Saturday, January 30, 2010

World Commodity Export Ranking: Groundnut

Annual Volumes in MT of Top 10 producers of groundnut  2008/2009 

Friday, January 29, 2010

Profitability Profiles- Groundnut

Export Product Profile: Groundnuts

Description: The peanut, or groundnut (Arachis hypogaea), is a species in the legume "bean" family (Fabaceae) native to South America, Mexico and Central America. It is an annual herbaceous plant growing 30 to 50 cm (0.98 to 1.6 ft) tall. The leaves are opposite, pinnate with four leaflets (two opposite pairs; no terminal leaflet), each leaflet 1 to 7 cm (⅜ to 2¾ in) long and 1 to 3 cm (⅜ to 1 inch) broad. The flowers are a typical peaflower in shape, 2 to 4 cm (¾ to 1½ in) across, yellow with reddish veining. After pollination, the fruit develops into a legume 3 to 7 cm (1.2 to 2.8 in) long, containing 1 to 4 seeds, which forces its way underground to mature.

Harvest: Groundnuts have a growing period of approximately 5 months. Seeding typically occurs mid-April to mid-May, and harvesting is done between August and September
Locations: In Nigeria, Groundnut is produced in almost all the northern states. The leading producing states include: Niger, Kano, Jigawa, Zamfara, Kebbi, Sokoto, Kastina, Kaduna, Adamawa, Yobe, Plateau, Bauchi, Borno, Taraba, Gombe and Nassarawa

According to Food and Agriculture Organization (FAO), Indian Standard Institute (ISI) categories groundnuts, into three grades using different specifications as stated in the table below.

Grades of groundnuts required for milling % by weight (max)
Grade 1
Grade 2
Grade 3
Damaged and weevil kernels
Slightly damaged kernels
Shriveled and immature kernels
Split and broken kernels
Nooks, % by weight (max)
Admixture with other types
Total of 1-7 above (max)
Moisture content
Oil content on moisture free basis
Acid value of extracted oil (max)

1.     Edible groundnuts account for two-thirds of the total groundnut use in the United States.
2.     Popular confections include salted groundnuts, groundnut butter (sandwiches, candy bars, and cups), groundnut brittle, and shelled nuts (plain/roasted).
3.     Salted groundnuts are usually roasted in oil and packed in retail size, plastic bags or hermetically sealed cans. Dry roasted, salted groundnuts are also marketed in significant quantities.
4.     Groundnuts are often a major ingredient in mixed nuts because of their inexpensiveness compared to Brazil nuts, cashews, walnuts, and so on.
5.     The primary use of groundnut butter is in the home, but large quantities are also used in the commercial manufacture of sandwiches, candy, and bakery products.
6.     Boiled groundnuts are a preparation of raw, unshelled green groundnuts boiled in brine and typically eaten as a snack in the southern United States where most groundnuts are grown.
7.     More recently, groundnuts can be fried, where they can be eaten both shell and nut.
8.     Also groundnuts are used in cosmetics, nitroglycerin, plastics, dyes and paints

Export market: The major groundnut importers are the European Union (EU), Canada, and Japan. These three areas account for 78% of the world's imports.

Export price: Groundnut unlike cashew nut is usually exported as kernel (i.e shelled groundnut) The export free on board (fob) price of groundnut varies from about USD 800-1,100/MT depending on the grade.

Local price: The average local prices per metric tonne (MT) of the three grades of groundnuts from Kano market in Nigeria are as follows:
Local Price /MT
Grade I
Grade II
Grade III

Export Order /Contract Sourcing Strategies

Profitability Profiles- Cashew nut

Profitability Profiles: Sesame Seed

Profitability Profiles- Gum Arabic

Thursday, January 28, 2010

World Commodity Export Ranking: Cashew Nut

Annual Volumes (In MT) of Top 5 CASHEW NUT Producers in The World in 2005 

World Commodity Export Ranking: Sesame Seed

Annual Volumes (In MT) of Top 10 SESAME SEEDS Producers in The World in 2005 

World Commodity Export Ranking: Ginger

Annual Volumes (In MT) of Top 10 GINGER Producers in The World in 2008

World Commodity Export Ranking: Gum Arabic

Average Annual Exports Volumes (In MT) of Top 10 producers of GUM ARABIC for the period 1990-1998

Tuesday, January 26, 2010

Export-Path: Exporting Finished Products In Bits or Bulk To The American Markets

Export Path® is a public-private partnership (PPP) comprised of public, private and non-profit entities from more than a half dozen countries. The partnership exists to assist small businesses from the US and Canada to enter emerging markets, and to assist small businesses in emerging markets develop products for the US and Canadian markets. It supports bilateral trade with and between emerging markets.

The critical benefit of this platform is that it provides a simple and efficient means for companies to explore many markets at the same time, at minimal cost. Partners work together to assist companies looking at various markets for their goods and services. It is private sector-led. Partners include various embassies,trade development agencies, banks & financial institutions, investment promotion agencies, non-profit trade support groups, and so on. Export Path is headquartered and coordinated globally out of the Washington DC area.
Export Path® provides very specific assistance to businesses. These include:

1. Hands-on assistance with development of products & services for new markets.

2. Hands-on assistance with new market development including access to vetted & qualified partners, buyers and suppliers.

3. Access to loans for investment and grants to support business development.

4. Hands-on assistance with new market entry including regulatory & operational support.

For more info please visit: 

Friday, January 15, 2010

Post-Export Documentations (Exchange Control Documentations) In Nigeria

Upon shipment of the goods, the following documents (called exchange control documents) are required by CBN to be submitted to the bank;
  1. NXP form duly endorsed and stamped by the Nigeria Customs Service.
  2. Receipt of payment for Nigeria Export Supervision Scheme (NESS) fees i.e naira equivalent of 0.5% of the FOB value of the shipment. This can be done in designated commercial Banks  in Nigeria.
  3. Single good declaration (SGD) form issued by the Nigeria Customs Service
  4. Clean Certificate of Inspection (CCI) issued by Cobalt International Services Limited
Other documents include copies of :
  1. Bill of lading
  2. Invoice
  3. Packing list

Pre-Export Documentations In Nigeria

The following documents are required by Central Bank Of Nigeria (CBN) to be submitted by the exporter to any Commercial Bank before any legal export can take place. These documents are five in number and they include:

  1. Completed original NXP form (This can be obtained from any commercial Bank in Nigeria)
  2. Copy of a valid export license (This can be obtained from the Nigeria Export Promotion Council)
  3. A Valid Proforma Invoice (The invoice must be on exporter's letterhead, dated and signed)
  4. Completed original copy Cobalt Request For Information (RFI) form
  5. Copy of the Certificate of incorporation (This can be obtained after registration of a company with Corporate Affairs Commission)  

Thursday, January 14, 2010

A Typical Value Chain Of Exportable Commodities In Nigeria

The chart above shows the typical value chain of exportable commodities in Nigeria from the farmer that cultivates the commodities to the Importer that will utilize them as raw materials for its industry abroad.

An exporter can therefore source the commodities from farmers and LBA directly at a cheaper rate. Nevertheless, the risk of transportation and the likelihood of purchasing poor quality commodities will be borne by the exporter.

However, these risks can be lessened.  To reduce the transport risk, exporters should do a good in transit (GIT) insurance with a reputable insurance company. To minimize the risk of purchasing commodities with poor qualities, the exporter should visit the commodity markets and LBAs with the samples of commodities that meet the importers’ specifications. This is to enable them compare the commodities to be purchased with the samples before payments.

The ABC Of Transporting Commodities In Nigeria

1.       Avoid booking for a road side truck, it is illegal and could be dangerous
2.       Book your truck at the transporter’s office
3.       Confirm the efficiency of the transport company and their drivers before engaging them
4.       Do a good in transit (GIT) insurance with a reputable insurance company through a good broker
5.       Endeavour to know the capacity of the trucks before loading it
6.       Find a warehouse at the destination before the truck arrival to avoid truck demurrage
7.       Get the contact numbers of the company and the truck driver for proper monitoring during the journey
8.       Hired truck drivers’ attitude could be annoying, please be patient with them
9.       Inquire from other exporters the challenges they face with transport companies so as to prepare your mind
10.   Journey to the destination could be delayed, therefore do not be unnecessary apprehensive