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Strategy for African Countries
(Part 2)

© Copyright Dr. B.M. QUENUM December 2000 - All rights reserved

This delivery is the continuation of an article first published in French under the title : "VIVRE DE LA TERRE ET PROSPERER" in "LA CROIX DU BENIN" N° 521 (March) - N° 522 (April) - N° 523 (May),1989. A French version is available : "Le dévelopment économique par une approche intégrée: l'agriculture, l'industrie et les services."

Locations of visitors to this page

- The Strategy exposed in this delivery is now available since January 2013 as an eBook, Africans, Stop Being Poor! The Roadmap to Prosperity for African Nations Either in Amazon Kindle format or in DNL eBook Format.
Interested parties to make contact with Dr. Quenum through the Support Console available at this link

Contact through the support console will get quickest reply from Africabiz Online's staff, than contact by emails. Click here for contact information.



To break the vicious circle of poverty and pave the way towards general prosperity, to be enjoyed by every class of society in the nation, we should have a suitable development strategy. Otherwise, all our efforts will end up without any noticeable result, not to speak of a failure.

As 80 % of the population of Benin is dedicated to rural development activities; a suitable strategy should tackle rural development problems and propose sound solutions to make the country folk's life easy and their activities profit earning.

This document is a draft about such a strategy - based upon experience gained in consulting for industrial and agro-industrial projects.

The dossier is structured into two principal axis:

- A major axis.

- A minor axis.

Which exposed various business and trade opportunities capable of driving the economic development of the country on a double-digit rate path. To facilitate the success of the scheme following actions are necessary:

1- The rural development activities are organized in such a way that the farmers benefit from a proper logistics support:

- Soils analysis.
- Cultural and animal breeding guiding plans. Etc.

to be able to feed the population and provide good quality agricultural raw materials for the industrial processing plants.

2- A commercial and trade promotion is undertaken prior to the setup of the agro-industrial projects.

The approach above outlined is the only way to establish industrial plants with appropriate capacity to manufacturing goods for the domestic and foreign markets.

It should be clearly understood that the scheme is not aimed at building up a state controlled economy, but rather a free enterprise one; guided and sponsored by the State as done and still performed by South-Korea, Taiwan, Singapore and Japan.
The level of state involvement in the scheme will be developed in another publication.

Centuries are not always one hundred years old. The twentieth century really started in 1914 - with the first great world war - and the emergence of the USSR in 1917. It ended the year of grace 1989 with the collapse of said country and its totalitarian ideology.

So, we are already in the one and twentieth century.The tremendous collapse of USSR and its Eastern Europe' satellite regimes created a open and soon to be a free market to which Western European states and North America shall be more and more attracted.

If we Beninese want to catch up with the train of progress and improve the economic development of our country; if we are willing to shake out poverty not to remain perpetually assisted, we have to act and react fast. The most efficient way to do so is to take our destiny into our hands. To organize ourselves as South Eastern Asia nations did, to join, as quickly as possible, the community of the nations, which broken the vicious circle of poverty.

Table N°1 in part - 1 of the scheme gives an overall perspective of the industrial utilization of several main agricultural products.

An industrialization strategy based on regular supply of local agricultural raw materials to processing units, will help to establish a strong linkage between agriculture and industry.

A strategy of industrial promotion linked to rural development could be staged according to two axis:


- Cereals.
- Roots and tubers.
- Vegetables oils and fats.
- Fruits and vegetables.


- Medicinal and bio-active plants.
- Flowers and fragrance plants.


Let's consider, in more details, the components of each axis.


A - 1 -Cereals

Two cereals have great potential in agriculture and industrial transformation : corn and sorghum.

A - 1 - 1 - Corn

With corn as raw material flour milling and starch based industries can be set up to provide for:

- Flour and semolina.
- Proteins and starch.

The water extraction process of starch leads to the following byproducts:

- Glutenfeed : a mixture of fibers, broken corn grains and concentrated swelling in water, currently used for animal feed.
- Glutenmeal : composed mainly of proteins; very popular for poultry feed.
- Corn germs or sprouts which contain 50 % in weight of a good quality edible oil.

Chemical and physical manipulations of starch lead to several other products: a) Glucose and Iso-glucose syrups, used in food industry (candies and sweet in general, biscuits, milk products, jellies, jams, fruits and vegetable syrups, breweries, sauces); b) Natural or transformed starch (oxidized, etherified, esterified, or gelled) is also used in many industries : pulp, cardboard, colloids, textiles, oil-drilling, casting and foundry.

Let's make a special mention of dextrose, which is used in pharmaceuticals industry for the preparation of antibiotics; it is also used in food industry particularly for meat preparing.

Just to give an idea about the economic and financial impact of a glucose and Iso-glucose industry, let's consider a plant set up to process 250 metric tons per day of corn. Its productions will be the following :

45 tons per day
10 tons per day
Corn sprouts
11 tons per day
Iso-glucose syrup
150 tons per day at 71% dried component
Glucose syrup
50 ton per day at 80% dried component
Natural starch
15 tons per day at 88% dried component

Without delving into the details of a full and complete profit analysis study and considering an operational period of 24 hours running; 7 days per week and 48 weeks per year i.e. 320 days; 190 employees and workers - the turnover of the plant to produce glucose and Iso-glucose syrups, and natural starch will amount to 11.25 millions US dollars. (The contribution of glutenmeal, glutenfeed and corn sprouts not taken into account in the estimated turnover.)


In addition, prior to industrial transformation, rural developers specialized in corn cultivation would have earned the amount listed below, according to the size of their holdings. Click here for specifics

Cultivated area in hectares
Tons/year x 1,000
Numbers of developers
Gross earning x 1,000 US dollars

A - 1 - 2 - Sorghum

More than 26,000 species of this graminaceous plant are known and classified. It is easy to cross one specie with another one. These 26,000 species are classified in four categories:

a - Grain sorghum.
b - Sweet sorghum.
c - Broom sorghum from which large thick heads can be used as brooms.
d - Fodder or forage sorghum.

We consider only a) and b) sorghum categories.

Everything said above about corn can be applied to sorghum; but one should bear in mind that sorghum is more suitable to harsh climatic conditions than corn and takes over when soils and climatic conditions are no longer favorable for corn cultivation. Sweet sorghum is a very good agricultural raw material to set up a glucose, Iso-glucose and starch based industry. But one should remark that the syrup manufactured from sweet sorghum contains glucose and levulose which make it difficult to crystallize. The following diagram N°1 points out to the several business opportunities generated by a sorghum's transfromation operation with a capacity of 200,000 metric tons / year:

Sorghum Beer
Sugar Syrup
Sweet Sorghum
Solid Residue
Manure / Fertilizer

A plant to process 200,000 metric tons of sweet sorghum a year necessitate a global investment of US$ 103 millions for the various productions mentioned in the diagram above. It needs 500 industrial jobs' creation; and will yield a gross turnover of about 40 millions US dollars a year. These figures are only estimates, to be analysed and confirmed by comprehensive Business Plans.


A - 2 - Roots and tubers

Gari (cassava cooked dried flour) is a national and regional popular food stuff. We should develop its production together with yam flour and dried cassava cossets. A starch based industry also could be set up with tubers and roots as raw materials. The following diagram N°2 shows opportunities available from cassava as raw material:

Sliced Tubers
Half Finished
Animal Food
Dried cossets; raspa (Brazil); glapeck (Thai)
Cassava Tubers
Biscuit; thickeners; binding
agent; constituent;
tapioca; glucose; sorbitol; etc.
Gari; farinha;
foufou; attiéké.
Paper; bio-plastics;
textiles; fermentation
composites; drilling; etc.


A - 3 - Vegetable oils and fats

Vegetable oils and fats sector is the predominant agent of the major axis. It will act as a global driving force for the economy of the country.

In Part -1 this sector is extensively discussed

A - 4 - Fruits and vegetables

A - 4 - 1 - Vegetables (tomatoes, gherkins, mushrooms)

Tomato is a very popular foodstuff in Africa and throughout the world. But Africa, as a whole, is an importer of tomato. A tomato development scheme, well carried out, could help to gain market shares in Africa.

Let's consider some facts, which show what can be the contribution of a tomato development program within this development scheme.

1 - The international market of tomato paste

a - Production

Two main regions dominate the production of tomato paste :

- The Mediterranean basin produces about 1 million tons of tomato paste per year, from 6 millions tons of fresh tomato.
- The state of California (USA) produces yearly only 500,000 tons of tomato paste; but 6 millions tons of fresh tomato are industrially handled.

The production of the Mediterranean basin - dominated by Italy, Greece and Turkey - is the only one which provides for the international trade of tomato paste.

b - The cost of the raw material

The Mediterranean basin tomato paste's industry is a subsidized one. The European Union ruling body: "The Commission" setup a subsidy scheme, which helps industrialists of the sector to purchase raw material (fresh tomatoes) at discount-price. That is the reason why tomato paste produced by the Southern European states are very competitive on foreign markets; particularly in Africa and the Middle-East.

c - International trade

The international trade of tomato paste is controlled by the Mediterranean basin's producers and particularly those of the European Union. California is quite nonexistent.

1984 /85
1985 /86

Africa and Middle-East import small cans for final consumption. America imports in bulk (barrels) for further reconditioning or transformation to more elaborated tomato products. Saudi Arabia market stands for 40 % of the Middle-East market and is a very attractive one if prices are competitive.


2 - Peeled tomato market

The European Union is the first producer of peeled tomato. Its production amounted to 1 million tons in 1986 and exports to 550,000 tons. The producers from other regions of the world are not big exporters, except the United States of America, which exports about 150,000 tons per year to Canada and South America. The European Union (Italy, Spain, Greece, France) exportations in 1986 (550,000 tons / year) were mainly intra-community exchanges (two third) dominated by Italy up to 90 % of the total. North America imports 110,000 tons of the European Union's exportations. Middle-East imports 30,000 tons and Africa 3,500 tons. Italy offered prices on Africa and Middle-East markets are very competitive.

3 - Gherkins, mushrooms, onions

These are three opportunities to consider carefully. The North European and American markets are fond of good quality and well packed gherkins. To take over a slice of the market, contracts should be signed with big German importers and those of Northern Europe. Onion is a popular and necessary foodstuff for African meal preparations. Onion cultivation should be promoted and developed for the national and African markets. There is a great variety of mushrooms; we should select a few with good potential and promote their production.

A - 4 - 2 - Fruits

Exotic fruits are becoming more and more popular with European and North American consumers. This is an important opportunity to earn hard currencies as global demand is far beyond total international offer, quantity or quality wise. Any newcomer to the market could make abundant profit if quality, quantity and supplying are secured.

1 - The market of exotic soft drinks and pulps

It is quite a new booming market; but except for citrus, bananas and pineapples, all the other categories (mango, guava, papaw) are not separately classified by customs services. Passiflora juice accounts for more than 50 % of the market; mango, guava and papaw standing for the rest. Passiflora juice - because of its good flavor and high acidity percentage - is used to blend other fruit juices.

Products based on exotic fruit juices and pulps account today, on the European market, for more than 30,000 tons per year; concentrates representing 50 % of said amount i.e. 60,000 to 70,000 tons / year of simple fruit juice. The market is sustained an increase of 15 % a year.

The Netherlands and particularly West Germany play a leading role in the industry of exotic fruit juices and pulps. The two countries are big importers; they blend and process further for other European countries. France and West Germany are the main consumers.

Thailand is the leader for the production and exportation of mango. South America dominates the passiflora business.

Guava is a difficult product to deal with; as quantity, quality and delivery are not assured. Nevertheless, that is an opportunity for a newcomer, particularly for the red specie.

As Africa, Caribbean and Pacific (ACP) states stand for only 2 % of the world market, there is plenty of room to take a share of the market. We should not hesitate to enter this venture. The ACP states benefit from 22 to 23 % tax deduction to enter the European Union's market. Table below shows the cost, insurance and freight (CIF) prices in US dollars per ton of the main exotic fruit juice delivered to European harbors:

Mango pulp 16°bx
Guava pulp 16°bx
Passiflora concentrate 30°bx

Remark: the Brix degree (bx) represents the sugar content in weight, on the brix scale.

The above listed prices are very interesting; but one should bear in mind that there is a gap between offer and demand; the latter being far more important than the former. According to the traders, prices will stop climbing; only mango may sustain a minor improvement. Passiflora price certainly reached a maximum.


The European market is not the only promising one. There is also the Middle-East market, and particularly the Saudi Arabia market, on which good profit could be made by any newcomer to the business who proposes good quality product at competitive price.

So we should not hesitate to propose good quality new exotic fruit, with new flavor. Just as an example let's mention the prickly pear which could give a good flavor juice or pudding. Prickly pear is the fruit produced by the cactus plant specie one can see on beaches along the Gulf of Benin.

2- The market of dehydrated fruits

Nowadays, in Europe, when you are invited by friends for dinner it is frequent to have dehydrated exotic fruit at cocktail-time. It is becoming more and more popular and some industrialists established processing units specialized in the production of desiccated exotic fruits.

The international trade of desiccated fruit is in the range of 20,000 tons a year; exotic dehydrated fruits representing 35 % of the total.

The main importing countries are the European Union's countries, the United States of America, Saudi Arabia, Kuwait, Japan, Hong-Kong which import globally for about 10,000 tons / year.

Exotic species concerned are the following - tons
The Philippines, Thailand
Costa Rica, Ecuador
China, India, Taiwan
The Philippines, Thailand, Brazil
Thailand, Pakistan, Malaysia, Vietnam, The Philippines
Mediterranean basin
The desiccated fruits listed above as ""other" are mainly grapefruits, apricots, dates and figs.

Banana and papaw are the most promising on the market of dehydrated fruits. They can yield good profits. Desiccated banana is well established on Northern Africa and Middle-East markets.


In addition to dehydrated papaw one could also manufacture another industrial product: freeze-dried (lyophilized) papain which is processed from the latex of the green papaw fruit. Freeze-dried papain has a superior active power in comparIson to atomized papain, which is, for the time being, prevalent on the market.

There is a possibility to enter the European Union market of dehydrated fruits for a new ACP's producer, as ACP states benefit from 25 % tax deduction to enter the EEC market. CIF prices, European's harbors deliveries, are in the range of US dollars 2,000 per ton for the dehydrated papaya and pineapple; about 4,000 for mango. Freeze-dried papain selling price is in the range of US dollars 7,500 per metric ton. Please note that the dehydrated fruits business is strongly related to the production of crystallized fruits and candies.

3 - The market of dried fruits (nuts and hazel nuts)

There is a lot of nuts species around the world; and Benin, presently, has broad expanses of cashew tree plantations uncared-for. It will be useful for the economy of the country not only to rehabilitate such vast plantations, but also to increase the acreage as cashew tree is a multi potential tree. A pleasant flavored soft drink can be obtained from the pulp of the cashew tree fruit; and further processing of said soft drink leads to a good quality drinkable alcohol; the cashew nut itself being in great demand around the world.

Let's consider the international market of cashew nut

a - Generalities

The world production of cashew nut averages 300,000 metric tons concentrated among few countries : - two countries : India and Brazil produce 64 % of the world output. - five countries : India, Brazil, Tanzania, Mozambique and Kenya account for 95 % of the world production. Production fluctuates from year to year (550,000 tons in 1974/75 against 260,000 in 1987/88). This decline in production level is the consequence of the collapse of Tanzania and Mozambique outputs.

The global international almond market for all kinds of nuts i.e. walnut, Brazilian nut, hazel nut, cashew nut averages 400,000 metric tons in a good production year; cashew nut almond representing 17 % of the said total.

b - Specificity of the market

Only 5 % of the cashew nut production is sold as cashew nut. The bulk 95 % is sold after processing to cashew almond. The main importers of cashew nut almonds up to 90 % of the production are the United States of America, Western Europe countries and Japan. The United States market represents 50 % of the said total. It is a fundamental market, which heavily influences the purchasing price of cashew nut almond. United States market is dominated by Brazil's exportations. USSR market accounts for 25 % of the world market of cashew nut almond i.e. 20,000 tons (which are equivalent to 83,000 metric tons of cashew nuts). India is almost the sole and unique supplier of the USSR market on which 40 % of its production of cashew nut almond are sold.

The USSR market plays a disturbing part on the world purchasing price of cashew nut almond. Offered purchasing prices are high when USSR is on the buying market. its absence leads to the decline of prices and strongly reveals the dominant position held by the United States market, which share of the cashew nut almond market therefore accounts for 80 % instead of 50 %.

On Western Europe's market, the percentage of cashew nut almonds among dried fruits, in general, is insignificant: only 3 % of the total imported dried fruits; supplied by India (20 %), Brazil (20 %), Africa (60 %); the importers being West Germany (30 %), United Kingdom (25 %), France (10 %), The Netherlands (25 %), and 10 % for the other European countries. Globally Western Europe countries import for 10,000 tons per year of cashew nut almonds.

In Asia, the Japanese market is the most significant, accounting for 4 to 5 % of the world market of cashew nut almonds i.e. 3 to 4000 metric tons per year.

c - Selling prices and trend

The international selling prices of cashew nut and cashew nut almond depend on two factors :

- The comeback on the market of countries like Tanzania and Mozambique.
- The increase of planted areas in India and Brazil.

The combination of these two factors may lead to an increase of the available tonnage from 400,000 metric tons (1984) to 600,000 in the early 90's; which means a 100 % of almonds tonnage (70,000 to 145,000 tons per year). The availability on the market of such quantities of both products has, doubtless, a negative impact on the selling prices. We should bear that in mind when undertaking the rehabilitation of our cashew nut plantations.

In addition, as explained above, the USSR's market plays a disturbing role; under its influence, the international purchasing price of cashew nut almond goes through wide fluctuations in the range of +/- 20 % in average.
And above all, one should also remember that cashew nut almond is considered by consumers as a top class almond - quite a luxury - in comparIson to other kinds of nut almonds. Its selling price is quite the double of the others, which are evidently more competitive on the international market of almonds.

Offered prices for cashew nuts depend on their origin (production countries). For India, prices fluctuate between US dollars 1,188 and 1,012; for Mozambique 330 and 315; for Guinea Bissau they average US dollars 700 per metric ton free on board (FOB).

d - Cashew nut and almond prices comparIson

The technical yield of the transformation of cashew nut to almonds being 0.21 (plus almond balm), it is necessary to check the profitability of the operation before undertaking it; to know if it is better to sell bulk cashew nut or almonds.

Table below gives the various categories of marketable cashew nut almonds (in kg - second column) obtained from one ton of cashew nut and their value in US dollars (last column):

Whole white
Scraped white
End pieces and crackled white
End pieces scraped and crackled white
White morsels
Scraped morsels
CNSL oil or cashew balm

That is to say from one ton of cashew nut, which value is US dollars 700 for instance, one obtains 280 kg of products priced US dollars 856 on the market.

The processing will yield profits if the raw material (cashew nut) purchasing price is below the international offered price.



B - 1 - Medicinal and bio-active plants

Good and top quality medicinal plants are more and more requested by professionals in Europe and America. There is an opportunity to enter the market but only if cultivation contracts are signed with the leading international importers and users; with specified conditions concerning variety stability and performances, phytosanitary treatments. A methodical organization shall be necessary to enter the market.

B - 2 - Flowers and fragrance plants

Here is a sector with tremendous opportunities to have a share of the pie, producing a large spectrum of aromatic or essential oils for the international market. The reforestation policy should be undertaken, planting trees species, which could be used as raw material for the production of aromatic oils. The most promising speculations are essential oils from : geranium, citronella, lemon grass or sweet calamus, eucalyptus.

B - 2 - 1 - Product definition

Essential oils are composed of aromatics from fragrant, odoriferous and sweet scented plants. They are chemically different from "stable oils" described in the chapter concerning vegetable oils and fats of part - 1
of this scheme. Essential oils are generally volatile in water steam. This physical property being largely used to extract them from plants. They exist in a great number of plants' parts: flowers, leaves, roots, wood, bark, grains. Each type of essential oil is a complex mixture of many chemical constituents - some rare time two or three - but often more than a hundred.

B - 2 - 2 - Utilization

Many industries make use of essential oils:

- The industry of perfume for ambiance and atmosphere.
- The industry of fragrance for soaps, detergents, paints and rubber manufacturing.

Both categories of utilization stand for a great percentage of the world production of aromatic or essential oils.

But other areas of utilization are rapidly developing:

- The industry of cosmetics (hair lotion and tonic, make-up and body care).
- Food industry (beverages, milk products, sweet in general, tobacco aromatization).

B - 2 - 3 - International market

The main consumption areas of essential oils are: Europe, The United States of America and Japan. Seven multinational companies dominate world wide the production and distribution of essential oils :

In Europe, QUEST, a subsidiary company of UNILEVER is the most important. ROURE BERTRAND DUPONT (France); GIVAUDAN (Switzerland); HAARMAN and REIMER (West Germany) are also great dealers in the international trade of essential oils. / INTERNATIONAL FRAGRANCE and FLAVOURS dominates the USA's market. / In Japan TAGASAGO is the leader.

These big corporations and several other small ones purchase semifinished or finished essential oils from a great number of specialized production companies; many of the later are in France (in the region of the city of Grasse); and numerous others in The United Kingdom, West Germany and elsewhere in Europe.


Let's consider the international trade of the five most used essential oils

1 - Geranium

Geranium essential oil is one of the most marketed and its components, citronellol and geraniol, are used for the synthesis and manufacturing of a great number of high grade and superior quality perfumes. Taking into account all brands and origins, the world production of geranium essential oil total up to around 400 metric tons a year with a monetary value in the range of 20 - 30 millions US dollars. La Réunion - an island in the Indian Ocean, a French territory - produces the best quality geranium essential oil in the world. Its production level is around 50 - 60 metric tons per year. Second in quality are the North African countries' productions; Morocco and Algeria together account for 10 to 20 tons; Egypt for around 70 tons. China provides for 100 - 150 tons yearly of a less good quality geranium essential oil comparatively to the other origins above mentioned. Kenya and Tanzania were exporters some time ago; their share plummeted on the marketplace.

The geranium essential oil produced by the East European countries - USSR included - is totally used for their internal consumption.

The largest importers are the USA (around 65 metric tons per year); France (95 tons); United Kingdom (20 tons); West Germany (15 tons); Japan (20 tons). East European countries barter also great quantities. Réunion's superior quality geranium essential oil is sold around 90 US dollar per kilo; Egyptian origin one 65 US dollar per kilo; Chinese brand 50 - 55 US dollar per kilo. Prices fluctuate according to China's production level and sales on the international market.

The decline of the production in La Réunion and Egypt combined with the increasing level of the Chinese internal consumption make it possible for a newcomer to enter the international market of geranium essential oil.

2 - Eucalyptus

Only few of the 400 species of eucalyptus are used to produce eucalyptus' essential oil. Among those are Eucalyptus Globulus, E. Smithii and E. Australiana, which are used in the pharmaceuticals' industry. Eucalyptus Citriodora is used in the fragrance industry as the main source for citronellal. The total world's production of all categories is around 2,000 metric tons a year; but E. Citriodora accounts for less than 200 tons. Portugal and Spain are the largest producers (400 and 200 tons respectively); Brazil, Australia and South Africa are also large producers. Zaïre used to be on the market. France is the leading importing country (approximately 600 metric tons per year); followed by the USA (around 300 tons); West Germany (230 tons) and the United Kingdom (150 tons).

The utilization of eucalyptus' essential oil by the pharmaceuticals' industry increased steadily over the years, particularly for its constituent cineol. The Citriodora had not followed the same trend; but with the new tendency to use natural products instead of chemically synthesized ones, the demand for E. Citriodora shall increase to produce citronellal. Selling prices of eucalyptus essential oils increased slowly from US dollar 6 per kilo in 1980 to 8 by 1989; and as the production cost is rising in Spain, Portugal and Australia, the prospects for new suppliers are good, particularly if Cinnamomum Camphora is accepted as a source of cineol for medicinal uses.

3 - 4 - Citronella

Two kinds of citronella's essential oils dominate the world market: the Cympobogon Nardus from Sri Lanka and the Cympobogon Winteranus from Java. The former produced exclusively in Sri Lanka. Both are profusely used in the fragrance's industry, particularly for the manufacturing of soaps, detergents, household and cleaning products. Two constituents of citronella essential oils: the Citronellal and the Geraniol are also very used in the fragrance industry. Indonesia is the leading producer and main exporters of citronella essential oil. But its exportations, which reached the peak of 800 metric tons in 1986 is declining as home consumption increased. China exports quite the same quantity as Indonesia. Guatemala is on the market for 200 tons / year. Brazil and India are also important producers; but mainly only for their home consumption.

The main importers are Japan (around 180 tons /year); USA (150 tons); France (140 tons); The Netherlands (140 tons); United Kingdom and West Germany (100 tons each). Selling prices during the beginning of the 1980's were around 6 to 8 US dollars per kilo and hit 10 US dollars in 1987-88; but the competition of synthesized citronella oil will have a moderation impact on the price evolution.

5 - Lemon grass

Two specimens of lemon grass essential oils dominate the market: the one produced from the Cympobogon Flexnosus, a lemon grass originated from Eastern India, and the other produced from the Cympobogon Citratus (Western India); but the commercial distinction between the two kinds of lemon grass essential oil is quickly fading. The lemon grass essential oils are directly used in a wide range of low grade, inferior quality perfume and household products; they are also the main source for citral which is one of the raw materials used to produce ionones and vitamins A and E.

Lemon grass' essential oils dominated the essential oils' market over twenty years but suffered a harsh competition from synthesized essential oils and the Chinese essential oil made from Litsea Cubeba (another raw material for citral). There are constant commercial disputes over lemon grass' essential oil because of the uncertainty created on the market by India, which uses a great portion of its production (750 tons /year) for its home consumption and exports the remaining to USSR under barter agreement. Nowadays, the Republic of Guatemala is the leading exporter (250 tons). China is on the market for 80 to 100 tons per year. USA and USSR import each around 70 tons per year; the United Kingdom 65 tons; France and Japan 35 tons each; and West Germany around 20 tons.

Selling prices fluctuate according to the quantity of lemon grass essential oils put on the international market by India. India's brands are sold around US dollars 17 per kilo against 9 per kilo for Guatemala's brand. Traders are foreseeing a price increase because of the shortage of the product on the market.


Locations of visitors to this page

- The Strategy exposed in this delivery is now available since January 2013 as an eBook, Africans, Stop Being Poor! The Roadmap to Prosperity for African Nations Either in Amazon Kindle format or in DNL eBook Format.
Interested parties to make contact with Dr. Quenum through the Support Console available at this link

Contact through the support console will get quickest reply from Africabiz Online's staff, than contact by emails. Click here for contact information.

Investment and Business Planner
Click here for Part -1
Click here for "Less Than 10% Annual Economic Growth-Rate? That's Peanuts for an Emerging Countries"