It is interesting to note that kola nut is a money spinner for those who venture into kola nut trading business. Chewing kola nut is a social habit in Nigeria especially in the North, similar to coffee drinking in the U.S and Europe. This article will give you insight into making money in kola nut trading business.
Kola nut is a product of the kola tree. It is one of the major cash crops in Nigeria. Kola trees are natives of central and West Africa which are distinguished primarily by the medicinal and stimulant properties of their nuts, bark and leaves. Kola nuts serve as the basis of all cola soft drinks. This is why it is a hot exportable product to America and European soft drink manufacturers. Kola nut can either be dry or wet naturally.
Kola nuts are exported to the U.S markets to be used as flavoring for cola drinks like Coke and Pepsi. Cola-based soft drinks are substitutes for tea and coffee.
Storage and Packaging of Kola nuts
Kola nuts are prone to fungal diseases if they are not properly preserved. They are better consumed fresh. To make them fresh, use edible salt and wood ashes to serve as protection shield. The use of sacks and leaves are also a good way of preserving, packaging and transporting kola nut to keep it fresh.
Demand in Nigeria
Kolanut is an important economic cash crop to a large part of Nigerian populace involved in farming, trading, export trading and industrialization. About 90% of kola produced in Nigeria is consumed within the country. The demand for kola is rising locally and internationally but the production remains low because many tress are unfruitful, have low yield and lack of adequate manpower to cultivate kola on a large exportable scale.
These are the following industries you can target in your kola trading business
Soft drink producers: There are many fruit juice or flavored drink brands in the market that make use of kola nut extract. You can locate some flavored drink production outfits at the Lagos state incubation centre, Agege, Matori and Onike, Yaba.
Energy drink producers: Energy drink producers make use of kola nut extract as ingredient for production. Some existing brands in Nigeria are Power Horse, Passion, Bullet etc.
Recognized Herbal Producers: kola nut has medicinal use in relieving cough, asthma, waist pain, etc. It is needed as a production ingredient by recognized herbal producers.
Beauty soap and cream producers: Kola nut extract is used in beauty products for stimulating, firming and energizing the skin.
Wine producers: kolanut is also needed by wine producers. An example is a company in Iseyin, Oyo state that produces a kola nut variant wine known as dee champaign and sparkling both of which are even exported.
Producers of sweets and chewing gums: There are different variants of sweets and chewing gums of which is the cola which has kola nut extract.
Beverage Tea Producers: Some brands of tea contain caffeine which is sourced from kola nut and also the herbal tea brands used for medicinal purposes. The kola nut is grated, boiled and sweetened with sugar or honey.
Kola nut Trading Business
In Nigeria, you can purchase kola nut wholesale in states as Ogun, Oyo, Osun.
You have a ready market to sell your products once you have enough in stock. You can sell your kola nuts in hausa communities in different parts of Lagos, predominantly in bariga, agege, maza maza ,along the mile 2 road. For greater profits, leverage on the various marketing spots: goro garage market in sango ota, oko market in osun state, iresa market, ogomosho in oyo state, ogbagba market osun state, shagamu and ijebu in ogun state.
Nigeria wet kola is available in the market from March to November. This is the ideal time of purchase of kola nuts.
Kola nuts are usually packaged in sacks and preserved using wet or dry leaves. You can also pack them in any form but ensure they are wrapped with leaf overnight. For wholesales, you sell in bags and for retail, you sell using baskets.
Wholesale purchases are in bags and retail in baskets or counting. If you want to trade locally, with as low as N20, 000 to N30, 000 you can make your purchases. If you want to trade within the West African zone you need between N200, 000 to N500, 000 and buy the kola nut from Abidjan Cote d’Ivoire which is a big producer of commercially viable kola nuts.
Profit Potential
Assuming you get a bag for N27, 000, you can sell it to northern buyers for about N50, 000, and the profit margin will be N23, 000. If you invest buying from Abidjan at about N300, 000, you can sell for N450, 000, pocketing a N150, 000 profits.
You can get to Abidjan from Ejigbo (Osun state) in Igbo Owa , but if you have to go from Lagos you will first take a bus to Ghana, which moves on to Lome and then to Abidjan. You will need the following requirements:
- cart dante pass which is obtained at the nigerian embassy for N1, 320.
- any means of identification
- some money to cover trasnportation (about N20, 000)
How to start Exporting Kolanut on a small scale
Get an email address , a mobile phone and a current account with a reputable bank.
Advertising your product is the lifeblood of your export business. Have a presence online that you can refer prospects to that is a webiste displaying your goods and communicates your business sense. You can also register for free at the trade portal www.alibaba.com and also quite few other trade portals you can find online.
You can leverage on friends and relatives abroad to help you source for genuine buyers. Use online social network tool like facebook to create business connections and find buyers.
You can deliver your stock to clients through courier or air frieght. The advantage here is that kola is not a perishable item like tomatoes.
Finally ensure you establish a consistent source of procuring your kola nut so as to meet demands as they arise. It is advisable to deal with an individual client to overcome the hassle of documentations.
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May 22nd, 2011|
I really appreciate your Information. I would love to go into the Exportation of Kola nuts, Bitter Kola and Galic. I have a registered company and would need your assistance and contact as i do not know how to go about it.
Thanks,
God Bless.
You can reach me through the Contact Page.
i really appreciate your informatn.I am a graduate with 100k and i want 2 go into exportation and have up to 5 product in mind { but less capital, these are the items e.g cashew, kola nut, charcoal, bitter kola n garlic.} for export.Out of this money i want to register a business name,open domiciliary account and other necessary things which you would recommend to start with and how do i get buyer, please i need your assistance and your contact address and phone no.
Thanks.
You are doing a greater job
GOD bless You
GOD bless Our country.
thanks for this wonderful info,am really interested but dont know how to go about it.i will really appreciate it if u can mail me on ###@yahoo.com so that we can discuss it at length.
Thanks as i await your response
let me have ur mail and how much quantity you want to start with
amaneky@yahoo.com
Thanks for the exposition. How can i locate your office?
This is kind of opportunity my life as been waiting for and I thank whoever make dis article readable. The info provided in this article was not adequate if how to identify fraudester is not stated. Because I believe that you must beware of fraudulant in any bussiness you want to venture into and lack of proper info can lead to this. Thanks
Thanks for this exposition. Can you please help me wit my business plan financial projection for one year. Thanks in anticipation
i do supply kola nuts both white and the oxblood type,[on demand],lets talk if u are interested ,mail me on jahbar4@gmail.com or call 08036878268,please only interested persons,clay wall resource is my company name.thanks
Thank you for the educative article on kolanut biz…I would like u to link me up with a buyer overseas cos i am interested in the biz.
Tnx 4 dis expensive information.pls i need buyers for kolanut and bitter kola.my no is 07039631600.4rm Gift
I need buyers 4 cocoa nut,bitter nut,cashew nut and kola nut.my contact 08097513866.
Am intersted in local and sub regional sale of kolanut,could you pls do more insight on getting started,like hands-on guide to starting up.
Kindly forward this to my mail box.mrnicetim@yahoo.com.au
phone no.08024005732.
I have earmarked N250,000 for this biz.Thank you and anticipating your prompt reply
I love everything about this business so Please let someone send me where to sell it.
the article is nice, but how can i join the business and where can i sell the product?
D article is very educative.Pls am interested in d kolanut business both locally and export.Kindly give me two contact info on buyers in Lagos and two buyers frm USA.My phone no is 08029483869.Thanks.
here is my e-mail address: dreeh62ng@yahoo.com phone: 08026169965,08138621951
this is indeed a great opportunity i have ever been looking for i sale bitter kola, kola nut and cocoa beans i need a overseas buyer and i will be glad if i could get a genuine buyer thanks
Good one there, i hope it works 4 me cos am so interested. God bless
Thanks for your awesome and resourceful information.
I have really tried so much to find overseas buyers or importers for Kola Nuts and Bitter Kola. I have even registered and posted leads on Alibaba.com all to no avail.
Please could you be so kind to help me with any contacts of ready buyers overseas?
I will be more than thankful to you.
My address is earnpowertv@yahoo.com
My tel numbers are 08133356756, 08038298097.
God bless you so much.
really appreciate your concern about d citizenry, there are a lot of individuals out there that have cash but are not sure of secure business to go about, basically to me it’s not really capital intensive bu kind of lucrative. but would you not rather suggest proper documentation so as not b swindled, as we really knows not who to trust, hence i would want u to please mail me directly suggested/ready made buyer/s that i can transact with. your response is necessary. pls.
hi i am bright i am interested in kolanut exporting pls detail d steps to me
hi
i am bright i am interested how do i go about it
thanks
I really enjoy this post and i find very useful. However, having read about the business opportunies inherent in kolanut, may i request for more useful information about how to start this business. I am interested in the kolanut trading business, please kindly link up with someone who can provide more useful insights into the the business.
I HOPE TO HEAR FAVOURABLY FROM YOU SOONEST.
Thank you.