Garlic Export Guide
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Garlic – Exportation of agricultural produce remains one of the viable ways one can make real money in Nigeria with relative ease.
Nigerians have continued to shy away from the numerous opportunities that abound in the export industry, while this happens, few people have embraced the opportunity and are since reaping the benefit.
Garlic remains of the agro produce that commands international patronage, widely accepted for varying reasons, this trend will not take a nosedive any time soon.
The essence of this guide is to show you how to export garlic from Nigeria to any part of the world, while doing this, rest assured that profit is certain.
Taking advantage of terms of trade and balance of payment, you will agree that the Nigerian naira (NGN) is on a free fall, thus the USD stands a chance to return value when paying for your garlic export is settled.
What is garlic?
Garlic is an allium species that belongs to the lily family, closely related to onions, shallots, and chives.
It grows underground in form of a bulb, which is composed of individual sections called cloves that are used for both culinary and medicinal purposes.
Health benefits of garlic
Garlic improves and helps human health in many ways, which include but are not limited to;
- It improves cholesterol levels, this invariably lowers the risk of heart disease
- It’s used in managing and controlling blood pressure
- It combats sickness like the common cold and flu
- It prevents Alzheimer’s disease and Dementia
- It helps in longevity
- It helps detoxify heavy metals in the body
- It improves bone health
- It fights against bacteria and parasites
- It prevents cancer
- Used in skincare and hair
That being said, it can easily be deduced this bulb is in high demand in various countries given its health and medicinal value.
The next question you will have to ask is, which countries import this bulb after all?
Countries that import garlic
Below are the top importing countries of this bulb;
- U S A
- U K
The importing countries exceed as listed above, however, these are the most prevailing importers, going by this provision, the product is hereby certified a hot commodity in the international market.
In recent times, the below countries were found to have exported the highest dollar value worth of garlic
- United States
- United Kingdom
Nigeria is in the league, but nowhere on the top list of exporters, this further buttresses the fact that it remains a virgin sector that needs to be explored.
Now before you think of exporting any agro goods from Nigeria, you should foremost get your export documents intact.
You are by this standard required to put in place various legal modalities intact.
I will advise you to read this guide “All you need to know about export documents in Nigeria”
Having read that, then come back and continue with this page, it will convey a better understanding of what is expected of you as an exporter before you could get your goods exported.
It is now assumed that your export document has been taken care of.
Having fulfilled this requirement, the next step you will need to take is “Product sourcing.”
Product sourcing and location
You are saddled with the responsibility of locating garlic bulbs, which mostly is being located in the rural areas, but in a limited region of the Northern Nigeria hemisphere.
Where to source Garlic in Nigeria
It can be sourced in the following states;
- Katsina and
- Zamfara states of Nigeria. With Sokoto being the highest producer.
There are basically two markets one can play in, depending on your financial outlay, whichever you chose, there’s a lot of money to be made in this market.
#1. You may play in the international market or
#2. The local market.
The International Market
By this arrangement, you want to export the product to any of the importing countries of the world as seen earlier, basically why you now have your export documents taken care of already.
The Local Market
In this market, you can be a middleman, retailer, or broker.
You may mediate between bulk buyers in the city and the local farmers who cultivate the bulbs. You buy at a very cheap price from the farmers, then sell to the urban buyers who probably may export abroad.
Interestingly, you may become a broker who acts as the representative of the buyer abroad, you protect the interest of the buyer while negotiating with the farmer.
Your interest lies in the final price given to the buyer, if agreed and purchases made, on the arrival of payment you get your settlement.
To be successful in this, you must keep an eye on the pricing obtainable at the international market, this will form the yardstick which the buyer will have to set bargain.
Read “How to make money from export brokerage in Nigeria.” You will understand the concept better afterward.
Product analysis, packaging, and potential
#1. It’s bagged and measured in 50kg per bag
#2. 1000kg gives a metric ton (Invariably 50kg X 20bags = 1000kg)
#3. A bag sells for about N20k
Now considering the international price, we may have to work with;
N20,000 X 20bags = N400,000 per metric ton
A metric ton goes for about $2000
How to source client
What is the essence of a business without buyers, customers are the oxygen that keeps a business going otherwise you’ll pack?
Despite sourcing your products, you also need someone to buy them, these are the international buyers.
They are not easy to come by, but you can get this solved too if you’ll follow my recommendations diligently on this guide.
Attend trade exhibitions organized by the Nigerian Export Promotion Council, as a registered member, this body will easily link you up with buyers overseas, they’ve been into business, so their network has been spread across the value chain.
Most effectively, if you wish to become an authority in the industry, I will advise you to get an online presence by building a business website. When you do, rank your website on the Google search engine.
By this arrangement, buyers of agro products across the world will locate you easily, when that happens, rest assured they’ll close deals with you.
It’s likewise important to buttress the fact that your contact details should be conspicuously placed on the website for easy visibility.
Your phone number and email address are ideal, the most acceptable means possible.
You can get buyers by using “Keyword placing.”
For example, go to Google and type “Garlic buyers in Indonesia.”
Having typed the above keyword, take a look at the search options provided by Google, follow those websites, and register where necessary.
By this arrangement, you could get in contact with real buyers from Indonesia.
You then commence the arrangement in earnest, this too is very effective.
You can manipulate the keyword to suit the preferred country or continent targeted as the case may be.
One downside here is that you may come in contact with fraudsters posing as real buyers.
The golden rule is, do not dispatch goods till you get at least 80% of the agreed payment, except if backed up by a secured bank order.
Agreement, payment process, and exportation
Having agreed on goods specification with your clients, the next line should be receiving payments and exporting the goods.
You are hereby advised to follow instructions to the later, payment could be received through;
Cash in advance/wire transfer
By this arrangement, you collect payment for your goods before it ever gets exported, depending on your initial agreement with the buyer.
Letter of credit/credit sales
By this protocol, the buyer gets credit from his bank, then authorizes the bank to pay the supplier on his behalf, this usually occurs through the seller’s bank.
The supplier gets paid once the buyer confirms receipt of goods in his home country, documents are then released for onward clearing.
Documents against payment
Here the seller receives payment through the bank, the goods are usually shipped via bill of lading through his bank.
You can actually export garlic from Nigeria to any country following recommended steps above, nothing beats import business in recent times, and you however should be ready to go through processes that’ll ensure your overall success. Do you really desire to start the export of garlic on a small or large scale? kindly order our recently updated guide.