VALUE CHAIN OF SHEA BUTTER: FROM SHEA BELT TO SHELF Research Findings in Burkina Faso: Sheanut Collectors, Market Traders, Shea Butter Producers
Bill Reinecke, Fulbright Researcher, Leo, Burkina Faso 23 April 2012 www.fourthroad.com; bill@fourthroad.com
The Shea Value Chain field interviews began in my home base of Leo, Burkina Faso in March 2012 by visiting several villages where rural women either collected sheanuts or processed handcrafted shea butter, or performed both activities. Some of those interviewed were affiliated with a local shea butter factory that facilitates orders for export, while one village interview had no affiliation to any business or association. In addition, the initial set of local interviews included one with the aforementioned shea butter factory. During the week of April 9th through April 13th I embarked on a field trip to expand the interview sample with the financial support of West Africa Trade Hub. The trip was over 1,100 kilometers in a clockwise direction around Burkina Faso. It began in Leo, then continued west to Diedougou, Banfora, Bobo-‐ Dioulasso, northeast to Boromo, Ouagadougou, south to Po, and then back to Leo. Surrounding villages of various cities were also included. Over the months of March and April, I was able to interview approximately 90 women in 8 villages representing hundreds of sheanut collectors and shea butter producers (some affiliated with formal associations and some not officially organized), 9 market traders in 5 markets, and 8 shea butter factories in 5 cities or towns. The interview questions were first reviewed and edited by Dr. Peter Lovett, the project manager. Questions that were included attempted to uncover the time, effort and materials cost for 1) sheanut collectors to process sheanuts, 2) individuals to produce shea butter, 3) local factories to further
process the shea butter, and 4) local market traders to trade to buyers. Labor costs were based on Burkina Faso’s minimum wage standards of fcfa 32,355 CFA francs (USD 65) a month. After the April 9th field trip, a summary report was presented to Dr. Peter Lovett, which included photographic images of units of measurement. That week was also spent analyzing the data. Averages for time and materials cost of processing sheanuts and shea butter were used to develop a breakdown of each step to render a total estimate. The incremental cost of the market traders on the production of local handcrafted shea butter appeared to be a non-‐ or minimal factor. However, this was difficult to ascertain for certain without further to research, but the following may provide some insight. Producers of handcrafted shea butter often employ processors who pick their own sheanuts. Local larger scale shea producers, who employ the women who make handcrafted shea butter, also have special relationships in nearby villages with sheanut collectors, buying directly from the source and bypassing the market traders. This may be done for several reasons, including quality control and insurance that ethical trade and organic certification standards are maintained. Thus the purchasing of sheanuts in the market appears to be somewhat of a last option for factories acquiring sheanuts for export of handcrafted shea butter. It is important to remind readers that industry discussions are ongoing in regards minimum-‐, floor-‐ or season-‐start pricing of sheanuts. This study has used government minimum wages for calculation of collectors’ costs and as such, results reveal < 10% of sheanut cost originates from non-‐labor inputs. This clearly demonstrates how the poorest of the poor women in the West African Sahel-‐Savannah have opportunity to engage in shea collection and gain an income following investment of only hard work. Upward price regulation risks other stakeholders usurping these women in the shea supply chain.
The reader should also be aware that the biggest international demand for shea products comes from production of cocoa butter alternatives in the international confectionary industry. Cocoa butter demand, however, is at a record low (April-‐ June 2012 saw butter : powder grind ratios dip below 0.80 from traditional values of 3.5) and there have been bumper harvests of other non-‐cocoa butter crops. Buyers of shea are now constrained to trade in tight global positions and are urging for quality, traceability, increased efficiency and proof of sustainability – to improve shea productivity and options for promotion. Use of government regulated minimum wages or sheanut prices to address market asymmetries (without any enforcement of minimum quality standards), has already forced some buyers to halt sourcing of shea, leaving crushing facilities idle, until profitable conditions return. The results of the study were presented the following week at the Global Shea 2012 conference in Cotonou, Benin to a multi-‐stakeholder audience on April 23rd. The data highlighted the amount of time and effort it takes to collect shea fruit in relation to other activities during the production of sheanuts and handcrafted shea butter. The summary encourages all stakeholders in the shea industry to brainstorm ways to cost effectively reduce the time and effort to harvest quality sheanuts in order increase collection productivity, increase profits for rural shea butter producers, and increase funding for secondary projects, which are often undertaken by handcrafted shea butter factories with product aimed at the U.S. and European cosmetic market. Secondary projects may include alphabetization of the rural collectors and shea butter producers, support for foster care of orphans, and reforestation of shea parklands.