10 ways to market your farm product to consumers

It is no longer news that Nigerians (especially the Nigerian Youths) are falling back to agriculture, partly due to the slump in global oil prices (which has affected the Nigerian economy) and also led to loss and scarcity of employment. The present administration of President Buhari is pursuing an economic policy that is geared towards diversifying the economy with a focus on agriculture.

Whilst it looks easy to dive into agriculture, it goes beyond just producing and selling of farm products. You will need a structure, a farm, a network of distributors to achieve sustainability and profitability.

Regardless of what you are selling, this article will show you how to successfully sell your farm products to the Nigerian consumer.

1. Identify your Market.

Like any other business, you will need to identify your market. Ask questions like,

  1. What does the market want?
  2. Where is the market located?
  3. Who am I selling to?
  4. How do I get the farm products to them?
  5. At what price do I sell?

It is better to know the sort of farm products your market wants and where they are located rather than assume that this is what they want and their location.

2. Join a farm association.

One of the fastest ways to understand the market and be up to date with the latest trend is to be part of numerous farm associations. This association will let you know about current situations and how they affect the farming business in Nigeria. This includes but is not limited to the following,

  1. New market trends.
  2. Potential customers and where they are located.
  3. Government regulations and tax information.
  4. Out of diseases that may affect farming.

The benefits of joining an association include increasing sales as you have the right information and it is also a cost-effective way of staying in the middle of the market trend.

3. Supply to the Food Markets (Retail and Wholesale).

Locating and supplying commercial food markets is a great way of increasing your sales. In such markets, you have thousands of traders who regularly sell farm products ranging from rice to beans, to tomatoes, to yam etc, you can approach them to make them aware of your existence, and offer them a deal that will make them swap their existing suppliers for you. Distributors who are willing to buy at wholesale prices should be sort for as well, this will ensure that your farm products are constantly be ordered for and this will lead to an increase in sales revenue.

4. Supply to Hotels and Restaurants.

Corporate clients like Hotels and restaurants are seen as the big money spenders as they process tons of food items every day. This will require a constant supply of farm products from the supplier. Approaching them to beat the price of their current supplier is a good way to start so far you can guarantee them that the products are fresh and you can get it to them at short notice.

The best corporate clients should be hotels and restaurants of reputable standards.

5. Supply to Brick and Mortar business (stores).

You can approach brick and mortar business like ShopRite and spar. They always require distributors to supply them with fresh farm products which will meet their customer’s high demand. Most of the time, due to excessive sales, most suppliers are unable to meet the demand, hence they are constantly looking for more suppliers.

In order to get a contract from these stores, you will need to convince them that your farm products are fresh, healthy and large enough to cater for their huge demand.

 

6. Supply to Homes & Offices.

You can approach organizations to sell directly to their staff members. Most people are extremely busy at the office and have less time to visit the market. Even on the weekends, you find out that most people have all sort of engagements ranging from weddings and parties. Selling to such individuals is not a bad idea as you will be selling convenience.

When selling to Homes, your target audience will be bachelors, pregnant women and the elderly.

7. Own a Retail store.

You don’t want to share your money with a middle man! That is understandable, you can set up your own retail store to sell your products at the retail price. You should also bear in mind that you will be incurring some fixed cost like employing retail staff members to sell your products, cost of rent, electricity etc.

8. Partner with an online grocery store.

You can partner with online stores to sell your farm products, you will have the opportunity to sell to their over hundreds of thousands of customers. If you don’t have money to set up a retail store, this is a good alternative as this can help you grow sales revenue faster as it cuts across geographical locations.

9. Set up an online store.

Nowadays, hardly do we you find a business without a website. Infact at the mention of your business name, people tend to ask the question, “do you have a website?”, “what’s your website name?”. Setting up a website is pretty straight-forward and simple depending on what you want to achieve with the website. It is good to have a simplified website at first and as time goes by, you can add more features to it.

10. Export your Farm Products.

If you are thinking of earning some foreign exchange, exporting your farm products won’t be a bad idea. For you to get to this point, you should have established links with the international buyers of the farm products. This also requires you export your farm product in large volumes.

 

 

 

 

16,000 small scale farmers to benefits from IFAD’s project in Montenegro

The International Fund for Agricultural Development (IFAD) and Montenegro has signed a financial agreement to launch a project to transform the lives of over 16,000 smallholder farmers. A statement on the agency’s website reveals.

The project tagged “Rural Clustering and Transformation” (RCTP) project will be the first that IFAD has supported since Montenegro became a Fund member in 2015.

The agreement was signed by the President of IFAD Gilbert F. Houngbo, and the Minister of Finance of Montenegro, Darko Radunovic.

According to the statement, “The aim of the new project is to help farmers become more competitive economically and resilient to the effects of climate change. In addition to financing, poor rural people need experience, skills and knowledge management which will be the focus of IFAD’s intervention” .

“The total cost of the project is Euro 13.61 million, of which IFAD is providing a Euro 3.88 million loan and a Euro 1.88 million grant under its adaptation for Smallholder Agriculture Programme (ASAP). Other cofinanciers are: the Government of Montenegro (Euro 4.3 million), the beneficiaries themselves (Euro 1.33 million) and participating small and medium enterprises (Eur 0.6 million)” it added

Commenting on the agreement, IFAD’s Country Programme Manager for Montenegro Annabelle Lhommeau noted that transformation of rural areas and providing new opportunities is crucial to addressing inequality and migration.

“Small farms are important to Montenegro and the project will help them increase productivity and adapt to climate change.” He added.

The project will focus on rural areas in the northern mountainous region, where farmland is mostly over 600 metres above sea level. Berane, Bijelo Polje, Mojkovac, Niksic, Petnijica, Svnick and Zabljak are the counties that will initially be involved.

 

Culled from: https://agronigeria.com.ng/16000-smallholder-farmers-benefit-ifads-project-montenegro/

How To Export Charcoal Abroad From Nigeria

 

 

 

 

 

 

Everyone wants to make money but not everyone can get dirty (yeah you heard me right). If I were to ask you if you wanted to make money, you will definitely yes, after all everyone want to be rich, but if I asked can start a charcoal business, only God know what your answer will be. If I were to say for every bag of charcoal you export, you will get some dollars, I am sure I will get a more favorable response (from a few people though).

The charcoal industry in Nigeria is a multi-billion industry which attracts some degree of grants from the government in order to sustain it.

In order to start exporting Charcoal, you need the following;

  1. Have some capital to start.
  2. Register your business with CAC.
  3. Meet the exporting requirements from the government regulatory agencies on charcoal export business.
  4. You need to be equipped with the rudiments of the principles that guide Charcoal export.
  5. Search for foreign buyers
  6. Get a steady supplier to ensure that you do not run out of supplies due to an increase in demand.
  7. Follow the global pricing of the Charcoal and know where it is needed the most so as to establish contacts in those countries.

Before you Export your Agricultural Products

 

Image result for agricultural exports in nigeria

 

The Nigerian Export Promotion Council which is an agency of the Federal Government is constantly encouraging Nigerian businessmen, agriculturalists, and industrialist to export more non-oil products. They below by doing this, they will be able to increase the country’s export index, create jobs and in the long run stabilize Nigeria’s economy.

Nigeria’s economy for decades been over dependent oil exports which have been the major contributor to the Nation’s GDP. Now, the government wants to change that by encouraging Nigerians to go into Agriculture.

But you just don’t get up and want to export agricultural products without following the steps below,

  1. CARRY OUT A SURVEY/ RESEARCH
    • You will need to carry out a research on how to export agro-allied products.
    • Carry out a research on agro-allied products that are in High demand.
    • How do you establish foreign contacts?
    • Which mode of transportation should you adopt?
    • What are the legal requirements?
  2. REGISTER YOURBUSINESS
    • Before you can trade in Nigeria, you will need to register your business with the Corporate Affairs Commission (CAC).
    • Foreigners will only transact business that is legally registered according to the laws of Nigeria.
    • Create a website for your business detailing what products you specialize in.
  3. SEARCH FOR YOUR PROSPECTIVE CLIENTS.
    • Attend networking events (Seminars and Conference) that are built around agro- allied products and agriculture.
    • Cold call prospective clients and also send emails out.
    • Search for exporting companies in Nigeria.
    • Advertise your business on google, online news platforms, and social media.
    • List your business in the local agro- allied directory.
  4. A completed form of NXP issued by Nigerian Custom Service
  5. A pro forma invoice
  6. Sales Agreement and NEPC Registration Certificate.
  7. Relevant Certificate of Quantity which is being issued by the relevant agencies.
  8. Shipping document like the bill of exit, bill of landing.

For agricultural needs, you can contact us at Tinker and Bell Trading Ltd.

Source: http://chibykeglobal.com/blog/nigerian-farmers-can-export-agricultural-products/

 

USDA DATA TENDS TO BE BEARISH FOR FARM MARKETS

 

 

 

 

 

April17WASDE

 

On Tuesday 11/04/2017, the U.S soybeans and wheat ending stocks were larger than the trade expected, with South America’s crop getting bigger by the day.

According to the April Supply/ Demand Report, the USDA left the U.S. corn stocks unchanged at $2.32 billion.Based on this report, the CME Group’s farm futures prices closed mostly weaker but off their daily lows.

At the close of business, May corn futures settled 1/2 ¢ lower at $3.66 1/2, while December futures finished 1/4¢ lower ar $3.90 1/2. May soybean futures finished 2 1/2¢ lower at $9.39 1/4. May wheat futures closed 4 1/2¢ higher at $4.33 1/4.

May soy meal futures settled $0.20 per short ton higher at $309.30. May soy oil futures closed $0.28 lower at 31.07¢ per pound.

In the outside markets, the Brent crude oil market is $0.21 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 45 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says there is nothing in the U.S. data that is really out of line with expectations.

“Corn actually is a little below guesses and beans dead on. Wheat a little higher. But the world data is big, especially for beans, and I think that is driving the markets lower,” Scoville says.

He adds, “The beans and corn increased in both Argentina and Brazil are the tickets to the price action here, and the big beans are the big thing. World ending stocks up a lot, reflecting slightly underestimated production in the U.S. and the big jumps and Brazil and Argentina and perhaps a reduction in demand maybe from China.”

Jason Roose, U.S. Commodities, says that this report means more price pressure for ag commodities.

“No real big surprises on today’s monthly report. What this report continues to do is confirm that there is no shortage of grain. Larger South America corn and bean crop increasing the world ending stocks for the grains adding pressure to the prices,” Roose says.

 

 source: http://www.agriculture.com/news/crops/usda-data-seen-as-bearish-for-farm-markets

Customs stops rice through Free Trade Zones

 

Image result for col. hameed ibrahim aliImage result for rice smuggling

 

The Comptroller General of Customs (CGC), Col. Hammed Ali (Rtd) has issued a directive to restrict the exit of rice from the Free Trade Zone (FTZ) into the country’s market as Customs is tackling with rice smuggling through the land borders.

According to Mr. Joseph Attah, the  Nigerian Customs Services spokesman, in an interview with Daily Trust said that a total of 136,506,50kg bags of rice have been seized by the customs. “in the last one year, we have made a seizure of 250,825 bags with a Duty Paid Value (DPV) of over ₦1 billion on just rice alone. Again, in the last three months alone, the Compliance Team led by Assistant Comptroller of customs, Musa Jalo, made a seizure 921 bags,” he revealed.

According to the Daily Trust reports that the Nigeria Export Processing Zones Authority (NEPZA) approves 32 of such zones imported items can be reproduced, repackaged and exported.

According to the NEPZA site, 14 zones out of the 32 zones are operational while the remaining 18 are under construction or are in the process of being developed. Some of the operational zones include Lagos Free Trade Zone (LFTZ), Banki Border Free Zone (BBFZ)- Borno, Calabar Free Trade Zone (CFTZ), and Kano Free Trade Zone (KFTZ).

Attah condemned smuggling activities as he said people must see it as a national crime, he also urged rice millers and other stakeholders to provide more information on smugglers’ activities, desist from patronizing smuggled items, and help the Nigerian Customs in apprehending culprits.

 

 Source: www.dailytrust.com.ng

Weekly Average Commodity Price For Week Starting 10/04/2017

 

Weekly Average Commodity Price for week starting 10/04/2017
Commodity Present ₦ Past ₦ Diff. ₦
Garri (White)     125.00 274.13 -149.13
Tomatoes (Cooking)     700.00 343.44     356.56
Onions (Violet)     240.00 186.31        53.69
Maize (White)     165.00 183.41 -18.41

Source: http://novusagro.com/

WEEKLY AVERAGE COMMODITY PRICE FOR WEEK 03/04/2017

WEEKLY AVERAGE COMMODITY PRICE FOR WEEK STARTING 03/04/2017
Commodity Present Price ₦ Previous ₦ Diff. ₦
Garri (White) 230.56 271.37 -40.81
Tomatoes (Cooking) 366.25 330.7 35.55
Onions (Violet) 165.00 205.31 -40.31
Maize (White) 159.67 191.58 -31.91
Rice (Local) 432.69 335.84 96.85

 

 

 

 

source:http://novusagro.com/

WEEKLY AVERAGE COMMODITY PRICE FOR WEEK STARTING 27/03/2017

 

 

WEEKLY AVERAGE COMMODITY PRICE FOR WEEK STARTING 27/03/2017
Commodity Present Price  ₦ Previous ₦ Diff. ₦
Garri (White)  188.71  273.00 -84.29
Tomatoes (Cooking) 374.17 333.97 40.2
Onion (Violet) 217.06 205.2   11.86
Groundnut (Unshelled) 282.69 244.58 38.11
Maize (White) 157.13 182.19 -25.06
Rice (Local) 301.25 328.11 -26.86

Source:http://novusagro.com/