07/07/2024
Sesame Seed Report No. 2
Sudanese sesame
04/22/2024 June 2024
Sudanese sesame
Sudan tops the list of sesame exporting countries in the world with an annual production volume of 1.3 million tons
Sudan maintained its leadership role in 2023. Below some information and expectations about the Sudanese market:-
1- Exports for the year 2023 are exports for the agricultural season 2022/2023, where agricultural operations take place in July/August 2022 and the harvest begins in November 2022/January 2023. Most of the export operations are from December 22 until October 2023. In this season, the agricultural operations and harvest were completed successfully. Before the outbreak of war on April 15, as well as export operations, since most of the production areas and the export port were located outside war and conflict zones.
2- The 2023/2024 agricultural season began its establishment in the first months of the war in July/August 2023 and the harvest operations in November/December 2023, but the rebel militia’s control over Al-Jazira State and areas of Gedaref State in the Al-Faw region in December 2023 and its direct threat to the city of Gedaref had an impact. On harvesting operations, especially in the sesame growing areas north of Gedaref. It also caused the closure of the crop market and the halt of the largest sesame auction market in Sudan, forcing producers and buyers to deal outside the market. This resulted in weak data and information about the market.
3- The disruption of the halva and tahini factories in Khartoum and Madani, the largest Sudanese city, the weakness of the local market, the deterioration of purchasing power, and immigration are all factors that affect the domestic sesame consumption market and provide some additional quantities for exports.
4- The presence of Port Sudan outside the war zone and securing the road between Gedaref and Port Sudan, and the fear of the war spreading to Gedaref and safe areas in the north and east, prompted exporters to be careful to secure their goods from the 23/24 season by shipping and storing them for their account in traditional markets such as the Egyptian, Saudi and Turkish markets.
5- Transportation difficulties, high fuel prices, fear of road dangers, and armed looting have prompted some producers in areas outside the scope of war to refrain from sending their goods to the markets. These quantities are equivalent to the stock transported annually between seasons.
6- Despite the war conditions and the high costs of production, harvesting and transportation, Sudan has maintained its leadership in sesame prices in the global market thanks to its excellent quality.
7- The continuation of the war in Sudan, the lack of security, the banks’ reluctance to finance due to losses and looting, the failure to recover financing for production and trade for the previous season, and the lack of inputs, fertilizers, seeds and gasoline have a major impact on the 24/25 season, whose agricultural operations take place in July and August, with expectations of a decrease in production to 30%. % of annual production volume.
Global market
The global sesame market is witnessing major challenges that may lead to an unprecedented rise in prices as a result of the significant increase in consumer demand in China, Turkey, and the European market, in addition to India, which is considered one of the largest importers and exporters of sesame. Sudan and Ethiopia are among the largest exporting countries facing the fire of wars and internal conflicts, as Sudan’s exports in the year 2021 were 735 million dollars and the average price was 1,200 dollars per ton. They decreased to 555 million dollars in 2022 and then to 367 million dollars in 2023.
Current global price indices:
Sudan 1900/1960.$
Ethiopia 1950.$
Nigeria 1800.$
Pakistan 1750.$
Chad $1750.
Brazil: $1,550. The advance selling price for most of the season’s production, more than 65% to India and Turkey, and prices in the secondary market rose to $1,800.
The biggest beneficiaries of the high demand and low production in Sudan and Ethiopia are Pakistan and Brazil, as Pakistan’s exports to China increased by 126% to 166,682 tons, amounting to $291 million, and it seeks to double the area allocated for sesame cultivation in the 24/24 season.
Brazil, from zero export volume in 2018, to 11th place in 2022, and to an advanced ranking in 2023, with an export volume of $219.9 million, is also seeking to double the area at the expense of yellow corn.
Egypt consumes 100 thousand tons, 30 thousand tons of local production and 70 thousand imports, 86% from Sudan and the rest from India, Brazil and Africa. Egypt seeks to increase the agricultural area allocated for sesame to 150,000 acres to reduce imported quantities.
In order to cover the deficit, Turkey went to dominate the Chadian market and monopolize 95% of exports, 102 million dollars out of 106 million exports. With the participation of India, the two countries were able to acquire 65% of Brazilian exports.
The index of the four Korean bids from 1/11/2024 until 5/20/2024, a total quantity of 35,500 tons, and a price index of $2,100 FOB, and an African competition in which India, Nigeria, Burkina Faso, and Togo participated, in addition to Pakistan, which received a quantity of 1,800 tons. The volume of demand and price indicators say the famous saying.
AN ELEPHANT IN THE ROOM.
HusamEldin Abouda
Afrograins Ltd.
Email: [email protected]
Website: www.afrograins.com
