Overview of the Latin

American Sesame Seed

MarketSuhel Turjman

Key countries to look at:

Mexico

Guatemala

Venezuela

Paraguay

Brazil

Mexico

LatAm’s leading exporter of products BUT also it’s largest importer of natural.

Large domestic demand.

Duty-free access to U.S. market and geographic proximity to U.S.

Mexico – imports vs exports

Year Imports (MTs)Exports Hulled

(MTs)

Exports Tahini

(MTs)Exports Oils (MTs)

Total Exports

(MTs)

2014 20,115.46 7,408.54 9,426.73 8,117.77 24,953.04

2015 19,956.04 9,463.21 10,520.28 9,234.63 29,218.13

2016 23,674.16 10,481.00 11,703.22 9,410.32 31,594.54

2017 28,907.67 10,165.76 8,231.22 10,623.34 29,020.31

2018 42,094.89 12,080.01 7,484.56 11,321.88 30,886.45

2019E 28,393.83 11,069.60 12,184.17 11,051.42 34,305.20

Source: SIAVI

Mexico – demand vs supply picture

Year Imports MTs Exports of NSSE (MTs)* Production (MTs)Net for local

consumption (MTs)

2014 20,115.46 41,438.00 64,911.00 43,588.46

2015 19,956.04 48,131.70 51,605.00 23,429.34

2016 23,674.16 51,330.97 59,412.00 31,755.18

2017 28,907.67 49,501.40 54,824.00 34,230.27

2018 42,094.89 52,604.63 47,170.00 36,660.25

2019E 28,393.83 56,767.77 ? 33,932.70**

Source: SIAVI and SIAP

Note: NSSE = Natural Sesame Seed Equivalent*Assumptions: 18.5% hulling manufacturing loss, 22.5% tahini manufacturing loss 40% oil extraction rate.** Trailing five-year average estimate.

Mexico: the supply question

Scenarios if production (MTs) expect imports (MTs)

1 62,000.00 28,700.47

2 55,000.00 35,700.47

3 48,000.00 42,700.47

Guatemala -

Crop size average between 12,000 –15,000 MTs Nov-Dec.

Premium markets for natural seed in Japan and for hulled in U.S.A and Europe.

Premium confectionary product.

Manual harvest and good agricultural practices.

Venezuela -

Well established crop culture.

First to semi-mechanize the harvest (reaper binder).

Interannual dual-crop rotation.

Political, social and economic turmoil.

Venezuela – the fallen champion

-

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

45,000.00

2012 2013 2014 2015 2016 2017 2018 2019

Crop size (MTs)

Crop size (MTs)

Source: FAO Stats

Paraguay -

Differentiated crops (confectionary vs crushing types).

Unpredictable weather and quality.

Expensive product. No deep-sea port access.

Paraguay –

Source: Official exports data

Sesame Seed Exports to the World (MTs)

Country 2015 2016 2017 2018 2019

Japan 17,489 10,287 5,375 7,300 6,944

Mexico 2,544 4,590 4,800 8,228 4,316

Guatemala 0 0 0 0 4,237

China 1,038 2,076 858 834 547

Germany 1,369 811 1,266 895 464

Italy 20 326 426 331 108

Poland 95 0 44 162 57

Uruguay 1 34 33 55 214

Vietnam 114 2,134 137 185 235

South Korea 1,103 461 0 87 0

Turkey 365 2,919 0 52 0

Brazil 172 698 287 60 60

USA 611 418 358 382 72

Israel 625 127 0 213 39

Taiwan 292 1,112 205 478 173

Argentina 209 238 289 304 228

Holland 375 18 95 138 57

Myanmar 0 284 595 524 474

Others 395 958 262 609 106

Total 26,817 27,491 15,030 20,837 18,331

Brasil – a new player

Land availability = scalability.

High-tech farming = full-cycle mechanization of the crop.

Somewhat robust local demand at 8,000 MTs.

Logistical issues and lack of infrastructure.

Brasil – the sleeping giant?

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2015 2016 2017 2018 2019 2020

Exports (MTs)

Exports (MTs)

?

Source: Siscomex

Key takeaways:

LatAm is a net exporter. Producing roughly 4% of global traded supply at roughly 135,000 MTs AND mostly traded regionally.

Sustainability? Long-term trend shifts to value added and premium product/niche markets.

Trend to full mechanization coupled with R&D = power duo.

Will the region come to challenge African producers?