Operational Guideline for Managing Agricultural Exports from Warehouse to Destination Port
Agricultural exports are among the fastest-growing sectors of Nigeria. However, entering the international market requires more than just sourcing quality products. You need to understand global trade rules, negotiate favourable terms, comply with international standards, and manage export documentation. This article breaks down the essential international trade practices exporters must follow, focusing on agriculture and Nigeria’s most competitive commodities.
1. Understanding International Trade Regulations
Global and national rules govern international trade. Before exporting agricultural commodities, exporters must comply with:
Nigerian export regulations
Importing country requirements
Global food safety standards
Trade agreements and tariffs
Failure to comply with these regulations can result in shipment delays, rejections, or loss of market access.
What this means for exporters: You must be aware of approved export commodities and grades, packaging and labelling rules, quality certification requirements, and product banning or restrictions in destination markets
For example, the EU requires strict aflatoxin limits for sesame and maize, while Middle-East buyers focus on purity levels and fumigation.
2. Know Your Incoterms (Trade Terms)
Incoterms are international rules that define the responsibilities of sellers and buyers in global trade. They clarify:
Who pays for shipping?
Who handles insurance?
Who manages customs clearance?
Where responsibility transfers?
Most common trade terms for agro exports
FOB – Free on Board: Buyer handles freight & insurance
CIF – Cost, Insurance & Freight: Exporter pays for shipping & insurance
CFR – Cost and Freight: Exporter pays freight only
EXW – Ex Works: Buyer handles entire logistics
Using the wrong Incoterm can increase cost or risk. Exporters must negotiate terms that protect both parties.
3. Understand Global Quality and Safety Standards
Agricultural products must meet global standards for:
Moisture and purity
Packaging
Food safety
Pest-free condition
Labelling and traceability
Commodities like sesame, cashew and cocoa are highly regulated. International buyers often demand:
Phytosanitary Certificate
Fumigation Certificate
Certificate of Origin
Laboratory test results
Higher-quality leads to higher prices and consistent demand.
4. Choose the Right Export Pricing Strategy
Pricing in international trade depends on more than local market value. Exporters must consider:
Global commodity prices
Shipping costs and freight charges
Certificate and inspection costs
Packaging and inland transport
Storage and handling fees
Recommended pricing tips:
Compare international commodity prices (LME, market reports, buyer quotes)
Avoid underpricing to “win” buyers
Use Incoterms to calculate the true selling price
Export is profitable when pricing is strategic, not emotional.
5. Documentation is a Core Part of Trade Practice
Export documentation is mandatory for agricultural shipments. Key documents include:
Commercial invoice
Packing list
Bill of Lading
Certificate of origin
Phytosanitary certificate
Form NXP
Insurance certificate
Proper documentation ensures:
Customs clearance
Shipment acceptance
Faster payment
Legal protection
In international trade, documentation is almost as important as the product itself.
6. Build Long-Term Buyer Relationships
International buyers prefer exporters who are consistent and reliable, not those who ship once and disappear.
How to strengthen buyer confidence:
Communicate clearly and professionally
Share product test reports and pictures
Deliver commitments on time
Maintain transparency
Provide after-shipment updates
Trust is a currency in international trade.
7. Manage Trade Risk and Payment Terms
The biggest fear for exporters is non-payment; for buyers, the fear is product quality. Good trade practice includes selecting the right payment method:
Common payment terms:
Letter of Credit (LC)
Telegraphic Transfer (TT)
Documentary Collection
Advance Payment
Never ship without understanding when and how payment is released.
8. Supply Chain and Logistics Alignment
Good international trade practice includes logistics planning: proper warehouse storage, secure packaging, reliable trucking, customs brokerage, and shipping line coordination.
Export delays often occur when traders fail to prepare in advance, especially at the port.
9. Understand Cultural and Market Expectations
Every country has different buyer preferences:
The Middle East prefers clean sesame and neat packaging
Europe requires strict food safety and lab tests
Asia prioritizes container hygiene and documentary accuracy
Exporters who learn buyer expectations capture better markets.
10. Continuous Compliance and Improvement
International trade is competitive, so exporters must constantly update their knowledge of market trends, trade agreements, global pricing, documentation rules, tariff changes, and food safety requirements. Professional exporters grow because their systems grow.
International trade in agriculture requires skill, knowledge and compliance. Export success depends on understanding global trade rules, negotiating Incoterms wisely, meeting international quality standards, choosing appropriate pricing and payment terms, and maintaining discipline in logistics and documentation.
Whether you export cashew, sesame, soybeans, cocoa, palm kernel or maize, mastering trade practices protects your business, builds global trust, and unlocks international markets.