If you have not already started to export farm produce from Nigeria to the US to other parts of the world, then you are leaving money on the table. This is the time to get involved in the exportation of farm produce, especially during ‘-ember’ months.
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IntroductionPrior to the oil boom in Nigeria, Agriculture has been one of the Nigeria major economic drivers. This boom turned Nigeria to a mono-economic country, relying only on crude oil as her major source of revenue. But in the long run, there arose the volatility in oil price and uncertainty of the global economy. This compelled the government to diversify towards other areas for revenue generation, with Agriculture as the topmost evergreen opportunity. This diversification has led to much talked about ‘non-oil export’. . In essence, something else other than oil export that can foster a robust revenue generation in the country. In the opinion of Chief Segun Awolowo (The Former Nigeria Export Promotion Council boss), “It was regrettable that Non-oil export trade between Nigeria and USA has remained abysmally low at 2%.” Mind you, we have in another post the key functions of the Nigeria Export Promotion Council (NEPC). He expressed that the government had set up a Committee for Export promotion to be chaired by the Vice President of the Federal Republic of Nigeria, to boost productivity in the nation non-oil export in a bid to get goods exported to the US, with ease. This is the time to take advantage of the rising opportunity by starting a small scale export business in Nigeria. In a future post, we’d be revealing our discoveries on how you can effortlessly export foodstuff from the shores of Nigeria to the United States of America and to other parts of the world. Exportation of local goods, foodstuff or handmade products from Nigeria to overseas is one business of the many small and large scale businesses available, where you can generate as much as 5 times what is obtainable here in Nigeria, selling same local products. Today’s post is not about the biggest exportation business, which we all know as mostly being dominated by top business tycoons or the Government, for example, crude oil exportation, petroleum exportation. We want to show you how lucrative the exporting farm produce is and how you can leverage it effectively. It’s no more news that you can also export your farm produce from Nigeria to any parts of the world as the Nigerian government has now given expressed supports by way of providing loans and other means to aid startups in the country. The agricultural business may have initially been overlooked, but now…? “… it is the much go-to venture if you want to create a business that can generate over 200% return on investment.” Meanwhile, just as it is possible to export agricultural products for business purposes, you may also send food items to your family and friends in the diaspora, for consumption. This is a clear indication that in as much as there are implications to it, there are however more to benefit from this evergreen. Read Also: Common Mistakes Importers Make and How to Avoid them Let’s first start with what export is.
What is Exportation and Who is an Exporter?Export, in simple term, means to ship goods and services out of the port of a country. It refers to all the process involved in selling goods and services produced in the home country to other markets, usually international. An Exporter is known as the seller of the goods and services being moved beyond the country of export to another country. The buyer of any goods and services from the country of import is known as an Importer. Export of commercial quantities of goods normally requires the involvement of the customs authorities in both the country of export and the country of import.
How can you leverage this Exportation goldmine opportunity?In this post, you get to gather 3 simple steps you must take before you begin to export farm produce from Nigeria to the US. Exporting Farm Produce from Nigeria is one business, of all, where you can generate as much as 5 times what is obtainable in sales of the same products here in Nigeria. But it requires quite a lot to become successful. You have to understand the market trend and get familiar with high-demand products in the US or any part of the world. This would give you a better chance of making profits in the business. Besides, you have to take some significant steps, which without, you may land your business in ‘shambles’ To leverage on this business opportunity, the following 3 steps are very important to note before you begin.
- Do a Thorough Research
- Register your Export Business
Search for Foreign Customers
Do a Thorough ResearchThe export business is broad and requires a reasonable decision. This requires lots of serious research. Find out about how to establish contacts, check on market satiation, best means and approach to advertisement and promotion of the same product, research on capital/startup cost, as well as research on best means of transportation. You would want to ensure you have the right freight forwarder, Check on the most convenient shipping companies or flight cargoes, the legal requirement (what kind of documents you need before you start.
Research on high-demand product outside NigeriaHigh demand products of great needs and best selling. There are several factors used in determining how to find such products. Some determinable factors are as follows:
- Find out how lucrative such products are,
- What location in the world would have high demands for the products,
- The cost of producing the products and also,
- How you can source the products and make them available to overseas customers who are already waiting for the products
Research on Best Shipping/Transportation methodAnother important consideration is transportation. You want to get the most reliable means of transportation to convey your goods out of the country. Would you be shipping by sea freight, Air Freight, or other available modes? What shipping companies would be more reliable for us. You want to ensure proper channels for this aspect as it applied to other areas.
Research on Legal Requirements & Documents neededYour company is required to meet up with some legal requirements and other important documents before venturing into exportation business. Ask questions about the proper documents to set in place before exporting from Nigeria to any parts of the world. So, for smooth passage, we put together documents you need to have in place for your export business. So, which of the documents below are more important for you?
- The Commercial Invoice: This type of document is provided by the exporting company. It serves as a customs declaration for exporting the products outside your country or overseas.
- The Cargo Bill: This document plays the part of a receipt detailing a list of ship cargo, usually given by a captain of the ship to the person who ships the goods.
- The Consular Invoice: As the name implies, this document is required to be submitted to the consulate or embassy of the country where the goods are to be exported. It is an important requirement.
- Certificate of Origin (CO): This is a document that is provided by the exporter indicating the origin of goods. It shows where the products were made and packaged.
- The Inspection Certificate: This is one of the most important document. Without this document, exporting those goods would definitely not be possible. This document helps in certifying that the products being shipped were in perfect condition at the time of inspection. This is required in many countries to help limit the movement of contraband goods/products.
- The Dock Receipt: The document is issued by the sea freight carrier to prove that your goods are at the carrier’s shipping terminal.
- The Warehouse Receipt: This document is issued when goods are stored in a warehouse. It is proof-document which states the ownership of export goods stored for safekeeping. It is a negotiable document anyway.
- The Destination Control Statement: This is a document that serves the purpose of notifying the carrier and other foreign parties that the item can be exported but only to particular/certain destinations. It may be issued as part of the commercial invoice, air waybill or ocean. It can be also in the Shippers Export Declaration (SED).
- The Insurance Certificate: Insurance is a document which provides information on particular insurance coverage in case of any emergencies. You would have to prepare an insurance certificate for your shipment. The certificate is your proof of insurance policy and usually contains some detailed information on types and limits of insurance coverage, your insurance company’s contact information, policy number, and the insurance’s expiration date.
- The Export License: Once you begin to export any products from Nigeria, it is desirable for you to get a license from the government agencies. This document will be good evidence of legal business for your customers. These are the ten documents, which any exporter should have before starting the export business and shipping the goods abroad. But before you move to documents part, you still need to decide what to ship!