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Sesame seed is mostly grown in the semi-arid and sub-tropical regions around the world. Widely considered as a very healthy oil seed, it is consumed either as a garnishing in bakery / confectionery items, as a flavoring in the cuisines of the Middle east and Asia or in the form of oil. The oil crushed out of sesame seeds is used principally as a cooking medium, or as salad dressings. The variety of sesame seeds which is principally used for crushing is referred to as mixed sesame seeds, because it is a mixture of various coloured seeds - mostly yellow and brown. Certain other grades of sesame seeds which are whiter in colour are used in confectionery applications. The Middle Eastern countries principally use sesame seeds after hulling and making a paste of the kernels - to give what is called Tahina.
World production of sesame seeds is estimated at 3 million tones, and is steadily growing ,nearly 70% of the world production is consumed in the producing countries, leaving only 30% for global trade flows. India, China, Myanmar in Asia; Sudan, Ethiopia, Nigeria and Tanzania in Africa and Guatemala and Mexico in Central America are the major producing and exporting countries while China, Japan and Turkey are the large importers. The crop in most African countries has been increasing steadily - buoyed by the short production cycle, and the good liquidity in the global market.
Olam's sesame business originated in West Africa in 1995 and the first shipments were made from Nigeria and Burkina Faso to Japan. Growth through geographic expansion followed as Olam set up procurement operations in the East African origins of Tanzania, Uganda and Mozambique.
The procurement operations start at the first point of collection, where the sesame seeds are delivered by the farmer or small buying agent in lots normally weighing just a few kilograms. With its network of buying units and agents, which number over several hundreds in the large operations, Olam is able to aggregate the supplies into sizable quantities.
Olam has significant investments in infrastructure including warehouses and cleaning machines and this ensures Olam effectively manages the entire range of operations from collection, storage, quality upgradation, packing, transport and shipping. This has enabled Olam to grow volumes rapidly and emerge as one of the largest exporter of sesame seed from Africa in a span of 10 years.
Olam has investments in hulling facilities in origins providing significant scope for value addition. Such value chain expansion initiatives has opened up new markets for us.
We have recently Olam expanded geographic presence to include Sudan, Ethiopia and India with the objective of increasing our market share in the global sesame trade as well as a larger participation in the white edible grade and hulled seed trade flows. Olam is uniquely positioned in terms of being physically present in origins across Asia and Africa, which account for over 75% of the world trade.
The sesame seed from Nigeria, Burkina Faso and Tanzania are primarily used in the crushing industry, Japan being the largest importer. While Olam's principal market today is Japan, with our expansion into white seed origins and investments in hulling, Olam is increasingly trading seeds into the gulf and Mediterranean markets.
Olam intends to increase its participation in the value-added seed trade, and to expand its geographic presence into the central American origins - with the aim of becoming the world's leading supplier of sesame seeds.
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