The Shea Industry in a Nutshell
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The Shea Industry in a Nutshell

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  • As am no longer working at the Trade Hub, I can be contacted at plovett @ savannahfruits.com
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The Shea Industry in a Nutshell The Shea Industry in a Nutshell Presentation Transcript

  • Shea TodayThe Industry in a NutshellDr. Peter LovettThe USAID West Africa Trade Hub / The Global Shea Alliance
  • Let’s Learn About Shea Butter• Amazing ingredient – body care & confectionary • Oil rich tree seed from traditionally managed parklands • African women pick & extract edible vegetable fat • Utilized for millennia – by ancient Egyptians?• International trade transforms invisible lives• Industry at crossroads as NEW alliance formed Looking after People, Planet & Profit Shea does it all - Sustainably
  • Stats from the Thin Green Line• Parklands in 3.7 million km2 semi-arid zone• 21 sub-Saharan African countries – only!• 8 export 250-350,000+ tons p.a. dry kernel – Bénin, Burkina Faso, Côte dIvoire, Ghana, Guinée, Mali, Nigeria & Togo• 9 ton fresh nuts : 3 ton dry kernel : 1 ton butter• 6-7 ton kernel : 1 ton stearin [or conc. bioactives]• Women av. harvest 1 x 85 kg bag per season• 4 million+ women harvest export crop
  • Multiple International Use• Beneficial properties helps chocolate industry – Smoothes economics & allows market expansion – Improved bloom resistance, mouth feel, etc • Fillings, ice creams, coatings, etc• Natural cosmetics – Functional ingredient • Emollient & moisturiser • Thickener & gelling agent – Bioactive efficacy
  • Recent developments in West AfricaDid you know ……?• That there are 12 major industrial processing plants in the region(8 of them very active)
  • • Traditional crop• Millions rural women• Weeks of work Production to Market• April to September• Kernel quality defined DISCONNECTED…• Price takers Limited transparency!• Commence selling @ < $150 per ton kernel• 1,000s of nut traders • < 10 major buyers• Consolidate & finance • Export, process &• Commence selling @ formulate > $250 per ton kernel • Erratic price @ $250 -• Quality deteriorates $800 per ton kernel• Limited value added • Quality variation high • Zero traceability
  • Export Shea Butter Value Chain Legend West African International Kernel Butter Final Product 90% 45% 15% Edible Collectors Traders Processors Fractionators Brands 85% 30% 10% 70% Fractionators Cosmetic Village-based Brands Processors Processors 45% 15% Refiners 5% Traditional 10% Distribution/ Uses Ɨ FormulationRepresentative Organizations: Village-based processing – by co-ops & firms,  WA Fractionators – Ghananuts, Wilmar e.g. Burkarina, Songtaaba, SEKAF, Naasakle  Int’l Refiners – AAK, Loders, SRC, Cargill WA Processors – Fludor, Nioto, Ghananuts  Int’l Fractionators – AAK, Loders, 3Fs Int’l Processors – AAK  Brands – Body Shop, L’Oreal * Note, %’s represent volume of SETs in the shea industry as of 2011; figures do not reflect unrefined shea butter * At present, ~5% of industrially processed total (fractionated/refined) gets used by the cosmetic industry Ɨ 65-75% of harvested shea does not enter the export market and is retained for traditional uses
  • Paradox of paradoxa• 90% of knowledge available to market is about hand-crafted shea butterBut…• 90% of actual trade in nuts• Whether in chocolate or body butters• Source invisible to consumers• Offers opportunity for an industry alliance
  • Women per Chocolate Bar!• Typical 100g bar of milk-chocolate• Contains 5 % non-cocoa fats• 20% of these fats are shea stearin (1% of bar)• = 7g dry shea kernel per bar• 300 million bars sold in UK annually• 2,100 tons dry shea kernel• 25,200 bags harvested by how many women?
  • T raditional Process – Kernel1. H arvest (from farm, rarely bush)2. Accumulate (in piles or pits)3. H eat? (boil, roasted or left raw)4. Dry whole nuts5. De-husk (cracked by-hand!)6. Dry kernels & store
  • Quality Defined by Kernel Processing & Storage• FFA determined by heating• Peroxides during boiling• Smoking: poly-cyclic aromatic hydrocarbons (PAH s)• Fungal infections during drying & storage• Insect infestations
  • First Critical Bottleneck! Low Women harvest quality kernel Post-harvest process Dry kernels Exported & Processed to butter for Shea butter processed for for home consumption for cosmetics, etcconfectionary & cosmetics & local markets export & regional
  • T raditional Process - Butter7. Crush kernels (or left whole)8. Dry-roast (or heated in ash or sand)9. Milled (or pounded & stone grind)10. Kneaded (or water-boiled or pressed)11. Boil oil/fat to dry & clean (filter!)12. Prepare for use, sale or storage
  • W ork Closely with Producers• Discuss supplies early• T rain on key quality issues• Supply packaging materials early• Share financial risk• Producer most important part of supply chain = to your market!
  • Social Benefits of Shea Income• More jobs & higher incomes, e.g. – School fees paid – Improved family nutrition – Better housing• Higher incomes to coops & communities – Access to potable water improved – Schools & medical centres constructed• Fiscal returns of transparent business
  • Environmental Benefits of Sustainable Shea• Biodiversity maintenance• Trees provide carbon sinks & storage• Nutrient cycling & soil fertility improved• Better yields from agroforestry system• Tree roots protect against rain/wind erosion• Sustainable supply-chain benefits, e.g. – Reduced petrolatum use – Sustainable packaging
  • Global Shea Alliance – How Far?• Impetus, capacity & willingness for change• Ambition to connect the disconnect• National networks & associations developed• Founders meet Oct. 2010, Accra• Shea 2011: Sustainable Solutions• Shea 2012: Shared value• Shea 2013: Global Perspectives – 240+ members, EC committee up for re-election
  • What if……the U.S. removedlimitations on use ofCBEs in chocolate? U.S. Chocolate market - 2006 sales: $16 billion - 2011 forecasted sales: $18 billion - Average consumption: 12.31 lbs, per household; $50 / year 20
  • What if…• …traders in West Africa assured international buyers their material had highest oil yields? Bad seeds generate 25% – good seeds generate 50%.• …the quality of the fat generated was always good? Bad seeds have up to 20% FFA 1% stearin lost per FFA – 40$ per ton!Improving shea quality cuts costs & increase margins. 21
  • What happens… …when a new use for shea is discovered? Demand increases… Studies show shea has anti-arthritic effect. Potential for others, e.g. anti-malaria, lowering cholesterol, reduces tumor formation, etcAn alliance helps the global shea industry manage change 22
  • Thank you!More information is available at www.watradehub.comPresenter’s contact information: plovett@watradehub.com