International Oil Pricing
-My intention is full transparency in negotiations, and our spreadsheet workings are available on request. When we buy bulk oil, these values are the starting point for negotiations. Local farmers can expect to achieve a minimum selling price of not less than “import parity”. Producers in the Mediterranean basin generally retain their best quality olive oils for local consumption, and export their lesser oils. Local olive oils are generally superior and, in bulk, command a premium of about 12% (great value for that quality!)
- Spot buying prices used (ie not moving average, and not futures).
- Costing assumes a “cash on order” deal.
- Costings are for bulk EVOO in a 21 MT flexitank,
- Costings are for EVOO of EU origin. Although one could negotiate a 5% better price by buying from, for example, Argentina/Tunisia/Turkey, oil imported into RSA from outside the EU would attract duty of 10%.
- Conversion of Kgs to Lts based on SG of edible oil of 0.92. So, for example, 1 Kg oil translates to 1.087 Lts thereof.
- This table updated every week, using
- the ruling FNB “casual” Euro selling rate, less 2%, and
- the closing EVOO pricing of the preceding day, plus 3% (in practice, we’ve been unable to buy at Poolred rates)
|ZAR/Euro (a)||Achievable Euro rate/MT (b) (FOB)||CIF & Landside (c)||Final costing|