How To Start The Lucrative Export Of Shea Butter From Nigeria To International Buyers
The abundance of agricultural products in Nigeria continues to make the nation one of the wealthiest in the world. Over 100 different agricultural products are grown in the country. And profitable as they may seem, one of the most globally demanded agricultural products which are grown in vast volumes in Nigeria are Shea Butter.
International buyers all over the world are always looking to purchase Shea Butter from Nigeria because of its quality, abundance, and price. They come into the country on a regular basis for meetings with commodity trading companies and farmers to see how they can establish long-term relationships with them to guarantee a steady supply of the commodity every month for at least one year. Depending on what they agree, they decide which supplier or suppliers to go with, issue an ICPO (Irrevocable Corporate Purchase Order), sign a contract, and start transacting.
The large demand for this agricultural product in Nigeria by international buyers makes venturing into the export of Shea Butter from Nigeria to several countries around the world a lucrative export business to start up.
First, What Are Shea Butters & Shea Oils?
Shea butter is a fat extracted from the nut of the African shea tree. It is usually yellow in colour when raw, with more processed versions being ivory or white in colour. It is widely used in cosmetics as a moisturizer, salve or lotion. Shea butter is edible and is used in food preparation in some African countries.
Shea Oil is an oil extracted from the nuts of the African shea tree. It is it incredibly nourishing and moisturizing for the hair and skin.
So What Is Shea Butter Export About?
Shea Butter export is the export of Shea Butter from Nigeria to international buyers located in various parts of the world. It is exported semi-processed and further processed upon arrival at the buyer’s facility for its intended uses.
Facts About Shea Butter Export
- Nigeria is the leading exporter of Shea Butter in the world.
- Shea Butter is majorly grown in Niger, Kogi, Kwara, Oyo, Ogun, amongst other states.
- Shea Butter is predominantly in at least 21 of the 36 states of Nigeria.
- Shea Butter and Shea Oils are in great demand around the world.
- Shea Butter is yellowish in colour
- Growing Shea Butter can create a great source of employment.
- The profit margins on the sale of Shea Butter to international buyers can be anywhere from 15% to 110% depending on if you’re the farmer or are purchasing from the farms.
- As a broker, you can venture into this business with $0.
- China is the top importer of Shea Butter in the world.
Business Opportunities In Shea Butter Export
1). Shea Butter Export:
Shea Butter are usually sold at varying amounts at the farms or local markets and are then further resold to international buyers at varying prices per metric tonne depending on the specification, the seller’s connection to the farms, the trade process, and the final negotiations with the buyer.
In all, your profit margin from the export of Shea Butter from Nigeria can be anywhere from 15% to some rare cases of over 100%.
2). Shea Butter Brokerage:
When you have zero cash to start up any type of business, the first thing you should do is to venture into the brokerage of that business’ products, and in this case, Shea Butter.
You could venture into the Shea Butter brokerage business by linking a buyer to a seller, and in the process, add a markup price per metric tonne for your organisation, after getting the final selling price from the seller.
But to ensure you have a successful brokerage business, it is important you legally protect your commissions. Any seller who claims to give you something without a contract backing it is bullshitting you. If they get arrogant and tell you to wait to get it without a contract, simply walk away and find another seller.
98% of all sellers are not trustworthy without a contract in hand or a bank indemnity to pay you your commissions.
Setting Up Your Shea Butter Export Business
1). Register Your Export Business:
The first step to starting a Shea Butter 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 Shea Butter.
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 The 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 Shea Butter for you on behalf of your clients.
It’s usually better you get direct access to the farmers, so you 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 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 you organise your company this way, buyers would feel really confident about doing business with you and would tend to choose your business as their preferred partner.
4). Source For Buyers:
The next thing is to source for international buyers for your products. You can do this by registering on websites like:
And several others.
You can also build an influential social account on LinkedIn and market your Shea Butter 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 Shea Butter to the 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 Shea Butter Export Business
1). Lack of experience causes exporters to either purchase the wrong specifications, underprice or overprice their products, and much more.
2). Your Shea Butter en route a warehouse may get robbed or seized by government officials before arrival.
3). Fake buyers wasting exporters time with fake inquiries.
4). Most prospective entrepreneurs have little to no access to finance their projects.
5). Most Shea Butter 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 Shea Butter buyers who have no real money to pay.
7). The large pool of fraudsters posing as Shea Butter sellers makes it difficult for Shea Butter buyers to trust you.
The Shea Butter 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 Shea Butter 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.
An Important Point
Trying to buy Shea Butter from Nigeria through genuine sellers can lead to a lot of wasted time and efforts on the part of the Shea Butter buyers. They spend a lot of time vetting sellers in Nigeria, doubting their results even if positive, and going back and forth too many times than they can count, only to end up either cancelling their decision to buy or making a purchase after months or years have passed.
Finding real Shea Butter sellers in Nigeria can be a problem. To make this possible for Shea Butter buyers, Startup Tips Daily Media, through her sister company, Globexia, can export Shea Butter to genuine buyers from Nigeria or anywhere in the world.
Whatever will help buyers close genuine Shea Butter export-based transactions fast, transparently, and easier, we can make the process as stress-free as possible.
Our Shea Butter export business is completely transparent, and as a result, we will not deal with a buyer who intends to cut corners or outsmart any party in the course of the transaction.
If you’re a genuine Shea Butter buyer, you can reach out to us through the contact form below. If you’d like us also to help you export most of your Shea Butter, we’d be glad to do so with mutually agreed terms.
In addition to our Shea Butter export business in Nigeria, we’re also Mica Mineral sellers in Nigeria, and can export Mica minerals to buyers around the world.
If you’re only a scam, don’t waste your time, as the conversation wouldn’t last too long after a few questions and demands to prove your authenticity have been made from our end.
Our Shea Butter Trade Specifications are listed below:
Product Type: Shea Butter
Physical Specification: Based On Buyer’s Specification
Quantity: Based On Buyer’s Specification
Price: Negotiable / Metric Tonne
Trade Process: Ex Works/FOB/CIF
Payment Method: 100% irrevocable SBLC or L/C at sight from a top 25 prime bank
Shipping Time: 15 days after confirmation of L/C
Loading Port: Lagos, Nigeria
We look forward to hearing from you.
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Writing a bank and investor ready professional Shea Butter Export business plan can be challenging. If you need a professional and affordable business plan service, StartupTipsDaily’s MBA standard professional business plan writing service is perfect for your small business.
All you have to do is request an understanding of your proposed business model, and you’d have a professional MBA standard business plan ready for you in anywhere from 5 to 14 days. You can click here to get started with using StartupTipsDaily’s professional business plan writing service to create the perfect business plan that’d get accepted anywhere.
What are your thoughts on this article on how to start the export of Shea Butter from Nigeria? Let me know by leaving a comment below.
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