How to Start Ginger Exportation Business in Nigeria

Filed in BUSINESS, RECRUITMENT by on November 2, 2019 0 Comments

Relatively unknown to many, Ginger, a well-known herb in Nigeria, has been a money-spinner for the individuals and companies who have set out to trade on it for many years now. As it is found in all the local markets nationwide,Ginger, regularly used as flavor in food and non-food substances is additionally being used as a recuperating agent to alleviate or soothe body pains.

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In fact, the extent to which Ginger can be used is practically endless. While a good number of Nigerians have confined Ginger usage to the two areas just mentioned, others have gone into its cultivation and processing with the goal of making profit from its sales, especially to the outside world.

Why Ginger Business?

(1) The market is there (Vey big and Wide)

Research shows that Nigeria produces about 40,000 metric tons of ginger per annum. Out of this figure, a small percentage is consumed locally in its raw form as well as for different uses; another percentage is processed into dried Ginger, while the remaining is exported overseas.

(2) Ginger Has Various Uses

As indicated by the World Trade Promotion Council, Nigerian ginger is highly accepted across international markets the world over especially for its fragrance, sharpness, and high oil plus oleoresin content.

Ginger has multifarious uses depending on the condition it is being processing into and the reason for which it is intended by the buyer. Ginger oil and oleoresin are derived from dried ginger and these have highly valued medicinal and other uses. Ginger oil, for example, is concentrated and is used as additive in creams, perfumes, drinks, and pharmaceuticals products like drugs.

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Dried ginger is usedmainly as flavor particularly in the Middle East. It contains restorative qualities and it is also used to reduce dizziness and improve memory. Dried ginger is also used as a condiment for cooking various delicacies. It is an important flavor in Asia, the Caribbean, and African meals.

(3) Nigeria is a Major Market in Ginger Exportation Worldwide

The aggregate world market estimate for dried ginger, where Nigeria is one of the three key providers is $15m. In reality, Nigeria’s contributes about 20 percentage of the world’s dried ginger. Other countries also into ginger production are United Kingdom, Germany, Spain, Netherlands, France, United States of America, Russia, Saudi Arabia among others.

How To Start Ginger Export Business

To begin an export business in ginger, cash is not the most important thing. You need the knowledge, the correct mindset and the target market. Once you are able to place these, together with personal self-control, you are guaranteed to make it in ginger business in Nigeria. What you require to succeed in any business these days is Integrity, trustworthiness, and industriousness. If you have all these, you are just clicks away from making it big in the ginger marker business in Nigeria. It is possible to make between N50 000 and N500 000 monthly trading in Ginger in Nigeria. What you do is plough back these resources into the business and watch it grow big with time.With this background information, therefore, let’s now see the process of getting the business started.

(1) Learn the Trade, Connect with Overseas Buyers

Anybody wishing to go into the ginger business should first connect with the outside world, those who are to buy the product. To start, you need to undergo some training or apprenticeship to know what sells in the international market and what does not, when to sell the product and how.

(2) Learn Exportation Business

You can’t do this business if you have no knowledge about exportation. So, you need to learn exportation business which still brings us to the need for you to undergo some apprenticeship. Part of the things you will learn there is exportation business, how to process contracts, etc.

(3) Know and Do the Ginger Export and Value Chain

See: How to Establish a Cocoa Business in Nigeria and Anywhere Else

Ginger Export has a value chain; you have to plan your product sales, then you have to get an overseasbuyer who is called the Contract Source. The subsequent move is to look for and gather the product locally, process them, do the necessary paper works eventually dispatch the products to the buyer overseas.

One of the best places to source for ginger in Nigeria is the northern Nigeria. There is almost always a guarantee of getting the product there at a relatively cheap rate as compared to other parts of the country. For example, you can buy a lorry full of ginger for as low as N300,000 from the local marketers or directly from the farmers themselves.

Places and How to Buy Ginger from Northern Nigeria

Supposing that you reside in the North, you can go to Jigawa state, go to Babadu or Megatereto buy the product. Also, you can buy the products at a cheap rate from local markets between Bernin Kudu and Gwaram and across major markets in the North. You can meet any of the ginger merchants that live in these towns and strike a deal for the product with them. A sack of ginger is around 80kg to 100kg. After you’ve bought the product, simply to organize a vehicle, and in addition, get laborers to load the product for you to your destination. If you are using a truck, a truck load of ginger will convey about 30 metric tonnes of the product which will cost your about N240 000 including cost of product and transportation.

Ginger Export Business Options In Nigeria

(1) Full-time Ginger Exporters:

These exporters are into the business 24 hours of the day, 7 days of the week. That is they are into the business fulltime. It is suitable for the individuals who will always be accessible to do all the processing for exportation of the product. The profit on investment of this kind could run from 30% to 45%. The exporter is included in export planning, finance, documentations, trade contract sourcing, haulage to the warehouse, warehousing, cargo delivery,haulage to the point of stacking in the ports and post-trade documentations.

(2) Part-time Ginger Exporters

These exporters rely on consulting firms and cargo forwarders to do some of their export operations. This choice is appropriate for people that might want to begin the business while still in a paid work and additionally. Likewise, it is a suitable alternative for existing businesses that wish to diversify their sources of income. The profits on ginger ventures of this nature could go from 25% to 35%. The exporter is included in export planning, trade financing, products sourcing, sending out of the product, prior sending of documentation, haulage to the product house, haulage to the point of stacking at the port, and post-delivery documentations.

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