Many young entrepreneur or agropreneur gets frustrated sometimes when a buyer contacted them and after sometime, the buyer will disappear into the tin air. It’s not always there fault but they have another juicy offer from other suppliers somewhere.
Nigeria is not the only country that exports agricultural commodities therefore, other country’s market forces always affect us, the same way Nigeria price, quality and abundant availability also after other exporting countries.
Eight months ago, I had a valid contract for coconut crunch (made from coconut husk) mainly for potting soil in horticultural and vegetable farming. After my findings and I quote a price for them based on my previous experience doing the trial order, initially the buyers were ok with the price but the fright cost was too high compared to where they later resolved to buy. It was St.Lucia South America Island.
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Like I always tell people, Cameroon and Chad white sesame seed are of great quality and most buyers are ready to pay for the best quality. For example, If you quote FOB Lagos $500/ton, and someone in Duala quote $570/ton FOB smart and experience buyer will go for it not minding the $70 extra cost compare to Nigeria where aflatoxins are high due to preservative measures from our farmers.
But a good trader always know what his client want and can go as far as to other countries to source and sell well for his buyer and build his company brand by always providing good quality.
Hint* if you quote $570/ton from Nigeria and your quality is the same as the Cameroon with the same price or even slightly higher, they will check other factors such as boarding time and shipment procedure from both countries. So you stand a chance of winning the order.
Another instance I will like to share is the case of palm kernel shell (PKS) it’s readily available in large quantity in Nigeria but we can only secure contract from Europe. Mostly, China and India market prefers Malaysia shell because of distance (good sea freight quote), price and quality (most of their shell are clean from mold)
Tips* the good news is that we can convert out PKS palm kernel shell to charcoal before export (PKSC). Shell from Malaysia, Indonesia and Vietnam is lighter, thinner and burn to ash quickly during carbonation process. “their palm fruits are mainly meant to produce palm oil and palm kernel oil” it’s always a case of 70% red oil, 7%shell and 23% palm kernel oil but apart from the red oil that is gotten from our palm fruit, our kernel shell is thick and the energy output ranges between 4200kkal-4500kkal making the carbonation easy and the PKSC preferred among others.