FOB Trading of Sesame Seeds from Chad is a Challenging Venture

Chad is among the African countries which have no access to the sea. The nearest seaport is located 1,800 km (6 to 10 days journey) away in neighboring Cameroon. Given the regional challenge, trading freight on board(FOB) has proven to be challenging as the supplier will have to source the seeds, transport them to the seaport in Cameroon, and fulfill FOB formalities before being paid.

This definitely requires huge financial involvement on the part of the supplier to be able to continue buying while waiting to complete the shipping process of stocks sold and receiving his payment. This is surely the reason why the market is mainly controlled by a few representatives of international buyers who are legally represented.

They source directly from farmers’ organizations and local traders before following the shipment process. So for any buyer who intends to secure an acceptable share of these origin seeds, he will in the long run have to establish a warehouse not too far from the production areas.