Role of Tradeand Contracts

MVO Course Food and Feed Safety of Oils & Fats

June 2016

1

Introduction

NOFOTA:

Netherlands Oils, Fats and Oilseeds Trade Association

Founded in 1918

Standard contracts, internationally applicable

Arbitration institute

Events & seminars

Promote the general interests of the trade in oils, fats and oilseeds and provides a solid foundation for the oils industry to trade

The trade

3

The trade

Who are the players in the market?

Producers

Consumers

Trading houses

Brokers

Superintendents

Laboratories

Storage companies

Shipping and transport companies

Insurance companies

The tradePhysical surplus & deficit

Speculation

Hedging

The tradeVolatility and market dynamics

Supply & Demand, on a global basis;

Crops

Capacity utilization

Population growth

Legislation

Renewable fuels

Labeling

External factors

The Associations

FOSFA, London UK

GROFOR, Hamburg DE

UCOGRAS, Antwerp BE

Associazione Granaria, Milano IT

The Associations: NOFOTA

NOFOTA

Council

Industry

Brokers

Shippers

Meat trade

FOSFA

Council

Peanut

trade

Contracts

CommitteeTechnical

CommitteeArbitrators

Committee

FOSFA

O&F Section

UCOGRAS/

GROFOR

FOSFA

Technical Ctee

FOSFA

Contracts Ctee

Tank

StorageSuper

intendents

Laboratories

Secretary &

Treasurer

Approach of the Trade Associations

Policy, but not lead the trade

Promote practical solutions for efficient trade by:

Creating standard terms & conditions in a simple contract form

Informing members via website and circular letters

Providing arbitration service

Organizing educational events (seminars)

Organizing annual dinner events/Contact days

FOSFA contract

NOFOTA contract

Product Quality and Safety

Clauses refering to quality and quality complaints

Attention to hygiene of foodstuffs in relation to previous cargoes

Prescription of standard methods of analyses

Role of the Technical Committee

Criteria for recognized superintendents, laboratories and storage companies (audit programme)

Heating instructions

Quality specifications

12

Arbitrations

Arbitrations

Quick, cheap and fair(combination of legal and experienced business people)

Trade is done under Fosfa or Nofota,

but necessary to specifically refer to the rules of arbitration

Other legal procedures

Monitor and secure time bars – follow the Rules for Arbitration

If required call in legal assistance

NOFOTA: arbitration committee appoints 3 arbitrators

FOSFA: both parties appoint an arbitrator and the association

appoints 1 referee (if necessary)

Thank you