How to Calculate the Landed Cost of Feed Ingredients
Two offers with different Incoterms cannot be compared on unit price. This guide gives the landed-cost formula and the cost-per-nutrient method feed buyers use to compare ingredient quotes.
Short answer · reviewed September 2026
Short answer: How to Calculate the Landed Cost of Feed Ingredients
Landed cost per tonne = (product cost + freight + insurance + duties and taxes + port handling + inland transport + other fees) ÷ tonnes received. Compare offers on this figure, then on cost per unit of the nutrient you are buying for. All values come from your own quotes — this guide gives no prices.
Key takeaways
- Landed cost per tonne = (product cost + freight + insurance + duties and taxes + port handling + inland transport + other fees) ÷ tonnes received.
- | Component | Source | |---|---| | Product cost | Supplier quote | | Freight | Freight quote | | Insurance | Insurer or Incoterm | | Duties and taxes | Destination customs rules | | Port handling | Port or agent | | Inland transport |…
- An FOB offer excludes freight and insurance; a CIF offer includes them.
- Cost per unit of protein = landed cost per tonne ÷ (protein % ÷ 100).
- If handling or storage losses are expected, divide by tonnes actually usable, not tonnes shipped.
FeedMatch Editorial Desk
Editorial Team
Short answer
Landed cost per tonne = (product cost + freight + insurance + duties and taxes + port handling + inland transport + other fees) ÷ tonnes received. Compare offers on this figure, then on cost per unit of the nutrient you are buying for. All values come from your own quotes — this guide gives no prices.
The landed-cost formula
| Component | Source |
|---|---|
| Product cost | Supplier quote |
| Freight | Freight quote |
| Insurance | Insurer or Incoterm |
| Duties and taxes | Destination customs rules |
| Port handling | Port or agent |
| Inland transport | Haulier quote |
| Other fees | Inspection, documents, finance |
Adjust to a common Incoterm
An FOB offer excludes freight and insurance; a CIF offer includes them. Convert every offer to the same delivery point before comparing.
Cost per unit of nutrient
Cost per unit of protein = landed cost per tonne ÷ (protein % ÷ 100). The same method applies to phosphorus for MCP and DCP, or energy for corn. Use the analysis guaranteed in the contract, not a typical value.
Account for losses
If handling or storage losses are expected, divide by tonnes actually usable, not tonnes shipped.
Try it: use the feed calculators for preliminary figures, then send a structured RFQ. Results are preliminary and need qualified professional review.
Frequently asked questions
- What is landed cost for feed ingredients?
- Landed cost is the total cost of an ingredient delivered to your site: product price plus freight, insurance, duties and taxes, port handling, inland transport and other fees, divided by the quantity received.
- Why compare cost per unit of nutrient?
- Ingredients with different nutrient content are not interchangeable per tonne. Dividing landed cost by the nutrient content shows which offer delivers the nutrient you need more cheaply.
Feed industry regions we work with
Feed procurement is local before it is global: raw material basis, freight and installation costs change by region. These are the areas buyers most often name when defining a feed project in English.
United States
Cities and provinces
Iowa · Nebraska · Georgia · Arkansas · Texas · North Carolina
Corn and soybean meal basis with large integrated poultry, swine and dairy operations.
United States →United Kingdom and Ireland
Cities and provinces
East Anglia · Yorkshire · Lincolnshire · Northern Ireland · Munster
Compound feed and imported protein logistics through east coast and Irish Sea ports.
United Kingdom and Ireland →Gulf and East Africa import markets
Cities and provinces
Jeddah · Dubai · Mombasa · Djibouti
Import-driven feed supply where landed cost and port logistics dominate the decision.
Gulf and East Africa import markets →FeedMatch is supplier-neutral. Regional context helps define the requirement; pricing always comes from manufacturer quotations.
Move from insight to procurement
Turn the ideas in this article into a live procurement action — supplier-neutral, buyer-controlled, fully documented.