₦airaland Forum

INTRODUCTION

There are many agro commodities to invest your capital but one stand out product will always be Shea butter. A large market exists for shea butter worldwide, particularly as it is organically produced. Shea butter is in high demand and is a wonderful product. It has a high prospect and sells well in the international market. Opportunities exist in its production value chain producing on a small, medium and on a larger scale to meet the growing demand.
The raw material is shea nut. It is available in abundant quantities and qualities and will be made available for production. Depending on the proposed location of your production plant, you will be sure of readily available raw material. One will be sure it is closer to the shea producing states of Oyo, Kwara, Kogi, Niger and Kebbi State.
A shea nut gathering point should be set up in each of the shea sourcing areas. There should be a central warehouse and office in each shea area, where the shea nuts will be harvested and stored temporarily. Harvesting of the shea nuts will be coordinated from this office. The women cooperatives collect shea nuts and bring the collected shea nuts to a central point/office. Small trucks will be transporting the shea nuts from the central point to the central warehouse in the shea zone where it will be stored temporarily before it will be conveyed by larger trucks to the production factory.

THE OPPORTUNITIES
There is a growing interest in butter from Nigeria for use as ingredients in the cosmetics, pharmaceutical and confectionary industries, yet the commodity is in limited supply as much of it is processed by local women through crude and labour intensive means. Investment in the processing of the butter in large volume will not only be profitable but will also create a feel factor for government support as it is also an avenue for employment for its teeming youths.
The strong interest in the product by cosmetic companies is due to the growing demand for a more natural product that is perfect for skin. 10% of the world demand is by the cosmetic companies in the US and European Countries. 90% of world demand is by the chocolate and confectioneries industry. The European Union allows up to 5% shea butter to be included in its confectioneries and if the US lifts ban on using Cocoa butter alternatives as expected, then consumption in this sector will also increase.

The commercial interest in shea centres on its use as a substitute for Cocoa due to high cocoa prices in the market. On the flip side, the demand for certified shea butter is essential, especially if you factor in the availability of good quality product that companies and buyers are searching for.

Looking at the size of the market. The market size is huge. The global market for confectionery products is about $200 billion while that of cosmetics and toiletries ingredients is estimated at about $40 billion in 2016. One will have to follow daily the major players in the shea butter, chocolate and cosmetics industry, respond to trend to keep ahead of its competitors.
Asia is also an important growth market for CBEs as most Asian countries do not have any regulations against using CBEs in chocolate. Together, Western Europe and Asia consume about two-thirds of global CBE production(2/3) (66%). World chocolate consumption is increasing overall, especially in the growing economies of Latin America and Eastern Europe where disposable incomes and population are rising. Despite the relative maturity of the Western European market, chocolate consumption is still strong.
Another income stream is the Shea cake. Shea cake is a residue from the production of shea butter. It has economic value. It can be used as a raw material for bricks and it is demanded oversea for use as a niche input to high-end production of animal feeds.

THE PROBLEM
There is more demand for Shea butter than is currently produced. Rural-based women from time immemorial have been using manual traditional methods to process about 60% of all the crude butter produced in Nigeria at a relatively low extraction rate of about 25%. Currently, the production of Shea butter is often done manually in semi-industrial and small 100% industrial scale in Nigeria. One constraint to shea production in West Africa is quality issues. Because West Africa has not enough factories to produce a high-grade quality of Shea butter, the opportunities in export are yet to be adequately tapped.
There is the specific quality of shea butter needed in the international market and it is of ultimate concern to buyers. Buyers want to know the Iodine number, acid and free fatty acid number and other parameters of the shea butter he wants to import. The African entrepreneur has too little access to financing for trade and investment, hence 80% of the Shea butter production is done in Europe and Asia by multinational companies.
Shea Tree grows only in West Africa and lesser extent in Central Africa, and nowhere else in the world with Nigeria a leading producer of the raw material (Shea nut). Nigeria produces about 500, 000 Tons of Shea nut annually. On the business side, Nigeria can compete favourably with the established industries in Europe and America. The disadvantage of processing Shea Nuts into Shea Butter in Europe or Asia is the transport costs because the raw material can only be gotten in Africa. To produce 1 kg of Shea Butter, you need 2.2 kg Shea Nuts, so as you understand, it is much cheaper to produce Shea Butter in Nigeria with easy access to the raw material. Staff costs here are also lower.

For more information and enquiry/ Call or Whatsapp 07033097160.

BUSINESS POTENTIAL

What is the business potential of agro-export trade? With cashew nut and in specific, the kernel in introspects, cashew kernel export is a promising market. According to recent statistics from NEPC, Germany, Netherlands, United Kingdom, Poland, France, Japan, United Arab Emirates, Canada, Lithuania and Ireland are the top ten markets with the largest untapped potential for Nigeria cashew kernel export. Vietnam is currently the largest export destination for Nigeria cashew kernels with average yearly exports of 3.4milliona dollars. It is also Nigeria’s largest competitor on a global scale. Poland is a small market for Nigeria but France is a new market.

For ginger, untapped markets exist in Netherland, United Kingdom, Pakistan, Japan, Bangladesh, Canada, Malaysia, Germany, UAE and Italy. Estimated untapped potential is largest in the Dutch market with 4.5 million dollars of additional export to be reached up till 2021. The Netherland and UK are very interesting. There is a lot of additional export potential there. Try to access new markets like Pakistan, Japan and Bangladesh. Also, keep trying to expand export in Germany and the UAE.

Sesame seeds also offer promising markets with Asian countries leading the pack. China, Japan, Korea Republic, Mexico, Poland, France, Lebanon, USA, Canada, and the United Kingdom are the real markets. A real market is a positive market with China, the largest estimated untapped potential for Nigeria with over 110 million dollars in value. Sesame seed exports from Nigeria offers plenty of room for growth with over 170 million dollars untapped potential for the ten interesting destinations. Finally, try to increase focus on emerging markets of South Korea, Mexico and Poland.

Buyer/Contract Sourcing Service

One of the challenges faced by businesses is how to get buyers for the chosen commodities. In the agro related business, it is the same as they faced the mirage of getting steady buyers who purchases the product they have got to sell.

We are in the age of Information and Communication technology which has transformed the way businesses are done. With the advent of digital and communication technology, the world all over has become a global village enabling business transaction to be done conveniently, easily and in lesser time.

Now, a new trend has emerged and it is growing. Buyers of different agro commodities goes online to search and source for products of their interest and owners or suppliers of those products would be contacted, fair deals would be made and closed. This has also enable us to source for buyers through our publicity online on various marketing platform for our numerous clients leveraging on the powers of technology.

Your agro product(s) will be seen by millions of prospective buyer enabling you make more sales and close deals.
As for us, it is the same. We are not going away from that not just because it is the future of marketing but because the result speaks. The world is there and everyone is connecting. Now is the time to key into this services to source for trade and business leads that you have always wanted.

We are a key provider of cutting edge agro business solutions that will carry our clients through the 21st century and beyond. We help our clients respond faster to opportunities, achieve more from their operations, exceed their mission and achieve their goals.

We achieve our mission by listening to you. This let us gain a full understanding of all your enterprise needs and their relationship to challenges at hand. Knowing your expectations and business goals up front allows us to do a better, more complete job and give you the high quality, professional service you deserve.

Export Plan
After you have researched your market opportunities, selected your target market(s) and gathered information with respect to these market(s) it is time to develop an export plan.

Five export plan tips
Keep your plan simple and to the point
Always include your unique value proposition. Describe what differentiates you from your competitors
Always develop a very concrete budget plan
Keep your target market in mind when defining your export plan
A good export plan guides you seamlessly through different export processes. It helps hugely when you are in touch with (financial) advisers, brokers and governmental bodies

Your benefits
A well-written export plan will assist you in defining export goals and match your resources to those goals. Focusing your resources allows you to provide excellent service delivery to your clients (importers). It makes your company stand out, projecting it as one that has realistic goals with outlined plans on how to achieve them. Last but not least, it will guide management on long-term commitment for exports.

Key elements
A good export plan consists of certain key elements. NEPC developed a guideline on export plan development for exporters. This includes the following key topics:

Company profile (about us)
Key features of target market(s)
Competitors’ analysis
Market entry strategy
Unique selling points
Promotional strategy
Branding (if relevant)
Logistical planning
Action plan
Resources required

Export Documents and Procedures
To export from Nigeria you should follow the appropriate export procedure. This is a formal process in conducting international trade in Nigeria. Certain export documents are attached to this procedure. Export documentation is necessary to facilitate exports of goods and services.

Importance and advantages
Following the structured export procedure will give you a better understanding of the full export process. Hence, your company will benefit from the right and up-to-date knowledge you receive by following the right procedure. Besides, it leads to:

Minimising your export risks ensuring that exported goods conform to importing country specifications.
Meeting buyer requirements for export by providing evidence of origin and delivery.
Supporting you to formalise your export business
Supporting you in qualifying for export incentives

Understanding the Market
In order to develop your export business into a success, you should make sure that you understand your target market(s). This means you have to do some research about your export destination(s). It allows you to access market opportunities and the cost of capturing them.
Good market research should not be an academic way of only embedding assembled facts and figures. It rather has to focus on what drives your target market(s) and how to get the best out of it.

Top tips to understand the market
Gather basic market information, from import regulations to trade statistics. You can make use of several freely available Market Analysis tools.
Narrow the focus of your research to your product or service. This will make the whole process more specific.

Research competitor markets.
Find out what they are doing right and how they are doing it.
Attend market-specific seminars.
Seek out practical advice for experienced businessmen.
Develop direct contacts with potential buyers.
You can make use of several freely available online directories.
Try to understand the market environment.
Relevant trade fairs and embassies are good sources of information.

Research areas
The first step of market research includes gathering basic information, ranging from import regulations to trade statistics. You should include several areas in the first phase of your market research. The most important aspects are:

Trade statistics and trends
Trade policies
Regulatory framework
Business environment
Business culture
Distribution channels
Trade logistics
Risk assessment

Product specific market research
After you have gathered and analysed basic information, you should narrow down the research to your specific product or service. This also involves presenting your product or service to buyers overseas. Gather feedback on your offer by sending data or samples to buyers. Also pay attention to analysing the competitors of your target market(s) in this stage.

International buyer directories
You want to send out your product samples to get feedback from buyers. But how can you then find your buyers? Fortunately there are plenty of international buyer directories available (some free of charge, others with paid subscriptions).

Exporter advantages
While it will take some time, good market research gives you several great advantages in your further export process. The main benefits for you:
It helps you to identify your most promising market
It will include rich inputs for your export plan
It will give you full understanding of the competitive landscape of your target market
It will support you in minimising risks and maximising prospects.

Relax and let's educate comprehensively on Agro export business in Nigeria.

Before starting your export venture, it's necessary to register your business preferably a limited liability and with its certificate, proceed to Nigeria Export Promotion Council (NEPC) to register and obtain your Export certificate.


E-Registration
When you want to export from Nigeria you are obliged to register at NEPC. You can only register as an exporter via the e-registration platform. This page presents all the information you need to know about obtaining an Exporter’s Certificate from NEPC.


Additional benefits
Besides the fact that you need an exporters certificate for exports, registering at NEPC gives you a lot of additional advantages:

You have the availability to trade promotion support services from NEPC
You are able to request NEPC administered (pre- and post-)export incentives
You can register for numerous trainings, clinics, seminars, and more
You can collaborate and exchange ideas through a network of exporters

Guidelines & Procedures
Before you can proceed and register as an exporter you have to take some preparations. There are documents required for completing the full registration process. The required documents depend on your type of company:

When you have all the documents at hand you can start the registration procedure on the e-registration portal (link at bottom of page). Register at the portal, log in and start the e-registration for exporters. Include all requested documents in your registration.


Fees & charges
Obtaining an exporters certificate involves some costs. Different charges apply for different situations:

Note: The E-registration platform was launched on the 3rd of April, 2017 and only companies registered after this date will be eligible for renewals. All companies registered before this date with expired certificates will need to migrate to the new platform by registering afresh for a new certificate.

Payment methods
After you filled out all the requested information you have to pay for your registration. There are several payment methods available, including:
Nigerian local cards
International credit / debit cards
Internet banking
Commercial bank branch in Nigeria

Dear prospective Exporters and value chain players in Nigeria, let's highlight the opportunities, guides and challenges in Agricultural Export business. What are the processes, documentations and opportunities it presents and how can technology improve agro Export business? How can you trade internationally and earn foreign exchange without hiccups? How can you tap from the CBN and FG intervention and empowerment programs to support the non oil export sector? What are other incentives available international to enable free export trade? How can you meet or exceed commodity quality standards for our agro products? Insightful knowledge and right information is key to success in Agro Export trade.

For enquiries and support, reach or WhatsApp 07033097160