Brazil and Argentina stand among the most crucial soybean-producing and processing nations in the world. Their access to crushing industries, export terminals, and shipping routes establishes them as significant sources of soybean oil for companies around the world.
When purchasing soybean oil from either Brazil or Argentina, buyers should consider more than just the price of the product. Factors such as product grade, specifications, availability of shipments, ports of export, shipping costs, packaging, the necessary documentation, and the reliability of the supplier are all essential considerations.
This soybean oil supplier guide will explain the differences between soybean oil from each country. It will also offer information to buyers in search of reliable soybean oil suppliers, refined soybean oil suppliers, or international soybean oil distributors.
Why Source Soybean Oil from South America?
South America is home to some of the most developed soybean production and processing industries in the world. The region processes large volumes of soybeans every year to create soybean meal and soybean oil for both domestic use and exports.
South America offers buyers several advantages, including:
- Large-volume soybean oil production capacity
- Constant availability of crude and refined soybean oil
- Access to export terminals and storage facilities
- Competitive pricing for bulk soybean oil contracts
- Experienced soybean oil manufacturers and exporters
- Flexible shipping arrangements for various markets
Brazil and Argentina are the two main South American nations that produce soybean oil in volumes sufficient to meet the demands of food processors, wholesalers, retailers, and edible oil distributors.
Brazil as a Major Soybean Oil Origin
Brazil is one of the leading soybean-producing nations in the world. The country has developed its infrastructure for farming, crushing, storing, and exporting soybeans.
Brazilian soybean oil suppliers can offer buyers significant volumes of both crude degummed and refined soybean oil.
Main Advantages of Brazilian Soybean Oil
Brazilian soybean oil suppliers offer several advantages to buyers:
- Access to large volumes of soybean oil
- Facilities equipped with modern crushing and refining equipment
- Established quality-control procedures
- Numerous ports of export
- Availability of both crude degummed and refined soybean oil
- Flexibility in the way the soybean oil is provided to buyers
Brazilian soybean oil is an excellent origin for importers searching for a long-term soybean oil supplier.
Important Brazilian Export Ports
Brazilian soybean oil exporters may use several of the country’s major ports:
- Port of Santos
- Port of Paranaguá
- Port of Rio Grande
- Port of São Luís and Itaqui
- Other northern and northeastern ports
The final export port depends upon the location of the producer, storage facilities, the available shipping vessel, inland shipping costs, and the buyer’s destination.
Soybean Oil Grades Available from Brazil
Brazilian soybean oil exporters may offer the following grades of soybean oil:
- Crude degummed soybean oil
- Refined soybean oil
- Refined, bleached, and deodorized soybean oil
- Bulk soybean cooking oil
- Industrial soybean oil
- Private-label soybean oil
- Soybean oil in flexitanks, tankers, drums, IBCs, or retail bottles
Buyers in need of refined soybean oil can specify the grade, packaging, destination, quantity, and quality in their requests for quotations from Brazilian soybean oil suppliers.
Argentina as a Leading Soybean Oil Exporter
Argentina is one of the most developed soybean-crushing industries in the world. While the country may produce fewer soybeans than Brazil each year, most of the soybeans it produces are crushed domestically to create soybean meal and soybean oil.
This processing capability makes Argentina another essential origin for buyers of soybean oil around the world.
The Rosario Export and Crushing Hub
The bulk of Argentina’s soybean-producing and exporting activity is concentrated in the Rosario area of the Paraná River. The region includes the ports of:
- Rosario
- San Lorenzo
- Puerto General San Martín
- Villa Constitución
These ports are connected to the crushing plants in the region, storage facilities, inland transport to the Paraná River, and international shipping companies.
Main Advantages of Argentine Soybean Oil
Buyers may find the following advantages to Argentine soybean oil suppliers:
- Established soybean-crushing industries
- Experience in exporting agricultural commodities
- Large storage and loading capacities
- Availability of crude degummed soybean oil
- Competitive prices during the best market periods
- Established export inspection and documentation procedures
Argentina is an excellent supplier of bulk crude soybean oil for further processing by buyers. However, some suppliers may also distribute refined soybean oil.
Brazil vs Argentina: Which Origin Is Better?
Both Brazil and Argentina can supply buyers with soybean oil that meets commercial quality standards. The best origin for the soybean oil will depend upon the buyer’s requirements and the soybean oil’s final destination.
Typical Crude Degummed Soybean Oil Specifications
| Quality Parameter | Typical Brazilian CDSO | Typical Argentine CDSO |
|---|---|---|
| Free Fatty Acids | 0.5%–1.0% | 0.5%–1.0% |
| Phosphorus | Maximum 200 ppm | Maximum 200 ppm |
| Moisture and Impurities | Maximum 0.3% | Maximum 0.3% |
| Appearance | Clear amber liquid | Clear amber liquid |
| Product Form | Bulk liquid | Bulk liquid |
These specifications are general references for commercial soybean oil. Buyers should confirm the quality specifications in the soybean oil sales contract, product data sheet, certificate of analysis, and inspection report. Some suppliers may offer soybean oil with tighter specifications than those listed here.
Crude vs Refined Soybean Oil
Before contacting soybean oil suppliers, buyers should decide whether they need crude degummed soybean oil or refined soybean oil.
Crude Degummed Soybean Oil
Crude degummed soybean oil has been subjected to initial processing to remove the phospholipids and gums present in the oil. This type of soybean oil is purchased by refineries that will perform additional processing on the oil prior to selling it for human consumption.
Crude degummed soybean oil may be suitable for the following uses:
- Edible oil refineries
- Industrial processors
- Biodiesel production
- Soap and chemical manufacturing
- Additional processing of soybean oil for food ingredients
Refined Soybean Oil
Refined soybean oil has undergone additional processing to improve the colour, odour, taste, and stability of the soybean oil for food applications.
The refining processes that may be performed on soybean oil include:
- Degumming
- Neutralization
- Bleaching
- Deodorization
- Filtration
- Quality control
Buyers of refined soybean oil include food manufacturers, cooking oil bottlers, supermarket distributors, catering suppliers, restaurant chains, and institutional buyers.
A soybean oil supplier should be able to provide a specification sheet of the soybean oil listing the quality parameters of the soybean oil, including:
Refined soybean oil is used in a variety of food production processes and products, including:
- Household cooking
- Frying and deep-frying
- Margarine production
- Mayonnaise and salad dressings
- Bakery products
- Sauces and processed foods
- Snack food manufacturing
- Institutional catering
- Private-label cooking oil
- Food-service distributors
The demand for soybean cooking oil wholesale is strong in the retail, catering, food manufacturing, and distribution industries.
Packaging Options for Wholesale Refined Soybean Oil
A soybean oil supplier should be able to recommend the packaging of the refined soybean oil according to the buyer’s requirements.
Bulk Tanker
Bulk tankers are suitable for buyers who require large quantities of soybean oil and have the facilities to unload the soybean oil from the tanker.
Flexitank
Flexitanks are placed inside 20-foot shipping containers and are suitable for buyers who wish to purchase soybean oil in bulk but do not wish to arrange for a tanker to transport the soybean oil.
Intermediate Bulk Containers
Buyers who wish to purchase soybean oil in medium quantities may use intermediate bulk containers.
Steel or Plastic Drums
Buyers who wish to purchase soybean oil in small commercial quantities may use steel or plastic drums to package the soybean oil.
Retail Bottles
Soybean oil may also be packaged in retail bottles of varying sizes, including:
- 1-litre bottles
- 2-litre bottles
- 3-litre bottles
- 5-litre bottles
- Larger food-service containers
Private-label packaging may be available for soybean oil from certain manufacturers.
How to Choose a Bulk Soybean Oil Supplier
While it is easy to find a soybean oil supplier, it requires more effort to find a legitimate and reliable supplier of soybean oil.
The information provided by a supplier should be examined before placing an order.
Company Registration
The supplier should provide their company registration information, including the company name, registration number, address, tax information, and export authorization (if exporting the soybean oil).
This information should match the information on all the company’s official documents.
Product Specifications
The supplier should provide a product specification sheet that lists the technical specifications of the soybean oil products that they offer.
These specifications should include the grade of the soybean oil, the level of free fatty acids in the soybean oil, the moisture content, the peroxide value, the phosphorus content, if present, the colour of the soybean oil, the odour of the oil, the taste of the oil, the shelf life of the oil, the storage requirements (if any), and the country of origin of the soybean oil.
Certificate of Analysis
A certificate of analysis should be provided by the supplier showing that the soybean oil meets the quality specifications listed in the product specifications.
For larger buyers, it may be possible to request an inspection company to perform these tests on the soybean oil at the loading point of the supplier.
Food-Safety Certifications
Depending on the country that the soybean oil is destined for and the food products that it will be used in, buyers may also request food-safety certifications from the supplier.
These certifications may include requirements for HACCP, ISO food-safety standards, Good Manufacturing Practices, Halal or Kosher certifications, traceability documentation, and sustainability certifications.
Production and Supply Capacity
The supplier should be able to share information about the production of their soybean oil products, including the locations of their manufacturing and processing facilities, their supply capacity, the grades of soybean oil that they offer, their loading schedule, minimum order quantity, storage facilities, and past export markets.
Export Experience
The supplier should be experienced with international soybean oil exports and be familiar with the documentation required for such shipments.
This documentation may include:
- Commercial invoices
- Packing lists
- Certificates of origin
- Health or sanitary certificates
- Certificates of analysis
- Bills of lading
- Insurance certificates
- Inspection certificates
- Fumigation certificates
Inspection Arrangements
If an inspection is required of the soybean oil, the sales contract should indicate who will appoint the inspecting company, which company will perform the inspection, which soybean oil product will be inspected, and who will pay for the inspection.
What to Include in a Soybean Oil Request for Quotation
When inquiring about the price of soybean oil, it is important to provide the supplier with the relevant information that they need to provide an accurate price.
Buyers should include in their request for quotation:
- The type of soybean oil that they wish to purchase (crude or refined)
- The intended application of the soybean oil
- The quality specifications of the soybean oil
- The quantity of soybean oil that they require
- The monthly volume of soybean oil that they wish to purchase
- The packaging of the soybean oil
- The shipping destination
- The Incoterm that they require
- The shipment date
- Whether or not an inspection of the soybean oil is required
- Which certificates are required
- The payment terms for the soybean oil purchase
Rather than sending a request for price, “Please send soybean oil price,” buyers should provide the supplier with all the above information so that the supplier can calculate the cost of the product, packaging, inland transportation, port handling, freight, insurance, and any required documentation.
FOB, CFR and CIF Soybean Oil Offers
Soybean oil offers may be made according to different Incoterms.
FOB
For an FOB soybean oil offer, the supplier will deliver the soybean oil onto the vessel at the port of loading.
The buyer will be responsible for arranging the freight and insurance for the shipment.
CFR
For a CFR soybean oil offer, the supplier will arrange and pay for the ocean freight to the destination port.
The buyer will be responsible for the insurance of the shipment.
CIF
For a CIF soybean oil offer, the supplier will arrange for the shipment of the soybean oil, the ocean freight, and the minimum required for marine insurance for the shipment to the destination port.
A CIF soybean oil offer may be more convenient for the buyer.
While the FOB soybean oil price may be the lowest, the final cost to the buyer may not be the lowest.
Buyers should calculate the cost of the soybean oil, freight, insurance, import duty, port charges, inspection, customs clearance, inland transportation, and financing expenses to determine the best price to pay for the soybean oil.
Factors That Affect Soybean Oil Wholesale Prices
The price of soybean oil is influenced by a range of factors that relate to agriculture, the economy, energy costs, and transportation.
Some of the main factors include:
- The predicted yield of the soybean crop
- The margins that refineries make on soybean oil
- The global demand for vegetable oils
- Currency exchange rates
- The demand for biodiesel
- The cost of energy
- Export policies for soybean oil
- Port congestion
- The cost of freight
- The cost of packaging
- The grade of the soybean oil
- The volume of the order
- The destination of the shipment
Due to these factors, the price that a supplier offers for soybean oil will only be valid for a limited time.
Buyers should compare soybean oil offers that were made on the same date, for soybean oil of the same grade, in the same quantities, packaged in the same manner, shipped under the same Incoterm, to the same destination, and shipped within the same timeframe.
Working with a Soybean Oil Distributor
Not every buyer needs to purchase directly from a crushing plant or a refinery.
A soybean oil distributor can aggregate orders, pack the soybean oil, inspect it, provide the necessary documentation for exports, and also provide various shipment options.
These services can be of great value to the following buyers:
- Buyers with moderate to large orders
- Buyers who purchase several edible oils
- Buyers who require private label packaging
- Buyers who are entering the market
- Buyers who require additional export support
However, the distributor should be evaluated according to the same standards as the manufacturers and exporters.
Avoiding Common Sourcing Risks
Bulk purchases of edible oils can result in high financial exposure. Buyers should avoid making their final purchase decision based on the price alone.
Some of the warning signs of a supplier that is to be avoided are:
- Prices that are below the market price
- Refusal to share company documents
- Pressure to make payment immediately
- The supplier’s bank accounts are not under the company’s name
- The company address is different from the supplier’s address
- The supplier’s certificates cannot be verified
- The supplier refuses inspections
- The specifications of the product are not provided
- No contract is signed
- The supplier promises to provide large quantities of the product or to ship them to the buyer quickly
A soybean oil supplier should be willing to provide documentation, explain the process of selling the product, and include the specifications of the product in the contract.
Conclusion
Both Brazil and Argentina are important soybean oil suppliers to the world.
Brazil has the largest agricultural base for soybeans in the world, processing facilities for the oil, and access to three of the major export ports in the country.
Argentina has the most concentrated soybean oil crushing facilities in the country and the Rosario port complex through which it exports its products.
Neither country is better than the other for buyers of soybean oil.
There are various factors that may determine which of the two origins is the best for a particular buyer:
- The grade of the soybean oil that is to be purchased
- Availability of the oil in the different countries
- The technical specifications of the oil that is required
- The reliability of the suppliers in each country
- Whether the soybean oil is to be packaged in a particular way
- The shipping rates to the buyer’s country
- The country of destination for the soybean oil
- The total landed cost of the soybean oil
Buyers who wish to purchase soybean oil in bulk should request quotations from the various suppliers. They should verify the documentation from each supplier, the specifications of the soybean oil, and arrange for inspections of the oil.
By purchasing from one of the bulk soybean oil suppliers, refined soybean oil suppliers, soybean oil distributors, or even the verified soybean oil manufacturers; buyers can ensure that their supply chain of edible oils remains safe and reliable.
Frequently Asked Questions
Where can I buy soybean oil in bulk?
Bulk soybean oil can be purchased from soybean processing plants, edible oil refineries, exporters, commodity traders, and international distributors. Brazil and Argentina are two of the major soybean oil suppliers to the world. However, the best supplier will depend on the grade, packaging, quantity, and destination of the soybean oil.
What is the difference between crude and refined soybean oil?
Crude soybean oil is the oil that is extracted from the soybean but has not yet been refined. Refined soybean oil has undergone processes that improve its taste, odour, colour, stability, and suitability for use in food products.
What is the minimum order for wholesale refined soybean oil?
The minimum order for refined soybean oil will depend on the supplier and the type of packaging for the oil. For retail bottles and drums, a full container may be required. For flexitanks and tankers, there are usually bulk quantities available for purchase.
Can refined soybean oil be supplied under a private label?
Yes, some of the manufacturers and distributors of soybean oil offer private-label bottling services. Buyers should confirm the minimum orders, the sizes of the bottles, boxes, labels, and the time it will take for the product to be produced.
How do I verify a refined soybean oil supplier?
Buyers can verify the soybean oil supplier’s registration documents, address, bank information, certificates, exports, production capacity, and inspections. It is recommended that buyers perform these verifications before making a purchase of large quantities of refined soybean oil.
Which Incoterm is best for soybean oil imports?
FOB is best for buyers who arrange their own freight for the soybean oil imports. CIF is best for those who want the supplier to include freight and insurance for their shipments. The choice depends on the buyer’s experience with shipping and the logistics network they have in place for their imports.