Omnibus Capital & Assurance

chilli pepper export from nigeria

Interview On The Opportunities In Chili Peppers Export Business In Nigeria

Introduction
Starting A Chili Pepper Agro Export Business Is One Of The Most Profitable Business Start-Up Or Diversification Decisions You Can Take In Nigeria. There Are Many Agro Products That Can Be Sourced Cheaply In Nigeria And Can Be Sold For Much Higher Prices In Other Countries Where They Are Even In Far Higher Demand Than They Are In Nigeria. This Leaves Huge Profit Opportunity For Those Who Have The Required Know-How And Can Afford The Cost Of Starting An Agro Export Business In The Country And Chili Pepper Is One Of The Valued And High Selling Commodities From Nigeria.


Five Different Nigerian Varieties Of Capsicum Frutescens Include:
1. Var. Minima (“Ata Eye”),
2. Var. Maxima (“Ata Funfun”),
3. Var. Chacoense (“Ekanna Asa”),
4. Var. Baccatum (“Ata Wewe”)
5. Var. Fingerh (“Ata Sombo”)

In This Interview, Our Focus Will Be On Chili Peppers As A Viable Agro Export Product.

Question:
What Does Chili Peppers Export Business Entail?

Answer:
Chili Peppers Export Business (Like Any Other Nigerian Agro Export Business) Entails Proper Understanding, Consulting, Research, Planning And Structuring.  

Though The Chili Peppers Export Business In Nigeria Is Highly Lucrative, It Has Its Own Fair Share Of Challenges. And One Of The Biggest Challenges Nigerian Chili Peppers Exporters Face Is; Not Fully Knowing The Rules And Regulations Binding The Business In Nigeria As Well As The Legal And Operational Requirements For Starting And Running The Business. This Alone Has Landed Many Would Be Chili Peppers Exporters In Serious Business Troubles.

To Avoid Having Business Issues As A Would Be Chili Peppers Exporter Or Local Chili Peppers Trader, You Need To Know The Legal And Operational Requirements That You Must Meet Before Starting Out In The Chili Peppers Export Business Industry.

Here Are Some Of The Most Important Ones:
1. Unique Business Name + LLc Registration
2. Registered Business Office
3. Registration With The Nepc Www.Nepc.Gov.Ng
4. Registration Of Form Nxp
6. Special Licenses, Permits And Associations
7. Licenses From Target Foreign Country
8. Tax Certificates
9. Insurance Covers
10. Top Quality Produce Access
11. Understanding The Full Logistic Requirements Of The Business From Supply Chain Management That Plans, Implements, And Controls The Efficient, Effective Forward, And Reverse Flow; To Storage Of Goods, And Related Information Between Nigeria And The Target Export Country In Order To Meet Buyer Requirements.

Question:
What Are The Requirements In Exporting Chili Peppers?

Answer:
1. Unique Business Name + LLc Registration
2. Registered Business Office
3. Registration With The Nepc Www.Nepc.Gov.Ng
4. Registration Of Form Nxp
6. Special Licenses, Permits And Associations
7. Licenses From Target Foreign Country
8. Tax Certificates
9. Insurance Covers
10. Access To Top Quality Produce
11. Understanding The Full Logistic Requirements Of The Business From Supply Chain Management That Plans, Implements, And Controls The Efficient, Effective Forward, And Reverse Flow; To Storage Of Goods, And Related Information Between Your Country (Nigeria) And The Target Export Country In Order To Meet Buyer Requirements.
12. Understanding Of The Business Through Proper Consulting, Research, Planning And Structuring.
13. Export Contract From The Buyers
 
Question:
Are There Different Species/Varieties Of Chili Peppers To Export; If Yes Explain?

Answer:
There Are Different Varieties Of Chili Peppers, And They Often Have Different Names Depending On Region. Capsicum Frutescens” Plant Produces High Yields Of Hot Peppers. Peppers Are Extremely Hot And Turn From Green To Red When Mature. This Bird Type Pepper Is Assumed To Be The Hottest Pepper In Nigeria. Plant Has Green Stems, Green Leaves, And White Flowers. Peppers Retain The Red Color When Dried. A Variety From The Northern Part Nigeria.

Five Different Nigerian Varieties Of Capsicum Frutescens Include:
1. Var. Minima (“Ata Eye”),
2. Var. Maxima (“Ata Funfun”),
3. Var. Chacoense (“Ekanna Asa”),
4. Var. Baccatum (“Ata Wewe”)
5. Var. Fingerh (“Ata Sombo”)

Samples Of Capsicum Frutescens Var. Maxima (“Ata Funfun”) And Capsicum Frutescens Var. Minima (“Ata Eye”) Are Available At Ayede Ogbese, Ondo State, Nigeria. While Capsicum Frutescens Var. Fingerh (“Ata Sombo”), Capsicum Frutescens Var. Baccatum (“Ata Wewe”) And Capsicum Frutescens Var. Chacoense (“Ata Ekanna Asa”) Are Available At “Shasha” Market In Akure, Nigeria.

Question:
4. How Can Chili Peppers Export Business Be Well Managed To Enhance Profitability?

Answer:
Chili Peppers Export Business (Like Any Other Nigerian Agro Export Business) Can Be Well Managed To Enhance Profitability By:

1. Adherence To All Laid Down Nigerian Export Procedures And Processes.
2. Making Sure Sourced Products Meet Up To Clients Specifications.
3. Making Sure All Exports Contracts Are Properly Scrutinized And Verified.
4. Making Sure That The Right Payment Options Are Used.
5. Making Sure That Commodity Procurement, Warehousing, Inspection & Export Processes Are Duly Followed.
6. Sourcing Products Cheaply And Selling At The Highest Possible Price.
7. Physical Contact With Overseas Buyers To Negotiate Enhanced Contracts.
8. Using The Services Of Experienced Nigerian Agro Commodities Trade Consultants To Carry Out The Business, Among Other Things.

 Question:
Is There Need For Chili Peppers To Be Processed Before Exporting; If Yes, How/To What Can It Be Processed To/Uses Of Chili Peppers?

Answer:
Chili Peppers May Or May Not Be Processed Before Exportation.
It May Be Exported Fresh, Dried Or Grounded.

Chili Peppers Are Extremely Healthy And Offer A Number Of Health Benefits.

1. Chili Peppers Warm Your Feet
2. Chili Peppers Have Loads Of Vitamin C
3. Chili Peppers Help Protect Your Heart
4. Chili Peppers Helps Burn Fat And Lose Weight
5. Chili Peppers Help Soothe Intestinal Diseases
6. Chili Peppers Fight Inflammation
7. Chili Peppers Help Lower High Blood Pressure
8. Chili Peppers Fight Cancer
9. Chili Peppers Prevent Sinusitis And Relieve Congestion
10. Chili Peppers Fight Migraine Headaches And Sinus Headaches

Question:
How Is The Chili Peppers Export Market Like/Has It Expanded?

Answer:
The Chili Peppers Export Market Is Definitely Expanding As Many More Countries Are Importing The Product On A More Regular Basis. Countries Presently Importing Chili Peppers Include: USA, Australia, China, Iran, Pakistan, UAE, Malaysia, India, Vietnam, UK, And Thailand.

Question:
How Lucrative Is The Chili Peppers Export Business?

Answer:
Nigeria Is Known To Be One Of The Major Producers Of Pepper In The World.  The Exporting Of Processed Peppers Can Be Either On A Small Or Large Scale Through Post Office, DHL Or Sea Port Depending On The Capital Available For Trading To UK, US, China, UAE, Etc.

1000kg/1MT Of Chili Peppers Is Sold Locally For About N400,000 Depending On The Type Of Pepper And Source Of Buying. International Buyers Are Willing To Pay Up To $3000/MT (N900,000/MT @ N300 Exchange Rate) Of Processed Chili Peppers In The Export Market.

You Can Do The Math Yourself!

Question:
What Is The Return On Investment?

Answer:

Cost Item/ton
1.
Chili Peppers
N
Sales

Cost Price
Transportation
Delivery Expenses
Misc. Expenses

Landing Cost: Lagos


400,000
100,000
50,000
50,000
900,000






600,000
Net Profits
ROI
300,000
50%

Lead-Time

7-14days

Sales Option

Fob
Quality Specifications
Good Quality, Well dried pepper


Question:
What Is The Startup Capital - If It Can't Be Exported Minimally, How Can Interested Person Join The Export Chain?

Answer:
Chili Peppers Export Business Startup Capital Depends On The Capacity Of The Would Be Exporter. You Can Start With As Little As N800,000 – N1,000,000 For 1MT Of Cargo or As Much As N16,000,000 – N20,000,000 For 20MT Of Cargo.

Question:
How Can Foreign Buyers Be Sought?

Answer:
Foreign Buyers Can Be Sought For Chili Peppers Export Business By Using The Following Methods:

1. Contacting The Export Trade Promotion Council Of The Target Country
2. Contacting The Chamber Of Commerce Of The Target Country
2. Contacting Family And Friends In The Target Country
3. By Using Online Agro Trade Portals
4. By Traveling To The Target Export Country To Negotiate Directly With Buyers.

Question:
How Do You Get Paid?

Payment Methods In Chili Peppers Export Business Include:

1. Open Account:
An Open Account Transaction Is A Sale Where The Goods Are Shipped And Delivered Before Payment Is Due, Which Is Usually In 10 To 90 Days. Obviously, This Option Is The Most Advantageous Option To The Importer In Terms Of Cash Flow And Cost, But It Is Consequently The Highest Risk Option For An Exporter. Because Of Intense Competition In Export Markets, Foreign Buyers Often Press Exporters For Open Account Terms Since The Extension Of Credit By The Seller To The Buyer Is More Common Abroad.

2. Documentary Collections: A Documentary Collection (D/C) Is A Transaction Whereby The Exporter Entrusts The Collection Of A Payment To The Remitting Bank (Exporter’s Bank), Which Sends Documents To A Collecting Bank (Importer’s Bank), Along With Instructions For Payment. Funds Are Received From The Importer And Remitted To The Exporter Through The Banks Involved In The Collection In Exchange For Those Documents. Document Can Either Be Delivered To The Importer Against Payment At The Sight (D/P) Or Against The Acceptance Of A Bill Of Exchange (D/A) Tenured For 30 To 180days Or More.

3. Letters Of Credit: Letters Of Credit (Lcs) Are One Of The Most Secure Instruments Available To International Traders. An Lc Is A Commitment By A Bank On Behalf Of The Buyer That Payment Will Be Made To The Exporter, Provided That The Terms And Conditions Stated In The Lc Have Been Met, As Verified Through The Presentation Of All Required Documents

4. Cash-In-Advance: With Cash-In-Advance Payment Terms, The Exporter Can Avoid Credit Risk Because Payment Is Received Before The Ownership Of The Goods Is Transferred. Wire Transfers And Credit Cards Are The Most Commonly Used Cash-In-Advance Options Available To Exporters.

Question:
Where Can You Source For Chili Peppers To Export?

Answer:
Chili Peppers Can Be Cheaply Sourced Mostly From The Northern States In Nigeria. High potential pepper producing areas of Nigeria Include; Kaduna, Kano, Jigawa, Katsina, Sokoto, Plateau and Bauchi States.

Question:
What Are The Challenges/Possible Solutions In Chili Peppers Export Business In Nigeria?

Answer:
Challenges In Chili Peppers Export Business In Nigeria Include:
1. Accessing Adequate Trading Capital For the business
2. Receiving Proper Trading Education For The Business
3. Getting Reliable Produce Suppliers For Your Business
4. Getting Genuine Foreign Buyers For Your Product
5. Engaging Reliable Transport Partners For Your Business
6. Identifying Reliable Export Agents For Your Port Operations
7. Meeting Up With International Price Fluctuations And Projections Among Other Issues.

All These Issues Without Exception Can Be Effectively Mitigated Through The Use Of Already Experienced Exporters/Export Consultants Like Omnibus Global Agro Trading Company Located At 18 Alafia Street Ifako-Ijaiye Lagos. Whatsapp: +2348185000488 Facebook page: www.facebook.com/xportpro

Question:
What Prompted You Into Chili Peppers Exportation And Trade Consulting?

Answer:
Omnibus Agro Trading Company Trades And Actively Consults In The Trade Processes Involved With Various Nigerian Agro Commodities Including But Not Limited To Cocoa, Raw Cashew Nut, Sesame Seed, Palm Kernel (Fruit, Cake, Oil & Shell), And Dried Split Ginger.

As A Nigerian Agro Commodities Trading Company, We Continually Strive To Profitably Exploit The Nigerian Agro Commodities Trade Sector And That Led Us Into The Highly Profitable Chili Pepper Exportation And Trade Consulting Business.

We Are Also Involved In Various Other Nigerian Agro Commodities Export Business Trainings, Planning, Contract Sourcing, Produce Sourcing, Support Services Provision, And Business Execution.

Question:
What Have Been Your Achievements So Far?

Answer:
Some of My Achievements so far Are As Follows:

1. Set Up And Management Of A Sustainable And Highly Profitable Nigerian Agro Commodities Trading And Consulting Company
2. Individual Training Of More Than 100 People In Nigerian Agro Commodities Trade Business Through The Delivery Of Seminars And Sale Of E-Manuals Since 2001. (Www.Oas-Ng.Com)
3. Running Nigeria’s Most Relevant Website In Agro Commodities Trade Business (Www.Omnibus-Agro.Com)
4. Business Consulting For A Number Of Existing Nigerian And Foreign Agro Commodities Trade Companies.
5. Nigeria Agro Commodities Trade Business LPO Financing For More Than 12 Clients And Counting.

6. 1st Page Google Search Engine Ranking For Various Agro Commodities Search Phrases Like “Agro Trading Nigeria” “Agro Trading Companies In Nigeria” ” Chili Pepper Nigeria” “Starting An Export Business In Nigeria”

 And Lots More.

Question:
Your Advice To New Entrants.

Answer:
Like With Any Business, Chili Peppers Export Business For New Entrants And Already Existing Traders Would Require The Following For Good Success:

1. Get Proper Education For Your Intended Business
2. Personal Focus And Determination
3. Be Persistence And Hard-Work
4. Form The Right Business Networks And Partnerships
5. Identify Good Sources For Your Produce
6. Get The Right Foreign Contacts Always
7. Always Maximize Your Relationship With Partners And Contacts
8. Build A Corporate International Image For Your Business
9. Get A Web Site
10. Take Advantage Of The Internet
11. Know The Market's Requirements
12. Assess Your Target Customers
13. Examine Your Competitors
14. Be Prepared To Compete Against Lower-Cost, Lower-Priced Local Coys
15. Before You Do Anything, Get Advice! 
16. Research Your Target Market
17. Analyze Your Market
18. Develop An Export Plan
19. Assess Your Capability
20. Determine Your Capacity
21.  Weigh Your Finance Options
22. Be Prepared For Border Crossing Costs 
23. Remember, The Government Is On Your Side
24. Make Sure You Get Paid
25. Get Good Shippers
26. Be Prepared To Customize Your Products To Meet Customers'
27. Create Unique Marketing Strategy
28. Develop A Marketing Plan For Each Market
29. Develop An Export Plan For Each Market
30. Set Up Export Prices For Each Market
31. Always Sell Maximum Quantity With A Maximum Profit Margin.
32. Develop A Problem Solving Plan
33. Be Aware Of Frauds
34. Be Market- And Customer- Focused
35. Be Prepared To Meet Growing Demand
36. Be Prepared To Spend Time And Money
37. Make Decisions On A Commercial Basis
38. Don't Try Too Much At The Beginning And Don't Grow Too Fast
39. The Best Time To Start Is Now
40. Go And Prosper

Tokunbo Akeredolu-Ale (Ta) Is A Business Consultant With Over 10 Years Of Relevant Agro Trading Experience. Over The Years, Tokunbo Akeredolu-Ale (Ta) Has Been Able To Show Entrepreneurs, Just Out-Of-Job Persons And Other Self-Motivated Individuals How To Use Agro Trading As A Business Diversification And High-Profit Making Tool For Themselves And Their Businesses. Tokunbo Akeredolu-Ale (Ta)'S Enlightenment, Training's, Information Dissemination, And Consulting Services Cut Across Micro-Finance, Risk Management, Business Marketing, Planning, Technology, And Integrated Online Marketing Communications (Social Media Marketing, Search Engine Optimization, Online Reputation Management, Content Marketing) As Relates To Small Businesses In Nigeria.
Whatsapp Contact Number: +2348185000488