September 28, 2007

Japan to hold tender for feed wheat and barley

Japan's Ministry of Agriculture will buy feed wheat and feed barley through a tender under the simultaneous buy and sell (SBS) system, a ministry official said September 27.

The amount will be 64,000 tonnes maximum for feed wheat and 293,000 tonnes maximum for feed barley, the official said. The tender would be held October 3, he added.

While normal tenders allows only licensed trading firms to bid, SBS allows users to negotiate directly with trading firms and decide the grain's origin, price and quantity before placing a bid to the government.

The move reflects the dire global grain situation as Japan, known for its tight-fisted approach on grain imports, issues its fifth tender in six months.

Shipments for both grains from China, Australia and the west coast of North America must be made before January 31, 2008.

Shipments from other places must be made by January 15.