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Mozambique: Sesame hulling – adding value to sesame seed

General information
Project location: Gurue, central-northern, Mozambique
Consortium: Vardhman Industries, SDZ Cha SARL, Export Marketing Company Ltd.
Project Budget: Euro 825,000
External financing: 60% grant funding by PSOM
Project period: July 2008 - December 2009

Vardhman industries is active in trading raw and hulled (processed) sesame seed since 10 years. Major export markets are EU (through Netherlands & France), Middle East and Japan. The demand for processed sesame seeds on the world market is increasing. Purchasing and processing sesame seeds in Mozambique offers excellent opportunity to sell high quality sesame seeds for a premium price on the world market. Through Export Marketing, one of the main purchasers and exporters of sesame seeds in Mozambique, Vardhman came into contact with SDZ-Cha. The latter company is keen to diversify from its core business as growing and processing tea brings small profits if any. As the company has ample land, growing sesame seeds as a cash crop offer good perspectives. Combining the interest at both sides of supply chain forms the strong basis for the project to establish a sesame hulling plant in Gurue. As currently no hulling facility exists in Mozambique, the project will add value to raw sesame seeds and thus securing the purchase of seeds from a large and growing number of contract farmers as higher prices will be offered then competitors. At the same time Vardhman will get the opportunity to sell high quality, hulled seeds to a expanding client base world wide in the period of the year when supplies are limited.

The proposed project included:

  • Formation of a joint venture between Vardhman Industries, SDZ Cha SARL and Export Marketing Co Ltd
  • Construction and putting into operation of a seed hulling plant including certification and training of staff
  • Set up of a contract system to produce sesame seeds starting with 800 farmers
  • Production and sales of 300 tons of hulled sesame seeds

The purpose of the PSOM project will be the establishment of modern sesame hulling processing aiming to add value to raw sesame seeds. The project will create 99 new jobs at the production plant. Indirectly the project will provide work and income to a growing number of seed contract growers (800) especially during harvest season as sesame seeds are harvested manually by seasonal workers. Hardware investments will include construction of a processing hall and storage for finished products and a complete processing line to clean, dry, sort, hull and pack the sesame seeds. In addition money will be invested in a water purification plant to limit the water consumption and environmental impact of the project. The processing unit will be HACCP certified to meet demands of EU clients. Spin off investments are planned in 2011 to double the processing capacity.

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