While the majority of Washington’s historical top 10 soft white wheat (SW) export markets are located in Asia, South America’s Pacific Coast markets have been the target of consistent market development efforts, creating awareness of the value and quality of SW.
Soft white markets in South America
Chile is the largest SW market in South America, driven by growing cookie and cracker demand. The U.S. currently holds an estimated 30% share of Chile’s wheat import market across four U.S. wheat classes: SW, soft red winter (SRW), hard red winter (HRW), and hard red spring (HRS). However, with volumes and classes varying based on shifting price dynamics, imports can be limited to certain classes. In the 2024-25 marketing year, as of April 24, Chile has imported 5.25 million bushels (143,000 metric tons (MT)), reflecting a 13% increase over the same period last year. This is also above their five-year average of 3.42 million bushels (93,000 MT), with a drastic change in 2021-22 purchases accounting for zero. The 2021-22 decrease was largely due to SW not being able to make Chile’s low protein specifications without charging a premium, which likely compelled Chile into the buying matrix of SRW, Argentinean, and/or Canadian wheat to meet their needs.
Peru, while being one of the few South American countries that purchase almost all classes of U.S. wheat, sporadically purchases SW. As demand for bread, snacks, and other wheat-based products continues to grow, Peruvian flour millers increasingly seek the technical knowledge needed to evaluate and incorporate a wider range of high-quality wheat classes into their sourcing strategies. Although traditional preferences and the landed cost of imported wheat remain key competitive factors, targeted training and product demonstrations are helping to bridge this gap by clearly communicating the performance and value advantages of U.S. wheat, including SW. By the end of April, year-to-date purchases of SW were 404,000 bushels (11,000 MT). In the past 10 years, the country has imported 3.73 million bushels (101,400 MT), with the 10-year average sitting at 373,000 bushels (10,150 MT). Peru buys mainly SRW and HRW but has been targeted as an opportunity market for SW in the coming years with the largest cookie and cracker company purchasing SW the last two years.
Colombia is another opportunity market in South America that is primed for SW. Average wheat production in Colombia has decreased significantly over the last 40 years, which makes Colombia 100% dependent on imports. The country mainly imports U.S. HRW, SRW, and SW for bread and pastry flour, cookies, crackers, pasta, and household baking flour. Colombia’s per capita bread consumption remains relatively low at 58 pounds annually, particularly when compared to Chile’s 198 pounds. A key factor limiting broader consumption is the traditional formulation of Colombian bread, which often includes high levels of shortening and sugar. This results in a denser, heavier product that many consumers find less digestible and appealing. Consumption patterns show that 94% of Colombians primarily eat bread at breakfast. Other major staples in the national diet include rice, arepas, bananas, manioc, and corn tortillas. The market is largely dominated by artisan bread, which accounts for 91% of total bread sales. In contrast, packaged sandwich bread represents just 9% of the market and is mainly used for sandwich preparation. The central highland region around Bogotá is the primary consumption zone, responsible for approximately 80% of the country’s daily bread intake. Colombia has purchased no SW in the current marketing year, but in the last 10 years, the country has imported 5.63 million bushels (153,000 MT), with the 10-year average at 563,000 bushels (15,320 MT).
Hurdles to market growth
In addition to price sensitivity, import logistics play a critical role in shaping demand for SW in South America. U.S. wheat competes with Canadian and Argentinian supplies, while SRW remains the dominant soft wheat class imported throughout the region. A key logistical challenge is that most flour milling companies in South America lack the capacity to receive full vessel shipments, while the expense to ship and unload a partial cargo in a port is cost prohibitive. This constraint often limits South America’s ability to access U.S. wheat, despite interest in its quality and functionality. To address this, U.S. Wheat Associates (USW) is actively working to expand market access by supporting opportunities for smaller buyers to pool their purchases into consolidated cargoes — commonly referred to as “grocery boat” vessels — helping regional millers overcome logistical barriers to improve the competitiveness of U.S. wheat in the marketplace.
Success story
Nearly 60% of total U.S. wheat exports to South America are exported in combined/partial cargoes.
To address logistical constraints and promote greater use of U.S. wheat, particularly among buyers unable to import full vessel loads, USW conducted a two-day logistics and combined cargoes workshop in Bogotá in April 2024. The workshop brought together wheat purchasing managers from Chile, Peru, Colombia, and Ecuador, focusing on strategies to improve access to U.S. wheat through multiport shipping and coordinated purchasing pools. The seminars featured presentations on grain logistics, freight markets, transportation strategies, and contracting. Experts from the U.S. grain trade, freight consulting, and USW’s regional team based out of Santiago, Chile, led sessions aimed at helping millers understand the advantages and mechanics of importing U.S. wheat via combined cargoes from both the Pacific Northwest (PNW) and Gulf ports.
The results were substantial. As a result of their workshop experience, the Chilean company, Molinos del Norte, whose products are made from 100% imported wheat, reported purchasing 551,000 bushels (15,000 MT) of HRW and 309,000 bushels (8,400 MT) of SW, valued at $7.5 million, to create a blend that displaces Canadian western red spring. It is important to note that Molinos del Norte confirmed that their decision to purchase was directly influenced by insights they gained during the USW seminars, along with the USW technical support they received in 2024. The transaction was executed as part of a multiport purchase, an approach that, according to the company, was adopted based on USW’s guidance and has only been utilized within the past five years.
Cunaco, another major Chilean mill, also increased U.S. wheat purchases from 1.64 million bushels (44,500 MT) in 2023 to 2.49 million bushels (67,690 MT) valued at $18 million in 2024, eliminating Canadian wheat from their sourcing. Molicentro, the largest cookie and cracker manufacturer in Peru, purchased 404,200 bushels (11,000 MT) of SW valued at $3 million, and Molinos El Triunfo acquired 100,700 bushels (2,740 MT) of HRW valued at $800,000, also replacing Canadian Prairie spring red.
In total, the workshop led to confirmed U.S. wheat sales of 4.10 million bushels (110,700 MT), worth $31.9 million. With just $44,300 in U.S. Department of Agriculture Market Access Program funding invested, the activity yielded a return of $720 for every $1 spent. The event demonstrated the effectiveness of ongoing, focused market development efforts in driving sales, displacing competitors, and equipping millers to better navigate U.S. wheat sourcing logistics, all of which will help promote SW as a more consistent, long-term option for South American markets.
This article originally appeared in the June 2025 issue of Wheat Life Magazine.
Jake Liening
Market Development Specialist, Washington Grain Commission