Prospects and constraints of shea butter processing: Evidence from Tamale Metropolis, Ghana

Array

Abstract

Shea butter processing and export is one of the major economic and traditional activities in the Tamale Metropolis. In spite of the huge potential of the shea industry to the socioeconomic development of northern Ghana and Ghana at large, the industry is still bedeviled with several challenges. This study was therefore conducted to identify the prospects and constraints of the industry and to provide suggestions that could help mitigate the challenges for improved livelihood. The study employed the Convergent Parallel Mixed Design (CPMD) to evaluate the prospects and challenges of shea butter processing and export in Tamale, Ghana. Twenty-five (25) shea processing firms were selected through a multi-stage sampling procedure. SWOT analysis technique was used to evaluate constraints and prospects and the most critical constraint identified using Kendall’s coefficient of concordance test. Results indicated that there is a continuous increase in demand for shea butter at the international market; shea butter has a higher comparative advantage over cocoa as substitute for cocoa butter and can be artificially propagated to reach fruiting within six (7) years. Results from the Kendall coefficient of concordance test indicated that 25% of processors indicated that inadequate finance was the most critical constraint. Capacity building should be intensified for the shea butter processors to assist them add value for both local and international consumption and to keep proper production records. Organic shea butter certification for export should be localized. There should be laws to regulate the upsurge in shea kernel exportation in order to enable local processors to have adequate quantities of the raw materials for increased production which can contribute to job creation for Ghanaians.