• Saturday, May 04, 2024
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Small businesses can serve diaspora dried and smoked fish market

DRIED FISH

…as stricter regulations open window

According to a study sponsored by the Food and Agriculture Organisation (FAO) of the United Nations, the quantity of dried and smoked catfish, tilapia and other types of fish exported from West Africa to the United Kingdom was estimated at over 500 tonnes per year; with a retail value of nearly $20 million.

Nigeria alone exports 5 tonnes of smoked fish per month (via airfreight). Other major exporting countries are Ghana, the Ivory Coast, Senegal and Cameroon.

However, with stricter regulations on food imported into the United States of America and Europe, Africans are finding it difficult to exploit the million-dollar foreign market for smoked and dried fish.

 

How to export dried and smoked fish to the United Kingdom and Europe

The new European Union (EU) regulations ban all ‘commercial’ consignments of smoked fish from Africa (and other non-EU countries) from entering the EU region.

This regulation has seriously reduced the volume of smoked fish that can be exported to Europe.

However, ‘personal’ exports are still allowed. Personal exports are small quantities of smoked fish (not more than 20kg in total weight).

This regulation is designed to prevent wholesale export of smoked fish to Europe. ‘Personal export’ includes consignments that are 20kg (or less) and may be carried as hand luggage while travelling.

It can also be sent (by mail or freight) directly to private addresses and named individuals in the EU for personal consumption only. Any exports to registered businesses in the EU or export quantities beyond the 20kg limit will not be allowed and will be ceased and/or destroyed at EU ports.

This new policy has essentially killed smoked fish wholesale businesses in Europe who are presently unable to legally import commercial quantities of these products into the EU. This presents a huge opportunity to small African businesses interested in exporting smoked fish to Europe.

Export sizes are now much smaller (limited to 20kg) and can be sold directly to individuals in Europe. Your exports could be posted to target customers via airfreight, and should get to them within 24 hours.

You could sell directly to persons visiting Africa on business or holidays and send it over to them (via airfreight) on a repeat basis while they are back in Europe.

Exporting the minimum 20kg requirement is favourable to a Smallstarter because it significantly reduces the business risk involved.

This reduced quantity has reduced the amount of capital needed to start this business and allows you to sell directly to the consumers at retail prices (which greatly increase the profit potential).

A quick introduction to the dried and smoked fish export business in Africa

The huge trade in smoked-dried fish is a consequence of the growing demand by the increasing number of Africans living in the diaspora. The United States of America and Europe remain the major destinations for Africans who venture abroad.

As a result of this transcontinental migration, and a growing appreciation for African flavours and food, the demand for dried and smoked fish appears to be going through the roof.

While it was easy in recent years to send container loads of smoked fish across the seas to the US and Europe, increasing health and bioterrorism concerns have led to very strict rules on imported food and animal produce.

It is important to note that up to 40 percent of smoked fish exported from Africa is detained, returned or destroyed at US and European ports due to simple mistakes such as improper packaging and labeling, inadequate compliance with paperwork, insect infestation and mold growth on the products.

To be successful in this business, you must focus on the details and be careful to comply with all the requirements.