Buying sunflower oil in bulk involves more than finding the lowest prices. The buyer must take into consideration the type of sunflower oil, the quality, the supplier, the methods of payment, and other important factors.
Whether the buyer is purchasing the sunflower oil for use in food manufacturing, distribution, retail, or any other industry, this guide will detail how to buy sunflower oil in bulk safely and efficiently.
Where to Buy Sunflower Oil in Bulk
The buyer can purchase bulk sunflower oil from a variety of different suppliers, including:
- Producers of sunflower oil
- Export companies for sunflower oil
- Wholesalers of edible oils
- Commodity trading companies for agricultural products
- Suppliers of private-label cooking oils
Purchasing directly from a supplier or producer of sunflower oil can often deliver the buyer better prices and more control over the packaging and shipping of the product.
Ukraine is one of the important countries to source sunflower oil from. Before finalizing a purchase from a company in Ukraine, however, it is important for the importer to verify the company’s registration details, certifications, and banking details.
Step 1: Decide Which Type of Sunflower Oil You Need
Before requesting a quotation from a supplier, determine the specific type of sunflower oil that is needed for your intended use.
Refined Sunflower Oil
Refined sunflower oil has been processed to remove impurities, flavour, odours, and colour. This oil has a light colour and neutral flavour. Its high smoke point makes it suitable for a variety of uses.
Such uses include:
- Cooking and frying
- Manufacturing food products
- Restaurants and catering services
- Retail distribution
- Processed food products
Unrefined Sunflower Oil
Unrefined sunflower oil retains its natural colour, flavour, and aroma. It is less processed than refined oil. Some uses of unrefined sunflower oil include:
- Health food products
- Specialty retail stores
- Cold applications
- Traditional cooking methods
- Natural food products
Refined vs Unrefined Sunflower Oil
Refined sunflower oil has been processed to remove impurities. It is neutral in flavour and colour, and can be used in a variety of foods. Unrefined oil has a stronger flavour of sunflower oil and is less suitable for heating.
Refined sunflower oil is suitable for the majority of bulk purchases for food manufacturers and distributors. For specialty and natural food products, unrefined oil is more suitable.
What Is RBD Sunflower Oil?
RBD sunflower oil stands for refined, bleached, and deodorized sunflower oil. Such oil has undergone several processing stages to remove unwanted compounds from the oil.
Such products are typically summerized as:
- RBDW sunflower oil (refined, bleached, deodorized, and winterized)
RBD sunflower oil has a clean and neutral flavour, light colour, good storage life, and is suitable for the production of food products.
When requesting a quotation for sunflower oil, request whether the oil is RBD, deodorized, winterized, or RBDW oil.
Step 2: Prepare a Clear Product Specification
When requesting a quotation for sunflower oil, always include a product specification in the inquiry.
Such specifications include information about the following:
- The type of sunflower oil
- The intended use of the oil
- The maximum allowable free fatty acid content
- The maximum allowable moisture and impurities content
- The peroxide value of the oil
- The iodine value of the oil
- The colour of the oil
- The shelf life of the oil
- The origin of the oil
- Any necessary certifications for the oil
- The packaging requirements for the oil
- The total quantity being ordered
- The destination for the oil’s delivery
Refined sunflower oil should have low moisture content, low impurities content, low peroxide content, and a neutral colour and flavour. These specifications can be determined according to the regulations of the country in which the product will be imported and used.
By sharing these specifications with the supplier, the buyer will be able to receive quotes that are more comparable and to avoid receiving a product that is not suitable for the buyer’s needs.
Step 3: Choose the Best Packaging for Bulk Sunflower Oil
The best packaging for sunflower oil can vary according to the buyer’s needs. Some packaging options for sunflower oil include:
Flexitanks
Flexitanks can be used to ship sunflower oil in containers that can be fitted into standard shipping containers.
Flexitanks are suitable for:
- Food manufacturers
- Refineries
- Distributors of sunflower oil
- Buyers with storage tanks for the oil
Flexitanks can usually carry 20 to 24 metric tons of sunflower oil.
ISO Tank Containers
ISO tanks are made from stainless steel and are suitable for transporting sunflower oil regularly in large quantities.
However, charges associated with renting and cleaning the tanks may make this option more costly than using flexitanks.
Road Tankers
Road tankers can be used to ship sunflower oil to buyers in the same region, continent, or country.
IBC Containers
Intermediate bulk containers, or IBC containers, can hold approximately 1,000 litres of sunflower oil.
An IBC container is suitable for buyers who require flexibility in how the oil is shipped to multiple locations or customers. However, the cost per litre of sunflower oil is higher than using bulk shipping methods.
Drums
Sunflower oil can be shipped in food-grade drums.
This option is suitable for buyers with smaller orders or who cannot handle the unloading of bulk sunflower oil.
PET Bottles
Sunflower oil can be shipped in PET bottles of various sizes.
This packaging option is suitable for distributors, supermarkets, private-label brands, and wholesalers that deliver sunflower oil to retailers.
The cost per ton of sunflower oil is higher with this packaging option, as it includes the costs of bottles, caps, labels, cartons, pallets, and the space to load the oil into the shipping trucks.
How Many Litres Are in a Ton of Sunflower Oil?
A ton of sunflower oil weighs 1,000 kilograms.
Because sunflower oil has a density that is less than that of water, the volume of a ton of sunflower oil is between 1,080 and 1,100 litres.
The commonly used estimate for the volume of a ton of sunflower oil is 1,087 litres.
Therefore, a shipment of 20 metric tons of sunflower oil contains between 21,700 and 22,000 litres of oil.
The actual volume of a ton of sunflower oil can be calculated based upon the density of the oil at the specified temperature.
Step 4: Learn How to Find a Sunflower Oil Supplier
A sunflower oil supplier should be able to provide the buyer with the following information:
- The registration documents for the company
- The export documents for the sunflower oil
- Food safety certifications for the oil
- The specifications for the oil
- The Certificate of Analysis for the oil
- Photographs of the production and packaging facilities
- References to other shipments of the oil
- Permission for the buyer to inspect the facilities
- Payment and delivery terms for the shipment
Food safety certificates for the supplier may include certifications like ISO 22000, FSSC 22000, and HACCP.
Other certifications that may be required by the buyer’s country of import include halal, kosher, health, origin, sanitary, non-GMO, and allergen certifications.
Warning Signs to Avoid
Buyers should be wary of sunflower oil suppliers that:
- Use personal bank accounts for payments
- Refuse an independent inspection of their facilities
- Are unable to provide registration details for their company
- Offer prices that are significantly lower than the general market rate
- Demand immediate payments from buyers
- Provide inconsistent contact information
- Refuse video calls with buyers
- Change banking instructions without explanation to the buyer
- Are unable to provide a Certificate of Analysis for the sunflower oil they supply
While a lower price may appear to be a benefit for the buyer, it is not considered a benefit if the supplier cannot provide the product that is requested.
Step 5: Request a Complete Wholesale Quotation
When learning how to buy sunflower oil wholesale, always make a request for a quotation from the supplier.
The inquiry to the supplier should include:
- The type of sunflower oil that is required
- The quantity of sunflower oil, in metric tons
- The packaging for the oil
- The country to which the oil is being shipped
- The port of delivery for the oil
- The Incoterm for the shipment
- The schedule of delivery
- Any inspection of the sunflower oil
- The payment method for the order
- Whether the product should be private labelled
The supplier should include the following information in their quotation:
- The price of the sunflower oil per metric ton
- The total value of the oil
- The minimum order quantity for the oil
- The cost of the packaging for the oil
- The quantity per container for loading
- The loading port for the shipment
- The production time for the oil
- The shipping time for the oil
- The validity period for the quotation
- The payment terms for the order
- Any quality documents that are available for the oil
Do not compare the quotations of different suppliers based solely upon the price of the sunflower oil.
For example, one supplier may provide a quotation for just the oil, while another may include the cost of the packaging, shipping, insurance, and other charges.
How Much Does Bulk Sunflower Oil Cost?
The price of bulk sunflower oil depends on various factors, such as:
- Refined, crude, or unrefined sunflower oil
- The country of origin of the sunflower oil
- The current global supply of vegetable oils
- The availability of sunflower seeds
- The costs of energy and processing of sunflower oil
- Sunflower oil packaging options
- The volume of sunflower oil ordered
- The movements of currency exchange rates
- The shipment route of the sunflower oil to the final destination
- Costs of port charges for the shipment of sunflower oil
- Costs of insurance for the sunflower oil shipment
- Seasonal demand for sunflower oil
Sunflower oil packed in flexitanks is usually cheaper per ton than sunflower oil packed in retail bottles. The price of sunflower oil packed in private-label bottles is higher than bulk sunflower oil because of the added costs of bottles, caps, labels, cartons, designs, and production.
Buyers should request a quotation for the price of bulk sunflower oil based on the quantity and packaging preferred, as well as the destination of the shipment.
What Is the Price of Sunflower Oil per Ton?
There is no fixed price of sunflower oil per ton, but the price changes according to various market conditions.
Some suppliers may offer quotations for sunflower oil prices in the following ways:
- Ex Works Price
- FCA Price
- FOB Price
- CFR Price
- CIF Price
- DAP Price
All of these prices cannot be compared because each Incoterms includes different costs for the shipment of sunflower oil.
An FOB quotation for sunflower oil may appear cheaper than a CIF quotation because the buyer will still pay for the ocean freight and insurance of the shipment.
Some of the costs included in these quotations may include:
- The cost of sunflower oil
- Packaging
- Transportation to the port of export
- Export customs clearance
- Port charges
- Ocean freight
- Insurance
- Charges at the destination port
- Import duties
- VAT taxes
- Customs clearance at the destination port
By requesting the full breakdown of costs for the shipment, the buyer can calculate the landed price per ton or per litre of sunflower oil.
Step 6: Understand Sunflower Oil CIF vs FOB Price
Understanding the price difference between CIF and FOB sunflower oil shipments is essential for buyers when comparing quotations from different suppliers.
FOB Price
FOB stands for Free on Board.
For FOB shipments of sunflower oil, the seller of the oil will deliver the oil to the port of loading and will complete the export procedures for the shipment.
The buyer will be responsible for:
- Ocean freight for the shipment of sunflower oil
- Insurance of the shipment
- Port charges at the destination port
- Customs clearance at the destination port
- Duties and taxes on the shipment
- Final delivery of the shipment to the buyer
FOB shipments of sunflower oil are suitable for buyers who are experienced in importing sunflower oil and who have relationships with freight forwarders or shipping lines.
CIF Price
CIF stands for Cost, Insurance and Freight.
With CIF shipments of sunflower oil, the seller will pay for the cost of the shipment, the insurance of the shipment, and the ocean freight to the destination port.
However, the buyer will be responsible for:
- Discharge charges at the destination port
- Terminal handling charges
- Customs clearance at the destination port
- Import duties on the shipment
- VAT taxes on the shipment
- Storage or demurrage charges for the shipment
- Inland transportation of the shipment
CIF shipments of sunflower oil are easier for first-time importers of sunflower oil. However, the buyer should still request information from the seller on the shipping line, the transit time, the insurance coverage, and the charges at the destination port.
CFR Price
CFR stands for Cost and Freight.
In this type of shipment, the seller will pay for the shipment of sunflower oil to the destination port. However, the buyer will be responsible for paying for the insurance of the shipment.
The best Incoterm for your shipment of sunflower oil will depend on factors such as the experience of the buyer, the freight relationships the buyer has, the destination of the shipment, and the buyer’s ability to manage shipment risks.
Step 7: Arrange Product Sampling and Quality Approval
Before placing an order for sunflower oil from a supplier, request a sample of the sunflower oil and the following documents:
- Certificate of Analysis (COA) of the sample
- Technical data sheet of the sample
- Safety data sheet of the sample (if applicable)
- Photographs of the packaging of the sample
- Artwork of the labels for the sample
- The shelf-life of the sunflower oil
The sample of sunflower oil should be tested by the buyer against their requirements or against local food regulations.
For private-label shipments of sunflower oil, the buyer should approve the packaging of the sunflower oil shipment before production begins.
This information should be recorded. Verbal agreements between the buyer and supplier are difficult to enforce in cases of disputes between the two parties.
Step 8: Arrange Independent Pre-Shipment Inspection
To reduce the risk of receiving the wrong product or the wrong quantity of sunflower oil, the buyer can arrange for an independent inspection of the shipment.
Companies such as SGS, Intertek, or Bureau Veritas can be appointed by the buyer to:
- Inspect the supplier of the sunflower oil
- Inspect the production facility of the supplier
- Take samples of the sunflower oil
- Test the quality of the sample
- Inspect the packaging of the sunflower oil
- Inspect the shipping containers
- Take the quantity of sunflower oil to be shipped
- Seal the shipment of sunflower oil
- Issue reports on the quality and quantity of the sunflower oil shipment
The buyer and supplier should agree on who will appoint the independent inspector, who will pay for the inspection, and what will happen if the shipment does not meet the agreed specifications.
For the first order of sunflower oil from a supplier, it is recommended that the buyer arrange for an inspection of the shipment before it is shipped to the buyer.
Step 9: Choose a Secure Payment Method
Several payment methods are commonly used in the wholesale trade of sunflower oil.
Letter of Credit
The use of a documentary letter of credit can benefit both parties in the transaction. The bank releases the payment to the seller once the shipping documents are presented as per the terms of the letter of credit. Such letters of credit are often used for larger transactions between countries.
Telegraphic Transfer
Telegraphic transfer is faster than letters of credit but depends on the trust between the buyer and seller. The supplier may request a deposit, balance after inspection, balance against shipping documents, or even full advance payment for the order. New buyers should avoid paying the total contract value prior to production, inspection, and document verification.
Documents Against Payment
Under this payment method, the buyer makes payment through the bank. Once payment is made, the shipping documents are released to the buyer. This method provides more structure to the payment than a telegraphic transfer. However, the payment details, particularly the beneficiary bank account, should always be verified. Any changes to the payment details should be confirmed independently.
Step 10: Review the Sales Contract
The sales contract should include the following:
- Buyer and seller’s legal names
- Company registration details
- Product description and quality
- Quantity and tolerance
- Packaging
- Price and currency
- Incoterm and named location
- Loading and destination ports
- Shipment period
- Payment terms
- Inspection and document requirements
- Claims procedure
- Force majeure clause
- Governing law and dispute resolution
The Incoterm should include the named port and the edition of Incoterms. An example of an Incoterm clause is “CIF Port of Dakar, Senegal – Incoterms® 2020.” Before signing the contract, it is advisable to seek the advice of a trade lawyer, customs specialist, or import consultant.
Step 11: Prepare the Required Shipping Documents
Each shipment of sunflower oil requires specific documentation. Common documents include:
- Commercial and packing invoice
- Bill of lading
- Certificates of origin and analysis
- Health, quality, and quantity certificates
- Insurance certificate
- Export declaration
- Fumigation certificate for wooden packaging (if required)
- Halal and kosher certificates (if requested)
The buyer should confirm the required documentation prior to shipment. Missing or incorrect documents can result in the shipment being delayed by customs, incurring charges for storage or demurrage, or being rejected entirely.
How to Import Sunflower Oil from Ukraine
Buyers who want to import sunflower oil from Ukraine should follow these steps:
- Locate a registered manufacturer or exporter of sunflower oil from Ukraine. Verify the company’s registration, production, and certification details.
- State the grade of sunflower oil you require.
- Verify the import regulations for your country.
- Request a price quotation for FOB, CFR, CIF, or DAP shipments.
- Review the product specifications and certificate of analysis.
- Agree on the packaging and quantity.
- Sign the sales contract.
- Use a payment structure that is secure for both parties.
- Arrange an inspection of the shipment prior to shipment.
- Review the shipping documents.
- Use a customs broker at the destination.
The availability of transportation, the routes to the destination, the operation of the ports, and the cost of freight can change. Buyers should request a shipment plan for every order that they place.
Step 12: Calculate the Total Landed Cost
The lowest quotation for sunflower oil from a supplier is not necessarily the cheapest landed cost for the purchase.
The landed cost for sunflower oil includes:
- Product price
- Packaging
- Inland transportation
- Export clearance
- Inspection fees
- Freight and insurance
- Bank charges
- Destination handling and customs duties
- Taxes
- Customs broker fees and storage
- Inland transportation
- Demurrage or detention charges (if applicable)
Divide the total landed cost by the number of metric tons, liters, bottles, or cartons of sunflower oil to be purchased. This cost will be used to determine the price and margin for the product.
Bulk Sunflower Oil Buying Checklist
Before placing your order, confirm that you have:
- Selected the grade of sunflower oil
- Written the product specification
- Verified the supplier’s identity
- Reviewed the certificate of analysis
- Confirmed the packaging and quantity
- Reviewed the pricing
- Agreed on payment terms
- Arranged for inspection
- Signed the sales contract
- Confirmed the import documents
- Calculated the landed cost
- Appointed a customs broker (if necessary)
Frequently Asked Questions
Where can I buy sunflower oil in bulk?
You can purchase sunflower oil in bulk from producers, exporters, traders, wholesalers, and private-label suppliers. Verify the supplier before placing an order.
What is the minimum order for wholesale sunflower oil?
The minimum order varies from supplier to supplier. Bottled sunflower oil is sold by the container load. Flexitank and tanker orders are made in metric tons. Some suppliers allow orders in IBCs or drums.
Is refined or unrefined sunflower oil better for wholesale buyers?
Refined sunflower oil is better for cooking, retail, and food manufacturing. Unrefined sunflower oil is better for specialty foods and markets that require natural flavor.
What is RBD sunflower oil?
RBD (refined, bleached, and deodorized) sunflower oil is processed to remove impurities and produce a neutral, stable oil that can be used in food production and cooking.
How many liters are in one metric ton of sunflower oil?
There are approximately 1,080 to 1,100 liters in one metric ton of sunflower oil. The commonly used figure is 1,087 liters.
Is CIF better than FOB?
CIF is better for importers who are inexperienced with importing products. The seller is responsible for the transportation of the product to the destination port and for its insurance. FOB is better for buyers who have their freight and insurance arrangements.
How can I check whether a sunflower oil supplier is legitimate?
Verify the supplier’s registration, address, certifications, bank account, website, documents, references, and inspection policy.
Conclusion
To buy sunflower oil in bulk, you must plan ahead and verify your supplier. You will need to specify your order, understand shipment and payment requirements, and calculate the landed cost of your shipment.
The safest way to purchase sunflower oil in bulk is not always the cheapest quoted price. The safest way guarantees the quality, documentation, payment terms, inspection, and landed cost.
MAKOLI LLC offers support to wholesale buyers of sunflower oil. They provide products, quotes, packaging, documentation, and shipment of sunflower oil. Whether you require refined or unrefined sunflower oil, flexitank or IBC containers, or bottled sunflower oil for retail, MAKOLI LLC will work with you to meet your needs.
Contact MAKOLI LLC with your quantity, packaging, destination, and Incoterm to request a quotation for sunflower oil in bulk.