It’s not a must to have a registered company before you can earn living trading. I must be sincere with you that even without export license; you can still be a “small scale” exporter exporting crayfish, kolanut, bitter kola, cow horn tips, on a range of 1-3mt. And this can be done by air cargo through the cargo wings of various carriers.
Most commodities pass through different stages of trading and at every stage; opportunity of making money is always open for serious agropreneur.
I will pick 3 commodities that have valid value chain system where you can make money “I mean good money “within the value chain. Cocoa bean seed, cashew nut and sesame seed
During the early stage of harvesting of these commodities, you can move down to the location where these can be found in large quantity and secure a mini warehouse. Keep buying from local farmers and keep your stock for at least 1 month of opening season. Soon, traders will flood the market to buy and sell to the exporters at different parts of the country.At this point, you are not going to handle logistics or any other charges of government papers apart from selling to them.
On the other hand, you can be a trader if your financial capability is a bit high and you can take bigger risk within the value chain. Submit your proposal to a recognized and register exporter with a good history of payment and seal an agreement of price with them before you move down to the farm location. Getting to the farm, as a trader, you don’t need to waste time sourcing yourself so far your target is to revolve your capital within a short period of time. Buy from different stock within a range and keep loading your truck at an interval of time of every 3days or 4days. At this stage, you will handle logistics cost and government papers until the goods get to your exporter.
NOTE: Most exporters don’t pay immediately maybe due to congestion at the offloading point or their policy .Either ways, find out when you can receive your payment in full and most of the exporter makes provision for cash to balance your truck driver. Understand terms and conditions before working with your money.
The final stage is the exporting stage. Big exporters give out LPO (local purchase order) to many traders at the beginning of every season. “ Most of these traders already have long-term contract with them and they have understood each other for a long time” traders receive payment based on the net weight of their supply maybe between 3-7days depending on the congestion at the offloading warehouse.
Becoming an exporter of large quantity of commodities, a proper team or workforce must be in place.
Administrative———– Quality control————–local storage facility—————-large capacity warehouse close to seaport——————logistic——shipment.
Big players occupy this stage of agro trading most but you can start from somewhere.” Nothing is impossible.”
NOTE: Most of the traders that deal with big exporters receive upfront payment and they only wait for balance after supply. So you can work your credibility with an exporter for some time before you can be offered such gesture. If you don’t default, every exporter will want to work with you then you can grow rapidly.