Dry matter basis, crude protein and moisture
For grain, feed ingredients and fertilisers, analytical values are stated “as is” or on a dry matter (DM) basis. A soybean meal at 12 % moisture with 46 % protein as is, for instance, corresponds to about 52.3 % on dry matter, so offers on different bases cannot be compared directly. Crude protein is nitrogen found by the Kjeldahl or Dumas method multiplied by 6.25. Contracts should state the maximum moisture, minimum protein and the price discount or premium for deviations – for example a 1.5 % discount for each 1 % protein shortfall.
Related terms
Certificate of analysis (COA)
A document in which the producer or an independent laboratory reports the test results for a specific lot together with the specification limits. It shows the product name, lot number, production date, test method (e.g. ASTM, ISO), measured value and acceptance range. A TDS gives a product’s typical properties; a COA gives the actual values of the lot delivered. Under a letter of credit the COA must be issued by the party and with the content the credit requires.
Sampling (representative sample)
Taking samples so that they represent the whole lot, following standard methods – e.g. ISO 24333 for grain, ISO 3082 for ores, ASTM D4057 for liquids. In bulk loading, increments taken at intervals are combined and divided, and usually three or four identical samples are sealed: one for the seller, one for the buyer and one retained for umpire analysis. At the quotation stage, small type samples are tested for suitability; the contract should commit that the shipment will match the approved sample.
GAFTA and FOSFA standard contracts
London-based trade associations that provide standard contract forms, sampling and analysis rules and an arbitration system: GAFTA (Grain and Feed Trade Association) for grains, pulses, feed and spices, and FOSFA (Federation of Oils, Seeds and Fats Associations) for oilseeds, vegetable oils and animal fats. Much of the world’s grain and vegetable-oil trade is done by reference to forms such as GAFTA 100, GAFTA 64 or FOSFA 54. Because these forms settle quality determination, late shipment, default and arbitration in advance, they cut negotiation time and legal risk.