Free Fatty Acid (FFA) Adjustment Calculator
Compute the price discount or premium for off-spec vegetable oil based on FFA content. Enter base price, contract spec, and actual FFA to get an instant adjustment.
Base price and contract spec
EU crude palm oil standard: 5.0%. Soy/sunflower: 0.5–1.0%. Refined: 0.1%.
Actual cargo quality
Vesper tracks daily spot prices for EU and global vegetable oil markets, updated every trading day.
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Accounts for soap + oil lost during neutralisation. EU palm: 1.5× is typical. Adjust for your contract.
Result is the price adjustment per tonne based on FFA deviation from contract spec.
Your FFA adjustment result
physical trade formulaOn spec
Price Adjustment
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/ t
Adjusted net price: —
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How the calculation works
How is the FFA price adjustment calculated?
The formula multiplies the FFA deviation from spec (in percentage points) by the neutralisation loss factor, then by the base price. A 3% FFA excess at 1.5x multiplier on €800/t crude means each 1% excess costs 1.5% × €800 = €12/t, so 3% excess = €36/t discount.
Why is the neutralisation loss factor greater than 1.0?
Neutralising FFAs with caustic soda produces soap, which carries entrained neutral oil with it when it separates. This saponification loss destroys more usable oil than the FFA fraction alone. A factor of 1.5 means the effective yield loss is 1.5 times the FFA content by weight.
Does lower FFA always mean a premium?
Not automatically. Premium for below-spec FFA depends entirely on contract terms. In many standardised trade contracts (e.g. FOSFA, PORAM), there is no bonus for FFA below the spec limit. This calculator shows the implied value, but always check your specific contract.
What FFA specifications apply to different oils?
Standard EU trade specs: crude palm oil 5.0%, crude soybean 0.75%, crude sunflower 0.5%, crude rapeseed 1.0%, refined oils (RBD/deodorised) 0.1%. Actual contract specs vary by origin, refinery, and trade association rules.