SEMINAR RECAP ON THE TREASURED ENTREPRENEURS ASSOCIATION PREMIUM & MEMBERSHIP GROUP
👉Theme:
❤️ Unleashing the potentials of local sourcing of agro allied commodities and the exportation opportunities….
🎤SPEAKER/FACILITATOR/DISCUSSANT
🗣️Mr Ashade Adebayo
MD/C.E.O BROADMIND IMPORT & EXPORT NIGERIA LIMITED
Good evening my esteemed members of the treasured entrepreneurs association….
How has been your day my people???
Great I guess???
If so!! Glory be to God Almighty🙏🙏
You are welcome to our seminar presentation for tonight…
Well aware of tonight presentation
Let’s set the ball rolling for tonight presentation….⚽⚽⚽⚽
Lets get started🏃🏻♀️🏃🏻♀️🏃🏻♀️🏃🏻♀️
There will be no sustainable future without eradicating poverty and hunger. Ensuring food security for all is both a key function of and a challenge for agriculture, which faces ever-increasing difficulties – as populations rise, urbanization increases and incomes grow, the agricultural sector will be under mounting pressure to meet the demand for safe and nutritious food. Agriculture has to generate decent jobs and support the livelihoods of billions of rural people across the globe, especially in developing countries where hunger and poverty are concentrated. International trade has the potential to stabilize markets and reallocate food from surplus to deficit regions
Between 2000 and 2016, world agricultural trade increased more than threefold in value. On average, trade in agricultural products exhibited an annual growth rate of over 6 percent, rising to USD 1.6 trillion in 2016 from USD 570 billion in 2000.
Why Are Agricultural Commodities Important? Agricultural commodities are staple crops and animals produced or raised on farms or plantations. Most agricultural commodities such as grains, livestock and dairy provide a source of food for people and animals across the globe However, some agricultural commodities have purely industrial applications. The building and furniture industries use lumber from trees, while manufacturers in several sectors use latex from the rubber tree. Wool from sheep provides fabric for the clothing industry and lanolin for skin- and hair-care products.
Some agricultural commodities serve as both a source of food and an industrial ingredient. Both humans and animals consume corn, but the commodity is also an important ingredient in fuel production. Similarly, humans eat the beef of cows, while a variety of industries use beef hide, fats and bones to create products. Virtually every living being on the planet depends on the agricultural industry in one way or another. We eat the grains, fruits, vegetables and livestock that farmers produce; build the frames of our houses from lumber; make clothes from cotton and wool; and ride in cars with tires made from rubber.
In addition, over 1.3 billion people – nearly 20% of the global population – work in farming. In some regions of the world, such as South Asia and Sub-Saharan Africa, farming employs more people than any other industry.
In the last seven years, Bangladesh’s garment industry has increased its annual revenue from $19 billion to $34 billion—a 79 percent rise. This makes the country the second largest exporter of garments in the world, with the sector accounting for 80 percent of Bangladesh’s total export earnings. It employs around 20 million people in the country and is the major driving force of the country’s economy and added about 20% to the GDP
Leading soybean producers worldwide
Since the marketing year of 2012/2013, the United States and Brazil have been the leading producers of soybeans worldwide. Producing over 120 million metric tons of it, Brazil was clearly in the lead in 2019/2020. Other noteworthy countries in terms of soybean production included Argentina, China, and Paraguay.
Vietnam is currently the largest exporter of cashew nuts in the world with the export volume accounting for 55% of the global production in 2018. Despite being the world’s largest cashew exporter, Vietnam Cashew industry is still facing many challenges, the domestic production only meets about one-third of the demand of export processing enterprises.
The global impact of the agricultural industry is enormous. According to the Food and Agricultural Organization of the United Nations, the economic value of the agriculture industry, in constant 2010 dollars, is more than $3 trillion. With the world population expected to climb from 7.5 billion to 11.8 billion by 2100, agricultural commodities are likely to play an even bigger role in the decades ahead.
Agricultural commodities fall into one of six categories:
Cereal Grains
Oilseeds
Meat
Dairy
Other Soft Commodities
Miscellaneous Agricultural Commodities
Demand for Meat in China With annual spending of more than $300 billion annually, China is the largest meat consumer in the world. Meat consumption has been growing for the past two decades, and analysts expect growth of 3 to 4% annually for all proteins in the years ahead. The rising middle class in China is the main catalyst for this growth.
This trend will have enormous implications for global agricultural markets. China will require more grains to raise livestock and may need to import them. In addition, China is planning to invest heavily in the infrastructure required to modernize production and processing plants for beef, pork, poultry and fish
There are five (5) stages of local sourcing namely:
Farmers
Agents
Commission agent
Supplier
Merchant
Farmers: This is working with direct farmers of the produce or product with the region the product is produced. This is very good and will give you room to be able to monitor the quality from the farmer and be sure of its origin. The risk on it is that most farmers will want you to give them little advance payment before the product mature. To clean the farm or other necessary thing on the farm for better and quality yield or for personal problem.
Some farmers are honest while some are not but it all depends on your arrangement and agreement with them.
Agents: These are people in agricultural co-operative or farmer that has little financial capacity to be able to source for more produce with his co-operative or other farmers and ready to sell for you. This quantity is within 1-5 tons per time.
The risk is the advance payment or taking necessary measure to ensure quality and the problem of logistics.
Commission Agents: These are either farmer or co-operative but people that understand the procurement and the quality parameter of the said produce and work direct with farmer or agent. They don’t buy themselves, they source for the goods and add their commission and take you or your staff there to buy while you pay them commission. The disadvantage of these set of people is they inflate price. The risk is that you might be nto the owner doesn’t know them, they will show around like they know the owner and you pay them and will not see them again.
Suppliers: These are set of people that has the capacity to buy and bags according to your warehouse. The disadvantage of this is price and quality issue. Sometimes, the work in collaboration with your staff and manipulate both quality and quantity. If you are with large quantity you will definitely heed the services of that set of people.
Merchants: These are big supplier with warehouse and process of managing the quality and you work for these warehouse and buy. They also can supply or export most merchant are big suppliers or exporters without contract to supplier and need to urgently sell.
The major important lesson for effective sourcing or procurement is ability to understand how to work with this set of people to maximize your quality, quantity and better price.
Understanding the product per region of its produce is most important and the ability to know where and how to get your needed product in the right quality, quantity and the right place; that is sourcing or procurement.
Also, it is important to have contract staff that work for your company within this community and let them join all necessary association either as agent or suppliers.
The name, sesame seeds, might be strange to some Nigerians, but it is a flower plant that has a variety of relatives spread across Africa. It is the most sought after cash crop in Nigeria, after cocoa and it is currently Nigeria’s leading agricultural export in the first quarter of 2018.
Though unknown to many Nigerians, the seed – popularly called Benne seed in the Northern part of Nigeria – is an important crop to the Nigerian agricultural sector in particular, and Nigeria’s non-oil sector in general. The crop is quite largely cultivated in the country, thriving in relatively poor climatic conditions.
Worldwide, there are over 4.8 million tonnes of the seeds produced yearly, with Myanmar being its largest producer. Nigeria is now the 2nd largest African producer, behind Sudan and ranked 7th in the world.
USES
The seed has numerous uses, one of which is its being a very good source of vegetable oil that contains no cholesterol, making it the most demanded vegetable oil in the world.
It can be used in pharmaceuticals, confectionery, cosmetics and many industries for paints, soaps, lubricants, shampoos, etc. Sesame seeds contain 50.5% oil and 25% protein.
Nigeria has been one of the highest sesame seed producing countries over the years, making the seed a very important component of the country’s agricultural export.
Tropical areas are where the seeds are mainly cultivated. Due to the drought-resistant nature of the sesame plant, it thrives excellently in the Northern part of the country and averagely in some parts of South West.
Sesame seed production probably began in the Middle Belt region of Nigeria before spreading to other states. The leading producers of the seeds are Jigawa, Nasarawa, Benue and Sokoto. Other sesame cultivating states include Yobe, Kano, Katsina, Kogi, Gombe and Plateau states.
Gumel, Babura, Mallam-Madori and Maigatari as the leading towns in sesame seed production in Jigawa and Nigeria in general. As at now, sesame is cultivated in about 26 states across Nigeria and with the good returns sesame farmers are getting from the seed, coupled with the huge demand by importers, its cultivation is expected to increase and spread to other states.
Nigeria’s Sesame seeds holds value for exports and is currently in hot demand throughout the world because oil extracted from the seeds is better than any other oil in the whole world. The total value of sesame exports in Q1 2018 was N26.6 billion, according to Foreign Trade Statistics Report for Q1 2018 released by the National Bureau of Statistics (NBS). This shows an increase of 83.1% from N14.53 billion generated in Q4 2017 and a year on year growth of 104.1% from N13.03 billion the seeds generated in Q1 2017.
“In 2016, Nigeria earned 123.3 million U.S. dollars from the export of sesame seed but it has the potential of earning between 500 million dollars and one billion dollars with value addition,’’
Ginger is well known in many human communities around the world. Nigeria is the fourth largest exporter of ginger in the world, with China being the second largest producer and India the largest producer and exporter to more than 50 countries and accounting for more than 70% of the world’s production.
In the Nigerian market, ginger is well known and on high demand even though it is quite expensive.
SOURCING
Kaduna State is the highest producer of ginger in Nigeria, while states like Gombe, Bauchi, Benue, Nassarawa among others are major producers of the crop.
NIGERIA’S PRODUCTION STATISTICS
Nigeria produces an average of 160,000 metric tonnes of fresh weight ginger per annum.
USES
Ginger is highly medicinal as it aids in digestion and absorption of food and has antiseptic properties.
Ginger based products have wide range of applications in many industries like food processing, pharmaceutical, soft drinks, meat canning, confectionary, tobacco processing, soap making and so on.
This is where I will drop the anchor for tonight presentation
Thank you and GOD BLESS you all….
TREASURED ENTREPRENEUR ASSOCIATION 