Rice is a major food staple vital for the nutrition of much of the population in Asia, as well as in Latin America and the Caribbean and in Africa. It is central to the food security of over half the world population, not to mention to the culture of many communities. Rice is therefore considered a “strategic” commodity in many countries and is, consequently, subject to a wide range of government controls and interventions.
The increasing importance of Africa and a number of Asian countries as destinations of rice flows has sustained a large increase in the trade of lower quality rice. The growing importance of aromatic rice varieties in global trade reflects brisk imports to the European Union (mainly of Basmati rice, imported under preferential access conditions), the United States, Canada and Australia. However, it can also be associated with large deliveries of Hom Mali rice (a fragrant variety from Thailand), to countries in Africa, particularly Ivory Coast, Cameroon, Ghana and Senegal, albeit with a high percentage of brokens. On the other hand, high degrees of protection in Japonica rice markets such as Japan, the Republic of Korea, the European Union and Turkey have constrained the opportunities for expansion of the Japonica rice trade. Tariff escalation, whereby the more processed forms of a commodity are assigned higher tariff rates, has favoured a strong expansion of trade in paddy, principally to Latin America and the Caribbean.
SAT Swiss Agri-Trading SA is a supplier of rice and other agri products and is active at every stage of the supply chain, from the origination of the product, through to trading, shipping , warehousing and distribution. Rice trading has become over the years more volatile and therefore requires a very precise arbitration of the various origins to give the best price and quality to our customers on a timely basis. The confidence we have developed with our partners in the origins as well destination countries has enabled us to enhance volumes to such an extent that today SAT Swiss Agri-Trading SA is one of the leading rice trading houses in the world and are members of GAFTA.
SAT are well respected in the shipping industry and have longstanding relationships with first class Owners. Navigating through volatile shipping cycles has even more demonstrated the need to know one’s counterparty in order to deliver a strong performance record. SAT maintain a very strict chartering and vetting policy and have an extensive operating know-how which allows us to service our clients and partners on time and according to their requirements. Traditionally focused on the grain/rice trade which is carried on handysize and supramax bulkers, we regularly maintain 7-12 ships under charter. SAT Swiss Agri-Trading are fully entered for Charterer’s liability risks with specialized first class underwriters.
Our traffic department is in charge of the execution of the contracts. Our extensive expertise in drafting and executing GAFTA/FOSFA contracts matched with strong logistics allow us to protect our clients interests throughout the entire supply chain. This consists in the follow up of all operations from origin to destination providing purchase and sale’s contract, documentation, payments, Letters of Credit, insurance, surveys and warehousing. We also work very closely with a network of first class surveyors to ensure the quality expectations of our clients and partners. SAT Swiss Agri-Trading is a full member of GAFTA.
With more than 15 years of experience in international commodity trading, the finance department is able to offer tailor-made solutions for trade financing. The daily management of Collateral Management Agreements (CMA) and Stock Monitoring Agreements (SMA) has allowed us to build a long-term business relationship with our valued clients. Thanks to our first class banking network, we are able to offer fast and efficient payment solutions.
