Sesame exports as one of the main boosters of Nigerian foreign agricultural trade

Production capacity

Nigeria belongs to one of the biggest sesame seeds producers in the world. In 2019, the country accounted for 8.2% of the world’s total production. According to the latest FAO statistics, Nigeria’s sesame seed harvest stood at 480,000 tonnes in 2019, making it the fifth-largest producer in the world.

The biggest crop is gathered in Sudan. The country collected 1.21 million tonnes of this commodity or 20.8% of the total global volumes. The second place was taken by Myanmar, with the production volume at 744,500 tons or 12.8%. The third-biggest producer was India, whose harvest reached 689,310 tons or 11.8% of global production.

World’s Biggest Sesame Producers in 2019

Data: based on FAO statistics

Sesame seed production in Nigeria has been very volatile for the past 5 years, with the highest production being noted in 2012 at 632,320 tons and the lowest at 433,000 tons in 2015. Unstable production in the country can be related to a number of factors. According to Tridge's representative in Nigeria, Simon Edegbo, a lot of farmers prefer not to invest their funds in cultivation because of insecurity reasons, as during the season the crop can be destroyed or damaged by invasion or robberies. Lack of mechanization in farming is also one of the major reasons behind the volatile production trend.

Export demand is driven by China and Japan

The export of Nigerian sesame has been increasing in the last five years, despite uneven production volumes. In 2020, the value of shipments of this commodity reached $287.12 million, almost a three-fold rise compared to 2016.

The biggest importer of Nigerian sesame seeds is China, which accounted for 33% of total imports or $92 million in 2020, which is two times more than in the previous year. Chinese imports of sesame seeds surged six-fold compared to 2016 when the value of imports was $15 million. The second and third largest markets for Nigerian sesame were Japan and Turkey, which accounted for 32% and 13.7% accordingly.

Data: ITC trade map

The increase in exports is connected to a constantly rising demand all over the world. Sesame seeds are attracting consumer’s attention all over the world by their outstanding health benefits, their wide range of applications in the food, cosmetic, medical industries, and their high commercial value. A lot of countries process it into oil, which is highly nutritious.

The current situation in the export sector

The Nigerian market was characterized by a lack of export offers of the 2021-crop sesame seeds in the first two weeks of September 2021, as the new harvesting season had just kicked off and freshly gathered seeds are undergoing the processing stage: hulling, sorting, separating, drying. Since it takes some time to complete processing, the commodity is coming to the market at a slow pace and in small quantities. If export activities are held, traders are mostly selling out old stocks.

According to Tridge's representative in Nigeria, Simon Edegbo, at the moment export prices are not stable (in the week 13-17 September), because the market does not have sufficient volumes for big export shipments. Some market players are giving their price offers very cautiously, as they are concerned about the fluctuation of the exchange rate of the USD to Nigerian Naira.

The first 2021-season white sesame seeds are being offered at 1,300 USD/MT EXW. According to Tridge's representative in Nigeria, Simon Edegbo, export prices may increase as the harvesting season develops, reflecting a possible fall in production caused by security challenges in the farming sector (robbery, logistical issues) as well as adverse weather conditions.

Sources:

Nigeria's sesame market. Nigeria’s sesame market is lucrative but weighed down by challenges

Thisdaylive.Nigeria Exported N41.9bn Sesame, N13.7bn Cashew in 1Q 2021

Tridge: Local Insights