Export business and investment opportunities within Agricultural value chains in Nigeria, by Agbaji Chinedu
Today’s Agribusiness
This is a business of exporting Agro produce to other parts of the world such as moringa seeds/leaves, baobab powder, garlic, ginger, hibiscus flower (aka Sorrell/roselle), sesame seed, charcoal, shea butter, bitter kola (Garcinia kola), aloe-vera gel, dried pepper, dry bell pepper, kola-nut, dry okra, cashew-nut, wood log, etc.
The opportunities in the export business are not limited to exporting alone, in the value chain there are so many opportunities that can accommodate as many people as possible that venture into this business.
READ ALSO: Farm produce storage business is now, by Agbaji Chinedu
Agro produce export is not new in Nigeria but the potentials are untapped because of over-dependence on crude oil. This Agro business venture is not tapped to the maximum as it offers a high return on the investment with minimum risk and great opportunities for growth. Some of the above-highlighted commodities are in high demand overseas with high prices.
The opportunities in agro produce export value chain
Exporters: Exporters are the receiver of the products and they deal with the international markets. In the export value chain, an exporter can decide to deal with any of the agents or commodity merchants. He or she can also decide to pay in advance for the products or pay when the commodity is delivered to the warehouse.
A lot of Nigerians are operating a highly lucrative export company and they are making a steady income of between N500,000 and N10,000,000 per month regularly, and in their spare time. The profit from the first transaction can be ploughed back and an investor will be able to build up his capital base. The cheapest exportable product is charcoal and the startup capital required is about N1,150,000; while the profit return on investment is N250,000 per trailer.
However, the sad truth is that Nigerians cannot even meet the demand coming from the European countries now. If you have the ability to sell, and an air of diplomacy; the export business might be right for you. All you need is the desire and determination to make it work.
Sourcing of Agro produces: As a product sourcing agent you can conveniently plug into the export value chain. This is a good way to build up a successful exportation business from nothing and have fun doing it. Not only does it require little financial investment to start, but it offers the prestige of working with Nigerian exporters spread all over the country.
What you need to start: In all honesty, you don’t need previous experience in the field to get started, but you should have a good head for organising and paying constant attention to little details.
Making contacts with exporters: As a product sourcing agent, you will need to make contact with the Nigerian exporters. You can register with some trade portals where you will have access to their chosen commodities, specifications and contact details. You can also send a mail to them and inform them that you can meet their requirement. However, you will need to submit a product sample to your potential clients; then you can go ahead to discuss the price and the terms of payment.
Your clients: As a product sourcing agent, you will deal majorly with farmers. You will need to go to their farms and deal with them directly and you might need to transport the commodity to the city. You can also deal with the local buying agents and the commodity merchant. Although this can be an expensive route to take, they make product sourcing very easy.
Freight forwarder: They act as an import/export agent, or a go-between, taking care of the details of moving goods into or out of a country. Sending products from one international destination to another can involve a multitude of carriers, requirements and legalities. In other words, the freight forwarder who in most cases is a customs broker is the one that actually tells an exporter the cost of shipping and insurance.
Warehousing: The cost of renting a warehouse in Lagos and its environs runs into millions of naira. Warehouse owners make nothing less than N10 million to N20 million annually in renting a warehouse to prospects even on a shorter tenure. A standard warehouse accommodation in Nigeria goes for N100, 000 per week when there are minimum demands. You can actually generate up to 50 million in a year, but not to exaggerate, we have had exporters beg for space to store goods for a year at the cost of N12 million per time, less than a year in desperation to secure the goods.
Packaging services: A packaging company provides packaging of personal and commercial goods for individuals and companies. Depending on a client’s needs, professional packaging may be requested for moving, storing goods, or shipping items. If the packaged goods are to be shipped, it is an added service of a packaging business to provide shipping. To get started in the packaging industry create a business plan, find suppliers, choose an operating location, secure business equipment, and create essential business forms.
Farming: You can make money by planting any of the country’s non-oil exportable products like cocoa, ginger, garlic, cashew nut, zobo, sunseed, sesame seed and make a lot of money. Farming has gone beyond hoe and cutlass; it is now a business that can bring good fortune to you if you make it a venture to venture.
Simple and easy guide to start exporting from Nigeria to overseas and earn in foreign currency
Register a company with CAC (Private Limited Liability), the one with a minimum of two directors.
Register as an exporter with NEPC (Nigerian Export Promotion Council).
Get adequate training/mentorship on how to navigate through the exportation journey (this shouldn’t be skipped if you really want to make money from this business and don’t want to run into losses).
Open a Domiciliary account with any commercial bank of your choice to receive your export proceeds.
Decide on which commodity you want to export (have like 10 commodities listed on the platform that gives exporters buyers)
Register on a platform that would give you unending genuine buyers.
Do a market survey to know the current price of the commodity you are about to export.
Do your plus and minus to know your selling price and convert that to dollars and euros per ton, remember you’re doing an international business.
Get a genuine forwarding agent that would process your shipment.
Get your buyer to send you a contract, sign your part and ensure they sign their part as well.
Work within the timeframe stated on the contract to send their goods.
Send bill of lading to your buyer and expect your payment to reflect in your domiciliary account within three (3) days.
Provide your invoice to the buyer to make payments.
Go to the bank where you opened your domiciliary account and collect your dollars and repeat the process again. Trust me this is the easiest way to become a millionaire in Nigeria irrespective of your age.
Finally, you can earn N150,000 on the spot per trip just sourcing and loading agro- exportable products from the hinterland and villages to Lagos.
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