Some pointers when buying maize

Every week we get complaints of fraud or near-fraud being committed in the commodities industry. Buyers want to be cautious but few have the time or inclination to go swanning about the country looking for maize. So here are some questions you can ask before you take things further with a new non gmo maize supplier. This would form part of your basic Due Diligence procedure. We cannot publish details of our exact due diligence procedure because that would compromise our security but if there is ever any doubt just use specially structured escrow accounts and reputable suppliers to protect yourself from low level advance fee non delivery fraud.

  1. is the consultant/broker the title holder. If yes – lovely! You probably don’t need to go much further with your due diligence procedure as you can now focus on transferring title and checking non GMO test results.
  2. this is invariably “no” so then – very important – how many legal entities are involved in structuring the transaction properly? Get a clear idea of the “supply chain”. If there are too many individuals/companies those kinds of transactions often go nowhere or are due to nepotism and corruption, with everyone wanting a substantial slice of commission, and these can be very tiresome transactions, often illegal too, best not to get involved.
  3. Company registration number. You can also use various companies to conduct due diligence and credit checks on new suppliers. Don’t rely only on third parties though, oversee everything at all times.
  4. does the company belong to any producer board or organization
  5. if yes, it is good, but check the organization carefully too.
  6. country of origin of product – KNOW YOUR SUPPLY MARKETS WELL!!
  7. where exactly is the maize – in a silo or packaged and waiting in a warehouse, on a ship, etc.
  8. if in a silo – get the non GMO results from the strip test/PCR test that the silo would have needed to administer before accepting and storing the maize.
  9. Check PCR tests, inspection reports and other issued documents against the agencies that issued them

We will be adding a new section to the Ethical Suppliers website soon where users can find a list of organizations to help conduct due diligence. If you have any information you would like to add please contact us.

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