The Nation Newspaper

Tag: export

  • Enugu to export pineapple to Europe

    Enugu to export pineapple to Europe

    The Enugu State Government would start the commercial shipment of pineapple to Europe this year, the Commissioner for Information, Mr. Chuks Ugwoke has said.

    He explained that the commodity would be harvested from the 150-hectare Enugu-San Carlos Pineapple Farm

    The government  has approved the introduction of banana and livestock, particularly cattle, in the farm, jointly owned by the government and San Carlos, a United States-based farming conglomerate.

    The council also approved N880.8 million as the state’s equity contribution to new investments in the farm.

    He added that about N48.8 million was approved for the implementation of the health commodity supply component of the 2013 Millennium Development Goals.

    Similarly, Ugwoke said the council has directed that a bill to upgrade the state College of Agriculture and Agro-Entrepreneurship in Iwollo Oghe to a polytechnic  be forwarded to the House of Assembly for passage into law.

  • NEXIM Bank and task of export promotion

    NEXIM Bank and task of export promotion

    Nigeria, in accordance with President Goodluck Jonathan’s transformation  agenda, has begun to gradually assume the portal ofAfrica’s economic base. Hitherto, this enviable position was held by South Africa and Egypt. Facts show that for two years now, 2011 and 2012, Nigeria was ahead of others African countries as the top destination for foreign direct investment. There has also been aremarkable improvement in local participation in the country’s oil and gas sector as well as the non-oil sector, no thanks to theremarkable improvement in the structural transformation of the economy.

    According to the managing director of Nigeria Export-Import Bank, Mr Roberts Orya, “The non-oil sectors are now the key drivers of the country’s GDP growth, which is expected to rise to 7.3 percent in 2014 Nigeria’s rise above South Africa and Egypt in attracting foreign direct investment boils down to her frontier opportunities in various sectors such as power, infrastructure, agriculture, solid minerals, retailing and services. The job opportunities created by this robust economic prospect  have been tremendous. No doubt a private-sector driven economy has globally shown to be the panacea for job creation. It is against this backdrop that the Nigeria.

    Export-Import Bank has not rested in its oars in ensuring that the nation’s private sector has the maximum support to thrive.

    In the services sector for instance, the bank has made total funding disbursement of N15.6 billion, which accounts for 16. 4 percent of total loan disbursement by the bank. In appraising the scorecard of NEXIM Bank recently, finance minister NgoziOkonjo-Iweala said, “”NEXIM bank was set up to support import and export trade within the country. We are happy to say that NEXIM has proven its worth. It has been performing its functions. That makes the bank a very important part of our finance complex. But there are a lot of expectations. The government of President Goodluck Ebele Jonathan has embarked on a path of transforming the economy; trying to work with our private sector to expand trade, particularly regional trade, incorporating the West African zone and even beyond. With Nigeria’s economy accounting for 55 per cent of the regional economy, that means our weight means a great deal in the sub-region. Therefore, what we do in terms of supporting our private sector to trade within the region and beyond is very important. As such, NEXIM is key and critical if Nigeria is going to play its role of being the powerhouse within the West Africa sub-region, and beyond that, within Africa.”

    NEXIM Bank in its efforts to create a robust economy where the private sector thrives has also adopted various measures. Under the foreign input facility, NEXIM grants short, medium and long term fixed rate loans in foreign currency to participating banks on behalf of their export clients. These facilities are available to Nigerian exporters engaged in the importation of raw materials for export production, packaging materials for export, spare parts for export promotion and capital equipment needed for production of goods for export.

    Accessing the facility is devoid of the usual bottlenecks. Exporters simply apply to participating banks for foreign input facility; the participating banks then appraise the application based on its existing lending rules; the participating banks then forward a formal request to NEXIM, supported by relevant documents, and then NEXIM disburses funds to the participating banks upon fulfillment of all conditions precedent to draw loan.

    Under its local input facility, NEXIM Bank also grants short, medium and long-term fixed rate loans in local currency to participating banks on behalf of their export clients. This facility is for setting up new export-oriented projects, revitalisation, acquisition of additional assets for modernisation, and/or expansion of existing production units for exports; acquisition, rehabilitation and/or expansion of plantations/farms for the production and processing of exportable products as well as acquisition of spare parts and packaging

    materials for the manufacturing of exportable products.

    In the area of export credit guarantee, NEXIM Bank provides an effective tool for the management of risks associated with export financing.

    The objectives of the facility are to protect banks in Nigeria and foreign supplies of credits and goods against the risks of non-payment for loans and advances granted to exporters to meet short-term contracts and to encourage banks and other financial institutions to finance export business without fear of default from the exporters.

    The guarantees available include pre-shipment guarantee which entails credits/advances granted by a bank for the purpose of manufacture, purchase, processing and/or packaging of goods to be exported under a confirmed export order. There is also post-shipment guarantee which guarantees credits/advances granted by a bank in Nigeria against an export bill or any other receivables. Besides, there is the advance payment guarantee designed to protect foreign buyers against payment risks in respect of money advanced to exporters in Nigeria to finance export order. The risks covered are insolvency of the buyer immediately before shipment is undertaking; cancellation of export licence, imposition of restriction on the export of goods, insolvency of the buyer and protracted default by the buyer

    NEXIM Bank has also devised the export credit insurance made to protect exporters against commercial and political risks associated with export business. The goals are to encourage exporters to diversify their export markets without fear of the risks inherent in dealing with new buyers; to attract new enterprises into the export business and to encourage exporters to extend credit terms to their buyers in order to enhance their competitiveness in the international market.

    NEXIM’s ECIF provides both pre and post shipment cover arising from commercial and country risks such as insolvency of the buyer immediately before shipment is undertaken or other events that make it inadvisable to export; cancellation of export licence which was valid at the time production commenced; position of restriction on the export of goods not subject to licence at the time production commenced; protracted default by the buyer; buyer’s refusal to accept the goods dispatched which conformed to contract specifications; war, revolution and civil disturbance in the country of the buyer, which prevents or delays the transfer of payment due under the contract and any other causes of loss arising outside Nigeria which is beyond the exporter’s and buyer’s control.

    This initiative is targeted at sustaining Nigeria’s economic progression which was recently adjudged the best in Africa. Quoting the MD of NEXIM Bank recently, “The bank’s funding intervention in support of exports has created and sustained 60, 000 jobs in the past few years: 2009 – 25000 jobs, 2011 – 35, 000 jobs. The bank support has attracted foreign generation of about 100 million dollars annually, making a total of 200 million in the past years.” NEXIM Bank has in the last few years supported the Nigerian non-oil export to the tune of N20 billion. According to the projection of the MD/CEO, “Our funding intervention in the next five years is to support the non-oil export sector to the following minimum level: 2011 N37billion, 2012 N41billion, 2013 N50billion, 2014 N63billino and 2015 N94billion.”

    With  these fundamental approaches in encouraging international trade in Nigeria, NEXIM Bank has once more shown that it has the wherewithal to move Nigeria’s economy to the promised land. The effects include improved standard of living, robust economy, job creation and absolute faith in Nigeria’s economy by investors.

     

    • Nwoko is a public affairs analyst based in Lagos

  • Ugborodo crisis: Troops on surveillance

    Indications emerged yesterday that the Federal Government might wield the big stick against the recalcitrant elements in the crisis at Ugborodo community in Warri Southwest Local Government Area of Delta State.

    There were reports that troops have been deployed to carry out surveillance in the community.

    The crisis relapsed when members of the two warring factions resorted to arson, destroying houses and cars worth millions of naira in Ugborodo and Warri.

    The fragile peace hitherto achieved, collapsed following the opposition of the David Tonwe group to the return and re-absorption of members of the Thomas Ereyitomi into Ode-Ugborodo, over the allegation that the people committed a sacrilege against the community.

    The Federal Government, which designated a $16 billion Export Processing Zone (EPZ) in the community early in the year, brokered peace, which yielded an agreement, suggesting, among others, the return and resettlement of displaced persons. All the parties were signatories to the agreement.

    However, following the difficult attitude of some elements in the crisis, towards the execution of the terms of the agreement, especially the resettlement of displaced persons, the Commanding Officer of the Nigerian Navy Ship (NNS) Delta, Navy Captain Musa Gemu, last week warned troublemakers not to force security agencies to employ harsh means to ensure peace. He gave them one week to settle the disagreements.

    Sources told The Nation in Warri yesterday that troops were sighted in the community since Sunday, fuelling fears that the armed men were on a surveillance, preparatory to a probable larger operation, which might be in line with Gemu’s warning last week.

    At a meeting last week, which was boycotted by  Tonwe but attended by other community stakeholders, including the Olaja-Orori (Spiritual Head) and Chief Ayiri Emami of the Thomas Ereyitomi-led faction, youths from Aruton, Madangho, Ogidigben and Ajudaibo as well as Austin Oborogbeyi, the Chairman, EPZ Interface Committee and representatives from the Police, Army and the Air Force Command in Warri; the Navy boss said after one week, the task force might use its military might to enforce the terms of agreement reached by both sides at the naval headquarters in Abuja in May.

  • Making money from foodstuffs export

    Making money from foodstuffs export

    Demand for  indigenous dishes  is soaring in Europe and the United States. As a result, export of food items have grown phenomenally to become the single largest category in world agricultural trade, and by extension, creating   opportunities for more Nigerians to make money. DANIEL ESSIET reports.

    These are boom times for Nigerians involved in  export of  local foods. What started as a humble cottage industry has undergone a significant transformation with a lot  of  entrepreneurs finding  success in exporting  food items to  Europe and United States.

    One of them is the Chief Executive Officer, The Thy Consulting, Ismail AbdulAzeez.

    The initiative has resulted in huge business in terms of export sales and income for the company.

    He  told The Nation  that the demand for traditional dishes has  risen with increasing number of Nigerians leaving the country in   search  of  greener  pastures in Europe and the United States. While there, such people like  to stay connected with “home” by way of eating local dishes. As a result, they create a market for fresh and refrigerated local food items, thereby helping   small businesses increase their exports of food and agricultural products.

    Foodstuffs in demand include fish, gari, beans flour, melon seed, Ogbono, crayfish,cassava flour, bitter leaf, pounded yam flour, vegetables and pepper. It also covers processed fruits and vegetables, fresh fruits and vegetables.

    Food stuffs   exports is believed to be in  excess of N100 million yearly, yet there is plenty of room for it to grow.

    Abudulazeez said  with  N100,000 an intending exporter can start the business and turnover the money many times within a year.

    AbdulAzeez  said   the opportunities to export  food  items are great.According to him,  food stuffs exports have demonstrated huge potential in sales abroad and represent an opportunity to  reduce poverty through income generation among small entrepreneurs.

    Having broken into the markets and built a lot of contacts, AbdulAzeez is  encouraging  more Nigerians  to  participate in the business.

    As these exports increase, the  small businesses would create jobs and improve the strength and stability of the  agricultural economy.

    He offers  programmess and services that help boost  agricultural exports.

    He said there are opportunities to export  food  produce to Europe, following the increasing number of Nigerians and other Africans relocating in search  of greener  pastures. The marketing strategy is sending  the food stuffs through using friends and relatives in  United Kingdom.

    For him, value added food exports  are rated high and attract  much  profits.

    To export, price plays a factor, but to successfully develop a market requires marketing and promoting, such items through export groups targeting Africans.

    Many large supermarkets and hypermarkets now have their own purchasing agents who specialise in buying food items for African consumers.  These buyers   source food items directly from small farmers and producers.

    The buyers then  consolidate small orders from multiple vendors into  refrigerated  containers  for export to various  points  in the United States and Europe.

    The landscape for small entrepreneurs’ participation is changing. But the most important concern among consumers is  food safety compliance with environmental and ethical standards.

    New entrants can   break   into key  markets  through  increasing  contacts with extensive networks around the world. This allows for timely export order information.

    Exporters must be careful of produce packing, branding and and  currency variables, he said.

    For  exporters like him, the  relationship between Naira and the major   currencies is an important part of a small business exporter’s strategy.  A highly  valued U.S. dollar means more money  for  Nigerians  sending  food  items abroad.

    The other issue is that  there are  important differences to consider in methods of payment in international trade. Exporters need to consider payment options carefully and consider asking for cash in advance, partial payments or control the consignment with the use of a documentary collection or letter of credit  to minimise risk. Since food and agricultural exports travel much further than domestic shipments, they may be exposed to rigours of additional handling, temperature variables and other weather-related elements.

    They may also travel in an “Intermodal” fashion, which means by one or more trucks, vessels, aircrafts or trains, between origin and destination.           The   exporter needs to be aware of the differences in customs procedures in countries across continents. The way to understand these procedures is attending  a training on food export.

    According to him,  timely and professionally prepared documentation is one of the keys to success in the export business.

  • How to start online export without capital

    How to start online export without capital

    The world has become a global community, with the introduction of Information and Communication Technology. Now those without capital can make money as export agents, DANIEL ESSIET reports.

    Information technology has continued to make the global economy vibrant. It has opened windows of opportunities. With one click on the web, one can find and link up foreign buyers to reliable suppliers of export commodities.
    The Chief Executive, Anjorin &Anjorin Investment Limited, Sunday Anjorin, said the internet has created opportunities for brokers to find buyers and sellers of various products. He said there is a great opportunity online for export brokers with several companies itching to expand into foreign markets. The business is very profitable since there is no need for start-up capital. A broker’s role is to link exporters with buyers and draw huge commissions. He only needs to invest in a few basics, such as good training programme, a website, office supplies, a computer, phone and an internet connection. A nroker needs to know the export business well.
    Describing export brokerage as a very lucrative business, Anjorin said one doesn’t have to buy stock or warehouse any merchandise, nor does one need an office space. Many export business are done from the home to keep costs down.
    Anjorin said many Nigerians are into export brokerage, making millions from the comfort of their homes, just by connecting local exporters with foreign buyers of solid minerals and agricultural commodities.
    Once a deal has been struck, and shipment made, Anjorin said the broker is paid a certain amount of money as commission or finder’s fee.
    For instance, with Nigeria having a large deposit of cocoa, cashew, snails, ginger, bitter kola, Arabic gum, charcoal and others, many manufacturing companies abroad look towards the country to source for cheap industrial raw materials for their finished goods.
    Through membership of online business groups, Anjorin noted, one gets potential clients.
    He said export brokerage is one of the easiest and the most rewarding means to raise money for full-time export business.
    According to him, the business is highly competitive and those desiring to enter the business must be adept at with sales and negotiations.
    “As a broker, one would simply be playing the middleman by connecting the manufacturer with consumers and to establish commission fee with the manufacturers,” Anjorin said, stressing the need for brokers to have a signed agreement in place that defines the relationship, commission agreement and payment terms.

  • Shrimp export facing certification challenge

    Shrimp export facing certification challenge

    Export of shrimps is facing certification challenge, the Programme Manager, Developing World Fisheries, Marine Stewardship Council, United Kingdom, Oluyemisi Oloruntuyi, has said.

    Speaking with The Nation on the sidelines of the first regional workshop on shrimp fisheries management plans for Cameroon, Gabon and Nigeria in Lagos, Oloruntuyi said foreign buyers require imported shrimps that meet ecological and fair trade certification.

    She said the programme was intended to educate farmers on best practices, and that the government had taken the problem seriously.

    According to him, the programme would help businesses in Nigeria, Gabon and Cameroon export shrimps to foreign markets. The shrimp industry, according to experts, is worth over $18 billion annually.

    To be eligible for export, shipments must have certificates of origin, such as the name of the fishing vessel and the area. This regulation may pose a big challenge to fisheries’ businesses. But the Permanent Secretary, Ministry of Agriculture and Rural Development, Mrs. Ibukun Odusote, said at the workshop that Nigerian shrimps have been recertified by the United States. This was after its State Department determined that the country’s commercial shrimp fishermen have taking measures to protect the endangered sea turtle during harvesting.

    Mrs. Odusote, who was represented by a Director of Fisheries, Federal Department of Fisheries (FDF), Foluke Areola, said the US State Department recertified Nigeria last year after the government enforced measures to ensure that fishermen were using sea turtle excluder devices (TEDs) during fishing. The TEDs prevent the accidental drowning of the turtles in the trawlers’ nets.

    She said the contributions of the fisheries sub-sector was significant in terms of increased food security, employment creation, income generation and poverty alleviation, among others. The sub-sector contributes five per cent to the National Gross Domestic Product (GDP), she said, adding that government endorsed the Ecosystem Approach to Fisheries Management (EAF) of the Food and Agriculture Organisation (FAO) to assist African countries prepare their fisheries management plans.

    Odusote explained that the approach was developed in response to the need to implement the sustainability principles embodied in the Convention on Biological Diversity (CBD) and FAO’s Code of Conduct for Responsible Fisheries. Nigeria, she said, is collaborating with Cameroon and Gabon to implement the management of shrimp fisheries, adding that the government had taken steps to promote sustainability of marine fisheries and the ecosystems where they occur.

    To foster the development of the industry, Odusote said government was focusing on promoting a conducive business environment for operators.

  • How packaging can boost export

    How packaging can boost export

    Packaging is vital to agro export’s success. Produce need to be preserved and protected to reach their destination. This requires using qualitative materials. It is a challenge to many farmers who are looking at the export market. DANIEL ESSIET reports

    Fresh produce, such as fresh fish, fruit and vegetables are sought after by many households. Unfortunately, some fresh produce only originate from certain parts of the world and must be transported to other parts. And, with that comes problems, such as quality and freshness of the produce.

    For instance, in the horticultural sub-sector, about 30 per cent of the produce is lost inadequate infrastructure and less use of modern post-harvest technologies.

    Chief Executive, Anjorin & Atanda Investment Limited, Sunday Anjorin explained that fresh horticultural produce has limited shelf-life ranging from a few hours to a few weeks. Therefore, good packaging is required not only for the preservation and protection, but also for safe transportation during storage and handling.

    Concerns are mounting because produce, such as vegetables, fruits, and cut flowers—have grown steadily to become the single largest category in world agricultural trade, accounting for over 20 per cent of such trade in recent years.

    On the average, horticultural exports of Sub-Saharan Africa brings in revenue in excess of $2 billion yearly. In view of this, quality packaging has become key in the agro export markets.

    Anjorin said packaging plays a crucial role in creating value-added packs, which some importers require. There is also growing concern among consumers for food safety certification and compliance with environmental and ethical standards. Increasing exports and stringent export market requirements have also influenced the packaging trend.

    Meeting these requirements presents a challenge. At present, vegetable and fresh produce entrepreneurs focus on exporting the products to Europe, China and Asia.

    Factors to be considered include early delivery, taste, quantity/volume, size, phytosanitary, and quality and all these affect packaging consideration. Export of fruit and vegetable sector must compete with exporters from Asian region, including Thailand, Philippines, China, Taiwan, Australia and others, including Israel,African, and South American countries.

    The quality of F&V resulted from seed, cultivation, preservation and transportation. Processed F&V exporters face problem of seeds, which result in low productivity and unreliable quality. European Union (EU) buyers require on-time delivery; and good quality. To satisfy good quality, exporters should follow GAP. The main problem is how to maintain good quality fresh product to the market. The far distance causes this problem.

    Exporters of oranges face challenges too. They have to place them in moulded pulp trays with cavities for individual oranges. Each tray contains about 20/25/30 oranges depending upon the size. About five such trays are placed in a corrugated fibreboard box.

    Similarly, the Nigeria Quarantine Service encourage vegetables exporters to pack them in three-ply or five-ply corrugated fiberboard boxes with ventilation holes depending upon the capacity. The capacity of box varies from 5kg to 7kg to 10 kg. Generally, the box is lidded type (0306) but at times for some vegetables RSC (0201) box is also used. Packaging, according to Anjorin, doesn’t just protect and keep fresh vegetables but it tells a story of where it’s from.

    Although preservation and protection of products are important, henoted that they are no longer enough as packaging as a front-line ambassador to market and sell products, as well as to mindicate compliance with emerging standards through certification, is coming to the fore.”

    Hence, it is important farmers learn and benefit from the exporting advantages that higher-quality packaging brings.

    President, National Cashew Association of Nigeria(NCAN),Tola Faseru said the industry is facing new challenges and needs to continue to adapt and upgrade its capabilities.

    This is as a result of emerging regulations and standards, as well as health, environment and security concerns, notably in Europe, North America and Japan.

    Consequently, creating new and increasing demands on the packaging of agro exports.

    For this reason, he advised small business exporters to develop the mindset that they are competing in international markets and packaging is an important part of that competition.

    The impact is great on exporters of cashew nuts. Consequently, exporting cashew kernels now requires volume, a large investment in factory, equipment and raw material to achieve international expectations.

    The international market buys predominantly full containerloads of cashew kernels.

    Buyers in the United States, Europe, and the Middle East purchase vacuum-packaged cashew kernels.Two vacuum-packed 25-pound plastic bags fill one carton; 700 cartons, or 15 MT, fill a 20-footcontainer. While there are 26 grades of cashew kernels sold on the international market, buyers mostlyaccept containers with one tosix different grades. The26 grades are based on size of the kernel (number of kernels per pound): alow number, such as 180, indicates largekernels, and a high number, such as 450, indicatessmall kernels,

    The normal packaging used for the export of kernels is air-tight cans of 25lbs (11.34 kg) weight capacity. The packaging material needs to be impermeable, since cashew kernels are subject to rancidity and go stale very quickly.

    He explained that the quality of cashew kernels that is exported depends onthe quality ofthe raw nuts.

    For this reason, he said the exporters monitor the process from harvesting to shipment toensure the quality of their raw cashews.

    These include ensuring that the nuts is harvested only after they have fallen to the ground,sun-dried immediately after harvesting and that during the drying process (which normally lasts two to three days), the nutdensity should not exceed 20 kg per square metre.

    He said exporters of raw cashew nuts must ship in jute bags.

    Following harvest, he said farmers typically sun dry and bag cashew nuts and store them in their houses in polypropylene bags. The bags, according to him, do not allow adequate air circulation, which is not generally a problem if marketing occurs promptly. But the delay allowed the cashew nuts to become damp and moldy.

    The extent of the quality deterioration, he noted, was realised only after shipments that were exported were rejected as below contract standards.

    He stressed that deterioration in export crop quality was serious.

    He stressed that developing a competitive private sector processing industry would create jobs.

    He said raw cashew nuts are not processed in the country.

    They are exported to India and Vietnam. In these two countries, the nuts are processed and then sold via international traders to European and North American roaster/salters who then distribute them to consumer markets.

  • ‘Export business is lucrative’

    ‘Export business is lucrative’

    Some entrepreneurs are gradually gaining international exposure and recognition through exports. Sunday Anjorin, Chief Executive, Anjorin & Atanda Investment Limited, is one of them, writes Daniel EssieT.

    Sunday Anjorin, Chief Executive, Anjorin &Atanda Investment Limited is a small scale agro commodities exporter.

    He exports timber and kola nuts to the United Kingdom and other parts of Europe.

    And for many entrepreneurs like Anjorin, exportation is helping them to cope with the downturn in the economy.

    While Anjorin has sailed through troubled waters to the island of victory, his success story can be likened to that of the proverbial drop of water becoming an ocean.

    He has made fortune from exporting commodities, such cocoa,sesame seed and shea nuts.

    As it is in any start-up business, he did an analysis of the market, especially how to reach his target – the buyers. Satisfied with its findings, and on obtaining a soft loan of N10, 000 from his wife’s first salary as a civil servant in Ekiti State, he launched into the murky waters of agro produce exportation. He made his first breakthrough with a profit of N250, 000.

    On the initial start up, Anjorin said an agro export business does not require huge capital. From his experience, prospective exporters can go into the business either in a small or big way. For instance, with N20,000, one can start a bitter kola export business, while with N700,000, commodities such as cocoa can be exported, he said.

    And the profit margin, he said, was also encouraging. “When you invest N15,000 in few pieces of bitter kola, you may get at least N4,000 profit,” he explained.

    His success the business shows its potential to eradicate poverty since it can also be done by small farmers, who constitute a greater part of the population. This, perhaps, gave him the impetus to charge young Nigerians about N20,000 to set up a bitter kola export business and see themselves making income that will launch them on to the path of success.

    According to Anjorin, there is a huge demand for soya beans, especially because of its multiple uses. With the help of knowledge, information and facts, he said entrepreneurs and farmers can get a better price for cotton, cocoa, sesame seeds and cashew.

    You don’t need a large space to start the business.They can start it from their bedrooms using an e-mail address, he said.

    He gets online export contracts and sends produce to buyers once he settles the price. Anjorin has also armed himself with information, which has helped him to take the business to a different level. He has clients spread in the country and Cameroon, which export processed timber.

    He said the potential to grow is enormous. “What counts is being able to source commodities which meet international standards and getting the produce to the buyer safely,” he said.

    This, he has been able to do, by reaching out to farmers for supplies, who partner him on the price for every produce.

    Anjorin is empowering small and medium scale enterprises’ (SMEs) owners to become major players in global markets. He provides them with knowledge to become and gives them contacts in the world market.

    However, he believes other SMEs should be aware of not just whether one’s product is right for another market but, crucially, getting paid.

    This makes taking out insurance to protect non-payment a good idea, as well as getting credit from other firms who have worked with a potential customer.

    Quoting for a business can be a challenge because of the exchange rate and the fact that terminologies and specifications of products differ from country to country.

    He deals with buyers in countries where he will not encounter language barriers and different business cultures to avoid confusion, advising that exporters to ensure that the ‘fine’ words of any order are clear.

    Yet, there is another problem. “There were times I was duped by local suppliers, and also some of my produce were rejected by customers overseas, leading to loss for me,” he lamented.

     

  • Soya bean export’ll boost incomes

    Soya bean export’ll boost incomes

    The nation’s soya bean industry will need to tap into the million dollar export market to boost trade and investment and create jobs and opportunities for farmers, the President,National Cashew Association of Nigeria(NCAN), Tola Faseru, has said.

    Africa exports about 20,000 tonnes annually. Nigeria is the largest producer of soyabean in sub-Saharan Africa (SSA).

    The demand for soyabean meals, edible oil, and soybean-based fish and hog feed has provided many opportunities for soya bean exports.

    He said there was growing demand for new varieties of high-quality, safe, food-grade soybeans,adding that investment in the business will help farmers to explore opportunities in the global markets .

    He said the government needs to train farmers to specialize in developing new food-grade varieties while maintaining an outstanding quality assurance programme is making it a growing favourite on the world stage.

    This, added, would help Nigeria to become a competitor in soybean export markets as well as increase market access.

    He stressed the need for programmes to build and promote the nation’s ability to expand domestic and export markets by undertaking promotional activities to help position and differentiate products and producers, and ensure industry’s ability to meet market requirements.

    Faseru urged the government to educate Nigerian on soya bean products and its benefits. That will create demand. In return, demand will fuel increased production at farm level hence additional incomes to the farmers, added he.

  • Expert: U.S. to Export Liquefied Natural Gas by 2016

    U.S. energy producers could begin exporting liquefied natural gas within the next five years as they seek ways to combat falling natural gas prices, said energy specialist Loren Scott, president of Loren C. Scott & Associates, at an economic summit Friday in Jackson Hole, Wyo.

    Several companies are already investing billions of dollars to convert import terminals along the Gulf Coast into LNG export facilities, said Scott during his speech at the Rocky Mountain Economic Summit hosted by the Global Interdependence Center and the Bronze Buffalo Club.

    The conference, which took place at the Jackson Hole Center for the Arts, included entrepreneurs and top U.S. economists who discussed issues and opportunities relating to the global economy. The event was the fourth-annual gathering founded four years ago by strategic planning and risk-management firm Hyde-Norton Group.

    Scott said he does not believe LNG exports will result in significant price increases.

    “There is going to be some impact on pricing, but I think there is so much supply that we’re talking about maybe a ceiling of about $4 per million BTU,” Scott told IndustryWeek. “We’re not talking about going back up to $10 or $15, which was a real problem for us in the early 2000s.”

    The increased demand from exports could benefit manufacturing as energy and chemical producers invest in new production plants. He cited a proposed $10 billion facility by South African energy giant Sasol Ltd. as an example.

    In April U.S. regulators approved an LNG export facility for Cheniere Energy Partners L.P. The company is investing approximately $4 billion to $5 billion to retrofit facilities in Louisiana for LNG exports, Scott said. The company expects to begin production in 2016, said Scott, whose firm is based in Baton Rouge, La.

    LNG exports could increase even further as technology advances, Scott said. Future plants could be located offshore on a ship that would free LNG exporters from permitting requirements, Scott said.

     

    Culled from AFP