Nigeria is one of the world’s largest producers of peanuts, also known as groundnut in Nigeria layman’s language, however, groundnut exportation is growing in the global market. This has also contributed to the emergence of farmers in producing quality peanut ad has also improved total production output by both growers and the government, with a focus on oil content and pest-resistant seeds.
Where is Peanut Produced in Nigeria?
Peanuts are mostly grown in Nigeria’s northern states which are Adamawa, Niger, Taraba, Kaduna, Benue, and Kano. When the country found the profitability of growing and exporting groundnuts, these states were flooded with peanut pyramids.
These groundnut pyramids, which were ready to be despatched, were made from bags of peanuts. With time, Nigeria’s focus shifted from agriculture to oil, and the groundnut industry became less important.
Groundnuts, on the other hand, has returned as a viable crop for Nigerian farmers, owing to the rising demand for vegetable oil and peanut butter.
Where is groundnut exported from Nigeria?
The exporting of peanuts from Nigeria to foreign purchasers in various regions of the world is known as groundnut export. It is shipped semi-processed, and then upon delivery at the buyer’s plant, it is further processed for the intended usage. Nigeria exports groundnut to the Netherlands and China, among other countries.
Business Opportunities in Groundnut Export
Groundnut as a Commodity for Export
Groundnut is typically sold in various quantities at farms or local marketplaces and then resold to foreign purchasers at varied rates per metric tonne, depending on the specifications, the seller’s link to the fields, the trade process, and the buyer’s final agreements. Overall, your profitability from the exporting of peanuts from Nigeria can range from 15% to over 100% in very unusual circumstances.
When you have no money to start a company, the very first thing that needs to do is to start a brokerage firm that sells the products of that business. After getting the final sales price from the vendor, you might enter the Groundnut brokerage industry by connecting a buyer with a seller and adding a mark-up cost per 1 ton for your company.
However, it is critical to secure your commissions legally in order to run a successful brokerage firm. Any vendor who claims to be able to provide you without a contract is lying to you. If they become condescending and tell you that you must wait until you have a contract to obtain it, back away and look for another seller.
Groundnut packing does not have a standard size for export. Suction bags in cartons are the most common method of export packaging. Cans are sometimes used as packaging without even being labelled, or they might be branded to the purchasers’ specifications. Retail packaging is much diverse, but it is not commonly utilized in importation from the major exporting countries.
How to Export Groundnut
Some of the countries that groundnut is been exported to have their laid rules and guidelines, this is because it is necessary to help exporters keep to these guidelines to help them have a successful exportation business in these countries. Therefore exporters are expected to gain corporate ground by having a registered company from their own country and also have an online presence where their genuineness can be evaluated.
Knowing this guideline will variably help you as an exporter to have a successful exportation business in this country. It is also pertinent you as a supplier have a high capacity of groundnut so when the demand is required, you solely have the capacity to supply when the need arises.
Sometimes, you may want to employ the use of an e-commerce platform where they are several buyers and manufacturers who are ready for international business transactions such as ABEN.
ABEN is established for local farmers, manufacturers, buyers all over the world to connect, network and have excellent communication and optimally have a successful business transaction.
Visit our enquiry page for your request and we will definitely connect you to the best buyers of your choice.