Production & Export Of Sesame Seed Oil

PRODUCTION & EXPORT OF SESAMESEED OIL Patrick Aboje The article for this week is on special oil, with quality for those that are interested and can afford the processing. This oil holds so much because of its importance, well acknowledged globally. You are welcome to this special oil from Sesame seed found to be medicinal and used locally in preparation of soups. We shall examine the prospect of Sesame seed oil export and its relevance for a country like Nigeria that is endowed with large production of Sesame seed. It is important to note that adding value to enhance export products is good for the economy of Nigeria. Although sesame seed is reputed to be the highest commodity export foreign exchange earner in Nigeria, the numbers of exporters of sesame seed oil are not encouraging considering the volume of demand for this commodity in the international market. Perhaps lack of adequate information or ignorance on the demand of Sesame seed oil in the international market could be responsible to the few processing companies in Nigeria. The product is unique and special for those that wants to make good money, either locally or in the international market. Oil content of the seed is between 50- 59 percent, ideal as a vegetable oil but contains (43 percent oleic and 43 percent linoleic acid.). For those that want to take advantage of this information on how to process sesame seed into oil for export, this is an investment opportunity. Introduction Sesame seed (sesamum indicum L.) Is an oil seed of international importance? The seed has always being an export crops of Nigeria uphill the 1970s till date. It is called “sesame” internationally, while it is called “benniseed” in West Africa; “simsim” in East Africa and “Till” in India. Within Nigeria it is called different names in different localities. It is generally called “ridi” in the Northern States. The Igalas, Idomas and Tivs of Benue State call it “Igogo”, “Ocha” and “Ishwa” respectively. The Ibos call it “isasa” and Yorubas call it “Ekuku” or “Eeku” in parts of Ogun, Ondo and Oyo states and Ilorin in Kwara State. The plant is an annual herbaceous mucilaginous erect plant which belongs to the family, Pedeliaceae characterized by well-shaped flowers height of 0.6 to 0.8m. The fruits are dehiscent axial capsules about 3 to 4cm long, containing 4

segments with each segment housing 20 to 25 small seeds. However, this article is not about the seed, but the oil and without describing the seed our audience may find it difficult to understand the source of the raw material. Sesame seed has about 50 to 59% of valuable high grade stable oil which is specialty oil often referred to as the “Queen of oils”. Specialty oil reported to serve a particular market it has unique properties and cannot be replaced by oil solely on price. The oil is used as a substitute for olive oil in cooking and in medicine. The oil possesses a unique and special property as semi- drying oil. This special property that is unique confers on sesame seed oil, the suitability for use in resin production. Nutritionist insists sesame seed oil is an ideal vegetable oil because of its free cholesterol level and high polyunsaturated fatty acid content (about 43 percent oleic and 43 percent linoleic acid). Beside the high oil content, it is found to be a veritable source of protein. In addition, after processing sesame seed into oil, the by product which is cake has been found to contain high protein level close to that of soybeans. In other words, you have two exportable products from processing raw sesame seed, which makes an economic sense for return on investment. It is relatively alright for medium scale investment, as the export market is there for those that understand what quality is all about. Usage The seed is utilized for the production of high quality, odorless oil. The oil is used in the manufacture of compound cooking fats, margarine and salad oils. It is also used as a fixture in the perfumery industry, in various cosmetics as a carrier for fat soluble substance, in pharmaceutical such as penicillin and in insecticides. The oil cake can be used as poultry and livestock feed and as fertilizer. The cake contains about 35% protein. In Israel, it is used to prepare full meals. Sesame seed oil is used locally in Nigeria within the areas of production, for cooking. It has been shown that sesame seed can grow well virtually all states in Nigeria Market Potential

An estimated 70% of world production of sesame seeds is processed into oil and meal. The food industry is the principal market segment in most of the importing countries. Japan is practically the only importer which uses most of the imported sesame for oil extraction. The economic importance is well known and acknowledge globally. Sesame seed by product has found uses in bakery and does not change the colour of baked products after baking. In the Middle East, sesame has long been used for traditional food and such specialties as tahine and halvah. There are market for sesame seed oil in most European countries, including Greece, Italy and Germany where imports increased considerably in the last few years. There are other markets for sesame seed oil in the Middle East countries, Saudi Arabia, Jordan etc. Market Access With a few exceptions, there are neither quantitative restrictions nor customs duties on imports of sesame products into major markets. Sanitary regulations are applied in some countries. Imported sesame products must conform to the importer/end-users’ requirements in the various markets. Specifications for sesame used for the food industry generally concentrate on color, cleanliness and dryness; whereas oil content is the major purchasing criterion for oil extraction. Sesame seed products are considered a natural health food in Japan where it is widely used for cooking. Local production is negligible and is for domestic consumption only. Out of total annual consumption, about 65% is used for oil extraction and 35% for food. Sources of Raw Sesame seeds The raw materials required for the production of sesame seed oil, is good quality sesame seeds. Various species of sesame seeds are cultivated in the North Central states and can grow throughout the country. The areas in particular are Igbira, Dorma Tiv and Ilorin. Other substantial parts of the Northern states grow sesame seed. There are in commercial quantity for processing and export. The processing of sesame seed oil is quite interesting and it involves the following; cleaning, dehulling and oil extraction.

The Market Analysis This is the most important research to be conducted, of course not in exclusion of others. This is because a thorough and successful market research determines from the onset the success of the business. The best and most reliable source of research information is from experienced exporters who are actively exporting your kind of product. More useful information can also be obtained from the export consultant, commercial departments of embassies, trade associations like chambers of commerce, libraries of foreign countries international departments of commercial banks, magazines and trade journals, shipping companies and trade directories of other countries especially those of your interest, federal office of statistics, export institutions and associations. All of these will access you to unquantifiable information about your intended product market. You’re Company Here, the strength, weakness, opportunities and threat (SWOT) analysis have to be done to determine the company’s ability to go into export business. The financial strength, and skilled personnel, required to handle any difficulty, which may arise from the business transactions. The transport means to be adopted and how to guarantee quality of product; ability to deliver as and when required; and the promotion of the products. With these obvious complexities, a skilled person has to be in charge of a company’s export desk. Conclusion The enabling environment has been created, with banning of vegetable oil importation and export incentive by the Federal government, to encourage those that want to venture into the international market. All you need do is to “take the bull by the horn” and build capacity to take advantage of the huge export potentials available in international business. We are available to assist you in a bankable feasibility for the establishment of a small processing plant. 50 Bode Thomas Street, suru-lere, Lagos. Tel. 080-33006211, 01-4047711. E-mail, [email protected]