Ex Works vs CIF for Dairy Hygiene Products: Which Incoterm to Use

Incoterms and Why They Matter for Dairy Hygiene Imports

When a buyer and supplier agree on a price for an international shipment of teat dips or milking system cleaners, the agreed price is only meaningful in the context of the Incoterm — the internationally recognized trade term that defines where the supplier's responsibility ends and the buyer's responsibility begins. Without an agreed Incoterm, a price is ambiguous.

For buyers in AgroLyne's markets importing from Turkey, the most commonly used Incoterms are Ex Works (EXW) and CIF (Cost, Insurance, Freight). Here is what each means in practice.

Ex Works (EXW)

Under Ex Works, the supplier's obligation ends when the goods are made available at the supplier's premises (the factory or warehouse). The buyer arranges and pays for all transport from that point — loading at the factory, domestic Turkish trucking, export customs clearance, international freight, import customs, and local delivery.

What you see in an EXW price:

The factory-gate cost of the product, with zero freight included. This is the most transparent way to understand product cost without logistics variability.

When EXW makes sense:

• If you have an established freight forwarder who handles Turkish exports regularly
• If you want maximum control over logistics costs and routing
• If you are comparing multiple suppliers at factory-gate prices

Buyer's risk under EXW: begins at the supplier's loading dock. If product is damaged during loading, that is the buyer's problem.

CIF (Cost, Insurance, Freight)

Under CIF, the supplier delivers the goods to the named port of destination (e.g., Algiers, Umm Qasr, Baku Alyat Port) and arranges and pays for the ocean freight and insurance to that point. Risk transfers to the buyer when the goods are on board the ship at the port of loading.

What you see in a CIF price:

The product cost plus Turkish trucking to port, export clearance, ocean freight, and marine insurance — bundled into one price.

When CIF makes sense:

• First shipment with a new supplier when you want a single comparable price
• When you do not have an established freight forwarder for Turkish-origin cargo
• When comparing landed cost across multiple origins at your destination port

Buyer's responsibility under CIF: import customs clearance, local port charges, and inland delivery from the destination port onward.

AgroLyne quotes both EXW Gönen and CIF to the destination port. Contact us to request a CIF price for your nearest port of entry.