[Question] Help with FOB price calculation

[riaano]

Hey there all you knowledgeable folks!

I urgently need help with the calculation of the FOB price on agricultural products. I found a bunch of sites on google, but nothing that really helps.
I am busy with market research on Soybeans and Soybean oil & cake and need to know the following:

1. What makes up the FOB price?, and
2. Where can I find the values for all the costs that goes into FOB price calculation?

Any help will be greatly appreciated.

[adrianh]

Here is a sideways solution to your problem. Phone Capespan in Cape Town and ask to speak to one of their product managers. I am quite sure that they would be able to assist you seeing as they work with those figures on a daily basis.

[riaano]

Thanks a lot Adrian! I'll give them a ring

[BusFact]

A more general answer for the benefit of others is:

FOB stands for Free on Board. In other words the supplier will load it onto a truck / train or ship for the customer. So the price they quote includes the cost of transport from their factory to the transport vehicle. The customer is now responsible for paying for the transport and insurance to their own place of work.

CIF stands for Cost Insurance Freight and is when the supplier pays for the transport until the goods arrive in your country. The customer will still need to pay for the transport from the port of entry (customs) to his own factory, and don't forget VAT and any import duties are for the account of the customer too.