nigeria sesame – a mapping
DESCRIPTION
EPOSPEA meet – ADDIS ABABA 27 th -29 th February Nigeria & TANZANIA SESAME A SNAP SHOT krishnakumar Pillai olam international. NIGERIA SESAME – A MAPPING. Nigerian Sesame. Preferred crushing grade segment. Primarily Grown in Two Zones – North and Middle Belt - PowerPoint PPT PresentationTRANSCRIPT
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EPOSPEA MEET – ADDIS ABABA 27TH-29TH FEBRUARY
NIGERIA & TANZANIA SESAME A SNAP SHOT
KRISHNAKUMAR PILLAIOLAM INTERNATIONAL
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Nigerian Sesame• Preferred crushing grade segment.
• Primarily Grown in Two Zones – North and Middle Belt
• LY Crop Size approx 125k (raw basis) Mts
• Crop Arrival starts in August and runs till end of April/May.
• 80% arrival happens b/w October to Mar
• Input Admixture-Kano type: 7-9%-Benue type: 9-12%/Benue Smallish: 9-12%-Maiduguri: 4-6%
• 2010-11 Exports 110k Mt – 98/2 in Raw form & Major Markets-Japan -Turkey -Syria & Others
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Market-Structure
• Kano is the business hub for
sesame
• Most of industry players have
their mother warehouses in
Kano where they do their
primary processing.
• Most of their purchase is
delivered Kano warehouse.
• Kano zone 80% of goods are
traded in primary markets
while in middle belt only 60%
is traded in primary markets.
Farmer
Agent
Market
LBA
Exporter
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PRODUCTION TRENDS - NIGERIA
Hadeja Kano Maiduguri TOTAL KANO Lafia Keffi Makrudi Taraba TOTAL BENUE TOT.Nigeria0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
PRODUCTION TRENDS NIGERIA
2006-07 2007-08 2008-09 2009-10
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Crop And Market Trends
•Crop Has been increasing steadily over the years
•Support from Trade houses like Olam into destinations
•Shift of Turkey from Ethiopia and Sudan to Nigeria as a source of Sesame
•Exports of Nigerian Sesame to other destinations.
•Value added products from Nigeria-Hulled Sesame-Sorted Sesame
• Industry getting mature aiding more local value addition and processing
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OUTLOOK – NIEGRIA SESAME
•Opportunities-Well accepted in most of the markets as a crushing grade-Consistent increase in volumes from the Origin-Better seed research and development can take up this business
8 Better varieties for hulling8 Better oil content8 Pest and Disease resistant varieties
•Challenges-Consistency of the crop quality -Logistics challenges has been a serious challenge
8 Inland Logistics8 Port Efficiencies
-Socio political unrest – Doubts on stability in delivery
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INCREASE IN LAND UNDER
CULTIVATION RESULTING IN
CONTINUOUSLY INCREASING CROP
SIZE
Creating value is our business
PRODUCTION TRENDS - TANZANIA
REGION 2009 2010 2011
South 8,000 12,000 15,000
Morogoro 10,000 12,000 12,000
Mbeya 12,000 9,500 12,000
Dodoma 8,500 8,700 8,500
Tanga 4,000 5,000 7,000
Sumbawanga 2,500 3,000 4,500
Mpanda 1,200 1,600 1,600
Songeya 3,200 2,700 2,000
Igunga 900 1,200 800
Tunduru 600 600 600
Other Areas 1,500 1,500 1,500
TOTAL 52,400 57,800 65,500
Year Mts
YOY Growt
h
2006 35,000
2007 38,000 9%
2008 40,000 5%
2009 52,400 31%
2010 57,800 10%
2011 65,500 13%
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PROCUREMENT MODELS
WAREHOUSE RECIEPT
FARMER VILLAGE
TOWN
PORT CITYEXPORTER WAREHOUSE
PRIMARY COLLECTOR
AGENT
SECONDARY COLLECTOR
EXPORTER WAREHOUSE
CO-OPERATIVE SOCIETY
AUCTION
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VARIETIES OF SESAME FROM TANZANIA
• Tanzania Mixed – Oil content 50-52% Mixed seeds-Produced in the Dodoma/Morogoro Regions
• Tanzania South – Oil Content 52% More whitish Bold Seeds-Produced in the Mtwara /Lindi Regions
• Tanzania White – Oil content 52% and whitish Seeds
• Production in Tanzania has been going up consistently because of the
8 Increase in the Acreage of the crop- Fresh areas under cultivation
8 More farmers planting sesame due to consistent prices.
• Warehouse Receipt System in Lindi Region in South for Sesame
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CROP AND INDUSTRY OUTLOOK
• China Emerging as a major destination market for Crushing grade
• Dominance of Japan been reduced over the last 5 years
• Issues with crop quality in terms of inconstant oil content in mixed variety
• South Variety emerging as a prominent grade in China
• Whitish variety selectively marketed.
• Crop volumes on the rise
• Steady markets at 1150-1300 $/Mt Range over last 3-4 years ( Except for 2008-2009)
• Crop production costs gone up over the last few years.
• CAN BE A STEADY SUPPLIER OF MIXED SESAME-Crop improvement programs needed to Support consistent quality
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Industry Interventions – Sesame Crop
Outgrowers’ Programme Extension Programme
Objective: Improving productivity in the conventional growing areas
Facilitating access to better quality seeds, other farming inputs
• Training on the best farming practices
• Demonstrating higher yields in Model farms to imbibe a culture of best farming practices, thus to improve yields of the entire growing area
Objective: Improving production of the crop
Distributing better variety seeds in areas adjacent to the conventional growing areas
• Distributing ‘Package of Best Farming Practices’ to these areas to create awareness of the productivity
• Ensuring markets for the new areas for sustainability