Brazil: Determinants of Wheat Import Demand

Trade and marketing reforms are influencing wheat production and consumption in Brazil, and increasing wheat import demand. This report describes the relative importance of factors that influence wheat import decisions, with particular attention to the role of quality in the choice of import supplier. Net import price was found to be the most important determinant in the import decision, based on interviews with Brazilian importers and millers. Several quality factors were also identified as important, primarily protein, gluten, moisture, and nonmillable materials. Among wheat suppliers, Argentina ranked best for price, while Canada and the United States ranked highest for quality. The survey results also suggest that lower levels of dockage and nonmillable materials would expand U.S. exports to Brazil, but not as strongly as would the General Sales Manager Credit Guarantee program