You might have heard that Exporting Palm Oil, Palm Kernel Oil and Palm Kernel Shells is the best type of business opportunity available to individuals who have buyers in another country.
History of Palm Oil
Use of palm oil can be traced as far back as 5000 years ago. Archeologists have unearthed evidence indicating that palm oil was used in the tomb of Abydos which dates to 3000 BCE, and it is thought they were brought to Egypt by the traders. Palm oil has also been used for several centuries in parts of Central and West Africa, and traders from Europe purchased it occasionally for use in cooking. During the industrial revolution, palm oil became the most sought-after commodity because it was used as an industrial lubricant for machinery. Palm oil has been used widely to manufacture soap, and the earliest pioneers were the Lever brothers, now known as the Unilever. By 1870s, palm oil was the primary export product from West Africa for countries such as Nigeria and Ghana
Which is so true.
Below are the 15 countries that exported the highest dollar value worth of palm oil during 2017.
- Indonesia: US$18.5 billion (55.5% of exported palm oil)
- Malaysia: $9.7 billion (29%)
- Netherlands: $1.4 billion (4.1%)
- Papua New Guinea: $512.8 million (1.5%)
- Guatemala: $446.5 million (1.3%)
- Colombia: $381.7 million (1.1%)
- Germany: $343.4 million (1%)
- Honduras: $335.8 million (1%)
- Thailand: $216.7 million (0.6%)
- Ecuador: $208.3 million (0.6%)
- Italy: $129.2 million (0.4%)
- Costa Rica: $119.1 million (0.4%)
- Denmark: $113.6 million (0.3%)
- United States: $98.5 million (0.3%)
- United Arab Emirates: $71.2 million (0.2%)
Now imagine if we threw in other Oil Palm Product like Palm Kernels Shells(PKS), Palm Kernel Oil(PKO), Palm Wine(PW) and Refined Bleached and Deodorised Palm Oil and Palm Kernel Oil, RBD-PO and RBD-PKO.
You would say, since we export over 970,000 metric tons of Palm Oil a year, with an estimated value of $1.8 Billion. That means a lot of people and big industries also exporting it.
Wrong, there are very few people exporting Oil Palm Products from Nigeria.
Most people are not aware of the processes, agencies and documentations needed for exporting oil palm produce, let alone any other cash crops. Even when the find a foreign buyer for their produce, they are not aware of the necessary requirements need to ensure they don’t get duped or discouraged.
How Do You Go About Exporting Palm Oil And Palm Kernel Oil In Nigeria?
Before you contact a buyer and begin the export process, you need to have certain things and documentation in places. Starting with
Corporate Affairs Commission(CAC)
For Registering a business Name
also click here for the fees
Nigerian Export Promotion Council Registration(NEPC)
The Nigerian Export Promotion Councils sole purpose is promoting Nigerian export products and ensuring proper documentation of export transactions. That’s why you need to register with them, they help you connect with buyers while also presenting your export produce in foreign trade fairs. Click here for their registration.
Once you have registered for these two agencies, it time to go after all the necessary documentations required before you can begin exporting Oil Palm.
Yes, there are actually a lot of other document required before you can even begin sourcing for a shipping company.
Why All These Documentation?
Quite simply, that’s how export operate, the documentation is actually needed to protect you, your buyer and your products. They also ensure that you get your payment for your items.
Just imagine, you were to ship your produce to say Russia and when it gets there, the buyer refuses to pay for shipping(yes you can defer payment for shipping to your buyer)
The buyer collects the produce and refuses to pay for them, because you have all the necessary documentation, you are sure you will get your payments upon delivery or upfront.
What Are The Documents Required For Exporting Oil Palm?
These are documents you use in reference to the type and number of produce you are exporting, including shipping cost. Its usually sent to the buyer and a copy to the relevant exporting agencies i.e Customs
This documents are issued by the Ministry of Agriculture and NAFDAC for the Buyer, it tells the shipping agency that your goods have ok to be shipped, it tells the buyer the quality of the goods he/she is getting
These are issued by the shipping company, depending on what means of transportation they use to ship the produce.
Tariffs Concession Documents
These documents are usually issued depending on the export area the country you are sending the produce to is a member of.
Exportation of Oil Palm produce is a target every mill, farm and supplier wants.
The documentation might seem a lot and they are not usually cheap to come by, the advantage they offer is that in the long run it helps you do business smoothly.
But there are those who still take the risk to export without documents, some even work with export agents that handle everything for them, making the export cost cheaper.
But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.