Kola nut export is one of the least know money maker in some parts of this country. If you have access to Kola nuts, you are in for dollars exporting it to foreign countries. Kola nut is highly sought after because of its many usages both in pharmaceutical and soft drinks productions. Here, we’ll be looking at How To Start Bitter Kola Export Business In Nigeria.
In Nigeria, Kola nut is very important because it is used as a good gesture in marriages, business transactions, and in many occasions as a way of showing respect. Kola nuts are given to strangers in many parts of Igboland as a hospitality and welcome gift. But beyond that, cola nut is also capable of making millions of dollars to exporters.
AGRO EXPORTATION BUSINESS: Discover the secrets how to start exporting Bitter Kola, Cashew Nuts, Ginger, Dried Fish, Pepper, and other Agro allied products to USA, UK, Europe, UAE, Canada, etc from the comfort of your Home. To learn more,CLICK HERE
The prices of kola nuts vary in Nigeria markets, but when you are poised to having it exported out of the country, you will be sure to have the profit margin rounded up many times for you.
For instance, the price you get a basket of kola nut in Ondo state is quite different from what you would get it in mile 12 market in Lagos. In fact, the differences may be N60,000 as against the N12,000 for the same quantity of 75 kg of kola nuts in local markets.
One thing that is assured is that any how you retail it in Nigeria markets, you are assured of making enough profits. This may be the reason why many of the dealers don’t seem to bother about taking the product out of the country.
Kola nut is used for many things abroad including spices. It is so useful in oversea that no amount you exported that can be enough. This where the money is.
The Product
Bitter Kola as it is simply called in English, belongs to the family of Guttiferal. It is an agricultural product and has medicinal application in both traditional and orthodox medicine. It is from the species called Gacinia Kola and it appears as a fruit. Apart from being medicinal, it has an essential ingredient needed companies. There is no doubt therefore that these various uses are responsible for its high demand both locally and internationally in both large and small quantities.
There are continuous demand for Bitter Kola in countries like USA, Canada, India, Germany and a host of other European countries.
Sources Of Bitter Kola
Bitter Kola can be sourced easily. It is available in virtually every market in Nigeria. In terms of large quantities, Bitter Kola is available in Eastern and Southern part of Nigeria. Researchers have shown that Bitter Kola is also predominantly abundant in Mile 12 and Ketu markets in Lagos. But this is brought into these markets from Ondo and Osun markets where it is relatively cheaper.
How To Invest In Bitter Kola Export
Do you know that you can make money very fast, here at home in Afemai by exporting common Bitter Kola? Do you want to start a Bitter Kola export business but you do not know how to go about it? Do you need a sample of Bitter Kola export business plan template that you can use to raise funds or get loans from banks? Then I advice you read this report I have taken time to research.
Exporting
It is worthy to note that before any prospective exporter begins to source for the product, he must first of all ensures he seeks for order from prospective buyers. It is this order that specifies the name of the in food and drinks industries. It is also extremely needed in pharmaceutical firm-manufacturing
buyer, the product, agreed price, quantity, packaging method, terms of payment and delivery and such terms as may be relevant in the transaction. A list of prospective buyers can be provided for your asking.
Meanwhile the price of Bitter kola in our local market can be around N120 to N150 per kg depending on on the point of purchase as purchasing from certain sources and quantity can reduce the cost. It is obvious therefore that Bitter Kola is a lucrative business that anyone can do even from the bedroom.
Imagine buying $1 per kg and selling $18 per kg. Assuming you incur additional cost of $3 or $4 per kg, you will still have a minimum of $13 per kg. Calculate the gain in hundred and thousand kg.
Processing And Packaging Of Bitter Kola
Packaging is very essential in any business. In the International Market, Bitter Kola is always required in two forms; fresh or dried. However, most importers or buyers always want them dried. The drying is to reduce the moisture content to about 1%. In order to meet the buyers’ and International standard and requirement, it must be adequately and properly dried in such a way that the scales, colour, and taste are not adversely affected. Drying of Bitter Kola is done in three ways: sun drying, natural drying and mechanical drying .Sun drying is the popular method of spreading them in the sun to dry while the natural drying is when they are just allowed to dry on their own. Mechanical drying is the use of cabinet machine with partitioned layers with electric element and a blower to produce the warm air that dries a large quantity of the product faster and safer. This cabinet machine has a regulator and it is an electric generated machine. It is mostly used by large scale exporters and it is expensive though it can be fabricated locally and cheaply. The sun drying and the natural drying methods are recommended for small scale and medium scale exporters because it has virtually little or no cost implication, as natural drying can even be done at the corner of your room. Meanwhile, the exporter must ensure good quality of Bitter Kola. The product must be free from foreign matters like stones, sand, dirt, nylon, paper, etc. these will add unnecessary weight as well as contaminate the product. For the exportable product to achieve standard, in terms of quality and packaging at International Market, the following parameters must be observed. Commodity must properly dry to avoid moldiness, free from extraneous matters and must not be adulterated.
It is important to note that there is no standard packaging method for Bitter Kola. You can seek the consent of your buyer before packaging on the type of packaging they require. Though the recommended packaging for this kind of product is the type of bags used in packaging rice so that air can enter, you however need to ensure that the choice of bag is suitable for the size that fits the quantity or as required by your importer or buyer.
Steps to Start Kola Nut Export to Foreign Countries
After you might have secured a buyer through referral or through internet, you can conveniently start the business with at least N50,000.
When you buy the kola nuts and have taken enough time to clean it up of some unwanted spots due to Ants infections and other weather related black spots, the next thing is to have it wrapped with a paper wrapper at the weight of 1kg per wrapper then have it 7 wrappers packed into a carton which would be 7kg in all. That is the acceptable kg per carton.
So with a kola nut of N50,000, you would spend at least N10,000 to get the wrappers and other expenses to have it packaged after which you take it to a COURIER company for transporting to the destination where your kola nut export customers are.
This is for a small scale kola nut export. If you are going big with the business then you would have to register with the shipping council to have your goods forwarded for you without hassles.
Even as a small scale kola nut exporter, you are assured of 100% profit of any goods shipped to your overseas customers.
Do not forget to look for a courier company with the most favorable prices to export your goods. Always make sure that none of the cartons exceeds 7kg to avoid being rejected by the courier. As you can see, kola nut export is quite simple, simpler than you think.
For those that want to do it in a big way, having an online presence where you can have your goods advertised is very important.
Where to Get Customers For Kola Nut Export
New Zealand, Brazil, UK, Australia, Canada, and USA. These countries are known to have large productions of energy drinks with some high rates of their consumption.
Other cash crops in Nigeria like Cashew nuts and the likes can also be exported out of the country and make money by following almost the same steps as outlined above.
Kola nuts can sourced from Abidjan in greater quantity for export into the foreign markets for some maximum profits. Once you have made up your mind to go into it, be sure to have it done in a big and admirable way because kola nuts exportation is a lucrative business.
Export Price
Presently, a kg of Bitter Kola is about $18, at the International marked while the local price is about N200 per kg.
TRANSPORTATION
Here, we are considering a small scale exporter who does not necessarily need to use the shipping method because of the quantity, the capital and other requirements involved. The small scale exporter can use the Post Office or any of the courier companies such as EMS, DHL,IFEX, UPS etc. these are available anywhere. They are fast and very effective methods of exporting goods including Bitter Kola.
How To Receive Money
This is not a difficult thing as it has been made easy over time. This could be done through a Domiciliary Account that you may have with any bank of International standard in Nigeria such as First Bank, Eco Bank, etc. however, if you do not have a domiciliary Account you could request you buyer to send your money through Western Union Money Transfer. It is worthy to note that this is a highly profitable business venture that one can start with as low as N100, 000 (one hundred thousand naira) only. And you are on in the export business. This money could be raised through personal savings, assistance, borrowing from friends and relatives and loans from Micro Finance Banks.
AGRO EXPORTATION BUSINESS: Discover the secrets how to start exporting Bitter Kola, Cashew Nuts, Ginger, Dried Fish, Pepper, and other Agro allied products to USA, UK, Europe, UAE, Canada, etc from the comfort of your Home. To learn more,CLICK HERE
