Last year, amid the beating of drums and joyful dancing, Sekaf Ghana inaugurated its first shea butter village near Tamale in northern Ghana. The village created 40 jobs for women. A year later, the facility employs 250 women and Sekaf is building two others like it in collaboration with international buyers.
“They like our approach,” Senyo Kpelly of Sekaf Ghana said of the buyers’ interest. “We have our own improved method of processing for the butter. We’ve seen things getting better, a lot of repeat customers.”

Kpelly’s experience is just one reflection of how well the shea industry is doing. As the shea nut trading season starts, industry insiders agree that the industry is in good shape.
Still, the shea industry is not without its challenges. Industry observers predict a smaller harvest this year, perhaps one third lower than last year’s crop.
Interest last year led some to buy when the price was high with hopes that it would go even higher. But it did not – especially with the global downturn – and they are stuck holding nuts, sources said. The problem they face now, one industry expert said, was that the nuts’ chemical composition has degraded while they’ve been sitting in warehouses, making them much less attractive to buyers.
At the village level, the primary challenge is ensuring consistent quality of shea butter produced by women using traditional methods, Lovett said. But, he noted, the quality of shea nuts has been increasing markedly after Trade Hub training workshops on quality issues. Increasingly exporters of handcrafted butter are finding market for reliable quality shea butter at bulk quantities in both the edible and cosmetic market at competitive prices. Consumer interest in shea butter in natural cosmetics and new market opportunities for shea butter’s use as a cocoa-butter equivalent make the industry’s overall outlook very positive, Lovett said.
“Despite the economic downturn last year, consumers continued to increase their purchases of natural cosmetics,” Lovett said. “They recognize what people in West Africa have known for generations upon generations – how well shea butter protects and nourishes the skin.”
In October, the Trade Hub helped four West African shea butter exporters establish contacts with more than 200 buyers in the U.S. who visited the Trade Hub-sponsored booth at the Cosmetic Chemists Suppliers’ Day in Long Beach, California.
The Trade Hub’s Africa Shea brand will build on the positive trends, and will figure highly in international events over coming months, he added.
“Africa Shea is about quality and authenticity,” he said. “Shea butter from Africa is getting better and better and it comes with a long history that is culturally significant. Africa Shea is about promoting those elements so that the economic benefits are truly felt in villages across West Africa and livelihoods improve.”
Working at every level of the value chain – from women’s groups producing butter traditionally in villages to traders buying raw shea nuts to mechanical processors refining butter for export to major international buyers and retailers – the Trade Hub’s work across the region has helped shea exporters become more competitive.
The result is more jobs and higher incomes over the past three years. In Ghana alone, a 2006 study estimated that 600,000 rural women earn income from collecting shea nuts for sale and processing others into shea butter.
• In Nigeria, the shea industry is starting to expand. The Trade Hub’s financing shea initiative helped spur new facilities for shea exporters. Appraisals of Nigerian shea sourcing strategies are also being conducted by at least three major international buyers.
• In Mali, shea nut quality has markedly improved. Laboratory scientists working for international buyers have noted the improvements, sources said.
• In Benin, a shea butter-producing company took its products to buyers at a U.S. international trade show for the first time.
• In Ghana, as many as seven processing facilities now transform shea nuts into shea butter. Their collective capacity is about 70,000 tons of shea nuts annually.
Next March, the Trade Hub will organize Shea 2010 in Bamako, Mali, the third edition of the international conference that brings industry stakeholders together to discuss the opportunities and constraints. Click here to see the latest on plans for the conference and opportunities to sponsor and participate!

“The Trade Hub sees opportunities for further efficiency and expansion of markets for shea,” said Trade Hub Director Vanessa Adams. “Shea 2010 will be the culminating event for the shea season with people across the industry gathering to improve the value chain.”
“The industry has been growing steadily over the last decade,” said Dr. Peter Lovett, the Trade Hub’s Shea Sector Expert. “More and more of these exports are as valued-added product as we’ve seen improvements at every level.”
Estimating the number of tons exported is difficult, but figures from the Port of Tema in Ghana showed about 80,000 tons of raw shea kernels officially went through the port in 2008 and about 4,000 tons of processed butter. However, industry insiders said the numbers were probably higher. Adding the volumes that left ports in Abidjan, Conakry, Lagos and Lome probably means that as many 350,000 tons of raw shea nuts were exported in 2008, and perhaps 30,000 tons of butter.
“The industry guards its numbers pretty closely,” Lovett said. “But the industry is evolving and with new entrants, we’re seeing a more sophisticated and more modern business emerge.”
Lovett said about one third of all exports are being extracted within the region, not only with machines in factories but, increasingly, by the handcrafted methods of women’s groups as they link into the international shea butter market.
“The women’s groups’ competitiveness has improved,” Lovett said. “And international demand continues to steadily grow.”
Peter Stedman, a shea butter buyer for The Body Shop, a leading international retailer of natural cosmetics, agreed. For over 15 years, The Body Shop has worked with the Tungteiya Women’s Association in Northern Ghana, using the shea butter the women make in its popular line of products. Starting with its first annual purchase of five tons in 1994, the company now buys over 250 tons from members of the association each year.
“Alternative trade and ethical trade, as general trends, have shown themselves to be more resilient overall and less susceptible to the economic downturn,” Stedman said. “People aren’t willing to compromise on ethics and quality and naturalness. We’re still in a good position.”
Still, the shea industry is not without its challenges. Industry observers predict a smaller harvest this year, perhaps one third lower than last year’s crop.
Interest last year led some to buy when the price was high with hopes that it would go even higher. But it did not – especially with the global downturn – and they are stuck holding nuts, sources said. The problem they face now, one industry expert said, was that the nuts’ chemical composition has degraded while they’ve been sitting in warehouses, making them much less attractive to buyers.
At the village level, the primary challenge is ensuring consistent quality of shea butter produced by women using traditional methods, Lovett said. But, he noted, the quality of shea nuts has been increasing markedly after Trade Hub training workshops on quality issues. Increasingly exporters of handcrafted butter are finding market for reliable quality shea butter at bulk quantities in both the edible and cosmetic market at competitive prices. Consumer interest in shea butter in natural cosmetics and new market opportunities for shea butter’s use as a cocoa-butter equivalent make the industry’s overall outlook very positive, Lovett said.
“Despite the economic downturn last year, consumers continued to increase their purchases of natural cosmetics,” Lovett said. “They recognize what people in West Africa have known for generations upon generations – how well shea butter protects and nourishes the skin.”
In October, the Trade Hub helped four West African shea butter exporters establish contacts with more than 200 buyers in the U.S. who visited the Trade Hub-sponsored booth at the Cosmetic Chemists Suppliers’ Day in Long Beach, California.
The Trade Hub’s Africa Shea brand will build on the positive trends, and will figure highly in international events over coming months, he added.
“Africa Shea is about quality and authenticity,” he said. “Shea butter from Africa is getting better and better and it comes with a long history that is culturally significant. Africa Shea is about promoting those elements so that the economic benefits are truly felt in villages across West Africa and livelihoods improve.”
By Joe Lamport






