A fair average quality for grain exports
1978
Bermingham, S.C. | Hill, L.D.
Extract: At present, there are two methods in general use that account for the majority of the grain contracts in world markets. Most grain sold by U.S. exporters is sold on the basis of certificate final with respect to quality. The certificate is issued under federal inspection at the point of loading, using a numerical standard based on quantitative measurement. Most grain, other than U.S. origin grain, is exported under a "fair average quality" (FAQ) contract where quality is guaranteed to be at least equal to the average of all such grain shipped during a specified period. (One important variation of the certificate final system is found in the Canadian marketing board.) The purpose of this paper is to compare these two systems of quality guarantees. In order to compare objectively the relative merits of numerical grading standards and the system of FAQ, a better understanding of the procedures and results of FAQ is needed.
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