Agri Export & What Does FOB Really Net?

Net realisation is what the exporter actually takes home after the FOB price is reduced by all the costs of getting the goods to the buyer — ocean freight, marine insurance and other export costs such as handling, certification and documentation. It is the gross FOB minus all these deductions, and it is the number that really tells you whether a market or crop pays.

FOB (Free On Board) is the price of the goods loaded onto the vessel at the port of shipment, before international freight and insurance. It is the headline export price, but it is not your profit: from it you still subtract freight, insurance and the various export handling and compliance costs to arrive at net realisation. The tool starts from FOB and does that subtraction.

Typically ocean or air freight, marine (cargo) insurance, and other export costs — port handling, container or packing charges, phytosanitary and quality certification, fumigation, inspection, and documentation or customs brokerage. The tool lets you enter freight, insurance and a combined other-costs figure, totals them, and deducts them from the gross FOB.

Net per tonne strips out volume so you can compare crops and markets on a like-for-like basis. A high FOB can still net little per tonne once freight to a distant port and certification costs are taken out. Net per tonne tells you which destinations and which commodities genuinely reward the effort, which is the basis for deciding what to export and where.

Marine (cargo) insurance covers the goods against loss or damage during the international voyage. It is usually a small percentage of the consignment value but is a real cost that reduces realisation, and it is often required by the buyer or the trade terms. Enter it as one of the export costs and the tool factors it into net realisation.

This tool models the core deductions — freight, insurance and other export costs — to give net realisation from FOB. It does not automatically add export incentives such as duty drawback or RoDTEP. If you receive such incentives, you can treat them as a negative cost or add them to the net figure separately when comparing markets.

Lower the controllable costs — negotiate freight, consolidate shipments, choose nearer or better-connected ports, and streamline certification — or move up to higher-value FOB markets and grades. The tool lets you test each lever: change freight, insurance or other costs and watch the net realisation and net per tonne respond.

Under FOB the buyer pays freight and insurance from the port of shipment; under CIF the exporter includes Cost, Insurance and Freight in the price. This tool starts from your FOB price and subtracts your freight and insurance to show what you net — useful even on CIF deals, since the same costs come out of your realisation.

Yes — the structure (gross FOB minus freight, insurance and other costs) applies to any agricultural export, anywhere. Choose your currency and enter your own FOB price, tonnage and cost figures. The terms FOB, CIF and net realisation are standard international trade language.

No — it's a planning estimate. Actual freight, insurance and handling depend on the route, season, container availability and your forwarder's quote, and certification costs vary by market. Use this tool to compare markets and crops and to plan margins, then confirm with firm quotes before you commit.