According to the FAO, wheat production for 2016 was at 749.5 million metric ton, with European Union being the largest producer, producing145.7 million metric ton of wheat. Wheat, as a cereal, can be classified into five major classes. Each class has a different end-use and the cultivation is also region-specific. Hard red winter wheat is mainly cultivated in the Great Plains area ranging from Montana to Texas. Hard red spring wheat are mainly grown in the Northern Plains area. Durum wheat is primarily grown in North Dakota and Montana, is well-known for its excellent qualities for producing pasta. The wheat type used in breakfast cereal is known as white wheat.

Unfavorable Climatic Conditions Affect the Supply Chain in Africa

The wheat supply value chain in Africa comprises of providers of cultivating inputs, makers, shippers, storehouse administrators, mill operators, wheat-based merchandise makers, transport administrators, retailers, and customers. There are significant changes in the local production, which is a result of unfavorable climatic conditions, which, when combined with international production variations has a negative impact on the entire value chain. The current production areas with high rainfall variability are considered marginal and planted only when a good rainfall season is expected. The other current climatic risks include inadequate start to the rainfall season in April–May–June, droughts, warm, and rainy conditions during the harvest period, localized flooding, heat waves, and strong winds.

Historically Rail Transportation Dominated the Wheat Market

The wheat value chain consists of a range of input suppliers who provide seeds, agro-chemicals, and machinery to farmers. The harvested and imported wheat is stored before delivery to milling companies that mill it into wheat flour, meal, and bran. The milled flour is used for baking and wheat-based products. A small amount of poorer quality wheat is used to manufacture animal feed. The wheat is transported from the farmers to the silo owner and then from the intermediaries to the retailers and consumers. Traditionally, rail transport dominated the wheat market, since the deregulation and development of a free market system have led to a shift from rail to road transport.

Reasons to Purchase the Report

• To have an understanding of the stakeholders in the wheat value chain and their respective roles in the value chain
• The report outlines government policy regulations currently affecting the market
• Supply chain analysis of the wheat market
• 3-month analyst support

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