Tanzania Sesame Seeds: The 2022 Sales Season Begins With Higher Price Quotations

Published 2022년 7월 19일

Tanzania is among the world's top producers of sesame seeds and one of the biggest exporters of the oilseed. Sales of sesame seeds in Tanzania began in the middle of May with price quotations from the different growing regions of the country seeing up year on year. Premium Lindi white sesame originating from the southern half of the country traded at Tsh. 3,025 ($1.30/kg) during week one of sales.

Tanzania is among the world's top producers of sesame seeds and one of the biggest exporters of the oilseed. Its production and exports have seen steady growth and it is expected to keep that momentum going forward. Prices have however been up, attributed to lower production and the rising cost of production on the back of an increasing cost of inputs.

Sales of sesame seeds in Tanzania began in the middle of May with price quotations from the different growing regions of the country beginning up year on year. This will be followed by the export cycle which starts in July, picking up speed in August through to September and mid-October.

At the end of May, Tridge Origination Manager based in Tanzania Sanje Lufwelo reported that in the Songwe region, the first sesame seed auction of 2022 will begin on the last day of May. A total of 60 mt of white sesame seed he added, remains gathered and held by the Tanzania Mercantile Exchange at the union warehouse (SORECU) with only half of that amount offered for bidding.

Data collected by Tridge Origination Manager based in Tanzania Linus Ndongwe, an expert in the sesame seeds, suggested prices have seen significant inflation over the year. Premium Lindi white sesame originating from the southern half of the country traded at Tsh. 3,025 ($1.30/kg) during week one of sales. The price has since gone up 3% to sell at 3,125 (USD 1.34/kg). Last year, prices in the same auction area started at Tsh. 2,710 (USD0.12/kg, and an average of Tsh. 2,371.6 (USD1.02/kg) for the season.

The rising demand for sesame seeds for toppings on confectionary and other healthy foods in some Asian economies as income rises is pushing demand for sesame seeds especially in the Chinese market up. China continues to be the world's biggest export destination for sesame seeds and the presence of Chinese buyers in the Tanzanian sesame trade has been robust recently.

Chinese buyers directly active in the Government’s Tender Box Auctions by the regions’ Sesame Seed Cooperative Union according to Tridge Origination Manager Linus “have kept on buying at much higher prices” and continue to push the bullish sentiments in the local market. Other trades happening through the Mercantile Exchange Auctions have also been on the upside this year.

The sesame seed trade in Tanzania reflects the recent inflation in other agricultural commodities, volatile energy prices and higher global freight rates. The latter, however, has been weighed down recently by extra available space in container shipping and blank sailings.

Exporters taking advantage of the current freight prices are going hard on their purchases to export to the Chinese market before an expected recovery in consumer demand pushes freight costs back up. Amid a reintroduction of restrictions in some provinces in China in recent months, demand for sesame slowed keeping stocks at comfortable levels. Prices in China have thus stayed stable YoY at $1,625/mt - $1,680/mt.