Cokodeal Invites Partners and Investors to Drive Export Businesses

Cokodeal featured on Guardian news

https://guardian.ng/business-services/cokodeal-invites-partners-and-investors-to-drive-export-businesses/

Africa is blessed with immense natural resources and its rich soil, which makes it the
epicentre for Agriculture and mineral commodities. There’s a lot the continent has to offer


Africans and the rest of the world as the gap between local production and markets
widen, but sellers and buyers are closed on leveraging technology to bridge it.
For an average business person in Africa, they always have to go the extra mile and do more with lots of resources to be able to access international markets and to find buyers for products, or risk selling within local economies that give low value for production. This and many more reasons are why many farmers are termed poor and the youth are discouraged to go into Agriculture.


The fragmentation of African markets and the lack of connections with genuine buyers globally is limiting its trade effort and potential especially for small and medium business owners.


A recent study by McKinsey shows that if many business owners and graduates in the African continent can have access to trade more seamlessly globally, there will be a drop in unemployment and growth of new industries.
In an interview on Aljazeera, Billionaire Dangote stated that ”Agriculture and ICT has
great potential and that is where to focus now.” There’s a need for African nations to look inward and work towards integration of its markets.


It is important to note here that recent growth in Africa’s economy has been linked
directly to increasing levels of foreign investment, which has been attributed to
improvements to fiscal policies, governance and regulatory frameworks, along with a move to diversify economies away from Africa’s traditional commodities-biased economies. All these create a safe haven for foreign Investments.


More than before, governments need to work towards a more regional integration in
order to achieve a more sustainable and inclusive growth for the continent.
While this gap in regional integration is being created and becoming more and more
obvious, Cokodeal has already set in motion an infrastructure of satisfactorily filling the gap.


Cokodeal, has said it is aiming to integrate more export-based businesses into the
foreign trade to find buyers in UK, USA, Dubai, Canada and Asia markets through its
platform.
Coming into operations since 2012, Cokodeal is a digital export platform for foodstuff and commodities produced in Africa. The platform helps to give market access internationally and increase sales for local manufacturers and producers.

Through best-in-class sourcing and negotiation technology, Cokodeal helps local
businesses integrate into global trade, and with its professional advisory, helps alleviate communication gap for semi illiterate traders.
Over the last decade, the company has done a lot in discovering several resources within Africa many never thought existed such as; stone flower, gum Arabic, cobalt, gypsum, scrap copper and other generic ones like coffee, sesame seeds, gold, flowers, ginger, cashew nuts, shea butter..etc. These products are in large demand across the USA, UK, Canada, Europe and Asian markets as discovered on its platform.


With what Cokodeal is bringing to the fore in Africa, buyers of commodities in foreign markets can directly find organisations to trade with in Africa, all in one place. The illiterate and semi-literate producers can get technical support for putting their products online and reaching millions of potential buyers – light years ahead of what they used to do piling their goods on lorries and carrying them across vast distances. Sellers too can now benefit from sourcing from a verified pool of buyers for which certain controls havebeen put in place to ensure heightened trust in the trade interaction.


The president of Cokodeal organisation, Mr. Mike Dola, in a recent conference: The
African Farmers Stories “Unlocking the food supply chain amidst Covid-19” hosted by Parminder Vir OBE, the co-founder of Support4AfricaSMEs, states that ”market access is critical to the growth of African businesses as without it, it hinders their growth, no better time than now to fully integrate African businesses into global trade”

There’s no doubt that the tides are changing, African Nations are beginning to look within for solutions as the current depreciation of currencies indicates the need for re- strategizing and collaboration within the continent. Recently, the president of Nigeria restricted foreign currencies at bank rates for importation of food items and fertilizers for people to look inward and produce.


Africa’s development must be underpinned by further regional integration and trade
liberalization. While the rest of the world becomes increasingly fractured and disparate, it is time for Africa to create ways to better integrate its fragmented markets which have long constrained growth and acted as barriers to trade.


The Cokodeal platform has curated some of these local producers and the resources
produced by native people is immense. In exploring these large resources, the
organisation welcomes partners and investors to explore this massively growing industry to drive growth for African trade as it directly impacts the lives of many farmers and manufacturers.

Digital accessibility is Africa’s Nexus in strengthening its standard of living and
wellbeing of its people, harnessing these resources and exporting to regions that are
constantly in need of them.
More exports increases the trade balance and strengthens our currencies, consequently causing it to appreciate in value and improve our economies.
There are so many opportunities to tap in the commodities market and there are lots of gaps to fill, and Cokodeal is opening up opportunities to interested investors and
partners.

This is with an aim to achieve its vision of helping commodity traders and small business owners in Africa realize their full trade potential and increase their wellbeing through information technology.


The organisation is providing options to become partners and shareholders in the
company, by raising funds and leveraging partners to access larger markets.
This is open to private individuals, business partners and company associates.
Early investors and partners would have a great deal of advantage of joining early as the company becomes very valuable and more attractive to larger investors.


The Cokodeal corporation can be reached on service@cokodeal.com for more
information on how to take advantage of this partnership opportunity.

Cokodeal woos partners with AI-enabled export platform for wider reach

Cokodeal as featured on Vanguard News: https://www.vanguardngr.com/2020/09/cokodeal-woos-partners-with-ai-enabled-wider-reach

Cokodeal, a major player in Africa’s commodity market, has said it is positioning itself as the centre for commodity export for Africans, using Artificial Intelligence to connect and match real-time buyers across the world with African traders on the platform. Noting that there are so many opportunities to explore in the international trade space and Africa Continental Free Trade Area, AfCFTA, agreement, Cokodeal.com said it is providing options to interested investors to become partners and shareholders in the company.

This, it said in a statement by its Co-Founders, Mike Dola and Michael Olufemi, will lead to raising of funds and leveraging partners to access larger markets, a plan that is “open to private individuals, business partners and company associates.” According to Cokodeal, “This funding will help to develop a more robust technology infrastructure for the platform, align its vision and better deliver product efficiently, register 6,000 agents across Nigeria that will help generate real-time trade information and coordinate deals in their local communities.

“This will develop strong collaborations and partnerships with larger organisations locally and internationally, to run digital marketing campaigns globally to drive huge numbers of buyers for its businesses to do bigger and better deals. “A series-A funding is in the pipeline in an ongoing deal flow with venture capitalists.

This fund will allow the company to better compete in the global space, becoming a household name and trading partners across the world. “Investors and partners would have a great deal of advantage in joining early, as the company becomes very valuable and more attractive to larger investors.”

On the benefits of the partnership, Cokodeal noted that from fashion to agriculture, the continent has seen an emergence of entrepreneurs in recent years creating quality and bringing the best products into the market. “Although resources abound, inter-trade and intra-trade seems to still be quite limited in the continent. “The global market is interested in many of these locally-produced goods, but don’t know how to find and reach manufacturers.

“The local producers on their end really have no knowledge of the extent their products could reach and as such still remain in the same spot within weak economies for a long time, which leads to stunted growth.

“Cokodeal has found this sweet spot, taken advantage of the opportunity and is currently filling the gap. “With technology, we have been connecting commodity traders in Africa to the local and global market effectively, efficiently and quickly since we launched in 2013.”

Investment opportunities in the export trade business

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Cokodeal contract investment,

Fund a deal and split the profit

Kindly fill the form in the link below to get registered and added to the Cokodeal investors database.

When deals are available it will be sent to details provided

https://cokodeal.com/dashboard/fund-deal

whatsapp +2348163229560

8 ways to find buyers in Europe and US market for export deals

Cokodeal provides access to the best suppliers in Africa market. From Kenya, South Africa, Nigeria, Tanzania, Morocco and other African nations. Find quality foodstuff and commodities on cokodeal platform.

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Finding buyers and contracting sales is a key priority of any company. These aspects provide proof that your intensive preparations and investments are being received well. Below, you will find eight tips to help you find buyers in an organised way.

How to find buyers for export goods in Europe

  1. Start by conducting thorough market research
  2. Decide on which countries you want to focus
  3. Study market requirements and prepare yourself well before starting to sell
  4. Review the websites of European sector associations
  5. Participate in trade fairs and conferences
  6. Network and meet buyers face-to-face
  7. Use direct marketing
  8. Make sure that you can be found online

 

1 . Start by conducting thorough market research

In B2B trade (Business to Business), the number of buyers is more limited than in B2C trade (Business to Consumers). Still, there are several hundred importers of spices and herbs in Europe who are your potential buyers.

Before you start searching, think about the type of buyer for which you are looking:

  • importers of raw materials;
  • packers;
  • distributors of pre-packed products.

Each of these buyers has different demands in processing, packaging, order size, supply time and service level.

In addition, do you focus on a specific niche such as organic, Fairtrade or sustainable, or do you offer conventional products? Your challenge will be to find a buyer that not only needs your products but also matches your capabilities.

Opportunities on the market for spices and herbs can be found in both the lower end and the higher end of the market.

At the higher end, organic, Fairtrade, sustainable and speciality products are in demand. Food safety requirements are also stricter at the higher end of the market and traceability is required.

At the lower end, spices without such differentiating characteristics can be traded, but this segment tends to become smaller over time.

In Europe, certain countries serve as trading hubs for herbs and spices; for example, Spain for chillies or the Netherlands and the United Kingdom for pepper. Find out which countries serve as a hub for your product(s). Then, focus your search for buyers on these countries.

Importers often serve multiple European countries and sometimes even the whole of Europe. This fact makes them a good starting point for first-time exporters.

Tips:

  • Read our study of the Market channels and segments on the European market for spices and herbs for information about the different kinds of buyers.
  • Identify to whom you want to sell: importers, packers or processors, distributors of pre-packed products or directly to the retailers.
  • Find out which countries offer opportunities in our study of Trends for spices and herbs in Europe.
  • Find buyers that match your capabilities in terms of size, organisational structure, product (e.g. mainstream or niche), and compliance with food safety and sustainability requirements.

2 . Decide on which countries you want to focus

If you are selling spices and herbs in bulk, your potential clients will be importers and packers specialised in this industry. Especially the importers will serve several European countries or even the whole of Europe. In this case, find out which countries serve as trading hubs for your products. This area is where your initial focus should be. Packers may work at the European scale or nationally. In either case, you may select two or three priority countries. Focus your research on these countries.

Tips:

  • See our product fact sheets on spices and herbs, which focus on Europe as a whole but highlight the most interesting markets within Europe as well. Have a look, for example, at our fact sheets on the European market for dried ginger, the European market for sustainable spices and herbs and the European market for culinary dried herbs.
  • Have a look at the studies of Trends and markets for spices and herbs, which focus on Europe as a whole but provide some details on the countries as well.

3 . Study market requirements and prepare yourself well before starting to sell

B2B trading is a small and close-knit world, and you have only one opportunity to make a first impression. Make sure that you are well prepared before you address the market.

Buyers are receiving dozens of emails with product offers every week and will only seriously consider your offer if it looks professional. Do not try to lure buyers with unrealistic or low prices. They know what good quality should cost, so focus more on quality, food safety guarantees and supply capability in your communication.

Certifications for HACCP and GMP are an important plus or, more often, a must in the eyes of buyers; so try to know in advance what the buyer requires from a first contact.

Tips:

  • You may have to upgrade your processing facilities and sourcing strategies to meet European requirements.
  • If you do not meet the strict quality requirements imposed on northern and western European markets, try to look for buyers in eastern or even some southern European countries. The same legal requirements apply, but they will often accept lower-quality spices and herbs (lower oil percentage, dull colour or slightly damaged) or they may not always ask for additional guarantees such as food safety management systems.

4 . Review the websites of European sector associations

Sector associations are a good place to find potential buyers. Some of the associations publish member lists on their website, where you will be able to find contact details for many European companies. Alternatively, it is often possible to request these lists by email.

The most important sector association in Europe is the European Spice Association (ESA).

Most European countries have their own national associations for the spices and herbs trade as well, such as:

Tip:

5 . Participate in trade fairs and conferences

Trade fairs are a great place to meet potential buyers. You will find that many trade fairs include a section dedicated to spices and herbs. There is no international event solely focused on the spice and herb sector yet.

Many countries exhibit in these trade fairs with a national pavilion. If your country is one of them, you may be able to exhibit in this pavilion at a reduced cost. Alternatively, you can book an individual stand directly with the organisers.

For the first time at an event, it is a good idea to participate as a visitor instead of as an exhibitor. This approach is a good way of getting to know your target market.

The most important international trade fairs are:

  • Anuga, the largest trade fair for food and beverages in Europe. It is held every other year in Cologne, Germany and hosts relevant sections for spice exporters: Fine Food, Bread and Bakery, and Organic Food;
  • Salon International de Alimentation (SIAL), held every other year in Paris, France. It is a general trade fair for food and beverages, with a strong focus on France. It has more diverse sections including relevant sections for spices and herbs: Pavilions of the World, Infood and Organic Food;
  • Food Ingredients Europe (FIE), a smaller trade fair focusing exclusively on ingredients, including raw materials and semi-finished products offered for sale to the food industry. The trade fair is held at different locations in Europe every year.
  • Natural Ingredients Europe (NIE) is a trade fair organised by the same organisers as FIE and is held every year, either together with FIE in odd years or with the other trade fair Health Ingredients Europe (HIE) in even years.
  • Biofach, a trade fair focused exclusively on certified organic products. It is surprisingly large for such a specific niche and held in Nuremberg, Germany every year in February. Spice exporters can be accommodated in the sections with international pavilions. Biofach also includes an annual conference on developments in the global organic industry.

Tips:

  • Trade fairs often publish lists of exhibitors. These lists are a good source of contact details for potential buyers. See, for example, the option to search for exhibitors on the Anuga website.
  • Prepare well before visiting or exhibiting at a trade fair. Make appointments in advance, use email and other media to inform people that you are coming, and prepare samples, brochures, business cards, websites and price lists.
  • Some trade fair organisers host local or national events to which international buyers are also invited. In Asia, for example, FIE organised trade fairs in Vietnam, Indonesia and Thailand over the past few years, and it will continue to do so in the coming years. See the Fi Asia website for more information. In Peru, the Expoalimentaria has become a major commercial event (held in Lima annually in September).

6 . Network and meet buyers face-to-face

On top of international trade fairs and conferences, you will find smaller events being organised by sector associations. One example is the annual conference of the European Spice Association (ESA). This event is for members only, but it is a great opportunity to meet buyers.

This conference is not a trade fair, though, and it is probably most suitable for more experienced exporters. The trading community present here may have little time for meeting small start-up companies.

It is also a good opportunity for finding out the latest developments in the industry.

Other examples of this kind of event are the World Spice Congress, the meetings and exhibits organised by the American Spice Trade Association (ASTA), trade missions and smaller B2B meetings. However, the primary purpose of these events is to resolve certain issues in the sector. As a result, trading is not the main purpose of such events.

Tips:

  • National governments may organise trade missions or B2B meetings. Contact the trade departments of European embassies in your country or the trade departments of your country’s embassies in Europe.
  • Contact national and international spice associations such as the International Pepper Community (IPC), Vietnam Pepper Association and Spice Board India to find out whether any events are being planned.

7 . Use direct marketing

Think about the best way to communicate with your potential buyers.

One cost-effective way is direct marketing via a promotional email. Email is a powerful tool to come into contact with potential buyers. You could write a short and professional email introducing your company and product offering.

In the email, include a link to your website. The link should be up to date, in English and consistent with your product offering. Even if you do not get a response, follow up the email with a phone or Skype call. This approach will increase the chances of success.

Tips:

  • Be honest. Do not try to attract buyers with unrealistic or low prices. They know what good quality costs, so focus more on quality, food safety and your strongest capabilities.
  • Send a presentation that introduces your company, your products, and your strengths and skills. This strategy is a good starting point, which can be followed by additional information such as quotations, packaging options or delivery terms.
  • Do not send mass mailings. This practice is considered as spam (unsolicited commercial email) in Europe and is an unwelcome form of communication.

8 . Make sure that you can be found online

Apart from actively searching for buyers yourself, it is also important that buyers can find you.

You need to have a website that contains basic information about your products, your facilities and relevant documentation, for example.

Make sure that your website is informative, accurate, well written and professional.

On your website, pay attention to the issue of sustainability, since this issue is receiving more and more attention in the spices sector.

Social media such as LinkedIn and Facebook are increasingly popular as a way to promote products and ideas. Adapt your style to your audience, but make sure that your message and the information which you distribute is consistent across all your chosen online and offline media.

Tips:

  • It is a good idea to ask for or employ assistance from someone who can write well in English and understands your target audience. A professional editor is one choice. They will be able to help you find the right style, and remove or avoid spelling mistakes and grammatical errors. This aspect adds to your professional image; mistakes do not.
  • It is also a good idea to post your product offerings on online trading platforms, yellow pages or databases such as Alibaba and Cokodeal. These sources are widely used by buyers and sellers. Often, buyers are not looking for a service but for contact details.
  • Organic Bio is an interesting platform to find buyers if you offer organic edible preparations and spices.

 

To register as a supplier — follow this link —

http://www.cokodeal.com/index.php?option=registration&task=sellerregister

Article credit: – cbi.eu

For buyer inquiry

Email: cokodeal@yahoo.com —- service@cokodeal.com —

Whatsapp +2348163229560

Exporting dried ginger to Europe, requirements and buyers

Cokodeal provides access to the best suppliers in Africa market. From Kenya, South Africa, Nigeria, Tanzania, Morocco and other African nations. Find quality foodstuff and commodities on cokodeal platform.

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Europe is an interesting market for exporters of dried ginger. The demand is expected to grow in the coming years and prices are rising or relatively stable. China is the main supplier of both whole and ground ginger to Europe, and it is your main competitor on the European market.

 

1 . Product description

 

Ginger is the irregularly shaped root (rhizome) of the ginger plant (Zingiber officinale). The plant is cultivated in the tropics. The main producing countries are China, India, Nigeria and Peru.

Ginger is mainly used in:

  • oriental and Indian cooking;
  • bakery and confectionery products;
  • liqueurs.

The markets for fresh and dried ginger are closely connected, however, fresh ginger exports are even larger than dried.

Drying of fresh ginger generally takes place in the countries of origin.

Within the Combined Nomenclature (CN) classification, dried ginger is covered under the following codes.

  • 0910.1100: ginger, neither crushed nor ground
  • 0910.1200: ginger, crushed or ground

 

 

2 . What makes Europe an interesting market for dried ginger?

Growing imports of dried ginger in Europe

The worldwide consumption of ginger is increasing. The global and European market for ginger is expected to show significant growth until at least 2020. Consumers buy ginger during the winter because of its health properties. For example, consumers use ginger as a sore throat remedy. The growing ginger market in Europe provides opportunities for you as an exporter. Buyers are increasingly willing to invest in long-term relationships or collaborations with their suppliers to ensure sufficient supplies.

In 2017, the total European imports of dried ginger reached 160 thousand tonnes. Since 2013, the import volume has increased by 12% annually. The import value increased in that same period by 13% annually, reaching €250 million in 2017.

In 2017, more than 70% of the total European imports were sourced directly from developing countries. Please note that Figure 1 below excludes countries other than European or developing countries. In 2017, these other countries accounted for only 0.12% of the total European imports.

Since ginger cannot be produced in Europe, the European supplies illustrated in Figure 1 are based on re-exports. European re-exports accounted for 29% of the total imports in 2017.

 

 

The Netherlands, the United Kingdom and Germany are the most interesting markets for dried ginger in Europe

In addition, consumption includes the use of ginger in the food processing industry. This fact is important, since a large share of ginger is used in this industry; namely for bakery products (such as gingerbread and cookies), Asian food products and various drinks (e.g. ginger ale or ginger beer).

 

Interesting markets for you as an exporter include the following:

  • The Netherlands is the largest importer and trader of ginger in Europe. Its imports have increased significantly in volume by 13% annually between 2013 and 2017. In 2017, 97% of Netherlands imports were sourced directly in developing countries. The country has a high and relatively unstable per capita consumption. Since 2014, consumption increased significantly. This instability and sharp increase could be caused by the country’s important role as a trade hub for intra-European trade, since consumption is calculated as imports minus exports. While consumption is not expected to be that instable, imports and re-exports of ginger varied significantly during the last years, due to stockpiling. The volume of stock is not accounted for in these figures.

 

  • Since the United Kingdom sources 93% of its ginger from developing countries, it is an interesting export market for your products. The country is also the second largest importer of ginger in Europe, which could be caused by the relatively substantial population of Asian descent. Its consumption per capita is significantly higher than the European average and has been increasing slightly since 2014.

 

  • Germany is the third largest importer of ginger. Its total imports in volume increased by 14% annually since 2013. The German per capita consumption is slightly higher than the European average.

 

  • France is a large importer of ginger and its imports have increased in volume by 13% annually since 2013. In 2017, the imported volume in France reached 6,400 tonnes.

 

  • Italy is an important trade hub for ginger. Since 2013, imports of ginger in Italy have increased significantly by an annual rate of 39%.

 

  • Spain is a fastgrowing market for ginger. Imports into the country increased by 29% between 2013 and 2017.

 

  • Many other smaller importers are increasingly importing ginger directly from developing countries over the last five years. Examples are Portugal (growing by 33% of imports annually), Austria (25%), Sweden (20%), and Poland (17%).

 

 

Local value addition is becoming more important

European exporters or re-exporters add value to dried ginger by further processing and packaging. However, the processing of ginger is also done in the country of origin. Especially heat treatments, such as steam sterilisation, are becoming an important buyer requirement.

 

 

Supplies of ground ginger are relatively low (8% of the total ginger imports in 2017) but the volume increased on average by 10% annually between 2013 and 2017.

China has been excluded from the figure, as its supplies are out of proportion compared to the other supplies. Of all ground ginger imported from developing countries, 29% comes from China. However, China still mainly exports whole ginger to Europe.

Several countries have increased their exports of ground ginger to Europe. Between 2013 and 2017 Peru’s exports to Europe increased from 1.4 tonnes to 285 thousand tonnes (+280% annually), Indonesia’s by 45%, Thailand’s by 26% and Burkina Faso’s by 280%.

 

 

Search for healthier ingredients

The growing demand for dried ginger on the European market is stimulated by consumers searching for healthier ingredients.

Healthy living is one of the most important trends in Europe. Consumers perceive food ingredients such as salt, sugar and synthetic additives as unhealthy. These products are increasingly replaced by other products that also add flavour, such as spices and herbs.

Consumers use dried ginger for its promoted beneficial effects to health. For example, journals and food bloggers state that the consumption of ginger helps with digestive problems, the flu and stress.

Dried, ground ginger is sold by retailers in the spices segment; for example:

Due to its popularity, ginger is also increasingly used as a health supplement as well as in other food products such as tea and snacks. Examples are:

 

 

 

Growing popularity of ethnic cuisines

The demand for ethnic food in Europe is rising. Since dried ginger is an important ingredient in Asian dishes, it is becoming increasingly popular on the European market.

Examples of Asian recipes that are popular in Europe and that contain ginger are:

There are two main causes for the increase in the popularity of ethnic cuisines:

  • The multicultural population in Europe is growing. In 2014, 20% of newly immigrated Europeans were of Asian descent.
  • Other Europeans are increasingly interested in exotic cuisines. They are linked with the rest of the world through the internet and travelling. They can easily search for Asian recipes online and bring back recipes from their holidays to Asia.

 

 

 

Sustainability is on the rise

Sustainable sourcing is an important trend in Europe, especially in the United Kingdom, the Netherlands and Germany.

As a supplier, you will be increasingly faced with sustainability requirements from your buyer. Many buyers see sustainable sourcing as a must.

By certifying your ginger, you can proof your compliance with sustainable sourcing. However, certified ginger is still a niche market. It represents only a small section on the total European market for ginger. In addition, most buyers in the mainstream market are unwilling to pay more for certified products. As a result, it is important to discuss the opportunities for certification with your buyers before you become certified.

Certification does give you a competitive edge. For dried ginger, the main certifications are Organic and Fairtrade. For Organic certified ginger, the most interesting markets are Germany and the Netherlands. For Fairtrade certified ginger, the most interesting market is the United Kingdom. However, ginger represents only 3% of all spices and herbs certified by Fairtrade International in Europe (31 tonnes in 2015). Such data are unavailable for organic ginger.

 

 

3 . Which requirements should dried ginger comply with to be allowed on the European market?

You can only export dried ginger to Europe if you comply with buyer requirements for spices and herbs. Below, you will find more information on requirements that are specific to dried ginger.

Legal requirements

When exporting dried ginger to Europe, you have to comply with the following legally binding requirements.

  • Food safety: traceability, hygiene and control as specified in the General Food Law;

 

  • mycotoxins contamination: for ginger, the maximum level of aflatoxin is between 5.0 μg/kg (aflatoxin B1) and 10 μg/kg (total aflatoxin content B1, B2, G1 and G2). For ochratoxin, the maximum level is 15μg/kg;

 

 

  • microbiological contamination: your ginger is banned from the market if salmonella is found;

 

  • food additives and adulteration: spices and spice blends are rejected by custom authorities if they contain undeclared, unauthorised or excessive levels of extraneous materials;

 

  • maximum levels of polycyclic aromatic hydrocarbons (PAHs): contamination with PAHs stems from bad drying practices;

 

  • Irradiation: this process is allowed but not commonly used.

 

 

European buyers are increasingly requiring their suppliers to use steam sterilisation in order to combat the microbiological contamination of ginger. You could earn a significant premium if you can supply ginger that is sterilised at the source. However, investments in the necessary equipment can be very costly, at up to € 1 million.

Research is being conducted into alternatives to steam sterilisation, as this treatment negatively affects the taste of ginger. Currently, it is still the cheapest and safest method to combat microbiological contamination.

 

 

Additional requirements

Consider complying with the following non-legal requirements to ease market access. European buyers can use these requirements as selection criteria.

  • food safety certification as a guarantee: the most important food safety management systems in Europe are British Retail Consortium (BRC), International Featured Standards (IFS), Food Safety System Certification 22000 (FSSC 22000) and the Safe Quality Food programme (SQF). Always verify your buyer’s preference for a specific food safety management system, as some may prefer one system over the other. For example, BRC is developed by retailers in the United Kingdom and more commonly demanded on this market. If you want to target the United Kingdom, BRC may be more important;
  • Corporate Social Responsibility (CSR): companies have different requirements for CSR, such as signing their code of conduct or following common standards including the Supplier Ethical Data Exchange (SEDEX), Ethical Trading Initiative (ETI) or the Business Social Compliance Initiative code of conduct (BSCI).

 

Requirements for niche markets

If you want to enter a nice market such as organic of Fairtrade, it is essential that you comply with the following standards.

  • sustainable product certification: the major certification systems are Organic, Fair Trade and Rainforest Alliance;
  • selfverification: suppliers assess their own compliance with the sustainability code of buyers. Examples include Unilever’s Sustainable Agricultural Code (SAC) or the Olam Livelihood Charter.

 

Quality requirements

Product quality is a key issue for buyers in Europe. You need to comply with the Quality Minima Document published by the European Spice Association (ESA). This document is leading for the national spice associations affiliated with the ESA and for most key buyers in Europe.

The Quality Minima Document specifies the chemical and physical parameters dried that ginger needs to comply with when sold in Europe before crushing and grinding (after drying).

  • ash: maximum 8%
  • acidinsoluble ash: maximum 2%
  • moisture: maximum 12%
  • volatile oil: minimum 1.5 ml/100 gr
  • SO2: maximum 150 ppm

The ESA has not developed cleanliness specifications. As a result, European buyers often use the specifications for cleanliness stated by the American Spice Trade Association (ASTA).

 

 

 

Labelling requirements

Correct labelling is important for European buyers. To this end, pay extra attention to labelling your product.

For bulk ginger, you have to include the following information:

  • the name of the product
  • details of the manufacturer (name and address)
  • batch number
  • date of manufacture
  • product grade
  • producing country
  • harvest date (month-year)
  • net weight.

Other information that exporting and importing countries may require include the bar, producer and/or packager code, as well as any extra information that can be used in order to trace the product back to its origin.

 

 

Packaging requirements

For shipping, bulk whole dried ginger roots should be packaged in jute sacks (36-65 kg). It is less common but also possible to pack the roots in wooden boxes or linen corrugated cardboard boxes (60 kg).

Ginger processed in the form of slices or powder is packaged in multi-wall laminated bags of different weights ranging from 1 to 25 kg. Common weight classes are 12.5 kg and 25 kg.

 

 

4 . What competition do you face on the European market for dried ginger?

Your main competitors are other suppliers from developing countries. In 2017, these suppliers exported 113 thousand tonnes of dried ginger to Europe, accounting for €153 million. Of these imports, 93% was whole ginger.

China is Europe’s main supplier of ginger and also your most important competitor. The country accounted for 79% of all supplies from developing countries to Europe in 2017.

Other suppliers of ginger from developing countries are:

  • Peru (11% of total supplies by developing countries in 2017)
  • Nigeria (3.2%)
  • Brazil (2%)
  • Thailand (1.7%).

Peru’s market share has increased significantly, though its supplies are small compared to China.

Fresh ginger is an important substitute for dried ginger. Fresh ginger is used for cooking, at home or in restaurants, and in food and beverage manufacturing.

The production of ginger in China is mainly mechanised. Other small suppliers, such as Peru, conduct their production manually. As a result, China is able to produce and export large quantities of ginger compared to the other suppliers from developing countries. This fact makes it difficult to compete with China if you are a smaller supplier. If you want to compete with China, you should be able to:

  • deliver stable supplies of ginger, both in quantity and in quality;
  • comply with delivery times;
  • comply with food safety requirements.

You can also explore opportunities on niche markets such as organic and Fairtrade, or for specific applications such as beverages, which have specific requirements.

If you want to sell your ground ginger to Europe, you are competing directly with European processors. Your buyers could ask you to provide the same service as European re-exporters. You will have to make sure that you comply with their requirements such as short supply times and steam sterilisation.

 

 

 

5 . Through which channels can you get dried ginger on the European market?

See our study of Channels and segments on the European market for spices and herbs. The channels for ginger do not differ significantly from those for other spices and herbs.

 

6 . What are the end-market prices for dried ginger?

Ginger is an annual crop. Its prices fluctuate between one harvesting season and the next. The price of dried ginger also depends on the price of fresh ginger.

In early 2018, dried ginger prices were relatively stable, in combination with ample supply of good quality ginger. In the beginning of 2017, international prices  ranged between US$ 6,000 and US$ 7,000 per tonne.

Global market prices for ginger are strongly influenced by the largest producer of both fresh and dried ginger, China. However, traders often prefer ginger from more expensive suppliers in Peru and Brazil, for example. They prefer these suppliers because of their higher quality.

Figure 5: Indicative price breakdown for ginger

 

Figure 5 gives an indicative price breakdown for ginger. European retail prices for ginger are much higher than global trade prices. However, exporters from developing countries do not necessarily profit from these trade prices. European processors and retailers add large price margins.

The margins that you can receive as an exporter may differ. These margins are influenced by various factors such as:

  • Country of origin;
  • Current and expected future harvest situation;
  • Quality of the raw material;
  • Level of processing;
  • Level of demand;
  • Trends in prices.

Margins and profits can be higher for you as an exporter if you are able to add value locally. For example, by further processing or certification, you can create a competitive edge and benefit more.

 

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Article credit: – cbi.eu

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