FAQ

Get answers to frequently asked Questions

Who are we?

We are particularly a trading company that sells majority of the Agro Commodities like Wheat, Rice, Sugar, Corn, Barley, etc, Pulses, Millets, Spices & Edible Oils.

How is the product shipped from the Farms (fazendas) to harbour storage?
The product is sent from the farms to temporary storage in a storage unit where the product is classified, cleaned and dried.

Then the soybeans or corn are shipped to the harbour in a combination of trucks, rail and river. Mostly by trucks - river and rail never by itself. We are excited by the new river transport from Tocantins to the ocean as it will be cheaper and much more efficient.

 

Is the product certified?
All our products come with Certificate Of Origin, along with an SGS Q&Q report confirming the standard or buyer specifications mentioned in the Sales  Purchase agreement
Sometimes we are asked for Samples, which we have stopped issuing these days given most such requests are not genuine.

 

Bulk or packaging?
Soybeans and corn can basically be transported on ships in the following manners:

> Bulk. The Soybeans, Corn, Wheat, Barley, are sent into the holds of ships from the harbour storage through tubes. Loading capacity at up to 1800 tons per hour
Packed in bags. Rice, Sugar, Animal Feed, Millets, Pulses must usually be packed in bags. Popular options are bags of 25Kgs/50kgs each or big bags of one metric ton.
In containers. There are special containers for bulk loading. The alternative is bagged.

What container size can you offer and what is the capacity?
Usually the 40 ft. container is not a big gain in relation to 20 feet containers. This is because the 40 ft. containers can not be filled as they have a max. weight close to the 20 feet containers. However, shipping lines often prefer 40ft containers to Asia.
Some clients only want to receive 20 ft containers because of shipping at the destination by truck.

20 ft packed
20 ft bulk - 23 metric tons of soybean
40 ft packed
40 ft bulk - up to 27 metric tons of soybean

 

What is the price difference depending on transportation?
The cheapest is bulk. All the others are put in relation to bulk.
In bags the product becomes more expensive because because of loading and the bags themselves.
Please contact os for the exact pricing.

Container
20 ft packed
20 ft bulk
40 ft packed
40 ft bulk
Ship hold

 

Bulk
Small bags - up to 60 kg
Big bags

 

What is the loading factor/stowage factor?
The Stowage factor is the cubic meters necessary for one ton of product. Approximate numbers:

Barley        57/58

Linseed        48/52

Maize        44/45

Millet        49/51

Oats        61/63

Sorghum        47/48

Soyabeans    48/49

Wheat        43/44

 

If S/F required for bagged grain, add approximately 10% to the above figures.

 

FOB?
FOB means "free on board" and is our preferred way of working. We will cover all costs concerning transport from our land and the certified product on board the ship in a number of ports in Brazil. The buyer assumes the cost and risk of further transport.

 

CIF?
We assume all costs and risk from our land to the port of destiny. We will do this if pressured, but it entails a lot more work. Please bear in mind we are not a shipping company and prefer to concentrate on the trading and supplying.
C&F is CIF without insurance.

 

CFR/C&F?
CFR/C&F is CIF without insurance.

 

EXW?
Ex-works - directly from the farm or storage unit. This term represents the seller's minimum obligation, since he only has to place the goods at the disposal of the buyer. The buyer must carry out all tasks of export & import clearance. Carriage & insurance is to be arranged by the buyer.

 

What ports can you ship from?
Our products are shipped from any ASWP ports depending on our Supplier Choice, and 
we can send our product for shipping to different ports as well. The loading capacity varies from one product to another

for example

our loading capacity for bulk soybean is 1500 - 1800 tons per hour for all any port in general. So a ship with 30,000 tons capacity would take roughly 20 hours to fill up from empty.

Our Loading Capacity for Rice from most Indian ports is about 3000/5000 tons per day.

Loading Capacity generally depends on port size and other variables.

How do you arrive at a certain price per metric ton of product?
The market quotes (CBOT, London Exchange and local) definitely have a weight. Basically we need to make a fair profit. Supplier costs are many:

Certification, transport, drying and storage, more transport, harbour storage, loading and more certification. To this comes amongst others: risk, financing, insurance and fixed costs. It all adds up. Here in Brazil we have both advantages and disadvantages compared to competing countries. One of our disadvantages are the high costs of transport to the port. We pay up to 4 times more than in Argentina and the USA.
Let us know if you want to share some of the costs up front. We can then ask our Manufacture suppliers plant for you and we will be able to give you a very favourable price.

 

What are the product specifications for xxx?
Pls contact us for specifications for the products we offer. There we have specifications for our most sold products. You are always welcome to contact us for details.

 

Can you change your specification of product xxx to from yyy to zzz?
Perhaps. We live up to Brazilian and other Country standards and not everything can be changed. You could ask for blue corn in squares and we would have to decline. You could ask for max 11% humidity for soybeans and we would do that for an extra cost, as it means more time drying which then leads to a weight loss of the product
But generally speaking, we prefer and advice to stay within industry standards.
Furthermore, due to the way the soybean industry works in Brazil, we mostly sell group number 2 yellow soybean - also called export quality. Similar restrictions exist for other products.

 

What is Brazilian Yellow Soybean group #2 and is the same as US grade #2?
The stand specification for soybean is export quality Brazilian soybean group 2. It is defined by Brazilian legislation and is somewhat equivalent to US grade #2.
It is generally the specification for soybean exported from Brazil. It is based on contracts from ANEC - Associação Nacional dos Exportadores de Cereais - you can see the contracts here: http://www.anec.com.br/pt-br/servicos/contratos
Generally speaking, Brazilian soybean will have less split kernels and more protein content than US grade #2 as the Brazilian soybean is transshipped less and the climate is better here.
There is a possibility to adjust the quality specs of the soybean. But in such large quantities, where part of the soybean come from other producers, we can only make guarantees according to the standard specification. At the most we can make minute adjustments.
However, Brazil is the largest of soybean exporter in the world and it is used successfully to make soybean meal and oil in many countries - especially China.


Why is the dollar, USD, exchange rate so important for a company like MTT Foods Pvt Ltd?
When we sell a product, the price is usually related to the CBOT/CEPEA/LondonExchange or Local Markets quote. That quote is always in US dollars. But the internal pricing and costs in local market are different. If the dollar goes up, we will get at better price. OTOH machines and pesticides are likely to cost more. Vice versa if the Real goes up in relation to the dollar.

 

How far are you from the nearest port?
depending on the product

for Soybean/Corn1200 Km by road, but we have some possibilities of using rail and river transport partway.

For Wheat and for Rice in India/US/Argentina an average of 400-1200 Kilo meters by rail/road.

How do you calculate the price in USD per metric ton from the CBOT price?
For soybeans the CBOT/CEPEA price is given in US Cents per bushel. One bushel of soybeans is defined to be 60 pounds. 60 pounds is ,45359 kg. There are 36,7439 bushels in a Metric ton.
The formula is thus: 36,7439 * CBOT / 100

 

For corn the CBOT price is also given in US cents per bushel. But a bushel of corn is defined to be 56 pounds. There is consequently 39,3685 bushels in a metric ton.
The formula is thus: 39,3685 * CBOT / 100

 

For soybeans meal the CBOT price is given in USD per short ton. A short ton is 2000 pounds.
The formula is thus: CBOT / 2000 * 2204,6341

 

Check these two pages for more information on calculations and quotes: Weights & Measures and Market Quotes

 

What are the cycles of production?
In order to produce soybeans farmers work with these cycles:

1. Preparation of the land
2. Planting
3. Growth
4. Harvesting
5. Delivery
The exact timing has to do with factors such as climate, type of crop, time, resources, and an eventual second crop. Rice/Wheat/Corn/Soybean take 90 to 130 days to mature depending on the variety.

If a second crop of corn is necessary then a precocious variety of crop (90 days) with early planting is chosen. Thus corn is planted right away after the harvest of soybean. The crop rotation is actually good for the land.

If using irrigation we can plant any time of the year outside of the legal moratorium and farmers handle three crops per year. It will never be the same crop three times, as crops need to be alternated with other crops. Anyway, Farmers only have irrigation available on a small areas for now.