Export Product Profile: Charcoal
Description: Charcoal is
the blackish residue consisting of impure carbon obtained by removing
water and other volatile constituents from animal and vegetation
substances. Charcoal is usually produced by slow pyrolysis, i.e. the
heating of wood, sugar, bone char, or other substances in the absence of
oxygen. The resulting soft, brittle, lightweight, black, porous
material resembles coal and is 85% to 98% carbon with the remainder
consisting of volatile chemicals and ash.
Harvest:
Hard wood charcoal can be produced year round. However it generally
advised that charcoal production and export should be done during the
dry season (from November to May). Production and export of charcoal
during the raining season could be rejected by buyers because of the
high moisture content (more than 10%) that usually characterized the
charcoal produced during this period.
Location: Charcoal
can be produced from different part of the country especially in the
south west region (Oyo, Ogun, Ondo, Ekiti e.t.c), south-south and
south-eastern part of the country (Enugu, Rivers, Cross river e.t.c) and
also in the middle belt (Kwara, Kogi, Abuja and Benue) area of the
country.
Specifications:
Ash content: 3% -4%max
Volatile matter: 5-10% max
Wood matter: 2-4% max
Size: 20-120mm
Carbon: 65%-80%
Moisture content: 8% max
Uses:
Charcoals are widely used for outdoor grilling and barbecues in
backyards and on camping trips. it‘s also used for House-Heating.
Historically, charcoal was used in great quantities for smelting iron
and later in blast furnaces and finery forges.
Export market:
The export markets for charcoals from Nigeria include Germany, Belgium,
Greece the Netherlands, Italy, Poland, Spain, Bulgaria and UK. The
largest exporters of charcoal in the EU are Poland, France, Netherlands,
Germany and Belgium. They buy and sell to the rest of Europe.
Export Price:
Hardwood charcoal is usually exported in jute bags or in bulk (i.e.
pours directly into the container). The Export free on board (fob) price
of therefore varies based on negotiation and the mode of packing. It
can vary from about EUR155 – 190/MT. At this fob price, the return on
investment (ROI) of charcoal could range from 25-45%
Local price:
The local price of charcoal varies depending on the location where its
being sourced and the form of package you require. It is usually sold in
a 30-33kg bags and the local price ranges from NGN 400-700 per bag
Charcoal Cost Profile and Profitability
