1. Commodity Loss Prevention USDA & USAID IFAC 16 – 18 April 2007 Presented by Linda Bratt Durban, South Africa Tel: +27 31 465 6600 Fax: +27 31 465 4464 Email: linda.bratt@intertek.com Intertek Agri Services Food Aid Inspection Services

2. Why appoint a Surveyor? Who should you appoint? What should an Independent Inspection Company offer? Where do commodity losses occur? and What steps can be taken to keep losses to a minimum? IFAC April 2007

3. Why appoint a Surveyor?  Donor comfort  Minimise damage and loss  Identify and report on losses or damage  Segregate and quantify damaged cargo  Sample/analyse suspected unfit cargo  Ensure cargo is delivered in efficient manner  Conduct accurate tally and weight verification  Protect client’s “Rights of Recovery” TRUST IS GOOD, CONTROL IS BETTER IFAC April 2007

4. Who should you appoint?  An independent company with global recognition  Competent with local representation  Experienced in the inspection of Food Aid cargoes  Acceptable to the donor IFAC April 2007

5. What should an Independent Inspection Company offer?  Independence  Operate under Code of Ethics Integrity Confidentiality Free from conflict of interest Anti-bribery and corruption Fair marketing  Extensive network of experienced staff familiar with local conditions  Pro-active Surveyors IFAC April 2007

6. What should an Independent Inspection Company offer?  Pre-discharge meeting  Ensure best practices are followed  Client’s “Rights to Recovery” are protected  Specific reporting requirements  Global coverage  Single point of contact an advantage IFAC April 2007

7. Where do commodity losses occur? WAREHOUSE  Theft  Degradation  Water / Fire IFAC April 2007

8. What steps can be taken to minimise losses? WAREHOUSE  Reputable warehouse  Good housekeeping  Fumigation and Stock Rotation  Stock checks GOOD PLANNING = GOOD OUTTURN IFAC April 2007

9. Where do commodity losses occur? POINTS OF CUSTODY TRANSFER  Dispatch ex warehouse  Road/Rail transit points  Load to vessel or container  Discharge from vessel or container  Receipt into warehouse IFAC April 2007

10. What steps can be taken to minimise losses? POINTS OF CUSTODY TRANSFER  Palletise cargo  Hold/Container inspection  Load/Discharge supervision  Adequate cargo protection LESS HANDLING = LESS DAMAGE IFAC April 2007

11. AVOID IFAC April 2007

12. ACHIEVE IFAC April 2007