Sunflower is widely cultivated in many countries for its oily seeds. Our sunflower oil is fully refined, deodorised and winterised. It is used in cooking, as a salad oil and in the production of margarine and emulsified sauces. The oil is low in cholesterol, and contains a lower level of saturated fats than other leading oils. Being high in polyunsaturates and rich in vitamin E, sunflower oil is an ideal choice for healthy living.
Can be with suppliers' brand, or with buyers' brand, to be agreed.
In our specific case, we prefer to supply smaller volumes (Max. 1500 mt per shipment) in containers (up to 20 tons net each, as per buyers' possibilities). It's safer and easier to get smaller volumes. Eventually, we can work full ship loads, but this is not our goal.
Indeed, sometimes we can offer larger volumes, like 20,000 mt or 25,000 mt, provided buyers permit partial shipments. Usually, buyers do not need the oil to be with them at once. They can buy larger volumes, for weekly shipments, for instance. This can avoid buyers to have large amounts of money blocked.
Buying smaller volumes, in containers, can be cheaper than to buy full ship loads, because freight for chartered vessels became extremely expensive, more expensive than in containers. Also, when in containers, buyers and sellers do not take any risk for demurrage, etc. They know the final cost, in advance.
Basically all Refined sunflower oil exporters require a down-payment (usually 30%) to close any deal. Balance is against fax of shipping documents (a few sellers accept LC for balance). In our specific case, we must state that we will not be able to find a reliable supplier to accept 100% LC, as it used to be. Of course, we perfectly understand that buyers do not feel comfortable to put front money to get cooking oil. That's why we must emphasize, again, the importance to know the reliable sources. By the way, this is a two way road: as there are frauds from the suppliers' side, there are also frauds from the buyers' side, and that's the reason for sellers to require a down-payment. Many "buyers" use to confirm the order, and then they do not open the LC, which can cause much trouble to sellers. We have never experienced the opposite. Our suppliers have never failed, they have always delivered the sunflower oil as per buyers orders.
So, currently, DOWN-PAYMENT IS A SINE QUA NON CONDITION TO START BUYING SUNFLOWER OIL IN SOUTH AFRICA. Maybe, depending on the buyer, after some shipments, sellers can discuss other terms and conditions. Also, we should say that the big risk in this case is taken by sellers, because they ship the product with only 30% guarantee of payment. Their risk is 70%.
We should also say that the current way of payment required by sellers is the best we can expect. We can mention some good advantages, for both, buyers and sellers, when there is no Letter of Credit involved:
-lower final cost, because there is no cost to open LCs
-absence of discrepancies on documentation
-no risk of warehousing and demurrage cost at discharging port (mainly when transit time is short), because shipping documents have not to go through negotiating banks. They will be sent straight from sellers to buyers.
-buyers have not to put all the money in advance. They pay some 30% when putting the order, and then, balance with proof of each shipment.
Finally, that's the way the market operates now, mainly for containers shipments, which is our case.. If we are not able to put some front money, it will be extremely difficult (not to say impossible) to buy sunflower oil in South Africa. That's the current uniform way of payment.
In case of containers loads (which is our main goal), there is no need for LOI, POF, BCL, etc., from buyers' side. Procedures are very simple, as bellow:
-Buyers and sellers agree on price and conditions
-Buyers confirm purchase order, by e-mail
-Sellers issue Pro Forma Invoice and Sales Contract
-Buyers sign Pro Forma and Contract and return to sellers, by e-mail
-Buyers effect the down-payment
-Upon receipt of down-payment, sellers ship goods
-Sellers send copy of shipping documents to buyers
-Buyers effect payment of balance
-Sellers send original documents by courier
In case balance is paid by LC, following is the procedure:
-Buyers effect the down-payment and open the LC
-Upon receipt of down-payment and LC, sellers ship goods
-Sellers give shipping docs to the negotiating bank in buyer's country
-Negotiating bank buyer's country checks docs and if all in good order, pays sellers and send docs to opening bank abroad.
Within 10/20 days after receipt of payment instrument.
Market price is available from major commodity news services and newspapers. Sunflower oil is mainly quoted at the London Stock Exchange, LIFFE (for Icumsa 45), and New York Stock Exchange (NYSE) for other grades. Buyers must also know that there may be a premium or a discount on the levels of the Stock Exchange. Circumstances will determine the premium or discount. Of course, it's not true that some suppliers can offer sunflower oil much under the Stock Exchange levels. This information is false. Market prices do not change dramatically in a short period of time, and no method exists by which oil can be traded at lower prices but in our case we deal directly with the manufacturer and are lisenced exporter and importer as well as manufacturing of sunflower oil, Much before looking for price, buyers should look for safety with reliable sources.
Documents to be supplied by exporters:
-Bill of Lading
-Certificate of Origin
-Certificate of Analysis (by an internationally recognized inspection company)
-A copy of seller export and import license
- Understanding individual client's requirement for all parameters and accordingly serving them.
- Procurement of the product from the best available resources (Optional) at competitive prices and terms relative to the market trends at the time of business
- Ensuring quality check before dispatching along with safety measures for maintaining quality during transit
- Confirm delivery on time.
- Dispatched in various packing as desired by client.
- Can supply refined Oil as per clients' specification.