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EPOSPEA MEET – ADDIS ABABA 27TH-29TH FEBRUARY

NIGERIA & TANZANIA SESAME A SNAP SHOT

KRISHNAKUMAR PILLAIOLAM INTERNATIONAL

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NIGERIA SESAME – A MAPPING

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Nigerian Sesame• Preferred crushing grade segment.

• Primarily Grown in Two Zones – North and Middle Belt

• LY Crop Size approx 125k (raw basis) Mts

• Crop Arrival starts in August and runs till end of April/May.

• 80% arrival happens b/w October to Mar

• Input Admixture-Kano type: 7-9%-Benue type: 9-12%/Benue Smallish: 9-12%-Maiduguri: 4-6%

• 2010-11 Exports 110k Mt – 98/2 in Raw form & Major Markets-Japan -Turkey -Syria & Others

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Market-Structure

• Kano is the business hub for

sesame

• Most of industry players have

their mother warehouses in

Kano where they do their

primary processing.

• Most of their purchase is

delivered Kano warehouse.

• Kano zone 80% of goods are

traded in primary markets

while in middle belt only 60%

is traded in primary markets.

Farmer

Agent

Market

LBA

Exporter

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PRODUCTION TRENDS - NIGERIA

Hadeja Kano Maiduguri TOTAL KANO Lafia Keffi Makrudi Taraba TOTAL BENUE TOT.Nigeria0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

PRODUCTION TRENDS NIGERIA

2006-07 2007-08 2008-09 2009-10

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Crop And Market Trends

•Crop Has been increasing steadily over the years

•Support from Trade houses like Olam into destinations

•Shift of Turkey from Ethiopia and Sudan to Nigeria as a source of Sesame

•Exports of Nigerian Sesame to other destinations.

•Value added products from Nigeria-Hulled Sesame-Sorted Sesame

• Industry getting mature aiding more local value addition and processing

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OUTLOOK – NIEGRIA SESAME

•Opportunities-Well accepted in most of the markets as a crushing grade-Consistent increase in volumes from the Origin-Better seed research and development can take up this business

8 Better varieties for hulling8 Better oil content8 Pest and Disease resistant varieties

•Challenges-Consistency of the crop quality -Logistics challenges has been a serious challenge

8 Inland Logistics8 Port Efficiencies

-Socio political unrest – Doubts on stability in delivery

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TANZANIA SESAME- DISTRIBUTION

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INCREASE IN LAND UNDER

CULTIVATION RESULTING IN

CONTINUOUSLY INCREASING CROP

SIZE

Creating value is our business

PRODUCTION TRENDS - TANZANIA

REGION 2009 2010 2011

South 8,000 12,000 15,000

Morogoro 10,000 12,000 12,000

Mbeya 12,000 9,500 12,000

Dodoma 8,500 8,700 8,500

Tanga 4,000 5,000 7,000

Sumbawanga 2,500 3,000 4,500

Mpanda 1,200 1,600 1,600

Songeya 3,200 2,700 2,000

Igunga 900 1,200 800

Tunduru 600 600 600

Other Areas 1,500 1,500 1,500

TOTAL 52,400 57,800 65,500

Year Mts

YOY Growt

h

2006 35,000  

2007 38,000 9%

2008 40,000 5%

2009 52,400 31%

2010 57,800 10%

2011 65,500 13%

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PROCUREMENT MODELS

WAREHOUSE RECIEPT

FARMER VILLAGE

TOWN

PORT CITYEXPORTER WAREHOUSE

PRIMARY COLLECTOR

AGENT

SECONDARY COLLECTOR

EXPORTER WAREHOUSE

CO-OPERATIVE SOCIETY

AUCTION

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VARIETIES OF SESAME FROM TANZANIA

• Tanzania Mixed – Oil content 50-52% Mixed seeds-Produced in the Dodoma/Morogoro Regions

• Tanzania South – Oil Content 52% More whitish Bold Seeds-Produced in the Mtwara /Lindi Regions

• Tanzania White – Oil content 52% and whitish Seeds

• Production in Tanzania has been going up consistently because of the

8 Increase in the Acreage of the crop- Fresh areas under cultivation

8 More farmers planting sesame due to consistent prices.

• Warehouse Receipt System in Lindi Region in South for Sesame

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CROP AND INDUSTRY OUTLOOK

• China Emerging as a major destination market for Crushing grade

• Dominance of Japan been reduced over the last 5 years

• Issues with crop quality in terms of inconstant oil content in mixed variety

• South Variety emerging as a prominent grade in China

• Whitish variety selectively marketed.

• Crop volumes on the rise

• Steady markets at 1150-1300 $/Mt Range over last 3-4 years ( Except for 2008-2009)

• Crop production costs gone up over the last few years.

• CAN BE A STEADY SUPPLIER OF MIXED SESAME-Crop improvement programs needed to Support consistent quality

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SESAME CROP DEVELOPMENTROLE FOR INDUSTRY

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Industry Interventions – Sesame Crop

Outgrowers’ Programme Extension Programme

Objective: Improving productivity in the conventional growing areas

Facilitating access to better quality seeds, other farming inputs

• Training on the best farming practices

• Demonstrating higher yields in Model farms to imbibe a culture of best farming practices, thus to improve yields of the entire growing area

Objective: Improving production of the crop

Distributing better variety seeds in areas adjacent to the conventional growing areas

• Distributing ‘Package of Best Farming Practices’ to these areas to create awareness of the productivity

• Ensuring markets for the new areas for sustainability

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THANK YOU

Krishnakumar R Pillai