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 bill@fourthroad.com 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
Sheanut Processing: TASK
Value Chain Costing
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
Estimated Cost to Process an 85 kg (170 lbs) Cocoa sack of ethically traded sheanuts
Sheanut Collecting: Issues & Opportunities Labor cost is significant portion of the cost Making collecting faster and easier? Donkey cart, motorcycle truck, other?
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 Traditional Hand Crafted
Semi-Mechanized Village Crafted
Modernized Hand Crafted
Fully Mechanized
Shea Butter Processing: Modernized Hand Crafted Shea Butter 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: 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: TASK
Value Chain Costing
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 Hand Crafted Shea Butter From An African Processor
Profit 17%
Other Processing Costs 38%
Sheanut Processing Costs 45%
Cost Breakdown: Butter vs. Nuts What if the time to collect sheanuts is cut in half?
Sheanut Processing Cost 30%
Profit 30%
Other Processing Costs 40%
Lower sheanut costs = Higher wages for the women processors and more money for social and environmental projects.
Bill Reinecke
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