Post by Trade facilitator on Jul 11, 2022 13:51:58 GMT 1
How To Start Exporting Palm Oil From Nigeria: Understanding The International Market
The exportation of palm oil from Nigeria to other countries is quite different from selling it in the local market. You must pay attention to all we are going to teach you here. You will need to understand the ropes of the exportation business well so you will not fail.
For quite some time we have been exposing a lot of requirements for going into the European markets with your products, especially agricultural produce. There are special requirements you must meet before your produce will be allowed into the European market. However, in this article we are going to start with the basic things you need to start exporting palm oil from Nigeria.
There are some aspects that you will need to understand about the exportation business; these include requirements for a license, where and how to source for products, port processes, marketing strategies, how to find foreign customers, maximize profits in business deals, etc.
According to export reports in 2020, Nigeria exported $1.06M in Palm Oil, making it the 69th largest exporter of Palm Oil in the world. At the same year, Palm Oil was the 137th most exported product in Nigeria.
In the same 2020, the top exporters of Palm Oil were Indonesia ($17.9B), Malaysia ($10.6B), Netherlands ($1.03B), Guatemala ($466M), and Papua New Guinea ($434M). As for imports In 2020, the top importers of Palm Oil were India ($5.04B), China ($3.66B), Pakistan ($2.15B), Netherlands ($1.72B), and Spain ($1.25B).
Palm Oil is known to be an excellent source of phytonutrients. The demand-supply gap thereby opens up opportunities for investors in this sector.
After painstaking analysis and research, it is found out that the demand for palm kernel oil, for commercial, home and even industrial purposes will continue to increase and this is the same for other by-products, making it a lucrative business with rewarding returns on investment.
The demand for the various palm oil by-products is high and will continue to be so because Cosmetics, Food, Animal Feed, Soap Manufacturing, Confectioneries, and Bio-diesel industries, among others need them for their products.
Sourcing The Palm Oil
As an intending exporter, your first point of concern should be determining where to source for palm oil. This is very important because regular supply of the commodity is an integral part of the business.
The other questions to be asked are:
Will you be processing the palm fruit into palm oil by yourself? In trying to decide on this you need to check your available resources, whether you can handle such a task. Or will you buy the already processed palm oil?
If you intend to go for the already processed palm oil, then you have to be sure of where to purchase the palm oil at the best quality and at the cheapest price so you can get the best deals.
Ensure you have the contacts of people who are already in the business and who can link you up with a consistent supplier or manufacturer who will be able to provide you palm oil on a regular basis.
Consistency is of utmost importance in this business because your foreign buyers will not like disappointment. You must therefore have a very solid contact for your commodity sourcing.
A good place in Nigeria to source for suppliers of palm oil is Akwa Ibom State. Akwa-Ibom state is currently the largest producer of palm oil. Other states that produce palm oil in large quantities are Cross River state, Rivers state, Abia state, Imo state, Ondo state, Edo state, Delta state, Ogun state, and Bayelsa state.
In the next article on the exportation of palm oil in Nigeria we are going to look at the various procedures involved in the practical aspects of the business.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
The exportation of palm oil from Nigeria to other countries is quite different from selling it in the local market. You must pay attention to all we are going to teach you here. You will need to understand the ropes of the exportation business well so you will not fail.
For quite some time we have been exposing a lot of requirements for going into the European markets with your products, especially agricultural produce. There are special requirements you must meet before your produce will be allowed into the European market. However, in this article we are going to start with the basic things you need to start exporting palm oil from Nigeria.
There are some aspects that you will need to understand about the exportation business; these include requirements for a license, where and how to source for products, port processes, marketing strategies, how to find foreign customers, maximize profits in business deals, etc.
According to export reports in 2020, Nigeria exported $1.06M in Palm Oil, making it the 69th largest exporter of Palm Oil in the world. At the same year, Palm Oil was the 137th most exported product in Nigeria.
In the same 2020, the top exporters of Palm Oil were Indonesia ($17.9B), Malaysia ($10.6B), Netherlands ($1.03B), Guatemala ($466M), and Papua New Guinea ($434M). As for imports In 2020, the top importers of Palm Oil were India ($5.04B), China ($3.66B), Pakistan ($2.15B), Netherlands ($1.72B), and Spain ($1.25B).
Palm Oil is known to be an excellent source of phytonutrients. The demand-supply gap thereby opens up opportunities for investors in this sector.
After painstaking analysis and research, it is found out that the demand for palm kernel oil, for commercial, home and even industrial purposes will continue to increase and this is the same for other by-products, making it a lucrative business with rewarding returns on investment.
The demand for the various palm oil by-products is high and will continue to be so because Cosmetics, Food, Animal Feed, Soap Manufacturing, Confectioneries, and Bio-diesel industries, among others need them for their products.
Sourcing The Palm Oil
As an intending exporter, your first point of concern should be determining where to source for palm oil. This is very important because regular supply of the commodity is an integral part of the business.
The other questions to be asked are:
Will you be processing the palm fruit into palm oil by yourself? In trying to decide on this you need to check your available resources, whether you can handle such a task. Or will you buy the already processed palm oil?
If you intend to go for the already processed palm oil, then you have to be sure of where to purchase the palm oil at the best quality and at the cheapest price so you can get the best deals.
Ensure you have the contacts of people who are already in the business and who can link you up with a consistent supplier or manufacturer who will be able to provide you palm oil on a regular basis.
Consistency is of utmost importance in this business because your foreign buyers will not like disappointment. You must therefore have a very solid contact for your commodity sourcing.
A good place in Nigeria to source for suppliers of palm oil is Akwa Ibom State. Akwa-Ibom state is currently the largest producer of palm oil. Other states that produce palm oil in large quantities are Cross River state, Rivers state, Abia state, Imo state, Ondo state, Edo state, Delta state, Ogun state, and Bayelsa state.
In the next article on the exportation of palm oil in Nigeria we are going to look at the various procedures involved in the practical aspects of the business.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
