overview of sesame business in nigeria

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OVERVIEW OF THE SESAME SEEDS BUSINESS IN NIGERIA Written by SOTONYE ANGA, GOLDCHAINS INTERNATIONAL LTD. May 2007. The sesame seed business in Nigeria is dominated by many small holder farmers. The collective efforts of these farmers have enabled the country earn a place in the export of sesame seeds globally. Nigeria produces about 120,000 tons of sesame seed annually. Major producing states are BORNO, TARABA, JIGAWA, KANO, NASSARAWA, YOBE, BENUE, PLATEAU. Locally there is very little processing of sesame seeds as such the bulk of sesame seeds grown is exported to Asia and Europe, where they are processed into vegetable oil, used as spreads on bread and in many other applications. On every ball of hamburger, you find sesame seeds well spread on it to give the attractive and inviting appearance. The demand of sesame seeds keep increasing as more and more use is been found for it across varied industries as food, beverage, cosmetics, pharmaceuticals etc. Nigerian sesame seed farmers directly sell their produce to exporters of sesame seeds but because in most cases they cannot make up the required volume to make commercial sense these farmers bring their produce to major open markets within the producing states. In these markets middlemen act as brokers on behalf of the farmer at a fee. These middlemen also represent individual Big merchants who ends up buying the sesame seed at an agreed amount and finally sells to the Exporters. This is the normal market process, that can also be bye passed due to its inefficiencies. Exporters today establish their own loyal representatives that buys direct from farmers. This process works best for the exporter as it gives him control over the quality of product, price, quantity and delivery time. There is no price control and the sesame seed market is an open market. To survive in this sesame seed market an exporter needs to be knowledgeable. Some exporters of sesame seed in Nigeria are Olam Nigeria, Dangote, Dantata, Goldchains International, Akkay, Afro asia industries, Amber castle Ltd, LBM overseas, Benjamin Foster, Shebag holdings. etc.

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Page 1: Overview of sesame business in nigeria

OVERVIEW OF THE SESAME SEEDS BUSINESS IN NIGERIA Written by SOTONYE ANGA, GOLDCHAINS INTERNATIONAL LTD. May 2007.

The sesame seed business in Nigeria is dominated by many small holder farmers. The collective efforts of these farmers have enabled the country earn a place in the export of sesame seeds globally. Nigeria produces about 120,000 tons of sesame seed annually. Major producing states are BORNO, TARABA, JIGAWA, KANO, NASSARAWA, YOBE, BENUE, PLATEAU. Locally there is very little processing of sesame seeds as such the bulk of sesame seeds grown is exported to Asia and Europe, where they are processed into vegetable oil, used as spreads on bread and in many other applications. On every ball of hamburger, you find sesame seeds well spread on it to give the attractive and inviting appearance. The demand of sesame seeds keep increasing as more and more use is been found for it across varied industries as food, beverage, cosmetics, pharmaceuticals etc. Nigerian sesame seed farmers directly sell their produce to exporters of sesame seeds but because in most cases they cannot make up the required volume to make commercial sense these farmers bring their produce to major open markets within the producing states. In these markets middlemen act as brokers on behalf of the farmer at a fee. These middlemen also represent individual Big merchants who ends up buying the sesame seed at an agreed amount and finally sells to the Exporters. This is the normal market process, that can also be bye passed due to its inefficiencies. Exporters today establish their own loyal representatives that buys direct from farmers. This process works best for the exporter as it gives him control over the quality of product, price, quantity and delivery time. There is no price control and the sesame seed market is an open market. To survive in this sesame seed market an exporter needs to be knowledgeable. Some exporters of sesame seed in Nigeria are Olam Nigeria, Dangote, Dantata, Goldchains International, Akkay, Afro asia industries, Amber castle Ltd, LBM overseas, Benjamin Foster, Shebag holdings. etc.

Page 2: Overview of sesame business in nigeria

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EXPORTE

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Page 3: Overview of sesame business in nigeria

Nigeria Earns N12.8 Billion Annually From Sesame Seeds Nigeria is the world’s fifth largest exporter of sesame seeds, with exports earning N12.8 billion annually from the 1,700 tonnes the country sends to the European Union and 22,000 tonnes to Japan, according to a Nigerian press report. The main production areas are in Benue, Kogi, Nasarawa and Taraba States. The world’s leading exporters are China, India and Sudan. Japan dominates the trade with an annual requirement of about 150,000 tonnes. Sesame seed is a source of highly nutritious oil used in cooking, but it is also used to garnish foods such as bread, as well as being used in the manufacture of pharmaceuticals, soap, cosmetics and animal feed. [BNBC April 2007]

Sesame seed taken from sesame plant are known for their versatile uses as flavouring agent and medium of cooking oil. Known for their rich proteins, fats, carbohydrates and fibres sesame seed are an important ingredient in culinary traditions of many countries, especially the countries in West Asia. Sesame seed carry 55% of oil content. Sesame oil is used for cooking, cosmetics, paints and lubricants. The byproduct obtained after extracting oil is used as feed for livestock.   

Page 4: Overview of sesame business in nigeria

Global output of sesame seed is estimated at around 3 million ton per year with India and China dominating production. Global sesame output occurs mainly around few countries in Asia and Africa. Global sesame seed trade is estimated 500,000-600,000 ton per year.(Commodity info.phb). SOTONYE ANGA, MAY 2007.