Dear Sir and Madam,
The prices for raw material in China are strong and interest rates are very high. Financing raw material is very expensive. Finding long-term dates of shipment is very difficult and respective surcharges are high. Solvent speculators are very active and are buying raw material! At the same time here in Europe we hear of bargains for short-term shipments in December 2016 and January 2017. The explanation therefore is relative simple!
More and more Chinese shippers, until now only supplier to the main exporters in China ( sub-contractor ), try gaining access to the most important export markets themselves in order to earn more money this way. Their plants do not have complete cleaning facilities and no management for foreign bodies (metal, plastic, glass) or plant-based residues (dried and very hard particles comparable with stones), no pesticide – monitoring or track & trace systems. These suppliers can only sell their products on the basis of price, which explains today´s price difference of USD 0,20 – 0,40 p.kg.
All our contracts are focused on shippers, who have been audited by us together with third parties. We have visited them several times personal and had positive experience since we started our business in 2010.
For many of our contracts we have changed to „on approval of sample“. For all contracts our shippers check all batches of raw material at EUROFINS, China for pesticides. If ”subject sample approval” has been agreed and these samples found to be good will be shipped to our customer/importer. Here they will be tested again at EUROFINS or SGS in Germany for pesticides. Only then and after approval from the lab goods will be shipped. This way we try to control not only in Europe but already in the country of origin for management of foreign bodies, plant-based contamination and pesticide monitoring including auditing. Exactly for that reason we spend so much time in the countries of origin, because only on-site we can influence processes and achieve notable improvements. That comes at a price.
PS: Last Friday we received an offer for 4 fcl Shine Skin Grade A of a „cheap“ supplier from China. We visited this supplier already twice over the last years. This year he presented us even with a BRC – certificate in Xingjiang. Fact is, we have not seen any pre – cleaning, however we saw a not functioning x-ray system, running with a dead screen. We could offer you this material for USD 2.000,00 p.mt CFR. Is this really what you want? Will you check the delivery for plant residues and foreign bodies? At the same time will you check for pesticides, especially Endosulfan and Trifluralin?
We do not believe that these „cheap“ pumpkin seeds are marketable and comparable with our quality. This is a big black box or lucky bag, but wishing for cheap prices is very tempting. It somehow fits to the Christmas season!
Thanks in advance!
Mit freundlichen Grüßen
Dear Sir and Madam,