Fargo, ND, USA – Twenty-one crop buyers from ten nations are at Northern Crops Institute (NCI) for the Advanced Grain Procurement Strategies short course that runs from May 9-13. Participants represent leading flour mills, processors, and trading companies in Taiwan, Indonesia, Turkey, Ecuador, El Salvador, Honduras, Peru, Venezuela, Mexico, and USA. John Crabtree, NCI's assistant director, coordinates the course.

The weeklong course focuses on developing, executing, and integrating price-risk management strategies. Course topics include the current grain situation and outlook, commercial export trading practices, basis analysis, trading strategies, hedging, options, Value-at-Risk (VaR), long-term supply relations, ocean freight risk, contracts, quality requirements, and the international money market.

Special features during the course include hands-on computer exercises, trading games, and a tour of the Alton Grain Terminal, a shuttle train facility near Hillsboro, N.D. Separate breakout sessions provide special attention to wheat and corn purchasing strategies.

Course speakers include: Leland “Judge” Barth and Jim Peterson, N.D. Wheat Commission; Mike Krueger, The Money Farm; Terry Garvert, Cargill; Dr. William Wilson, North Dakota State University; Brad Kjar, Alton Grain Terminal; Dr. David Bullock, Minnesota Department of Agriculture; Rick Dusek and Mike Klein, CHS; John Oades, U.S. Wheat Associates; Ricardo Garcia, FC Stone; Susan Blomer, The Scoular Company; and Chris Davis, Wells Fargo Bank.

NCI Director Patricia Berglund says, “Each participant in this course is an influential buyer in his or her own country. Sponsorships for this course go to up and coming leaders in the world's grain industry. In today's competitive world, crop buyers need to learn how to improve their risk management so that they can increase their profits. Profitable companies continue to make purchases based on quality needs, not just lowest price. Through this course, our participants become more familiar with our region and crops. Some already purchase and have expressed increased interest in purchasing crops that we grow…wheat, corn, soybeans, and other feed stocks.”

U.S. Grains Council (USGC), U.S. Wheat Associates, and the USDA Foreign Agricultural Service Cochran Fellowship Program are providing sponsorships for several participants.

Julio Hernandez, technical director for USGC in Mexico, escorted seven Mexican participants to the course. He comments, “As a result of the level of sophistication in grain trade between Mexico and the U.S.A., training has become an important component to facilitate grain imports into Mexico. Therefore, U.S. Grains Council has included a training component in its market development strategies. Participation in advanced grain procurement courses will further develop grain buyers' skills, so they can import grain more readily.”

Ronald Lu, country director for U.S. Wheat Associates in Taiwan, says, “The Taiwan Flour Mill Association purchases wheat representing 26 flour mills in Taiwan. The association sent four representatives to this course to learn more about the United States purchasing system. For many years, Taiwan millers bought only by flat price. Now they want to learn additional trading skills, so they have come to study hedging, risk management, options, and basis. These techniques will help them to continue to buy more U.S. wheat.”

Additional information about NCI courses is available on NCI's website at www.northern-crops.com . The next basic Grain Procurement Management for Importers short course is September 19-28, 2005. The next Advanced Grain Procurement Strategies short course will be May 8-12, 2006.

Northern Crops Institute supports regional agriculture and value-added processing by conducting educational and technical programs that expand and maintain domestic and international markets for northern-grown crops.