Ukraine has long been a dominant source globally for sunflower oil. Both crude and refined product supply distinct buyers, and specification addressing acidity, water content and peroxide value. Delivery is by flexitank or in bulk corn supply depending on order size.
Incoterms establish the point risk transfers between seller and buyer. With FOB the seller loads to the vessel after which the importer takes on freight and insurance. With CIF terms bundles cost, insurance and freight through to the discharge port. The right choice turns on who can arrange freight more cheaply.
The Ukrainian agricultural sector continues to be a major global supplier in bulk agricultural commodities. Importers purchasing in bulk generally deal under standard Incoterms, and these decide who bears transport and insurance. Product specification should be agreed in writing – grade and moisture and quality tolerances.
Commodity purchase agreements turn on clear quality parameters. Wheat purchases protein percentage is the key parameter, alongside moisture levels and impurity limits. Corn contracts is graded by moisture, broken grain and damage. Third-party inspection at load port safeguards everyone involved.