Friday, June 10, 2011
Tuesday, June 7, 2011
Trade Synergy between Nigerians at Home and Abroad
Trade Synergy between Nigerians at Home and Abroad
It’s no more news that Nigerians are scattered all over the world and that out of every 4 blacks you see on the surface of the earth, one of them would likely be a Nigerian. This to me is a very big opportunity as far as the export business is concern but we are nowhere near tapping into these potentials as the Asians have done for over past 3 decades. The ever increasing population of Nigerians in different parts of the world (which are potential export market) is a great opportunity for the Nigerians at home to explore by simply working with other Nigerians abroad to develop the export markets.
Apart from the facts that most Nigerians and other Africans in all these countries are hungry for African foods, clothing and other items of African Origin, these countries are highly industrialized and they therefore need most of the Nigerian commodities (both Solid Minerals and Agricultural commodities) as raw materials to be used in producing various items in their factories.
To the extent that trade synergy between Nigerians at home and abroad is of great benefit to both parties and our nation at large, it is also interesting to note that this trade synergy have weaknesses and threat which confronts the strength and opportunities respectively. The SWOT analysis below reveals the details of the Strength, Weaknesses, Opportunities and Threat of the proposed trade synergy between Nigerians at home and abroad.
1. Strengths
a. Seller understands the local market
b. Buyer understands the export market
c. Buyer and seller can easily do due diligence on each other
d. Buyer and seller can get references and/or a guarantor if need be
e. 3T Impex will work as buyer’s agent to ensure that good quality products are supplied
f. 3T Impex will work with the seller to review the export contract and obtain a favourable payment terms
2. Weaknesses
a. Inadequate skill to better manage the business
b. Inadequate finance
c. Inadequate local market information
d. Inadequate export market information
e. Inadequate infrastructure for quality analysis
f. Locating reliable suppliers in Nigeria and credible Nigerian buyers abroad
3. Opportunities
a. Inexhaustible export market demands
b. Multiple export markets
c. Export market development for more Nigerian products
d. Large array of exportable commodities in Nigeria
e. Large deposit of solid minerals in Nigeria
f. Large volume of exportable waste generate daily in Nigeria
4. Threats
a. Fraudulent buyers and /or seller
b. Supply of low product quality
c. Political unrest and country risk
d. Buyer’s insolvency and payment risk
e. Foreign Exchange risk
f. Trade barriers strategies operational in different countries
To tackle most of the issues (weaknesses and Threat) raised above and thereby reducing the inherent risks in this synergy and thus making the proposed international trade business synergy feasible between Nigerians at home and abroad, 3T Impex Consulting Limited have designed a service called the Nigerian Trade Synergy Service (NTSS).
For more information on how the NTSS works, kindly check our next blog posting titled 3T Impex Service: Nigerian Trade Synergy Service (NTSS).
Thursday, June 2, 2011
Wednesday, June 1, 2011
Product Profile: Shea Nut
Description:. Shea nuts are primarily grown in West and Central Africa in the semi-arid Sahel,referred to by traders as the "Shea Belt". Vitellaria paradoxa and Vitellaria nilotica are the two main varieties. Vitellaria paradoxa is exported in the largest volume and grows throughout the West African region.Vitellaria nilotica is produced primarily in northern Uganda and southern Sudan.
Harvest: Shea nut trees grow widely and naturally in West Africa. They only begin to bear fruit after about 20 years and do not reach maturity for 45 years. They may continue to produce nuts for up to 200 years after reaching maturity. The nuts, which are embedded in a soft fruit, fall to the ground during the harvesting period (typically June through August). They are then buried in pits which cause the pulp to ferment and disintegrate and produce enough heat to prevent germination. The nuts are dried for a few days and are later shelled and winnowed, usually by hand. The kernels are dried further to reduce moisture content from about 40 percent to about 7 percent.
Locations: Sheanut grows in the wild across the Sudan-Sahelian region of Africa. The major producing countries are: Nigeria, Togo, Benin, Ghana, Uganda, Mali, Burkina Faso and Central African Republic. Nigeria is currently the leading producer of Sheanut in the world and in 2004 Nigeria's production of the commodity was 414,000 metric tonnes with export value of US$61.04 million (Source: FAO). Shea nut is grown in Kwara, Kogi, Niger, Oyo and Ogun state. It can also be found in a number of the northern states of Nigeria.
Specifications: Individual companies specify their own quality standards for purchases of shea nuts. The following is a benchmark for the composition of the shea nut required for import:
| Features | Percentage |
| Free Fatty Acids (FFA) | less than or equal to 6% |
| Moisture Content | less than or equal to 10% |
| Oil Content | greater than or equal to 45% |
| Latex | 4-10% |
| Impurity | 0-2% |
The oil content is the most crucial element of the shea nut as that component is an important ingredient in the composition of the butter that goes into Cocoa Butter Equivalents and other by-products. If the oil content is higher and the FFA and moisture content is lower, then the exporter will receive a price premium.
Uses: Shea nuts are mainly use in the production of Shea Butter. Therefore all the uses of shea nuts are invariably embedded in the economic importance of Shea Butter. This information can be found under the Shea butter product profiles on this blog. Click this link for these details http://exportnigeria.blogspot.com/2010/08/product-profiles-shea-butter_6444.html
Export market: A few companies based in Europe control the import market for shea nuts. Their main clients are chocolate manufacturers as the shea nut by-products are among the principal ingredients in cocoa butter equivalents (CBEs). Major destinations for Nigeria's Sheanut are the EU and Japan. Major European importing companies are primarily based in Denmark, Sweden and the UK.
Export Price: The export market price on FOB terms ranges from USD350-650/MT and sometimes or even more depending on the period during its season.
Local price: The local market price of shea nuts per MT ranges from NGN40,000 to NGN80,00.00 or even more to deliver it to Lagos during the season.
Subscribe to:
Posts (Atom)