Support shea nut industry

The shea industry in Ghana occupies an important place in the economic development of the country.

This is because of its role in job creation, industrial development and growth of the national economy.

It is estimated that annual earnings from the sector currently stands at US$175 million, comprising export revenues from the raw nuts and processed butter. The sector also serves as a source of livelihood for thousands of people across the country, especially rural women in the northern belt who pick the nuts for sale.

Until recently, shea nut farmers in the three northern regions were not benefiting from any floor price as pertains in the cocoa industry.

And when the Ghana Cocoa Board (COCOBOD) decided to announce a floor price for the produce as part of the government’s efforts at improving the lot of the pickers and farmers, as well as develop a profitable shea nut industry, the price was so low that the National Association of Shea Nut Farmers, Processors and Buyers raised the alarm bells.

That was because the price offered was far lower than the prevailing open market price and that did not augur well for the players in the industry.

Perhaps, the biggest assistance ever to have come from government is the inauguration of the 15-member National Steering Committee on shea in 2011, the establishment of the Shea Butter Processing Factory in Buipe (which is yet to be operational) and the fixing of the floor price for every 80 kilogramme bag of shea nuts at GH¢32.00 at the farm gate. 

It is estimated that about 9.4 million shea trees are in Ghana, and these can potentially yield one hundred tonnes of shea nuts worth about US$100 million per year. 

Shea butter has been found to have a fat composition similar to cocoa butter, and is used as a substitute for lard or margarine because it makes a highly, pliable dough. 

Shea butter is also used in making soap and candles, and it is added in margarine formulations. After the oil is extracted, the residue serves as excellent fuel, which can also be mixed with mud for plastering traditional mud huts. 

But for almost two years since the aforementioned policies were put in place by government, the shea industry is still not growing as fast as actors along the value chain would wish it to be.

It is the view of the Graphic Business that shea farmers have suffered for quite too long and therefore called on COCOBOD to review the price because offering low price for a commodity which was priced high on the market is not only a disincentive to the farmers and pickers but also provides fertile grounds for smuggling.

The paper urges policy makers to focus on interventions that link small business owners in the shea industry to reliable markets rather than focusing on the supply side.

This, to us means that the emphasis should be placed on strengthening existing markets while creating new ones.

We also wish to implore the entrepreneurs in the shea butter sub-sector to be more aggressive and proactive in seeking out and exploiting new business opportunities.