Nigeria is one of the largest producers of ginger in the world. In 2017, the total volume of ginger harvested in Kaduna State in Nigeria alone was over 724,000 metric tonnes. And this figure does not account for the other over 7 ginger production states like Nasarawa, Gombe, Benue, Bauchi, and others who also produce ginger in the country.
The abundance and large production volumes of the ginger crop in Nigeria makes it a lucrative business for ginger exporters in Nigeria to venture into since there are widespread international buyers of ginger, especially sun dried split ginger around the world, and sun dried split ginger exporters in Nigeria can find a market to consistently export their products to.
If you’re looking to become one of the most successful sun dried split ginger exporters in Nigeria or are an international buyer looking for how to buy fresh or sun dried split ginger in Nigeria from ginger suppliers in Nigeria without losing your money, you should read on.
First, What Is Ginger?
Ginger is a flowering plant whose rhizome, ginger root, or simply ginger, is widely used as a spice or medicine. It is usually harvested as fresh ginger and then can be processed and exported as either ginger powder, sun dried split ginger or fresh ginger to international buyers around the world.
So What Is Ginger Export About?
Ginger export is the export of fresh ginger, ginger powder, and sun dried split Ginger from Nigeria to international buyers located in various parts of the world. It is mostly exported semi-processed and further processed upon arrival at the buyer’s facility for its intended uses.
Facts About Ginger Export From Nigeria
- Ginger is majorly grown in the Northern regions of the country, especially Kaduna. While Gombe, Bauchi, Benue, Nassarawa and some others are smaller producers of the crop.
- Kaduna state is the largest ginger producing state in Nigeria with over 724,000 metric tonnes of ginger produced in 2017 in the state alone.
- Growing Ginger can create a great source of employment.
- Ginger is exported as fresh ginger, ginger powder, and sun dried split ginger.
- Nigeria is the second largest producer of ginger in the world.
- Nigeria is the third largest exporter of ginger after China and India.
- According to the United Nations Food And Agricultural Organisation, Nigeria’s ginger is regarded as the best in the world
- Ginger can be used as spice or medicine.
- The profit margins on the sale of Ginger to international buyers can be anywhere from 20% to 45% depending on if you’re the farmer or are purchasing from the farms.
- As a broker, you can venture into this business with $0.
Types Of Ginger Exported In Nigeria
1). Sun Dried Split Ginger:
Sun dried split ginger is the most exported type of ginger from Nigeria. They’re usually dried to boost the shelf life so it can be exported to any country around the world on a long voyage and for further storage. As a result, sun dried split ginger exporters in Nigeria are the most common ginger exporters found in Nigeria.
2). Fresh Ginger:
Fresh ginger is far less exported in Nigeria than sun dried split ginger. Because of its short shelf life, fresh ginger needs to be shipped as soon as it is harvested, else, it would have to be dried before export.
3). Ginger Powder:
Ginger powder is also exported from Nigeria after processing fresh ginger.
Business Opportunities In The Ginger business
1). Ginger Export:
Fresh ginger or dry split ginger is usually sold at varying amounts at the farm areas or local markets and are then resold to international buyers at varying prices per metric tonne depending on the specification and other factors. Dried split ginger exporters in Nigeria usually have a strong connection to enable them to buy ginger at the lowest possible price, and as a result, they’re able to help most international buyers of ginger get the products they need.
2). Ginger Brokerage:
When you have little to no capital to venture into a particular type of business, the best bet is to first start by brokering the sales of the products and services. And in this case, you can broker the sales of ginger for dry split ginger exporters in Nigeria to international buyers of ginger.
You could venture into the Ginger brokerage business by linking a buyer to a ginger seller, and in the process, add a markup price per metric tonne for your organisation, after getting the final selling price from the seller or get a standard commission from the ginger supplier.
Setting Up Your Ginger Export Business
1). Register Your Export Business:
The first step to starting a Ginger export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council and any local associations regulating the purchase and sale of Ginger.
Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.
2). Find Direct Farms and Sources For Exports:
Although this can be done before, during, or after your company has been registered with the appropriate bodies, the next step is to source for the direct farms that would be growing the Ginger for you on behalf of your clients or to find the best buying centres to purchase from.
Successful fresh ginger or sun dried split ginger exporters in Nigeria usually have direct access to the farmers or buying centres so they can get the best possible price. Going through a proxy would waste more time, cost more money, and reduce your profit margins.
3). Setup A Proper Business Structure, Trade Process, & Branding:
During or after registering and securing your buyers, it is important you set up a proper business structure that looks internationally reputable. Some ways successful sun dried split ginger exporters in Nigeria do this to do this are to build an international standard website, get a business address, create a company profile, and also have a corporate offer format you can customize and send to buyers who request an offer. Also set up a corporate email that reads something like this: “firstname.lastname@example.org”.
If renting an office is too expensive, you could pay for a virtual office at a co-working hub and use their address for meetings.
When fresh ginger or sun dried split ginger exporters in Nigeria organise their companies this way, buyers would feel really confident about doing business with them and would tend to choose their businesses as their preferred partner.
4). Source For Buyers:
The next step is to source for international buyers for your fresh ginger or sun dried split ginger. Successful sun dried split ginger exporters in Nigeria do this by registering on websites like:
And several others.
You can also build an influential social media account on LinkedIn and market your Ginger to a unique business audience you’d build over time.
5). Export Your Products:
Upon sealing agreements with the buyers, getting issued an Irrevocable Corporate Purchase Order, signing a Sales and Purchasing agreement, and more, you can then proceed to ship the fresh ginger or dried split Ginger to the international ginger buyer.
The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.
Challenges Of The Ginger Export Business
1). Lack of experience causes fresh ginger or sun dried split ginger exporters to either purchase the wrong specifications, underprice or overprice their products, and much more.
2). Your fresh ginger or dried split ginger en route a warehouse may get robbed or seized by government officials before arrival.
3). Fake ginger buyers wasting exporters time with fake inquiries.
4). Most prospective entrepreneurs have little to no access to finance their projects.
5). Most fresh ginger or dried split ginger sellers have poorly managed supply chains and may sometimes be unable to deliver.
6). Your time could be wasted as a result of long-term conversations with Ginger buyers who have no real money to pay.
7). The large pool of fraudsters posing as fresh ginger or dried split ginger sellers makes it difficult for Ginger buyers to trust you.
The fresh or dried split Ginger export business is a lucrative one for anyone who chooses to venture into the export of agricultural products from Nigeria. Depending on the quantity the buyer needs, your profit margins could be far higher or lower, but still substantial.
Starting an agricultural export business in Nigeria with an initial focus on fresh or dried split Ginger is a way to not just only get into the industry, but a great start to building a long-term business that could someday employ thousands of people directly and indirectly.
Source: Startupdaily tips