Oregon Grains Programs of research, promotion and education John T. Doolittle, Chairman, Subcommittee on Water and Power Resources U.S. House of Representatives Committee on Resources October 2, 1995 Chairman Doolittle, Committee Members and Staff. Please accept my comments on the effect of the Lower Snake/Columbia River Reservoir Drawdown on the cost of Wheat Production and Shipping Costs, as well as potential economic impacts to rural communities. Comments on: Barge Transportation A drawdown of any length is in total disregard for the complex nature of grain export markets. Many of our customers have storage for only a twenty-day supply of wheat and must receive delivery in a timely manner. Several classes of wheat from different regions in the U.S. are purchased by our customers and shipped on combined cargoes. If different classes of wheat are not available when needed, the export market will be lost to our competitors. As our foreign customers advance to a higher standard of living, their desire for different classes of wheat to meet milling standards for end use changes. Eating habits change. Workers may want bread, noodles, cakes and/or flat breads. Each require wheat grown in different areas of the Northwest. These classes are brought together at downriver ports and loaded as combined cargo for delivery at several mills in one port or ports in a foreign nation. The Northwest region depends on exports for 90% of sales. Customers such as Japan come on a regular basis and must be serviced weekly to meet the demands of the mills in their country. Customers such as Egypt, Bangladesh, and Pakistan come to the PNW on an infrequent basis but for large quantities. |