Shea Nut Actors Discuss Ways Of Revamping Industry

Statistics from official government sources indicate that, about 70 per cent of Ghana’s shea nuts remain rotten in the wild due to snake bites and other factors that are making it almost impossible for farmers to pick all of nuts.

Popularly known as “The Northern Cocoa” due to its large availability only in the Savannah Regions of Ghana comprising the Upper West, Upper East and Northern, there is an estimated 1 million farmers (women and men) directly engaged in shea nuts picking, processing and marketing, with their collective contributions together with foreign demand for the commodity contributing about US$18 million dollars annually to the country’s economy or GDP.

Indeed, a lot of efforts by players in the industry coupled with significant governmental assistance in recent years, have attempted to revamp or boost the multimillion dollar industry to enable it catch up with the cocoa sector, one of the major contributors to the nation’s gross domestic product (GDP).

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

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

In view of the above and many other issues, Shea Network Ghana, an umbrella organization of recognized shea associations, in collaboration with SNV recently brought together critical stakeholders at a meeting in Tamale to brainstorm and agree on how the former (SNG) and Global Shea Alliance (GSA) could support capacity development of National Shea and Producer Associations through membership drive, trainings/coaching, corporate governance and business development.

National Network Coordinator of SNG Iddi Zakaria explained that, the meeting was intended to see how stakeholders would strategize to enhance co-ordination and co-operation among the various shea associations to enhance a stronger common voice and their policy influencing power, in a way that could still preserve their separate identities, integrity and organizations independence.

He emphasised that, SNG believed that shea industry stakeholders should be able to act in synergy with each other, co-ordinate their activities among themselves, co-operate and partner among themselves so that together, they could be strong and increase their chances of having equitable benefits from the industry.

The Netherlands Development Organisation (SNV), this reporter learnt, has been supporting the strengthening of women groups in Northern Ghana to enable them participate more effectively in emerging agricultural commodity value chains. SNV’s focus has been the shea sector, where it is seeking to organise the over 600,000 women and the many more actors further down the shea value chain currently drawing livelihood benefits from that sector.

As at December 2012, SNV had developed a network of over 2000 groups in 27 districts in the Savannah Regions. Over 50% of these have been registered with the Department of Co-operatives as co-operative societies, and further into co-operative unions. All these women are said to be involved in the picking, processing and sale of shea nuts and shea butter.

However, the key challenge for these groups is their inability to link directly with agribusiness companies, to enable them earn more benefits from their labour. SNV recognizes the existence of some national shea associations, that also seek to support these women, but the associations also may have some challenges. 

SNV, in partnership with other stakeholders like SNG and Tree Aid, is therefore seeking to strengthen these associations including helping them register more members, and enabling them to offer better services to their members.  Example of shea associations include Cocoa, Coffee and Shea Nuts Associations (COCOSHE), National Association of Shea Farmers, Pickers and Buyers (NASFPB), Star Shea Network (SSN), Bee and Honey Networks and other Unions and Associations.

Economic benefits of shea

The economic importance of the shea tree cannot be over emphasized. The mature kernel contains about 61% fat which when extracted is edible, and can serve medicinal as well as industrial purposes.

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 100 million United State dollars 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 incorporated in margarine formulations. After the oil is extracted, the residue serves as excellent fuel, and can also be mixed with mud for plastering traditional mud huts.

The shea butter which is extracted from the nuts also constitutes the greatest proportion of oil intake in most homes in the North. It is known to be naturally rich in Vitamins A, E, and F, as well as a number of other vitamins and minerals. Vitamins A and E help to soothe, hydrate, and balance the skin. They also provide skin collagen, which assists with wrinkles and other signs of ageing. Vitamin F contains essential fatty acids, and helps protect and revitalize damaged skin and hair.

Meanwhile, SNG is a civil society organization made up of shea actors along the value chain, and envisions a shea industry in which there are increased equitable benefits for all actors along the entire value chain. It has 127 affiliate members, 35 fully registered and paid up members and with offices in the three regions of the North.

Formed in 2010 through multi-stakeholder actions of producers, non-governmental organizations and government agencies, SNG among other things seeks to build and share information and experiences on the shea industry; provide an equitable space for engagements/discussions among shea sector stakeholders in a coordinated way; contribute to shaping and sustaining a supportive policy and business environment; and provide an institutionalized platform to support the development of the shea industry.