Commodity Procurement

Refined Sugar Supply for an East African Buyer

Background

In Q2 2024, Almasar Inc. was approached by a procurement company in East Africa acting under contract to support a national food security program. The mandate focused on sourcing refined sugar (ICUMSA 45) to address a sudden supply shortfall caused by regional drought conditions and delayed inbound shipments from traditional suppliers.

The buyer had previously made several unsuccessful attempts to secure supply. These efforts were hindered by engagement with unverified intermediaries, poorly structured sale contracts, and sellers unable to comply with port documentation and inspection requirements. As a result, urgency on the buyer’s side was high, coupled with understandable caution following repeated disappointments.

Almasar Inc. was engaged to bring structure, credibility, and execution discipline to the procurement process.

Almasar Inc.’s Role

Operating from its international advisory platform, Almasar Inc. was appointed to lead the end-to-end sourcing, structuring, and execution support of the transaction.

Buyer Vetting & Mandate Confirmation

Almasar Inc. first confirmed the authority and credentials of the East African buyer by reviewing:

• The allocation agreement governing the procurement
• Relevant tender and contract documentation
• The proposed funding and payment structure

This allowed the team to clearly understand the buyer’s approval workflow, delivery timeline, and compliance requirements before engaging the supply side.

Global Supplier Identification

Through its international supplier network, Almasar Inc. sourced a Brazil-based sugar producer with:

• A verified export track record
• Existing ICUMSA 45 allocation
• Documented SGS inspection history

The seller’s past performance, export capability, and contractual terms were reviewed to ensure alignment with the buyer’s delivery schedule and port compliance standards.

Deal Structuring & SPA Coordination

Given the spot nature of the requirement, timelines were tight. Almasar Inc. coordinated:

• SPA drafting and delivery schedule alignment
• Confirmation of CIF port procedures, demurrage terms, and discharge windows
• Payment alignment via an irrevocable, confirmed Letter of Credit issued by a top-tier international bank

The buyer was guided through each contractual clause, including risk allocation, force majeure provisions, inspection rights, and default protections.

Logistics & Documentation Flow Oversight

Almasar Inc. managed communications between all counterparties — buyer, seller, SGS inspectors, and shipping agents — ensuring:

• Correct issuance of certificates of origin and inspection documents
• Coordination of export and import permits
• Smooth handling of charter party agreements and shipping notices

This proactive oversight minimized delays and reduced execution risk at every stage.

Challenges Overcome

Fragmented Market Access

The buyer’s local network lacked direct access to verified producers. Almasar Inc. eliminated multiple layers of broker activity and connected the buyer directly with a performance-proven exporter.

Tight Delivery Window

The buyer faced a strict 30-day window to clear port and offload to designated warehouse hubs. Almasar Inc. supported real-time coordination from vessel dispatch through customs clearance.

Financial Instrument Alignment

Initial concerns around LC issuance speed and conditions were resolved through close coordination with finance teams and international banking partners.

Outcome & Impact

The transaction was successfully completed within the 90-day target window. The sugar cargo was delivered CIF to Mombasa, cleared customs without delay, and fully discharged under SGS supervision.

• The buyer met its domestic supply obligations
• Performance approval was secured for future procurement volumes
• The buyer re-engaged Almasar Inc. in Q4 2024 for a second agri-commodity sourcing mandate

What This Case Reflects

This engagement highlights Almasar Inc.’s ability to manage time-sensitive commodity procurement mandates through:

• Verified global sourcing
• Disciplined contract structuring
• Hands-on execution oversight

All delivered with confidentiality, clarity, and commercial accountability.