Managing board of UFOP pleads for a uniform rapeseed invoicing system
Berlin, February 24, 2017 – In answer to the on-going discussions, the Board of the Union for the Promotion of Oil and Protein Plants e.V. (UFOP) deems it necessary to state its position on the basis for rapeseed payment terms.
The quotations at the commodity futures exchange in Paris are the basis for the fixing of prices between farmers, originators and traders and associations as well as processors. The final price of the commodities is based on their quality upon delivery. The most important quality criteria in this regard are oil content, moisture, dockage, the content of glucosinolates, erucic acid as well as fatty acids. Although every oil mill has its own purchasing conditions, all market participants throughout Germany and the EU accepted as uniform basis for remuneration the oil content (40%), dockage (2%) and moisture (9%). In the event of deviations from the standard quality, surcharges and deductions are usually calculated in the price.
With the rapeseed invoicing based on these parameters, the calculation of rapeseed prices in Germany remained comparable and, for farmers, reliable. Over the past few weeks, discussions have been held and initiatives taken (particularly in France, but also in Germany) which aim to raise the calculation basis from 40 to 42% as the basis for the oil content. Some market participants want to make this adjustment already for the harvest of 2017.
The Board of UFOP holds a critical view of the divergence of invoicing between individual companies and/or individual EU Member States and strongly asks for the maintenance of a uniform system of rapeseed payment terms.