Unknowingly, most people mixed up agro commodities trading up without defining which aspect of it they will trade on. But I will help you to categorize it in a very simple way for you to understand.

Animal extract; Trading and exportation of animal extract have some limitations and you have to be careful because not all countries allow the killing of their animals. Most of these commodities are illegal e.g. (elephant tusk, crocodile skin, python skin, donkey skin, hides and skin, cow horn etc). This is too risky with high profit margin. You need to learn more about their terms and conditions before venturing.

cow-horn-tips   cow-horn-tips

dry-donkey-skin   full-cow-horn

Agricultural raw materials; trading this needs a lot of commitments and involves a huge sum of money to start. A lot of big players are involved so competition is very high. Most buyers of this category of commodity make payment with LC (letter of credit) therefore it gets frustrated if you don’t have collateral to stand in for bank loan because not every buyers can make upfront payment for first time contract. While battling with money to export 50tons of cocoa bean seed, other big players are ready to export 10,000mt without delay. But if the capital is readily available or you have a good investor, then you are good to go. example of these products includes; cocoa bean seed, cashew nut, sesame seed, maize, gum Arabic, hibiscus flower, hardwood and charcoal e.t.c

cashew-nut  processed-cashew-nut

warehousing

Agricultural waste; trading this involves visiting and signing MOU with agricultural processing factories home and abroad to get their waste at some time interval. Most agricultural industrial waste serves as a major raw material for the production of some goods most especially the ones with high protein that can be used for animal feed. examples that fall under these categories are; palm kernel shell, palm kernel cake, wheatofer, cow bone, cocoa bean shell, sugar cane molasses, saw dust, cashew nut shell and cocoa nut husk.

blood-meal  canola-meal-4

cocoa-bean-shell  coconut-husk

Define your trade plan and work on it. remember the higher you risk the better you become and with time you are on top of your trade experience

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s