Buying through a trader costs a margin, but for most buyers outside West Africa it costs less than doing the trader's work yourself. A trader consolidates supply into full parcels, controls quality before loading, assembles EUDR data, finances the cargo until shipment and stands behind one contract. Buying direct from a factory or mill moves all of that work, and the risk that comes with it, onto the buyer.
This guide sets out what a trader does and what that is worth. It is part of our guide to buying commodities from West Africa.
What a trader does
| Function | What it means for you |
|---|---|
| Consolidation | Full containers or parcels of consistent quality, from one counterparty |
| Quality control | Lots tested by an independent surveyor before loading; failed lots are not shipped |
| EUDR data | Plot geolocation, legality evidence and chain of custody, matched to your shipment |
| Logistics | Inland transport, port handling, container booking, documents |
| Finance | The trader pays producers and carries the cargo until shipment |
| Risk | One contract covering specification, quantity, delivery and claims |
| Market knowledge | Pricing, seasonality and supply information from the ground |
What changes if you buy direct
Buying direct from a producer means taking on each of those functions yourself:
- Supply gaps. A single factory or mill may not have your volume when you need it. You then manage several sellers with different quality and paperwork.
- Quality control. You need your own inspection arrangements and someone to act when a lot fails.
- EUDR. You must collect and check plot data, keep traced material separate and handle legality evidence, often for hundreds of smallholder plots.
- Pre-financing. Producers often want payment before or at loading. You carry the credit risk.
- Logistics and documents. Inland trucking, port handling and export paperwork in a country where you have no staff.
- Claims. If quality or weight is short, you pursue a counterparty that may not have the means or the will to pay.
Large manufacturers with their own teams in the region can manage this. For most buyers, the cost of people, travel, inspection, finance and failed shipments is higher than the trader's margin.
EUDR has made the trader's role larger
Before the EUDR, a buyer needed quality and documents. Now an EU importer also needs plot-level data that matches the cargo. That data has to be collected at the farm and protected all the way to the container. A trader with field teams and segregated supply chains can do this. A buyer in Europe cannot. See geolocation and traceability data.
One accountable contract
The most important thing a trader gives you is a single counterparty that answers for the whole shipment. If a lot is off specification, the trader replaces it or settles a claim. If a producer fails, the trader finds the volume elsewhere. If the documents are wrong, the trader fixes them. With direct supply, each of those problems is yours.
What to expect from a good trader
- Registered company, real office and people you can meet
- Clear written specifications and contracts
- Independent inspection, with results you can confirm
- EUDR data packages for EU contracts, or an honest account of progress towards them
- Transparent pricing basis, for example against SICOM for rubber
- Willingness to be checked
Our guide to inspection and certificates of analysis explains what independent inspection should look like.
What a trader should not do
A trader should not hide what it is selling. You are entitled to know the country of origin, the grade, the specification and the inspection results, and for the EU, the geolocation of the plots. Supplier names are commercially sensitive and are not usually shared, but the data you need for compliance must be.
If you are comparing options, send us your volume and specification. We will tell you what we can supply, how it is controlled and what it costs.