| Wheat
is the dominant grain of world commerce. It is easily transported and stored and it is
used to produce a large variety of foods that include many kinds and types of breads,
cakes, noodles, crackers, breakfast foods, biscuits, cookies, and confectionary items.
Wheat is the staple
food of millions of people. It is also an important part of the daily diet of many
millions more. Only rice challenges wheat for the title of most important food grain in
the world.
The world wheat market
is enormous. Annual global wheat consumption is in excess of 550 million tonnes (20
billion bushels). Farmers of the world produce almost 20 times as much wheat as is
produced in Canada to satisfy this growing appetite.
Approximately
two-thirds of the wheat produced in the world is used for human food and about one-sixth
is used for livestock feed. Industrial uses, seed requirements, and post-harvest losses
account for the remaining withdrawals from the world wheat granaries.
World wheat production
increased at a rate of 3.3 percent per year between 1949 and 1978 .Increases at the start
of this period were due to both an expansion of production area and increased per acre
yields. However, starting in the 1960's, increased yields from improved varieties and a
greatly expanded use of irrigation, pesticides, and fertilizers took on greater importance
in sustaining the high rate of growth in world wheat production. In fact, the impact of
new production technologies was so significant that their widespread adoption during this
period became known as the "green revolution".
Wheat production
trends shifted dramatically in the 1980's . Rate of increase in world wheat production
slowed to 1.5 percent per year between 1982 and 1991. China maintained its rate of
increase in production at 2.6 percent per year and became the world's largest wheat
producer (Figure 2). Wheat production in India and Pakistan also increased at nearly 3
percent per year during this period. Smaller wheat producing countries in the
"others" category increased production by 2.8 percent per year and accounted for
a significant 16 percent of world wheat supply. Wheat production in Russia was very
erratic during this period and its contribution to total world production fell to 16
percent. There are many factors that influence the pattern of wheat consumption in the
world. The most important of these include: Price, Supply, Consumer income, Availability
of substitutes, and Politics.
Market opportunities
are influenced by a country's stage of economic development. Therefore, wheat consumption
should not be looked upon as a constant for any particular region or country. In a free
market environment, increases in income of the poorest consumers generally results in a
greater consumption of wheat for food. As consumer income increases wheat is gradually
replaced by more expensive foods, particularly meat. As a result, wheat consumption in
more affluent countries often depends upon its use for both human food and livestock feed.
The basics of
wheat economics.
When supplies of a
commodity are excessive, prices decline. When demand for the commodity increases, so does
the price. Typically, companies invest from 5% to 7% of their gross revenues to
product promotion.
Individually, wheat
farmers have little impact on demand, but putting all the heads together can make a
significant difference in product demand and market price. And that leads to the ultimate
goal of the improved income for wheat producers.
Wheat
Products
Bread is a major
commodity in the world. Millions of loaves are produced in automated bakeries every day.
The more automated a process becomes, the less chance people operating the bakery have to
make changes for variations in wheat flour properties.: The three components known to
affect the baking quality of wheat flour: are starch, proteins, and lipids. Scientists in
this unit analyze these components. The first step in understanding these roles is to be
able to accurately and quickly measure the amounts, sizes and types of each fraction.
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