How To Start The Lucrative Export Of Dry Hibiscus Flower From Nigeria To International Buyers

How To Start Exporting Dry Hibiscus Flower From Nigeria To International Buyers

The abundance of agricultural products in Nigeria continues to make the nation one of the wealthiest in the world. Many highly demanded cash crops are grown in Nigeria, and profitable as they may seem, one of the most globally demanded agricultural products which are grown in vast volumes in Nigeria are the Dry Hibiscus Flower.

International buyers all over the world are always looking to purchase Dry Hibiscus Flower from Nigeria because of its quality, abundance, and price. They come into the country on a regular basis for meetings with commodity trading companies and farmers to see how they can establish long-term relationships with them to guarantee a steady supply of the commodity every month for at least one year. Depending on what they agree, they decide which supplier or suppliers to go with, issue an ICPO (Irrevocable Corporate Purchase Order), sign a contract, and based on the payment terms they both agree on, start transacting.

The large demand for this agricultural product in Nigeria by international buyers makes venturing into the export of Dry Hibiscus Flower from Nigeria to several countries around the world a lucrative export business to start up.

First, What Are Dry Hibiscus Flowers?

Dry Hibiscus Flower is used in the production of tea, refreshing drinks, medicinal purposes, and several others.

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So What Is Dry Hibiscus Flower Export About?

Dry Hibiscus Flower export is the export of Dry Hibiscus Flower from Nigeria to international buyers located in various parts of the world, especially in the United States, Mexico, Germany, Holland, and many parts of Europe and America. It is exported natural and further processed upon arrival at the buyer’s facility for its intended uses. 

Facts About Dry Hibiscus Flower Export

• Dry Hibiscus Flower is majorly used in making a special type of tea, refreshing drinks, medicinal purposes, and in the production of jellies, jam, fruit pastes, syrups, and others.
• Dry Hibiscus Flower is grown mainly in the Northern part of Nigeria.
• Dry Hibiscus Flower grows all year round in Nigeria, but the major export season is from October to March.
• Dry Hibiscus Flower is also called Zobo Leaves in Nigeria.
• Dry Hibiscus Flower is also called Bissap in Senegal.
• Nigeria is the largest grower of Dry Hibiscus Flower in Africa.
• Hibiscus has a high concentration of Vitamin C.
• 12 tonnes of Dry Hibiscus Flower fills up a 40 feet container.
• Growing Dry Hibiscus Flower can create a great source of employment.
• Dry Hibiscus Flower can be red, yellow, white, or peach in colour.
• The profit margins on the sale of Dry Hibiscus Flower to international buyers can be anywhere from 60% to over 200% depending on if you’re the farmer or are purchasing from the farms.
• As a broker, you can venture into this business with $0.
• The United States, Germany, Holland, and many parts of Europe and Asia are the largest importers of dry hibiscus flower. 

Business Opportunities In Dry Hibiscus Flower Export

1). Dry Hibiscus Flower Export:

Dry Hibiscus Flower is usually sold at varying amounts at the farms or local markets and is then further resold to international buyers at varying prices per metric tonne depending on the specification, the seller’s connection to the farms, the trade process, and the final negotiations with the buyer.

In all, your profit margin from the export of Dry Hibiscus Flower from Nigeria can be anywhere from 60% to some rare cases of over 200%.

2). Dry Hibiscus Flower Brokerage:

When you have zero cash to start up any type of business, the first thing you should do is to venture into the brokerage of that business’ products, and in this case, Dry Hibiscus Flower.

You could venture into the Dry Hibiscus Flower brokerage business by linking a buyer to a seller, and in the process, gain a commission from the trade.

Setting Up Your Dry Hibiscus Flower Export Business

1). Register Your Export Business:

The first step to starting a Dry Hibiscus Flower export business is to register a legal business. To do this, you must first register a limited liability company with the Corporate Affairs Commission of Nigeria, then go on to register your business with the Nigerian Export Promotion Council and any local associations regulating the purchase and sale of Dry Hibiscus Flower.

Registered business names are not allowed to register with the NEPC, and so, you can only function as an exporter with a Limited Liability Company registered under the laws of the Federal Republic of Nigeria.

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2). Find Direct Farms and Sources For Exports:

Although this can be done before, during, or after your company has been registered with the appropriate bodies, the next step is to source for the direct farms that would be growing the Dry Hibiscus Flower for you on behalf of your clients.

It’s usually better you get direct access to the farmers, so you can get the best possible price. Going through a proxy would waste more time, cost more money, and reduce your profit margins.

3). Setup A Proper Business Structure, Trade Process, & Branding:

During or after registering and securing your buyers, it is important you set up a proper business structure that looks internationally reputable. Some ways to do this are to build an international standard website, get a business address, create a company profile, and also have a corporate offer format you can customize and send to buyers who request an offer. Also set up a corporate email that reads something like this: “[email protected]”.

If renting an office is too expensive, you could pay for a virtual office at a co-working hub and use their address for meetings.

When you organise your company this way, buyers would feel really confident about doing business with you and would tend to choose your business as their preferred partner.

4). Source For Buyers:

The next thing is to source for international buyers for your products. You can do this by registering on websites like:

• www.exportersindia.com
• www.alibaba.com
• www.linkedin.com

And several others.

You can also build an influential social account on LinkedIn and market your Dry Hibiscus Flower to a unique business audience you’d build over time.

5). Export Your Products:

Upon sealing agreements with the buyers, getting issued an Irrevocable Corporate Purchase Order, signing a Sales and Purchasing agreement, and more, you can then proceed to ship the Dry Hibiscus Flower to the buyer.

The shipment could be done on either Free On Board (FOB) or Cost, Insurance and Freight (CIF) basis. Where FOB means you cover the cost of the goods and every other thing till its arrival at the shipping point, and CIF means that you cover the cost of everything including insurance and transporting the goods to the buyer’s port of destination.

Challenges Of The Dry Hibiscus Flower Export Business

1). Lack of experience causes exporters to either purchase the wrong specifications, underprice or overprice their products, and much more.

2). Your Dry Hibiscus Flower en route a warehouse may get robbed or seized by government officials before arrival.

3). Fake buyers wasting exporters time with fake inquiries.

4). Most prospective entrepreneurs have little to no access to finance their projects.

5). Most Dry Hibiscus Flower sellers have poorly managed supply chains and may sometimes be unable to deliver.

6). Your time could be wasted as a result of long-term conversations with Dry Hibiscus Flower buyers who have no real money to pay.

7). The large pool of fraudsters posing as Dry Hibiscus Flower sellers makes it difficult for Dry Hibiscus Flower buyers to trust you.

Conclusion

The Dry Hibiscus Flower export business is a lucrative one for anyone who chooses to venture into the export of agricultural products from Nigeria. Depending on the quantity the buyer needs, your profit margins could be far higher or lower, but still substantial.

Starting an agricultural export business in Nigeria with an initial focus on Dry Hibiscus Flower is a way to not just only get into the industry, but a great start to building a long-term business that could someday employ thousands of people directly and indirectly.

source:Stam Edom