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Choosing the Pricing and Delivery Basis

Understand farm gate, FOB, CIF and delivery to site—and what must be written clearly in the quotation and contract.

Practical information before commercial commitment

A reliable price starts with the exact responsibility-transfer point

Farm gate and delivery to site are customized commercial arrangements. FOB and CIF are Incoterms® 2020 rules for sea and inland-waterway trade. Always state the named port or place and the rule version, then add live-animal conditions that the three-letter rule does not address by itself.

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Choosing the Pricing and Delivery Basis

Farm Gate / Supplier Location

The buyer or its carrier collects animals from the agreed farm or assembly point. The price normally excludes onward transport and export formalities unless stated.

Best for buyers with a local team, transport system and permit capability.

FOB — Named Port of Shipment

The seller handles export and places the animals on board the vessel at the named shipment port. Under FOB, risk transfers when the goods are on board.

Best when the buyer controls vessel charter and ocean freight.

CIF — Named Port of Destination

The price includes animals, marine insurance and ocean freight to the named destination port. The point of risk transfer is not necessarily the same as the point to which the seller pays costs, so the rule and contract must be read together.

Best when the buyer wants a port-delivered ocean-freight quotation.

Delivery to Site

A tailored arrangement that may include port arrival, clearance, inland transport and delivery to the farm or market. Duties, taxes, unloading and destination quarantine must be expressly included or excluded.

Best when the buyer wants one coordinator for the full supply journey.
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Live-animal conditions that must be added

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Quick comparison

OptionOcean freightMarine insuranceDestination clearanceSite delivery
Farm gateBuyerBuyerBuyerBuyer
FOBBuyerBuyerBuyerBuyer
CIFIncluded to named portIncluded to required rule/contract levelUsually buyerUsually excluded
Delivery to siteAs quotedAs quotedAs quotedIncluded to named point
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Professional references

This page is guidance and does not replace official authority requirements or the transaction contract.

Request a like-for-like comparison

We can price the same request on more than one basis so cost, responsibility and risk are visible for each option.