Food inflation has reached 3.4% in the 2013/14 season. The main driver behind this increase has been higher livestock prices. Reduced herd sizes and a general increase in meat consumption in developing countries have driven livestock prices up.

Fulfilling Demand

The MIST countries (Mexico, Indonesia, South Korea, Turkey) have, in combination, increased their consumption of grains by 60%. With the US supplying only 24% of world’s trade in corn, wheat and soy, a new low, other countries are well placed to make up any shortfall and capitalise on increasing global consumption.

Global yields are at an all-time high. Farmers have responded to relatively high prices by expanding and bringing new land into production. The outlook for higher production and carryover is expected to be maintained in the 2014/15 crop, providing it is not exposed to any adverse weather patterns.

Consolidation and Accumulation

World grain markets are entering a period of consolidation and stock accumulation. A supply build up has the potential to put pressure on prices and storage capacity. This trend is expected to continue as yields are maximised and the large seasonal carryover continues.

Damage Limitation

The emphasis on correct storage and grain quality analysis, both prior to and during storage is essential to ensure the intrinsic value of the goods is not diluted by potential damage during storage. Excessive moisture and the presence of Mycotoxins in grains prior to storage can lead to development of harmful substances throughout the cargo.

We offer a variety of pre- and post-storage quality assessments along the supply full supply chain:

  • Inland and port elevator sampling
  • Sampling of rail cars on arrival into storage facilities and prior to discharge
  • Probing and temperature checking of barges
  • Opening and closing barge hatch covers for air recirculation
  • On-site Mycotoxin testing
  • On-site grading
  • Stock checking and monitoring of storage bins
  • Identity preserve programmes
  • Storage bin sealing
  • Collateral management services