Greetings

 Once again it is time to provide you with updated industry production information. For the sake of time this letter will be short but full of information regarding production volumes.

 The information included in this letter is:

1.       Annual Meeting Date and location for the 2010 IWRA Convention

2.      A list of 2009 membership to date.

3.      Production Quantities from the 2006 and 2007 Wild Rice Harvest.

4.      Accurate production totals from the 2008 Crop.

5.      Production numbers from the 2009 crop.

                                                                      2010 IWRA CONVENTION

We have selected our date for our 2010 Convention. I encourage you to mark your calendars now for February 3, 4th, and 5^th. The convention will be held in Laughlin Nevada. The hotel information is listed in this letter.

 Below I have listed the production information that was gathered after the 2009 harvest was complete. I did not make any changes to the data from 2006, 2007, 2008.

                                     PRODUCTION DATA

2006               Finished Pounds Produced                                       

California                                              11,000,000      948 bins of seed

Minnesota                                              7,200,000

Canada                                                     750,000

            Total                                                       18,950,000

2007               Finished Pounds Produced                           

              California                                   16,500,000              (23,500 Acres)       1,178 bins of seed

Minnesota                                          7,800,000       (est. 16,000 Acres)

Canada                                                750,000

Total                                                  25,050,000

            2008                 Finished Pounds Produced

            California                                            19,300,000  (est. 25,000 Acres) 1,502 bins of seed

            Minnesota                                            11,142,000  (est. 18,000 Acres)

            Canada                                                1,500,000

                        Total                                      31,942,000

            2009               Finished Pounds Produced

               California                                           10,500,000 (est. 15,000 acres)

              Minnesota                                            8,950,000

              Canada                                                1,000,000

             California rice shipped to Minnesota              200,000 (est)

              Total                                                 20,650,000

 In our last IWRA Newsletter it was suggested the industry could absorb 20,000,000 finished pounds. Since that time our economy has continued to deteriorate. I have heard several customers say their sales are off by 50%. With that in mind we could be looking at an industry that uses between 10,000,000 – 15,000,000 pounds annually. We do not know for sure what our industry can handle but I am certain it is not 20,000,000 pounds as indicated in our previous Newsletter.

 When you review the production totals for the past few years it appears as though we made progress in reduction of finished pounds produced in 2009. However, if we are going to get inventories in line with consumption further reductions will be necessary with the 2010 crop.

 I hope to see as many of you as possible at our Convention this February. We are trying to get a speaker from The Whole Grains Council to attend. This is also a good time for all of us to put our heads together to see what opportunities we have to increase consumption of wild rice.

  Once again this coming year the California grower faces grave possibility of having major water cutbacks for the 2010 growing season due to the threat of severe drought throughout the state of California. There is a possibility some growers may sell off some of their water and grow less crops. There is also a possibility the State could end up taking the water in extreme circumstances. I hope this news does not generate any high fives in the competing growing areas. It truly is a concern we face in California.

  As I mentioned at the beginning of this letter I do not have a lot to say other than giving an update on production from the 2009 crop. I look forward to seeing many of you at our convention in February.

 Thank you. I wish you all a blessed 2010.

Don Kuiken

Seven years of great abundance are now coming throughout the land of Egypt; but these will be followed by seven years of famine, when all the abundance in the land of Egypt will be forgotten. (Genesis 41:29-30)

You may recall the Bible story of Joseph and Pharoah from your Sunday School – where Joseph advises that Pharoah lock away stores of surplus grain production during the seven “good” years, to be released during the seven “bad” years that were to follow. This is one of the earliest examples of a program to restrict grain supplies during years of abundance, and increase supplies during years of shortages. In the US, most grain crops are managed similarly through USDA’s Non-Recourse Marketing Assistance Loan program – which provides financing to growers so that they can hold their crop while waiting for prices to improve. The Loan Program, in effect, restricts supply during times of abundance, and releases it during times of shortage.

Although I am not advocating that the US wild rice industry petition for inclusion in the the USDA loan program, the current supply situation underscores the need for the industry to break free from the “boom / bust” cycle. Recall that just over two years ago, wild rice was in a shortage situation – which severely constrained development of new wild rice products, and even caused reductions in the percentage of wild rice contained in “white & wild” blends. Basically, the market adapted to the reduced availability of wild rice. Today, although wild rice supplies are plentiful, food manufacturers are not racing to “ramp up” the amount of wild rice they use – partly due to the recession, but also because of the costs involved with changing the recipe, and for fear of the inevitable supply shortages to come.

With it’s various positive characteristics in flavor, texture, and nutrition, wild rice usage could expand dramatically but only if the industry can guarantee a consistent supply. And since California and Minnesota together produce over 90% of the world’s supply, it is up to the growers in those two States to develop a plan that will help ensure that consistent supply to the world’s consumers

 To download a 2010 Bi-Annual Conference & Convention Registration form click here.