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Overview of sesame business in nigeria


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Overview of sesame business in nigeria

  1. 1. OVERVIEW OF THE SESAME SEEDSBUSINESS IN NIGERIAWritten by SOTONYE ANGA, GOLDCHAINSINTERNATIONAL 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 inthe export of sesame seeds globally.Nigeria produces about 120,000 tons of sesame seed annually. Major producingstates are BORNO, TARABA, JIGAWA, KANO, NASSARAWA, YOBE, BENUE,PLATEAU.Locally there is very little processing of sesame seeds as such the bulk ofsesame seeds grown is exported to Asia and Europe, where they are processedinto 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 theattractive and inviting appearance.The demand of sesame seeds keep increasing as more and more use is beenfound for it across varied industries as food, beverage, cosmetics,pharmaceuticals etc.Nigerian sesame seed farmers directly sell their produce to exporters of sesameseeds but because in most cases they cannot make up the required volume tomake commercial sense these farmers bring their produce to major open marketswithin the producing states. In these markets middlemen act as brokers on behalfof the farmer at a fee. These middlemen also represent individual Big merchantswho ends up buying the sesame seed at an agreed amount and finally sells to theExporters. This is the normal market process, that can also be bye passed due toits inefficiencies.Exporters today establish their own loyal representatives that buys direct fromfarmers. This process works best for the exporter as it gives him control over thequality 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, LBMoverseas, Benjamin Foster, Shebag holdings. etc.
  3. 3. Nigeria Earns N12.8 Billion Annually From Sesame SeedsNigeria is the world’s fifth largest exporter of sesame seeds, with exports earning N12.8 billion annuallyfrom the 1,700 tonnes the country sends to the European Union and 22,000 tonnes to Japan, accordingto a Nigerian press report. The main production areas are in Benue, Kogi, Nasarawa and TarabaStates. The world’s leading exporters are China, India and Sudan. Japan dominates the trade with anannual requirement of about 150,000 tonnes. Sesame seed is a source of highly nutritious oil used incooking, but it is also used to garnish foods such as bread, as well as being used in the manufacture ofpharmaceuticals, soap, cosmetics and animal feed. [BNBC April 2007]Sesame seed taken from sesame plant are known for their versatile uses asflavouring agent and medium of cooking oil. Known for their rich proteins, fats,carbohydrates and fibres sesame seed are an important ingredient in culinarytraditions of many countries, especially the countries in West Asia. Sesame seedcarry 55% of oil content. Sesame oil is used for cooking, cosmetics, paints andlubricants. The byproduct obtained after extracting oil is used as feed forlivestock.  
  4. 4. Global output of sesame seed is estimated at around 3 million ton per year withIndia and China dominating production. Global sesame output occurs mainlyaround few countries in Asia and Africa. Global sesame seed trade is estimated500,000-600,000 ton per year.(Commodity info.phb).SOTONYE ANGA, MAY 2007.