The Profitability Profile of Ground-Melon Export Trade

Melon seed (Colocynthis Citrullus lanatus) is a popular food ingredient mostly consumed in milled form by Africans at home and abroad. Across Nigeria, it is known by the various ethnic nationalities as: ‘ egusi ’ (Yoruba/ Ibo), ‘ ogili ’ (Ibo), ‘ ogi’ (Edo),‘iguana agushi’ (Hausa) and ‘ dènde ’ (Fulani). The melon crop, very popular in West Africa, thrives well in tropical countries, with Nigeria accounting for about two thirds of total production in the sub-region. Within Nigeria, the south east and middle belt states are the areas of greatest production. Melon seeds grow in gourds and yield more in warmer temperatures (sunny regions and well-drained soils). Very easy to grow, the crop survives even in the driest and most climatically challenged locations.

The plant blankets the soil and by suppressing the weeds helps protect land fertility.

In better-watered areas with reasonable soil, melon harvest yield averages five fruits per plant. In drier and more barren locations the yield averages two fruits per plant. Normally a fruit weighs between 0.8 and 1.5 kg. However, those grown in the more challenging climates tend to weigh less. The fruits remain healthy without decaying, when stored for several months. The gourd/ fruit, characterized by hard skin, looks very much like water melon. In fact, the melon fruit comes from the same cucurbitaceous (gourd) family as watermelon, muskmelon, fluted pumpkin and others.

Melon is grown primarily for its seeds. When the fruit is fully mature, the seeds, white in colour, can be extracted, peeled and crushed for use in cooking the native egusi soup. The seed with the husk/ shell can be stored longer than the peeled seed. Both hand-peeling and machine-peeling methods are employed, depending on the quantity being processed. Once the shell is removed, it is advisable to process the seed for instant use because extensive storage might expose it to oxidation or change the colour and taste, which will reduce its nutritional quality. The peeled and ground seed could also be easily infested with fungus, resulting to food poisoning. Pests or rodents could pass a disease unto it, too. Therefore an exporter must endeavour to package the goods-in-transit appropriately. It is advised that the good should be stored and transported in cold-room temperature condition uniquely made available in a cargo ship/ aircraft.

The melon seed is rich in fatty oil, protein, carbohydrate, and amino acids and minerals like phosphorus, potassium, magnesium, manganese, sulphur, calcium, iron, and zinc. The high nutritional constituent of egusi seed evidently justifies its preference as a wide-ranging edible item. Egusi soup is indeed very delicious if well prepared, especially with mixture of palm oil, ground crayfish, bitter leaf or pumpkin leaf and maggi (sweet seasoning). Coarsely ground up, they thicken soups in form of steamed, round crumbs. Egusi-seed meal can be compressed into pastries that serve as a meat substitute for poor families that could not afford meat. Some are soaked, fermented, boiled, and wrapped in leaves to form a favorite food seasoning (called “agbara-atia”, in Ibo). They are also roasted and ground into a spread like peanut butter. Some are roasted together with peanuts and pepper and ground into an oily paste form that is served as sauce for eating kola nuts, garden egg, and fruits. Egusi seeds can also be processed into local snacks. Some mothers blend it locally as an important supplement to baby food, thereby helping to prevent malnutrition. Blending the seeds with water and honey produces a milky liquid that offers a near perfect substitute for breast milk.

In the local wholesale market, about 120-130 dericas/ measurement bowls (or mudu) of unpeeled melon are obtained from two 50kg agro-sac bags at the rate of N25, 000. After peeling the melon about 60 bowls (50kg) are obtained from the two 50kg bags (or 100kg) of the unpeeled and subsequently sold for N60, 000. This simply means that 50kg of the peeled melon is obtained from 100kg of the unpeeled melon at a gross profit of N10, 000 in the domestic market. Grinding or processing cost of the raw, peeled melon is estimated at around N6, 000 per bag, which leaves a net profit margin of N4, 000.

Egusi that is meant for the international market can be neatly packaged in thick, transparent 5kg or 10kg or 25kg nylon bags. The standard international price for a packet of processed (peeled/ ground) and packaged egusi weighing 16 oz or 453.6g is $35. This approximates to 1kg = $80.

If an exporter sets out and procures egusi from the local market at the rate of N60, 000 for the 50kg bag, then repackages and resells the 50kg bag in the international market at $4,000 (based on the benchmark price of $80 for 1kg), he would realize a turnover of N1, 380,000 (i.e., $4,000 or N1, 440,000 – N60, 000) for every 50kg bag sold. Assuming the exporter sets aside N1.2m as business capital for this item, he would be able to buy 20 bags from the local market with that amount. When he resells the 20 bags in the international market, he would realize N27.6m (i.e., $76,666.66) in turnover. Let’s assume that the total cost of processing, packaging, transportation and marketing in addition to the associated administrative overheads was as high as 50% of the turnover; even at that, the exporter would still have been left with a handsome net profit margin of N13.8m. The revelation in this analysis is that there is hardly any other business in Nigeria today that is more profitable than the export business, especially the international egusi business. A business that guarantees a more than 100% return on investment is worth the risk, indeed!

Details of the international market dynamics and strategies adopted by existing suppliers that are dominating the international egusi market, export procedures and documentation and inspection modalities, and all other essential information, will be embodied in a bankable feasibility report for interested, potential exporters.

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