Value Chain of Shea Butter: From Shea Belt to Shelf
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Transcript of Value Chain of Shea Butter: From Shea Belt to Shelf
VALUE CHAIN OF SHEA BUTTER: FROM SHEA BELT TO SHELF
Research Findings in Burkina Faso: Sheanut Pickers, Market Traders, Shea Butter Producers
Bill Reinecke, Fulbright Researcher www.fourthroad.com [email protected] Leo, Burkina Faso 23 April 2012
Scope of Research To Date
Interviewed:
Over 90 women in 8 villages
9 market traders in 5 markets
8 producers in cities, towns or villages
Areas Covered
Central, South and Southwest including:
Ouagadougou
Leo
Po
Diebougou
Banfora
Bobo-Dioulasso
Boromo
Sheanut Processing: Effort and Expense
After picking and processing for six days, the
shoulders and chest become sore. Then we rest for a day before beginning again.
~The women of Mouna village near Leo, Burkina Faso
Sheanut Processing: The Process
Collect ripe fruit
Store
Clean
Boil
Dry
Crack
Dry
Store processed sheanuts or make into butter
TASK RESOURCE COST
Collecting Labor @ 6 Days $19.68
De-pulping Labor @ 2 Hours $0.82
Boiling Water, Wood, Labor @ 2 Hours
$.20 + $1.50 + $0.82
Drying Labor @ 2 Hours $0.82
Cracking Labor @ 2 Hours $0.82
Drying Labor @ 1.5 Hours $1.23
Storage Labor @ 1 Hour, Bag $0.41 + $0.50
TOTAL $26.80 , 13,500 CFA, 44 Gh Cedi
Sheanut Processing: Value Chain Costing
Estimated Cost to Process an 85 kg (170 lbs) Cocoa sack of ethically traded sheanuts
Labor cost is significant portion of the cost
Making collecting faster and easier?
Donkey cart, motorcycle truck, other?
Sheanut Collecting:
Issues & Opportunities
Sheanut Acquisition:
Scenarios
Collection is part of production
Collectors sell directly to producers
Processor is also sheanut aggregator - employing collectors
Sheanuts purchased in market from market traders
Sheanut Acquisition:
Value Chain Costing
Question do traders and middlemen add additional cost to HCSB?
It’s arguably a wash.
Sheanut Acquisition:
Issues & Opportunities
Do too many middlemen take profits away from pickers?
Perform the hard work of aggregating nuts from distant villages
Provide reliable sales for pickers
Have long standing relationship with pickers
Shea Butter Processing:
Four Basic Categories
Semi-Mechanized Village Crafted
Fully Mechanized
Traditional Hand Crafted
Modernized Hand Crafted
Crush sheanuts using machine
Roast in hand cranked metal barrel
Mill into paste
Whip by hand
Boil in pot
Crude filtering by decanting
Package and store or sell
Shea Butter Processing: Modernized Hand Crafted Shea Butter
Shea Butter Processing: Issues & Opportunities
Very physical labor required
Large amounts of water, firewood required
Mechanization based on village processing:
Economies of scale, consistent quality, timeliness of delivery
Alternative energy sources & water reclamation
Shea Butter Processing: Value Chain Costing
TASK RESOURCE COST
Nut Costs Purchase $0.90
Grinding
Mill $.14
Roasting Wood, Labor @ 2.25 hr $.11 + $.02
Paste Mill $.27
Whipping Water, Labor $.02 + $.04
Boiling, Filtering Wood, Labor $.03 +$.09
Packaging Materials $.05
Profit Operations, Admin, Social projects, etc.
$.33
TOTAL $2.00, 1,000 CFA, 3 Gh C
Based on 1 kilogram of Modernized Processing of Hand Crafted Shea Butter
Cost Breakdown: Butter vs. Nuts
45%
38%
17%
Profit
Sheanut Processing Costs
Other Processing Costs
Hand Crafted Shea Butter From An African Processor
Cost Breakdown: Butter vs. Nuts
30%
40%
30%
Sheanut Processing Cost
Profit
Other Processing Costs
What if the time to collect sheanuts is cut in half?
Lower sheanut costs = Higher wages for the women processors and more money for
social and environmental projects.
Thank you.
Special thanks to West Africa Trade Hub, especially Dr. Peter Lovett. Additional thanks to Senyo Kpelly of Sekaf Ghana Ltd, and
Hugo Ortiz of Peace Corps Burkina Faso
Bill Reinecke