture, said northern Idaho farmers will benefit from this deal more than any other group.

“The vast majority of wheat (sold to) Asia is from northern Idaho,” Tewalt said. “This has been a dynamic market and Idaho is the only state in the country that grows all classes of wheat.”

Asian buyers typically prefer the soft white and club wheat grown in north central Idaho and eastern Washington. It is often made into pastries, crackers and noodles.

Other classes of wheat, such as hard white and dark northern, are more likely to be sold elsewhere in the U.S. and used for bread flour.

Idaho Gov. Brad Little, who hosted Monday’s event, noted that this was the first in-person visit of the Taiwan Flour Mills Association to Idaho since 2019. Travel was suspended during the COVID-19 pandemic.

“Export markets are critical to our state’s economy and especially to Idaho agriculture,” Little said. “Taiwan is an important customer and Idaho’s second largest export market. We are grateful once again to mark this important relationship.”

According to the letter of intent between the Taiwan Flour Mills Association and the state, Taiwan sent 18 procurement missions to the U.S. between 1978 and 1993, resulting in the purchase of $11.6 billion of U.S. agricultural products.

Thirteen Taiwan agricultural trade goodwill missions have been sent to the U.S. since 1998, resulting in the importation of 24.3 million metric tons, equivalent to 1 billion bushels of wheat from the U.S., worth $6.7 billion.

In 2021, Taiwan imported nearly $3.9 billion worth of U.S. farm products, making it the seventh largest market for U.S. agricultural products overall. The U.S. supplies more than one-fifth of Taiwan’s major agricultural imports.

“Taiwan is one of our most important and reliable agricultural trade partners,” said Celia Gould, director of the Idaho State Department of Agriculture. “We greatly value their friendship and customer loyalty.”

Hedberg may be contacted at khedberg@lmtribune.com.