Idaho Wheat Commission Signs Letter of Intent with Taiwan Flour Millers Association
Last week, commissioners and staff from the Idaho Wheat Commission (IWC) joined Lieutenant Governor Scott Bedke, Mr. Michael Chang, President of the Taiwan Flour Millers Association (TFMA), and Ms. May Lin, Director General of the Taipei Economic and Cultural Office in Seattle, to sign a letter of intent important to the wheat industry.
The letter of intent represents a commitment by the Taiwan Flour Millers Association to purchase at least 132 million bushels of wheat over the next four years, valued at approximately $1.3 billion.
Unlike the U.S. model, where wheat is contracted and purchased by mills independently, TFMA purchases wheat collectively for all 20 mills in Taiwan and distributes it accordingly. Taiwan imports 99.9% of its wheat, with about 80% coming from the United States. Since 1998, Taiwan has purchased over 1 billion bushels of U.S. wheat, worth more than $8 billion.
While much of the wheat shipped to Taiwan originates from the Palouse, all Idaho farmers benefit from the long-term partnership between Idaho and TFMA.
“Our markets are driven by supply and demand,” said IWC Chairman Cory Kress, Rockland.
“Idaho, along with the rest of the nation’s wheat farmers, grow far more than we can consume in America alone. We literally feed people around the world.”
Idaho’s farmers produce, on average, 100 million bushels of wheat annually. For Idahoans to consume all that wheat themselves, every person would have to eat five loaves of bread every day.
“While much of southern Idaho’s wheat is consumed domestically, all our markets are set by the same supply and demand fundamentals,” continued Kress.
When wheat is exported from the Palouse, southern Idaho farmers benefit from reduced supply, which helps stabilize and raise prices. Without overseas markets like Taiwan, the domestic market would be oversaturated, further depressing prices.
“The less supply we have due to overseas market demand, the higher all of our markets go,” Kress explained.
Unfortunately, the price of wheat is determined by the global market, not by individual farmers or the IWC. However, IWC commissioners invest grower dollars to sustain current markets and open new ones—both internationally and domestically.
“We all benefit from longstanding relationships with customers like Taiwan that value our superior quality wheat and are willing to consistently pay a premium for it,” said Kress.
“Every wheat farmer wins when we sell wheat overseas.”
The signing of this letter of intent marks over four decades of partnership between TFMA and Idaho wheat growers. This agreement reaffirms a mutually beneficial commitment—one that supports Taiwan’s food security and strengthens Idaho’s agricultural economy.