B. Valluis, President of GAFTA, (Soufflet Negoce)
ABSTRACT
GAFTA - the Grain and Feed Trade Association is the international organisation representing international companies trading in grain, animal feedingstuffs, pulses, and rice. The Association started 126 years ago and currently has 930 members in about 80 countries. We have two offices in London and in Beijing.
GAFTA's main aim is to promote and protect Members' interests and in pursuit of this aim provides a number of services and facilities for Members.
The international commodities' trade chain of supply starts with the farmers and at every link of the supply-demand chain there are prospective sellers and buyers whose interaction creates the international food and feed markets. These buyers and sellers may include specialists in manufacturing, milling, and food processing, but together with the shippers, exporters and importers, they are all traders of the vast bulk of crops being transported around the globe.
B. Valluis, Président de GAFTA (Soufflet Negoce), (Royaume-Uni)
RÉSUMÉ
L’Association commerciale de céréales et de produits d’alimentation animale (GAFTA, Grain and Feed Trade Association) est une organisation internationale représentant des sociétés internationales de commerce de céréales, d’aliments pour le bétail, de légumineuses et de riz. Fondée il y a 126 ans, l’Association compte aujourd’hui 930 membres dans près de 80 pays et dispose de deux bureaux (Londres et Beijing). Son objectif principal est de promouvoir et de protéger les intérêts de ses membres. À cette fin, l’association met à leur disposition un certain nombre d’installations et de services.
La chaîne commerciale d’approvisionnement des produits sur les marchés internationaux commence par les agriculteurs, et à chaque maillon de la chaîne de l’offre et de la demande se situent des vendeurs et des acheteurs potentiels dont l’interaction crée les marchés mondiaux des produits alimentaires et des produits d’alimentation animale. Certains d’entre eux peuvent être spécialisés en fabrication, en usinage et en transformation des aliments. Avec les transporteurs, les exportateurs et les importateurs, ils interviennent tous néanmoins dans le négoce des énormes volumes de produits récoltés qui sont transportés de par le monde.
B. Valluis, Presidente de la GAFTA, (Soufflet Negoce), Reino Unido
RESUMEN
GAFTA, la Asociación del Comercio de Cereales y Piensos, es la organización internacional que representa a las empresas internacionales que comercian en cereales, piensos, legumbres y arroz. Esta Asociación se fundó hace 126 años y tiene 930 miembros en unos 80 países. Cuenta con dos oficinas, una en Londres y la otra en Beijing.
El principal objetivo de la GAFTA es promover y proteger los intereses de sus miembros y, en esta tarea, proporciona una serie de servicios a sus miembros.
La cadena de la oferta de productos internacionales se inicia con el agricultor y en cada eslabón de la cadena de la oferta y la demanda hay posibles vendedores y compradores cuya interacción crea los mercados internacionales de alimentos y de piensos. Estos compradores y vendedores pueden ser especialistas en fabricación, elaboración y transformación de los alimentos, pero en conjunto con los expedidores, los exportadores y los importadores, todos son comerciantes del gran grueso de los cultivos que se transportan por todo el mundo.
B. Valluis, President of GAFTA, (Soufflet Negoce)
GAFTA - the Grain and Feed Trade Association is the international organisation representing international companies trading in grain, animal feedingstuffs, pulses, and rice. The Association started 126 years ago and currently has 930 members in about 80 countries. We have two offices in London and in Beijing.
GAFTA's main aim is to promote and protect Members' interests and in pursuit of this aim provides a number of services and facilities for Members.
The international commodities' trade chain of supply starts with the farmers and at every link of the supply-demand chain there are prospective sellers and buyers whose interaction creates the international food and feed markets. These buyers and sellers may include specialists in manufacturing, milling, and food processing, but together with the shippers, exporters and importers, they are all traders of the vast bulk of crops being transported around the globe.
Contracts
The international market is intensely competitive and this competition has been sharpened by information technology that enables the traders to know at any given time the value of the goods in all corners of the globe. All these trades are in the physical goods, forward or cash markets and often under contracts entered into 6 - 9 -12 months ahead of harvest, or shipment, or delivery.
GAFTA provides the contract forms, which comprise the standard trading terms parties customarily use for shipments and deliveries around the world. Our philosophy is that contract terms should reflect customary trade practice, and all GAFTA contracts are supported by a number of schemes and rules to assist traders. Rice terms are available for FOB and CIF shipments or deliveries in containers.
GAFTA contract forms complement the essential elements of the trades, (price, quantity, time and place of shipment/delivery and quality) by setting down the means and methods by which a contract is to be performed by the buyers or the sellers. These two parties are free to mutually agree to change or add requirements to any of the standard terms.
In support of these contracts there are a number of rules. Rules such as those for the taking of representative samples of cargoes by the parties’ nominated superintendents, either during the loading of the vessel at the load port or when the goods are being discharged at the port of destination. There are also uniform weighing rules, which the parties may follow for weighing the goods, with laid down detailed analysis methods for testing the goods. As well as insurance terms setting out the minimum cover required for the consignments. All such rules are for the protection of the parties to ensure the smooth passage of goods from country to country.
Dispute resolution
There will of course be difficulties and disputes from time to time and the method usually chosen for the settlement of disputes arising out of the standard terms of contract is by arbitration. The Association provides Arbitration Rules that form part of GAFTA Contracts. With the mounting interest in alternative dispute resolution systems, GAFTA now has mediation facilities should the parties prefer these. Arbitration is the consensual route for buyers and sellers to settle their disputes and GAFTA has a very good record of its arbitration awards being settled world-wide.
Health and safety issues and GMO
A major change in recent years concerns health, and safety issues. There have been a number of reasons for this change not least the problems in the EU with food scares and BSE.
Customarily all commodity crops including rice are handled and transported in vast bulk tonnages and bulk commodities are by definition not traceable to the individual farms on which they were produced. The term "commodity crop" directly implies that for that particular commodity the harvest from one farm is similar enough to that from any other farm, to be sold via a common grading system and a common distribution system.
Traditionally rice has been traded on the basis of quality specifications relating to the physical nature of the goods and natural characteristics such as size, and shape that can be measured, or the chemical characteristics, which can be assessed by scientific analysis.
GMO
Genetic engineering has also played its part in this new consumer reaction to food. Following the increased plantings of GMO seeds and exports of their raw materials, there have been a number of diverse reactions, in favour of the science or against biotechnology generally.
As far as GAFTA is concerned, provided the modifications have received approval in the country of import, then the goods should be allow to be shipped without hindrance. Advances in biotechnology have shown that they can bring dramatic improvements to the agricultural industry through the development of disease and insect resistant crops and improved yields. With a rapidly growing world population it is important to use the available land to its maximum potential and to seek sustainable agricultural methods whilst protecting valuable resources for generations to come.
Cartegena protocol for biosafety
On September 11th 2003 the Cartegena Protocol on Biosafety was ratified. It will be the international convention intended to protect the environment on risks posed by the transboundary transport of living modified organisms, (LMOs).
Each country to the Protocol will have to notify all the others when they approve a new GM crop for domestic use, via an internet-based clearinghouse system. Certain provisions take effect immediately, that is that those countries shipping LMOs intended for direct use for food, will have to be identified in accompanying documentation as "may contain" LMOs and as "not intended for intentional introduction into the environment".
The countries that ratified the Protocol will decide on the rules for implementation during the meeting of the Members of the Protocol in Kuala Lumpur, Malaysia, from 23-27 February of 2004.
For this purpose, the International Grain Trade Coalition (IGTC) was formed in June 2001 to advise governments on how to implement the Protocol. The Coalition today has 17 members that are national or international non-profit trade organisations and councils. Members represent trade in all 5 continents and include GAFTA, COCERAL of the EU, CGC, from the US NAEGA, NGFA, NCGA, US Wheat Associates, WETEC, US Grains Council; APPAMEX and ANIAME from Mexico; Chamber of Grain Exporters of Argentina; SOPA and the Solvent Extractors' Association from India; the Hungarian Grain and Feed Association, the Russian Grain Union and the Australian Wheat Board.
The IGTC recommends that the commercial invoice should be used as the document to contain the information. about the LMO
It is vital for the international trade, while accepting the need to protect global biodiversity, to maintain a low cost bulk handling system to transport commodities for the world's food and processing industries.
GAFTA standard of best practice
There are a number of initiatives to meet the challenges of proving that the trade is providing not only good quality rice, but also that it is healthy and safe. There we introduced the GAFTA Standard for Best Practice and the Traders Manual to assist and to also facilitate international trade. For the first time there is an all-encompassing system which can be adapted for any country to provide assurance for safe food and feed. The best practice is based on a HACCP risk analysis, with a number of codes of practice: -
There is a code of practice for storage.
A Superintendents Scheme -Loading, Discharge, Supervision and Handling - the best practice on each of these logistical operations is covered, An Analysts Scheme - GAFTA Methods of Analysis and Analysts Scheme to achieve uniformity of analytical methods from country of supply to country of consumption. Twice a year the Analysts registered on the GAFTA Scheme are to undertake analytical ring-tests.
Transport - the best practice on all transport operations from farm onwards for road, rail, waterway, and sea.
Pest Control and Fumigation guidelines are included in the manual
Phytosanitary and Sanitary controls, traders need to be aware of importing countries plant/weed controls as well as animal diseases controls that countries have in place for cross border trade.
Audit and Verification - for those markets, which require traders to have their supply operations independently audited/verified, the GAFTA Traders Manual provides the route to gain internationally recognised verification
Rice code of practice
For a number of years GAFTA has provided a code of practice for rice standards, including the need to be able to distinguish long grain and basmati rice from other varieties. This code is now being up-dated as there is an analysis method in place to determine these differences. This code will also be come part of the GAFTA Traders Manual.
Conclusions
GAFTA’s prime aim in promoting and protecting the agricultural supply trade is to press for free trade wherever possible; for an open market without unnecessary constraints or interference. GAFTA therefore very much endorses the principles of the WTO, World Trade Organisation, for the further liberalisation of trade and seeks improved market access and an international trade free of subsidies, quotas, import/export regimes which impact on free trade.
