Leaders of the US wheat industry failed to pass an industry consolidation plan on Sunday, but did approve a new strategy aimed at commercialising biotech traits in wheat. The issues are the first of many to be taken up this week by about 500 wheat and sorghum players attending the North American Grain Conference, which runs through Tuesday in Reno.

The failure of the consolidation plan, which would have merged the National Association of Wheat Growers (NAWG), US Wheat Associates, and the Wheat Export Trade Education Committee (WETEC), sparked talk that some states may reduce their financial support to US Wheat Associates, which voted it down.

WETEC handles education issues. NAWG focuses on domestic policy. US Wheat Associates markets domestic wheat to foreign buyers. Opponents said a merger would weaken the expertise US Wheat group has in export circles and leave state wheat commissions, which are well funded with grower dollars, lacking sufficient control over how those dollars were spent.

"We have taken an oath to protect the public dollars," said Dan DeBuff, vice chairman of the Montana Wheat and Barley Committee, which voted against the merger.

North Dakota and Oklahoma also voted against the proposal, barely denying the two-thirds majority required.

Copyright Reuters, 2005