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.