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How To Start Bitter Kola Export Business

Here is a detailed guide on Starting Bitter Kola Export Business.

In this article, you will discover firstly, the economic importance of Bitter Kola Export Business in Nigeria.

The article also makes a case for on the export potentials in Bitter Kola Export Business in Nigeria.

Thirdly, we look at useful strategies for succeeding in the Bitter Kola Export Business in Nigeria.

Lastly, but not least, the article expatiates on packaging Bitter Kola Export Business in Nigeria for export.

To crown it all, detailed analysis is done on the profitability index inherent in Bitter Kola Export Business in Nigeria. You should start

Image result for Bitter Kola Export BusinessImage result for Bitter Kola Export Business

Bitter Kola Export Business in Nigeria after reading this well-detailed guide. Let’s begin!

Bitter Kola Export Business in Nigeria

Bitter kola also referred to as Garcinia kola is a species of flowering plant which belongs to the Clusiaceae or Guttiferae family. Bitter kola is found commonly in the following countries:

  1. Senegal and Sierra Leone.
  2. Nigeria
  3. Liberia
  4. Ivory Coast
  5. Ghana
  6. Gabon
  7. The Democratic Republic of the Congo
  8. Cameroon
  9. Benin

The natural habitat of Bitter kola is subtropical or tropical moist lowland forests.

About 150, 000 tons of bitter kola is produced in Nigeria, being the core producer of bitter kola in sub-Saharan Africa.

Nigeria produces annually, about 90% of the product for local consumption.

In Nigeria, bitter kola is known commonly as Namijin-Goro among Hausa, Akuilu in Igboland and Orogbo in Yorubaland.

The Economic Significance of Bitter Kola Export Business

Bitter kola, botanically referred to as (Garcinia) has immense market demand in several countries of the world.

Some of these includes France, Italy, China, America, Japan, India Britain, Germany, and other countries in Asia.

The product is used for several purposes, mostly food.

But that aside, bitter kola serves as an immense raw material in the pharmaceutical industries for drug production.

Bitter Kola product is in high demand in the international market.

Because of its immense healthcare advantages.

Below are under listed Some of these benefits.

  1. Biter kola is used in production of kola soft drinks
  2. Biter kola Significantly reduces eye pressure when consumed twice a day.
  3. The product is used in the preparation of herbal drugs either as nourishment, supplement or herbal remedy.
  4. Garcinia (Bitter) kola can be used as a replacement for or in place of hops in brewing lager beer. The product is useful especially for the prevention of spoilage in beer.
  5. Finally, Bitter Kola has been considered as a very effective agricultural product used for the treatment of some common diseases such as tuberculosis diarrhea, cough, as well as other infections caused by bacteria.

Where to Buy Bitter Kola in Nigeria for Sale/Export

1. Buy from Local Suppliers in Nigerian Markets

It is quite easy to locate Bitter kola in our local Nigerian markets.

As such, sourcing the product will never be a problem.

Of course, the product is very affordable and most times, goes at highly subsided and cheap rates.

Bitter kola, you should know, most of the time, comes into the local market from Eastern Nigeria.

2. Contact Bitter Kola Suppliers on Trade Forums in Nigeria

As a matter of fact, searching through few trade forums in the country.

Will provide you a comprehensive list of quite a number of bitter kola suppliers in the country.

3. Buy online from Merchant Sites

We have an estimated 362 Nigerian suppliers of bitter kola on Alibaba.com alone.

This is a vast collection of the product from the hinterlands, suburbs, the rural areas and villages.

The product is then processed for the export market.

This is in itself a very simple process to undertake and is less capital intensive.

Aside from this, Bitter Kola Export Business attracts lots of government support.

It is indeed, a most noble profession.

You Can Start Small with Little Capital!

As someone entering the Bitter Kola Export Business newly, you are not required to start in a big way, with huge capital. Of course, you can start as a small beginner.

What that means is that you don’t need to export in hundreds of metric tons of the product which would need huge capital.

You should simply start with few trial orders of say, 50kg – 200kg.

You can churn in huge profit by trading in Bitter Kola Export Business in Nigeria.

Yes, that is achievable – both online and offline.

But then, you need to put in a bit of work, effort or sometimes, little money to achieve maximum returns on investment, R.O.I.

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Bitter Kola Export Business and The Power of Negotiation

Yes! It all boils down to the power of negotiation.

In this business, just like any other business, you earn more if you can negotiate well.

So, for maximum success, do not undermine the multiplier effects of efficient bargaining.

This negotiation process is ruled by the following determinants.

Terms of delivery, pricing, types of product, ability to supply constantly, payment term/mode and types etc.

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How to Start Exporting Bitter Kola In Nigeria

exporting bitter kola in Nigeria may become a headlong task.

When it gets to sourcing and maintaining foreign buyers.

In any case, can begin with a as low as N40, 000, or N50, 000.

This can fetch you one basket of the product which goes for between 70-72 kg in Ondo and Osun states respectively. Of course, you would source this from their local markets.

In Lagos for example, you may simply go to Mile 12 Market and still obtain the product for a sum of N60, 000.

PACKAGING BITTER KOLA IN NIGERIA FOR EXPORT

After securing the product from the local market, what follows is the packaging process.

Of course, packaging is necessary for its distribution.

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How to Package Bitter Kola for Export in Nigeria

There are so many ways to package bitter kola for export in Nigeria.

One way is to use bags with provisions for air percolation.

It is not advised to use airtight bags, so as to avoid overheating the product.

You can however, make use of paper wrappers to wrap your Bitter Kola into sizes of 1kg per wrapper.

What follows then, is to get a big envelope or a small carton where you would put about 7 wraps the bitter kola weighing 7kg per envelope or carton.

So as to avoid unnecessary questioning or possible rejection of your product by courier company.

Please do not let it exceed 7kg per wrap.

You would then proceed to any courier company of your choice, present your product for export and pay the stated fees.

Your export product is about to leave to its destination. You have just exported bitter kola from Nigeria.

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Courier Processes and Estimates Bitter Kola Export

For you to export small quantities of bitter kola between 50kg to 200kg, the best option is to export via established courier services such as UPS, DHL, IFEX, EMS, etc.

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There is no need for container in this case since you’re only dealing with small exports.

A courier service, as you know, proves time and again.

To be the fastest way of importing or exporting goods including.

But not limited to bitter-kola. DHL, however, is more expensive than some other courier services.

As such, my advice to you is to do a market research on the most affordable and efficient courier service in town which you can use.

The courier service should not charge more than N5000 per carton or envelope of the product, depending on the company. This is simply the final stage in the bitter kola export business processes, after packaging.

For a one basket package weighing between 70 to 72kg it will not cost you so much.

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Most courier companies charge N500 for 1kg.

And if you are exporting 50kg of the product, you would simply find the integral sum of that.

That should go for about N25,000. The one in wrappers will not cost more than N2,000.

If you source for the product from Local markets that should go for about N8,000, bringing the total sum to about N40,000.

So, we have that for a 50-kg package, N20,000 can take care of exporting 20kg.

But have it at the back of your mind that majority of your customers would fall into the 20kgs – 200kgs category.

Of course, you would make more money, if you can supply more that.

 See also: 18 Tips to Start Imported Food Selling Business in Nigeria

Profitability Analysis in Bitter Kola Export Business

You wouldn’t want to undergo above processes without knowing beforehand what the profit indices would look like. Would you?

Cost Analysis

  1. Cost of 70-72kg (one basket) of Bitter Kola: N50, 000.
  2. Cost of wrappers and carton: N10, 000,

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TOTAL COST PRICE OR CAPITAL: N60, 000.

Now, let us assume, from the above that for 1 basket (70-72kg) of bitter kola, N60, 000 was incurred as start-up capital.

1kg of bitter kola in the export market cost around $19 USD in Europe, whereas in Nigeria, it goes for about N700. So, $19 USD X 70Kg = $1,330 USD.

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TOTAL SELLING PRICE: $1,330 USD

It therefore means from the above, that: $1,330 USD X N317 equivalent = N421, 610 (Four Hundred and Twenty-One Thousand, Six Hundred and Ten Naira only).

N421, 610 – N60, 000 = N361, 610,

NET PROFIT = N361, 610 is your net profit or Gain just for importing one Basket of Bitter Kola from Nigeria.

One nice thing about this business is that you can inform your buyer or prospect client to make a part payment of the bargain first.

You would use that to process the product and also make payment for other logistic. This is allowed. It works!

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If you think that they will not consent to part payment for the product, you might be wrong because we are talking of “white” investor here whose orientation and mindset completely differs from that of our black business operators here in Nigeria

By so doing, at times, you do not even have to spend a dime to start this business. However, if it ok by you to spend your Money to process the deal, then, there is no problem with that.

Contact us

We can help you set up this business. kindly contact us. Otherwise, Please check out these other business ideas you can do 

 

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