First things first
These days with the widespread use
of fax machines, wireless devices
and the Internet, anyone can quickly
and inexpensively setup an export
or broker company. Many people
have done so using family, friends
or other contacts in their home countries
to start sourcing products to export.
Some are successful but many are not.
Why Do Companies Use Brokers?
We use brokers (or "middle men")
to simplify our export business and
to distance us from the many pitfalls
and disasters that can happen while
dealing with foreign companies or
individuals. There is a cost
associated with using brokers as opposed
to dealing directly with the end buyer,
but our main business is intimately
knowing and servicing our local domestic
market. Brokers who make it
their business to know and develop
long-term relationships with countries,
companies and individuals in distant
lands have a much greater success
record. They know the marketplace
and players better than we could ever
hope to.
Costs
Exporting has many costs associated
with it that the broker is ultimately
liable for. Once a deal is made
on a container of product that is
to be exported, the following things
need to be done:
Inland Freight:
The Power-Pack or Gen-set equipped
container needs to be "pre-cooled"
and prepared by the ship line or Container
company at the storage yard or dock.
Once arrangements have been confirmed
with whoever will do the loading,
the container needs to be picked up
at the dock or storage yard and delivered
to the loading facility. The
loading process can take between 4
and 6 hours depending on the loading
requirements (floor loaded, pallet
loaded, export stamps or stickers,
etc.) and the size of the crew arranged
for the job.
Sea Port Dock:
It is important to consider the
docks "cut-off" time when arranging
the loading. Most local Ports stop
receiving at 2:30 or 3:30 in the afternoon
and have limited or altered hours
around holidays.
The following Ports are in our immediate
area:
If you are using a local Port, same
day loading and delivery are possible.
However, if there are delays and the
container cannot be delivered to the
dock it will need to be stored until
the Port re-opens the following day.
(Metropolitan Container Storage offers
this service) No plug-in/re-fueling/storage
services are offered by cold storage
facilities for refrigerated containers.
Insurance:
Very Important and possibly expensive;
insurance must be arranged for each
container. Coverage can be arranged
for: Fire, Theft, Public & Product
Liability Insurance, Marine Cargo,
Claim, Goods in Transit and Fidelity
Guarantor Insurance, among others. It
is up to the exporter/broker to seek
competent advise on what coverage
should be added to each load.
Payment:
Most poultry products are sold on
a "C.O.D." basis. That means that
the product must be paid for in full
prior to loading on a container.
If a solid business relationship,
based on successful exporting has
developed over a number of years,
terms may be agreed to, however, because
of the risk involved dealing with
buyers and sellers that operate under
foreign guidelines and rules that
cannot be controlled or influenced
by domestic means, the large majority
of products remain on a pre-paid basis.
Products Refused:
A question that must be asked is:
What happens if your container arrives
in Hong Kong, Taiwan or the Far East
and the purchaser refuses to accept
it? Whether right or wrong -
the immediate problem is costs.
The shipping companies charge very
high rates for container storage.
If you move the container from the
foreign dock to be held in cold storage,
the inland freight costs, unloading
and storage costs can easily erode
any profit margin you may have counted
on and quickly make it a money-losing
exercise. Extreme caution should be
used in dealings with new buyers in
foreign countries.
I just want to Export "Chicken"!
We receive dozens of inquires per
day about new opportunities to export.
Prior to making contact, you should
consider the following things:
- What is it
your customer needs?
Is it Broiler Chickens (35-45 days
old at time of slaughter), Large
Roasting Chicken (46-54 days old)
Laying Chicken (Spent Hens, Heavy
Fowl or Mature Chicken) which is
birds that range from 6 to 18 months
old at time of slaughter.
Is it Whole Chickens or parts (Legs,
Drums, Backs, etc.)? If it's parts,
which part exactly?
"Dark
Meat" for example come as
follows:
- Leg Quarters, the back half of
a whole chicken split in 2 peices
which contains the back portion
of the bird as well as the thigh
and drumstick
- Regular or Whole Legs, which is
the Thigh and Drumsticks attached
together but with the back portion
removed at the Thigh.
- Thigh Quarters - The Leg Quarter
as above with the Drumstick removed.
- Thighs - Regular - The Thigh Portion
of the Leg with both the Drumstick
and Back portion removed.
- Drumsticks
- What kind of
packaging and for what country?
- Is this
regular chicken or Halal?
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