Assessing the profitability of small scale local shea butter processing: Empirical evidence from Kaleo in the Upper West region of Ghana

Theophilus Tweneboah Kodua,Jacob Ankamah,Mary Addae,Fatih Yildiz

doi:10.1080/23311932.2018.1453318

Theophilus Tweneboah Kodua, Jacob Ankamah + Show 2 more

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https://doi.org/10.1080/23311932.2018.1453318

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Abstract

This paper assesses profitability of small scale local shea butter production in Ghana. The study used cross-sectional data from 110 sampled shea butter processors randomly selected from Kaleo in t...

Highlights

IntroductionThe shea tree (Vitellaria paradoxa) commonly grows in the Guinea Savannah and sparsely in the Sudan Savannah areas of Ghana (almost the entire area of Northern Ghana, over about 77,670 square kilometres in Western Dagomba, Southern Mamprusi, Western Gonja, Lawra, Tumu, Wa, and Nanumba with Eastern Gonja having the densest stands) (Ferris, Collinson, Wanda, Jagwe, & Wright, 2001)
The shea tree (Vitellaria paradoxa) commonly grows in the Guinea Savannah and sparsely in the Sudan Savannah areas of Ghana (Ferris, Collinson, Wanda, Jagwe, & Wright, 2001)
These savings and loan companies advance group loans to processors at relatively low rates compared to the commercial banks. Better access to such credit services has contributed to increase income-generating activities whereby a lot of people have access to loans through microcredit schemes, susu groups; group credit is most popular among women and it has helped them to start up small businesses to generate their own incomes (Dietz et al, 2013)

Summary

Introduction

The shea tree (Vitellaria paradoxa) commonly grows in the Guinea Savannah and sparsely in the Sudan Savannah areas of Ghana (almost the entire area of Northern Ghana, over about 77,670 square kilometres in Western Dagomba, Southern Mamprusi, Western Gonja, Lawra, Tumu, Wa, and Nanumba with Eastern Gonja having the densest stands) (Ferris, Collinson, Wanda, Jagwe, & Wright, 2001). The local shea butter industry has over the years contributed substantially to the socio-economic development in most parts of the world especially West and Central Africa and serves as an important household resource in the Savannah regions of Ghana, Cote d’Ivoire, Burkina Faso, Mali, Togo, Benin and Nigeria (Ferris et al, 2001). The local shea business is one of the most vibrant traditional business aside farming in the northern (where it is usually referred to as “women work”) part of Ghana and it serves as a source of income to most rural women. Shea butter has been traded for so many years for use in food (margarine and chocolate) industry and in the cosmetics industry They are usually used as a cocoa butter equivalent (CBE) in the chocolate industry where they are mixed with other non-timber forest products (NTFPs) such as palm oil for further production. Shea butter has high concentration of triglyceride giving it rich consistency which is valuable for skin creams, shampoos as well as other cosmetics (Schreckenberg, 2004)

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