Sesame seed is one of the oldest seeds known to mankind. Sesame probably originates in Asia or East Africa and is now grown in most of the tropical, sub tropical and southern temperate areas of the world. Sesame seed can be crushed and the oil produced can be used principally as a salad or cooking oil. Certain grades of sesame seed which are white and have a larger sized grain are used extensively in the cuisines of the Middle East and Asia and as a flavouring /garnishing on bakery and other confectionery items in Europe and North America.

World production of sesame seeds is estimated at 2.25 million tonnes, of which 70% is consumed in the producing countries itself. Annual trading volumes are estimated at 600,000 mt, valued at US$500 million. India, China, Myanmar in Asia, Nigeria, and Ethiopia and Tanzania in Africa and Guatemala in Central America are the major producing and exporting countries with Japan the world's largest importer.

Olam's role in the Sesame Business

Olam's sesame business originated in West Africa in 1995 and the first shipments were made from Nigeria and Burkina Faso to Japan in that year. 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 agents in lots weighing just a couple of kilograms. With its network of buying units and agents, which number over 100 in the large operations, Olam is able to aggregate the supplies into sizable quantities.

Significant investments in infrastructure including warehouses and cleaning machines, ensures that Olam manages the entire range of operations from collection, storage, quality upgradation, packing, transportation and shipping. All this has resulted in export volumes in excess of 45,000 metric tonnes in a very short time span of 5 years, making Olam a significant participant in the sesame seed trade from Africa.

The sesame seed from Nigeria, Burkina Faso and Tanzania is primarily used in the crushing industry, in which Japan is the largest importer and Olam's principal market.

Recently Olam has expanded its sesame seeds origin base to include Sudan, Ethiopia and India with the objective of enhancing its volume in the crushing segment and adding to its portfolio the white and hulled sesame.

This would leave Olam uniquely positioned in terms of being physically present in origins across Africa and Asia, which account for over 70% of the world trade.

Olam's future strategy

Olam intends to become a major participant in the white and hulled sesame market, ensuring it is one of the world's leading suppliers of sesame.