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The Butter Business Illusion
- 2. How could women get a better share of the value ?
1 euros / kg 40 euros / kg
(local market price)
© 2012 StarShea. All rights reserved. 2
- 3. The market is small and crowded
Export in volumes nut equivalent
Most of the leading companies have
10% already an integrated supply chain:
handcrafted • Body Shop
butter
• L’Occitane
• Yves Rocher
• René Furtherer
• …
nut
business,
90%
Women interested Prices
© 2012 StarShea. All rights reserved. 3
- 4. The real prices are not so attractive
Unrefined Butter - price given to the
women “Farmgate” US$/kg - Ghana
Local Market price 1,2
Export Higher range price 1.16 2 US$ - FOB Tema
Export Lower range price 0.95 1,6 US$ FOB Tema
FLO minimum price 3.46
© 2012 StarShea. All rights reserved. 4
- 5. The profit is low,
especially if calculated on “fair trade method” ..
Prices given to the women:
Cost per kg « Farmgate » - US$/kg
4.00
3,46
3.50
3.00
Price offered
Depretiation 2.50
Labour
Milling 2.00
Crushing
1.50 1,26
Water
1,16
Fuel / wood
1.00 0,95
Cost of nuts
0.50
-
Fair Trade Cost Lower range Higher range FLO
calculation
© 2012 StarShea. All rights reserved. 5
- 6. You need to achieve :
Quantity: full container load (gathering, federations, ..)
700 – 800 boxes
300 women – 3 weeks
© 2012 StarShea. All rights reserved. 6
- 7. You need to achieve Quality:
FFA level, colour, smell, packaging, insects …:
© 2012 StarShea. All rights reserved. 7
- 8. Way out:
For export:
–Brand the handcrafted
–Get differentiation ? on a commodity market ?
–Get organised and reach volumes
–Reduce costs (how ??)
Otherwise:
–Sell on local markets
–Do final products
Keep focus on quality nuts !!!! don’t dream about butter
© 2012 StarShea. All rights reserved. 8