What is the Difference Between FOB and CIF?

Cost, Insurance, Freight (CIF) puts the liability of payment for – you guessed it – cost, insurance, and freight on the supplier.

This means that your shipment is in the proverbial hands of the supplier through the process of transporting them to a port and loading them aboard a ship. They also cover insurance costs.

The buyer still pays additional fees like customs clearance, however.

Depending on the agreement with your supplier, your goods may be considered delivered at any point between the port of destination and your final delivery address.

CIF is a more expensive contract option than FOB, as is demands more effort and expense on the part of the supplier.

Shipping timelines are always given by the shipping line when a booking is first made, but the reality is even if you managed to get the container loaded and moved into the port the same day, which is highly unlikely, there’s no guarantee that your cargo will still sail with the scheduled vessel.

Sales are the lifeblood of every business. Without it, you wouldn’t have cash flow, and without cash flow, you won’t achieve any form of growth or have enough funds to keep your organisation running.

While consistently making sales is key to growing a thriving organisation, the ease of finding clients in various industries differ. Join us to find out reasons you are not finding International buyers for your products.

The demand for Nigeria Agro commodities in International market are on the rise. Book a space and let's an expert help you navigate and resolve your great Export challenge.

It doesn't matter if you are a new comer testing International waters for the first time or an established exporter looking to grow your business abroad, your main challenge is always to find the right market and buyers for your goods and services you provide.

Honesty, selling in an unknown country is never easy. There are physical distance, cultural barriers to consider and language among other things. Luckily, we live in a time where technological advances have shrunk our world and brought us closer.

There are reputable trade sites serving as links between exporters and importers by carrying out trade matching services.

The platform allows you to search for buyers from 210 countries
Provides you with a facility to search for all buy requirements
Contact the buyers through your inquiry manager
Search by product and service
Dedicated team of professionals who constantly monitor all new buy requirements on the site
Paid subscription site

Commodity traders are expected to have a great understanding of how to successfully source and deliver the commodities they’re seeking trade finance for.
In some cases, commodity traders are expected to have 30% of the total commodity trade finance they need to execute the purchase and supply of the commodity.

What to say to prospects or existing clients could either improve or diminish your relationship with them. It could turn them into one of your best loyalists or into one of your company’s worst critics.
Treating and speaking to your clients the right way is key to building great relationships with them, and ultimately growing a successful business.

If you’re running a local or international business and want to ensure you never knowingly or unknowingly pushing your clients away with your words, Join us to learn here are 12 things to never say to a client or prospect.

CASHEW NUT

Quality/Standard:

Out-turn/Yield (KOR): 43 to 48 lbs per 80kg (good)

48 to 55 lbs per 80kg (excellent)

Nut count (number or raw cashew nuts per kg):

170 – Excellent
180-190 – Very Good
190-200 – Good
200-210 – Middle

Moisture: – 8% max

Foreign matter: – 2% max

Defective: – 5% max

Exporting is lucrative because sometimes local prices are way lower than the export prices are. For example, If you want to start a direct export business in Nigeria, then you need to know very well, what kinds of goods are exported from Nigeria. With direct export business, product selection is very important.

The commodity trading market is a vast industry that has existed throughout history, as nations have always had a constant need to exchange goods and services in order to keep their economies growing. Commodities like oil & gas products, solid minerals & metals, and agricultural products are the basic commodities that drive the market. They’re traded all around the world with businesses in two countries acting as the key catalyst for the trades, while their governments provide the infrastructure needed to make it happen.

Join us in our Export training program to learn the commodity trading market and how best to go about it.

The future is Agriculture. We should be able to feed our nation and export to improve our economy.

What Are Physical Commodities?

Physical commodities are soft (agricultural products) and hard (minerals & metals) commodities such as minerals & metals like oil, copper, gold, silver, etc. and agricultural products like sesame seeds, ginger, soybeans, and much more. These commodities are usually shipped by sea to many countries around the world in large volumes & low prices under well-preserved conditions.
Physical commodities are grouped into two types:
1). Primary Commodities:
Primary commodities are natural goods that are produced/extracted directly from the natural resource point. Their quality varies greatly and they are solid minerals, metals, and agricultural products that are gotten directly from the mines, oil wells, and farms.
2). Secondary Commodities:
Secondary commodities are goods which are manufactured from primary commodities to cater to the needs of markets that need them. For instance, maize is used to produce animal feed, fruits are used to produce juice, crude oil is refined to produce diesel and other products, and much more scenarios. Just like primary commodities, the quality of the product can also vary depending on price, skill, and the production process.

Nigeria is among the top growers of agro commodities such as cashew, cocoa, sesame, sorghum, and ginger among others. It's regretably the country still exports about 90 percent of its agro commodities raw and is yet to develop a new strategy to promote the export of processed produces.

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How An Exporter Can Secure Payment for Goods Shipped To International Buyers

International trade is one of the most scalable and profitable businesses in the world because commodity trading will forever be carried out between two businesses located in two different countries around the world at a certain price, procedure, quality requirement, and more, where once the first shipment is successful, the importer usually requests that the exporter continues shipping the same commodity to them monthly for a year, 3 years, 5 years, or even for life.

Join us in our Export Training Program to learn how best to secure payment for goods shipped to International buyers.

The Agro Export business in Nigeria is one of the most lucrative businesses to venture into, depending on which sector you choose to focus on. While large-scale importation can have a negative impact on the country’s economy, large-scale exportation doesn’t just have a positive impact, but can turn any entrepreneur into a millionaire and possibly a billionaire.

Thousands of people intend to venture into the exportation of goods and services from Nigeria to many parts of the world. A strong advantage of this is it doesn’t just serve as a means of generating large revenues for their businesses, but is also a great way to get paid in foreign currency.

If you’re looking for profitable products and services to export from Nigeria to not just earn a lot of money, but to also get paid in dollars, here are 100+ profitable items, grouped by sectors, that you can export from Nigeria and make dollars:

Hot-Selling Non-Oil and Gas Products To Export From Nigeria
Solid Minerals
Gold
Coal
Iron Ore
Columbite Wolframite and Tantalite
Bitumen
Limestone
Etc

Join us in our Export training program to learn the 100+ profitable items, grouped by sectors, that you can export from Nigeria and earn good income.

Export Management:

Export management companies help organizations who have products for exports but don’t know how to go about it or don’t want to know at all. What the export management company does is to act as a consultant for the direct supplier, communicate with the buyers using the supplier’s company name, and close deals on behalf of the supplier.

The supplier would usually have a fixed amount they pay the Export Management Company monthly, and also a commission they’d earn on every successful sale.

Starting an Export business in Nigeria comes with both its pros and cons. If executed well, the seller could rake in a whole lot of money. But if not well managed, significant losses could be recorded.

While most people believe exportation should cost you millions of dollars, going in as a broker and leveraging a wide network of local suppliers to supplement your goods sales will go a long way in helping you build a successful business that won’t just enable you to generate high revenues in widespread broker commissions, but will ensure you contribute positively to Nigeria’s or your own country’s GDP.

Export Broker:

This is the most popular, safest, and effective exportation angle to come in from. Here you act as a broker for either the importer or the exporter or both.

If for instance, the cost of white Sheabutter from Nigeria $1,500 per ton, you could strike up a deal with a supplier to accept $1450 per ton or better still, you could source a buyer that would purchase from you for about $1,550 per ton.

Brokering any export transaction is the best way to approach the industry because, you can be exporting different products across various industries, and still generate far more profit margins than the people you’re brokering on their behalf.

Exporting is lucrative because sometimes local prices are way lower than the export prices are. For example, If you want to start a direct export business in Nigeria, then you need to know very well, what kinds of goods are exported from Nigeria. With direct export business, product selection is very important.

There are Exporters who succeed without any form of training but purely learning from their trials and errors. But a very few have successful transactions based purely on luck.
While trials and errors can be a way to learn the rope, very few make it far because when they fail once or twice, they very likely lost all their investments and are already in debt to their creditors. As for those who succeed, they are usually less than 10% of the pack because they still have more money to try other transactions.
If you plan to venture into Export business, it's crucial that the first thing you do is to learn everything you can about International trade because about many Exporters lose their investments on their first trial, and losing all you have all at once could be the end of your finances in the short term.
In an industry where you could make so much money or lose, you must never act on just assumption. Hope is not a strategy.
Subscribe to our Export training course which covers everything and in- depth on the Export business from how to find International buyers to how to raise finance for your Export transactions, how to source products in remote communities at cheap prices, how to ensure you are getting paid before you spend a dime sourcing commodities, how to ensure the quality of the products meet the required standards, how to ship your products, products that are most demanded and can earn you double profits and so much more

The top 10 exports in Nigeria:

Sesamum seeds remain Nigeria’s agricultural export biggest earner in the past years. The trend continued in the first half of 2019 as N60.6 billion worth of Sesamum seeds were exported from Nigeria. On the other hand, Sesame oil and its fraction also made the top 10 agricultural export with N928.1 million.

A further look into the various reports showed that Japan, Turkey, China, Belgium, South Korea and Germany are Nigeria’s biggest markets for Sesamum seeds.

The second most exported agricultural good from Nigeria is fermented cocoa beans. Nigeria’s cocoa beans export was estimated at N50 billion.
Other cocoa related products that made the top ten list include raw cocoa beans (N22.15 billion) and Natural cocoa butter (N3.26 billion). The export destinations for Nigeria’s cocoa include the Netherlands, Belgium, Germany, Indonesia and Malaysia.

Direct Goods Export:

Here a company who manufactures locally could source international clients for their business and export their products to them. This is usually capital intensive, as you have to either be producing the products yourself, which will cost money, or you may have to outrightly buy out from the producers to export with your own margins.

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The import and export business in Nigeria is one of the most lucrative businesses to venture into, depending on which sector you choose to focus on. While large-scale importation can have a negative impact on the country’s economy, large-scale exportation doesn’t just have a positive impact, but can turn any entrepreneur into a millionaire and possibly a billionaire.
Thousands of people intend to venture into the exportation of goods and services from Nigeria to many parts of the world. A strong advantage of this is it doesn’t just serve as a means of generating large revenues for their businesses, but is also a great way to get paid in foreign currency.

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There is a lot of potential for Agriculture but there is a need for Nigeria to improve its agricultural production so as to tap into the large foreign exchange that could come into the country through the export of these items

The global commodity trading business is one of the most lucrative and lasting ventures ever known to mankind. All through history, nations, kingdoms, states, and more have had to trade resources across their borders in exchange for goods and services. This goes on till today all across the world with physical commodities been imported and exported out of every country.

The need for nations to constantly trade commodities is fueled by the fact that no single country is absolute. No one owns all the resources they need to fuel their industries, and as such, continue to trade with other nations to supplement their shortcomings.

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