Data from the Nigerian Export Promotion Council (NEPC) has shown that there is an untapped estimated $170m Sesame seed market globally and with Nigerian Sesame seed in high demand globally, it is a major export market.
Nigeria produces over 580,000 tonnes of Sesame Seeds every year. Irrespective of the figure being smaller than some other local agricultural product production rates, Sesame Seed has now become one of Nigeria’s largest exported agricultural products.
Nigeria is the second-largest producer of sesame seeds in Africa and the seventh-largest in the world.
Sesame Seeds are abundant in multiple local large markets mostly located in Northern Nigeria. The mere fact that it is rarely consumed or used in Nigeria, makes the sesame seeds export from Nigeria potentially large since the world’s demand for sesame seeds keeps growing at a rate of over 4% yearly. Meaning that over 95% of all Sesame Seeds produced in Nigeria are exported by sesame seeds exporters in Nigeria as either hulled or un-hulled sesame seeds.
With abundant local availability of Sesame Seeds in Nigeria and a great global demand for Sesame Seeds from Sesame seed buyers in Japan, China, Turkey, India, Vietnam, Netherlands, Germany, Greece, France, Poland, and many other places around the world, venturing in the Sesame Seeds export business by prospective and current Sesame Seeds exporters in Nigeria can be a great way to earn foreign exchange.
What Is Sesame Seeds Export About?
Sesame Seeds export is the export of Hulled or Un-hulled Sesame Seeds from Nigeria to international buyers located in various parts of the world. It is processed upon arrival at the buyer’s facility for various food uses like in the production of Sesame Oil, in a bakery, powder for food, and much more.
Facts About Sesame Seeds Export
Sesame Seeds are majorly grown in the Northern regions of the country.
Kano, Maiduguri, Bauchi, and Benue grown Sesame Seeds are the most demanded Sesame Seeds for export by Sesame Seeds buyers from Sesame Seeds exporters in Nigeria.
Growing Sesame Seeds can create a great source of employment.
Sesame Seeds are also called Benne Seeds in Nigeria.
There are White, Black, and Brown Sesame Seeds.
The profit margins on the sale of Sesame Seeds to international buyers can be anywhere from 15% to 40% depending on if you’re the farmer or are purchasing from the farms.
As a broker, you can venture into this business with $0.
Types Of Sesame Seeds
1). Unhulled Sesame Seeds:
Unhulled Sesame Seeds are natural sesame seeds that are still embedded in their hulls or seed coatings or chaff after harvest. They can be eaten and have a crunchy different taste than the hulled Sesame Seeds. They are harvested as either brown, black, or white Sesame Seeds.
Unhulled sesame seeds are the most exported types of Sesame Seeds by Sesame Seeds exporters in Nigeria.
2). Hulled Sesame Seeds:
Hulled Sesame Seeds are Sesame Seeds that have been processed to remove the hulls or outer coverings. They can also be harvested as either brown, black, or white Sesame Seeds.
Hulled Sesame Seeds are exported in much smaller volumes than unhulled Sesame Seeds by Sesame Seeds exporters in Nigeria.
Business Opportunities In Sesame Seeds Export
1). Sesame Seeds Export:
Sesame Seeds are usually sold at varying amounts at the farms, local markets, or processing centres, and are then further resold to international buyers at varying prices per metric tonne depending on the specification, the seller’s connection to the farms, the trade process, and the final negotiations with the buyer.
In all, your profit margin from the export of Sesame Seeds from Nigeria can be anywhere from 15% to 45%.
2). Sesame Seeds Brokerage:
Most people have zero cash to start a Sesame Seeds export business, and as such, start by venturing into Sesame Seeds brokerage. Most of these brokers can be found in India, Vietnam, China, and China. They source Sesame Seeds buyers and sellers and try to make a deal happen in exchange for a commission on the trade.
You can join the growing number of Sesame Seeds exporters in Nigeria by venturing into the Sesame Seeds brokerage business, through linking a buyer to a seller, and in the process, earning a commission on every successful trade you close.
Setting Up Your Sesame Seeds Export Business
The first step to starting a Sesame Seeds export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council and any local associations regulating the purchase and sale of Sesame Seeds.
Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.
Find The Direct Farms and Sources For Exports:
Although this can be done before, during, or after your company has been registered with the appropriate bodies, the next step is to source for the direct farms, markets, and processing centres that would be supplying the Sesame Seeds for you on behalf of your clients.
It’s usually better you get direct access to the farmers, so you can get the best possible price. Going through a proxy could waste more time, cost more money, and reduce your profit margins.
Setup A Proper Business Structure, Trade Process, & Branding:
During or after registering and securing your buyers, it is important you set up a proper business structure that looks internationally reputable. Some ways to do this are to build an international standard website, get a business address, create a company profile, and also have a corporate offer format you can customize and send to buyers who request an offer. Also set up a corporate email that reads something like this: “email@example.com”.
If renting an office is too expensive, you could pay for a virtual office at a co-working hub and use their address for meetings.
When you organize your company this way, buyers will feel really confident about doing business with you and will tend to choose your business as their preferred partner.
Source For Buyers:
The next thing is to source for international buyers for your products. You can do this by registering on various e-commerce websites like www.exportersindia.com, www.alibaba.com, www.linkedin.com and several others.
You can also build an influential social account on LinkedIn and market your Sesame Seeds to a unique business audience you’d build over time.
Export Your Products:
Upon sealing agreements with the Sesame Seeds buyers, getting issued an Irrevocable Corporate Purchase Order, signing a Sales and Purchasing agreement, and more, Sesame Seeds Exporters in Nigeria can then proceed to ship the Sesame Seeds to the buyer.
The shipment could be done on either a Free On Board (FOB) or Cost, Insurance, and Freight (CIF) basis. FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.