Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
The Shea Industry and Rural Livelihoods among
Women in the Wa Municipality, Ghana
Abdul-Moomin Adams (Corresponding Author)
Department of Planning and Management, University for Development Studies
Post Office Box UPW 3, Wa-Campus, Ghana.
Tel: 233-246-708-305 / 233-205-468-511
E-mail: adamsmoomin@gmail.com
Issahaku Abudulai
Zoomlion Ghana Limited
Post Office Box 736, Wa, Upper West Region, Ghana.
Tel: 233-244-434-149
E-mail: abu1558@yahoo.com
Motin Bashiru
School of Business and Law, University for Development Studies
Post Office Box 520, Wa-Campus, Ghana.
Tel: 233-248-940-727
Received: December 7, 2015
doi: 10.5296/jsss.v3i2.8706
E-mail: bashirumotin@yahoo.com
Accepted: February 12, 2016
Published: February 19, 2016
URL: http://dx.doi.org/10.5296/jsss.v3i2.8706
Abstract
The majority of rural population in Ghana are faced with poverty, especially in northern
Ghana which records the highest poverty levels. Despite the potential of the shea industry to
contribute to alleviating poverty among rural women, little attention has been given to the
industry. This paper examined the shea industry as a source of livelihood among rural women
as well as the challenges women faced in the industry in Wa Municipality. Cross-sectional
research design was employed and data were collected using questionnaires. The results of
the study indicate that 93.7% of the women participated in the shea value chain as a main
40
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
source of livelihood strategy; as much as 69.8% of the respondents in the shea industry
produce for both subsistence and commercial purposes; majority of the respondents (96%)
were engaged in fresh nut collection as well as home processing of nuts, and 86.5% were
engaged in shea butter processing; the average annual income per person was GH¢846.85;
however, the average annual income for butter processors was much higher than that of nut
processors; and the major challenges confronting women in the shea industry includes:
limited access to investment capital; cutting down of live shea trees; lack of modern
processing equipment and training; and poor pricing of shea products in the local market. The
paper calls on government to formulate a clear cut policy for the industry, particularly on
marketing of the shea products to make the industry lucrative for women while at the same
time increasing the export base of shea products.
Keywords: Shea industry, Rural livelihood, Wa municipality
1. Introduction
The government of Ghana has acknowledged the problems of chronic poverty and
mainstreamed issues relating to vulnerability and exclusion in the Growth and Poverty
Reduction Strategy (GPRS II). In addition to promoting economic growth, the national
development framework specifically targets empowering the poor, vulnerable and the
excluded to enable them contribute to economic growth (UNDP & JICA, n.d).
In spite of certain progress in women’s health and education, challenges remain in the areas
of economic empowerment. The majority of rural people especially women in Ghana are
faced with poverty, especially in northern Ghana as the North still records the highest levels
of poverty. The Ghana living standard survey indicates that poverty is more severe in food
crop growing areas as compared to the cash crop growing area in Ghana (Ghana Statistical
Service, 2008).
The shea nut industry provides a viable opportunity for government and development
partners in their effort to reduce poverty among rural women in Northern Ghana. The shea
tree which grows well in northern Ghana has over the years supplemented the livelihood
sources of rural women. For instance, women are engaged in the sale of the fresh shea fruits,
processing and sale of the shea nuts, sale of charcoal made from the shea tree etc.
Despite the enormous potentials the shea industry has to offer in Ghana’s drive to alleviate
poverty among rural women, not much importance has been given to the industry in the Wa
Municipality. Women who are considered to be among the poor and vulnerable groups of
people in the municipality are believed to have challenges in creating livelihood strategies.
This research therefore seeks to examine the contribution of the shea industry to household
livelihood strategies among rural women in Wa Municipality and identify the challenges
confronting rural women in the shea industry. The challenges confronting rural women in the
shea industry as identified in this study will form the basis for policy formulation,
programming and interventions by government and other actors in the industry towards
enhancing the livelihood of rural women.
The objectives of the study include:
1) To examine how rural women earn their livelihood from the shea nut industry;
2) To determine the annual income earned by rural women from the shea nut industry; and
41
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
3) To identify the challenges confronting rural women in the shea nut industry in Wa
Municipality.
2. Literature Review
2.1 Economic Situation of Rural Women in Northern Ghana
Like other developing economies, Ghana is an agrarian economy with majority of poor
households earning their livelihood from agricultural activities. The agricultural sector
therefore, remains the primary support in terms of the provision of food and employment
(Institute of Statistical, Social and Economic Research, 2011). In the Upper West Region,
about 86% of the population is engaged in agriculture as source of livelihood (Inkoom &
Nanguo, 2011). Approximately, 60% of those engaged in this economic activity fall below
the poverty line with the majority of the poor being women (Government of Ghana, 2003).
Poverty remains predominantly rural, with the highest disparity in the three northern
savannah regions: Northern Region, Upper West Region and Upper East Region, despite
improvement in economic stability over the years (UNDP & JICA, n.d). The strong growth in
GDP nearly halved the poverty rate in Ghana from approximately 52.0% at the beginning of
the 1990s to 28.6% in 2005/6. At this rate, Ghana is poised to achieve the MDG of halving
extreme poverty ahead of the 2015 time frame. The reduction in poverty may be attributed to
the strong growth in cocoa and forestry sub-sectors. Despite these gains, income inequality
across regions and between socio-economic groups remains high and has increased during the
period of accelerated growth (Government of Ghana, 2010).
2.2 The Shea Industry and Rural Livelihood
Shea nut is of immense importance to the people of northern Ghana as far as income
generating activities for women are concerned. This is because shea business is traditionally
women’s business and it is a source of income for many families in rural areas (Carrettle et
al., 2009). It is therefore, one of the greatest potentials that can be exploited to improve
livelihood in a number of ways. The kernels of the shea fruit are high in oils and have long
been collected and processed by women in savannah communities. Shea, therefore, provides
a useful source of fats in diets. The fat, extracted as shea butter, also has cosmetic and
pharmaceutical uses as a skin preparation. Shea butter is the main edible oil for the people of
northern Ghana, being the most important source of fatty acids and glycerol in their diet
(Kent & Bakaweri, 2010).
Products from the shea tree are used for medicinal purposes in different dimensions.
Hatskevich et al., (2011) explain this in a number of ways. They maintain that the substance
is used in healing effects on burns, skin conditions and stretch marks. It is known to be
naturally rich in vitamin A and E for smooth, hydrate and balance skin. They add that, shea
contains vegetable fats that promote cell regeneration and circulation and, therefore, a healer
and rejuvenator of ageing skin. The findings of McNally, (2008) do not deviate from this
observation. He maintains that, shea has anti-microbial properties, which gives it a place in
herbal medicine. It is also used in the pharmaceutical and cosmetic industries as an important
raw material and/or a precursor for the manufacture of soaps, candles, and cosmetics. Shea
butter is used as a sedative or anodyne for the treatment of sprains, dislocations and the relief
of minor aches and pains.
42
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
In a cultural dimension Hatskevich et al. (2011) reveal that, the residue from shea after
extracting the butter is an excellent fuel and can also be mixed with mud for plastering
traditional mud houses, while wood from shea tree is used for stools, hoes, pestles and mortar.
As a cosmetic, it is used as a moisturizer, for dressing hair (Dalziel, 1937; Ezema &
Ogujiofor, 1992) and for protection against the weather and sun. It is used as a rub to relieve
rheumatic and joint pains and is applied to activate healing in wounds and in cases of
dislocation, swelling and bruising. It is widely used to treat skin problems such as dryness,
sunburn, burns, ulcers and dermatitis (Vuillet, 1911; Bonkougou, 1987) and to massage
pregnant women and small children (Marchand, 1988).
The shea tree is the second most important oil crop in Africa after palm nut tree (Hatskevich
et al., 2011). In Ghana, shea is a business for women and a source of income for many
families. In the Upper West region, shea business in some cases contributes more than half of
annual income of households (Carette et al., 2009) and consumed locally as food, cosmetics,
soaps and detergents, medicines, and for cultural and religious purposes (Seidu, 2012).
Other empirical studies elsewhere in Africa share similar view with regard to the role of shea
nut in livelihood. Ferris et al. (2001) presents their argument in support of this. First, income
from shea in Uganda is more than other major livelihood outcome such as brewing and
farming. Secondly, shea business is not just entirely for women only but involves other
groups such as men and children. Moore (2008) observation from the Upper East region of
Ghana adds that, the use of the shea tree covers aspects of livelihood, poverty reduction
through the selling of its products and food security through the fruit pulp and oil from the
nut.
In Ghana, Carette et al. (2009) identified the main actors in the supply chain of shea as local
traders, traders from the South of Ghana and traders who also trade abroad who get into
contact with local village communities, women groups, and processing sites with the purpose
to buy shea butter. This expands income generating activities for different groups of people
for their livelihood. Trade in shea is now common across all social groups. It is being traded
across regional boundaries with the potential of enhancing cross border collaboration,
regional cooperation and integration (Seidu, 2012). Moore (2008), therefore, comments that
shea is not only highly nutritious substance as food for rural dwellers but also a valuable
commodity on local, national and international markets, making it the ideal candidate to
research into. This underscores the importance of shea business as a livelihood strategy not
just for only rural dwellers but for many participants of the market place.
2.3 The Shea Value Chain
Several activities are being performed by actors ranging from those who pick shea nuts from
the bush to the final consumer. According to Rammohan (2010), the range of activities and
services required to bring a product from its formation to sale in its final markets is the value
chain. This is similar to what Austin (1992) is referred to as Production Chain Linkages.
Consistent with this observation, Masters et al. (2004) posit that shea butter, thus, has higher
value than shea nut because processing of raw material into higher value end product is the
most strain forward way of value addition. Trienekens (2011), therefore, argues that value
chains are seen as a vehicle by which new forms of production, technologies, logistics, labour
43
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
and networks are introduced. The purpose of these activities in the chain is to add value to the
raw materials.
Participants are active in the chain if they are part of the chain’s governance system and are,
therefore, able to negotiate and influence decisions (Kent & Bakaweri, 2010). This is because
proper linkage between producers and the market is an essential element in upgrading the
shea value chain. Principally, the actors in the shea value chain are nut pickers, processors
and the traders. Carrette et al. (2009) report that, these actors are sellers/suppliers of shea,
wholesalers, retailers and consumers who play succeeding roles along the chain.
A comprehensive description of the shea value chain can be found in empirical studies such
as McNally (2008), Carrette et al., (2009) and Kent & Bakaweri (2010). Their description
covers a wide range of actors along the production chain which could be viewed as follows:
The local and international shea markets are two very different buyers with the international
market having strict specifications while the local market uses shea butter for its traditional
uses. These two markets are beginning to conflict with each other as demand for shea butter
increases on the international market. The world’s biggest international markets for shea
butter are in Europe and North America. Supply to the major companies on the international
market is typically done by another organization within Ghana that buys nuts and processes
butter to the specifications of the major buyer.
The number one concern for international buyers is “perceived quality” before price. For
edible products the major market is in Europe and India and the butter extraction and refining
is done there. The major cosmetic and soap industry is in the United States and is known as
the most lucrative global shea butter market. The finished products in North America tend to
have high tech containers and extensive marketing campaigns behind them and are high end
products. It is estimated that 150,000-200,000 tonnes of nuts are exported each year from
West Africa, 50,000 tonnes (approximately 33%) coming from Ghana alone. The nuts are
shipped out of West Africa mainly from ports in Dakar, Senegal, Lome, Togo and Tema,
Ghana.
Different range of actors including local butter processors and local nut traders buy it and
sometimes export it. This is shown in Figure 1. The Figure shows various activities
performed from where the nuts are picked in the bush till it reaches the final consumer. In
each activity some kind of value is being added till it reaches the consumer. Basically the
activities under processing include that of curing, extraction, refining, fractionation and
manufacturing.
44
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
Figure 1. The shea value chain
Source: Adapted from Kent and Bakaweri (2010).
2.4 Challenges in the Shea Nut Industry
The constraints of the shea nut industry cut across all the different actors operating along the
value chain of the commodity. They span over a wide range including production, processing
and marketing. Shea trees are wild trees that naturally grow in producing areas. As a result
the life of these trees is exposed to destruction by human activities such as cutting down of
the tress and bush fires. Planting of shea trees takes several years (minimum of 15 years)
which discourages people in its production under controlled farms. As a result yield of shea
nut is dependent on factors not controlled by man (Ferris et al., 2001; Carrette et al., 2009).
Uncontrollable factors such as weather make yield uncertain. Supply of shea nut is therefore
seasonal (Kent & Bakaweri, 2010), thus, affecting plant capacity utilization of processing
firms.
Deforestation becomes a bigger problem in Ghana which directly impacts the availability of
shea nuts and butter. Bushfires, cutting of trees for firewood and destructive farming methods
are all factors that affect the availability of shea nuts (McNally, 2008). Currently, local
people and NGOs are more interested in protecting and cultivating shea trees. This requires
understanding of the life cycle of shea to the survival of the shea butter business.
Al-hassan (2012) explained that, processors of shea nut are over dependent on the traditional
method of shea nut processing which affects quality and hence faces a challenge of market
access. Earlier studies such as Swetman et al. (1997) are of the view that the traditional
method of shea nut processing is arduous and require a lot of human effort. This causes pain
among processors and hence limit the quality of output. Poor quality of shea butter from the
45
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
traditional process has been associated to material handling among processors (Olaoye, 2001).
Consistent with this observation, Masters et al. (2004) maintain that the traditional method as
an alternative way of processing shea butter yields low quantity. In the view of Kante et al.
(2008), it is a process that is physically demanding, inefficient and lacks quality. Meanwhile,
Issahaku et al. (2011) reported that majority of rural women especially in northern Ghana are
not using improved methods despites their allocative efficiency.
Shea butter remains indigenous as it is being consumed greatly locally. Kent & Bakaweri
(2010) posit that the problem of market access among participants along the shea value chain
is peculiar to shea butter processors. This is associated with weak current demand and lack of
pre-financing of nuts (Rammohan, 2010). Within this framework, Al-hassan (2012)
undertakes a study on market access capacity of shea nut processors in Ghana. His empirical
results show that actors’ limitation in accessing market is associated with poor
entrepreneurial skills, over dependence on Traditional methods and lack of formal training.
This is not different from the view of Planet Finance (2010), when he argues that key
challenges in upgrading the shea value chain includes processors’ lack of business orientation,
skills and equipment to produce the needs of the market. Addaquay (2004) attributes limited
market access by processors to lack of information and ready capital. Still on this aspect,
Elias et al. (2006) articulate their view from an empirical study on constraints of the shea
industry resulting from communication. They maintain that, processors have little opportunity
to communicate with donors and other stake holders hence such people lack holistic view of
the shea commodity value chain.
3. Methodology
3.1 The Study Area
The Wa Municipality is located in the Upper West Region of Ghana. It shares administrative
boundaries with the Nadowli District to the North, Wa East District to the East and South and
Wa West District to the West and South. It lies within latitudes 1º40ʹN to 2º45ʹN and
longitudes 9º32ʹ to 10º20ʹW. The strategic location of the Municipality enhances trade and
commerce with Burkina Faso. Since Wa is the administrative capital of the Upper West
region, it has the potential to grow and become both the industrial and commercial hub for
the North-Western corridor of Ghana (Wa Municipal Assembly, 2010).
According to the 2010 Population and Housing Census, the Wa Municipality has a total
population of 107,214 (male: 52,996 and female: 54,218) constituting 15.3% of the total
population of the Upper West Region. The Municipality has the lowest dependency ration
(64.6) relative to other districts in the Upper West Region. This is as a result of the fact that
the Municipality has the highest concentration of urban dwellers (66.3%) which is attributed
to in-migration of the youth from the other districts. The Mole-Dagbani forms an
overwhelming majority in the municipality (80.4%). Other minority ethnic groups include the
Akan (5.1%), Gurma (6.7%), Guan (1.6%), Grusi (2.3%), Ewe (0.9%), Ga-Dangbe (0.4%),
Mande (0.4%) and 0thers (2%). In terms of religion, Islam is the most dominant religion in
the Municipality (65.9%). Other religions present include Christianity (29%) and Traditional
African Religion (4.1%) (Ghana Statistical Service, 2013).
46
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
Gender inequality in favour of male is pervasive in the Municipality. The life of women in
the Municipality is over burdened with feeding the family, child care and housekeeping.
Women are further disadvantaged due to limited access to production inputs i.e. land, credit
and employment opportunities. Poverty has remained a persistent characteristic of the life of
women in the Municipality. The combined effects of societal bias and other economic
hindrances have resulted in the slowing down of the advancement of women. Majority of
women therefore continue to operate under very difficult conditions. Despite their weak
position in the society, women play dominant roles in the economic, political and social
development of the Municipality. Economic empowerment and improvement in the income
levels of women will obviously have positive multiple effects within their households,
particularly on children. However, women in the Wa Municipality lack access to the resources
they need in order to address this issue (Wa Municipal Assembly, 2010).
3.2 Study Design
The study employed a cross-sectional study design drawing on both quantitative and
qualitative approaches. The cross-sectional design was adopted because it is useful in
obtaining an overall ‘picture’ of a phenomenon as at the time of the study and allows the
research finding to be generalized within the context of the study area. According to Ahuja
(2001), this deigns aims at all the four goals of research: description, exploration, explanation
and experimentation.
3.3 Sampling and Sample Size Determination
Purposive sampling was used to select rural communities within the Municipality where the
shea nut industry is quite vibrant. According to Youth Action on Rights and Opportunities
(YARO (Note 1)), a total of 641 women are engaged in the shea industry in the selected
communities.
The sample size for the study was determined using a statistical formula at 0.08 error level.
According to Ahuja (2001:187), an acceptable error level traditionally is up to ± 0.05 or ±
0.10 (i.e., 5 or 10 percentage point). The sample size formula is given by: n =
; where
n= sample size; N= sample frame e = margin of error and 1 = constant (Yamane, 1970; cited
in Ahuja, 2001:186). In this research, N=641 and e = 0.08. Therefore, n =
Thus, the sample size for the study was 126 women in the shea
industry.
The determined sample size was distributed among twelve (12) intensive shea processing
communities using proportionate quota sampling in order to minimize bias (see Table 1).
Simple random sampling was then used to select the respondents at the various communities
since a complete list of each group was obtained from YARO.
47
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
Table 1. Selected communities and sample distribution
S/N
1
2
3
4
5
6
7
8
9
10
11
12
Name of Community
Kperisi
Nyagli
Guli
Kpongpaala
Yibile
Boli
Konjiehi
Bamahu
Zinpehi
Kpongu
Danko
Dandafuro
Total
Total No. of Women
161
30
108
25
25
60
55
59
30
30
28
30
641
Sample Selected
32
6
21
5
5
12
11
11
6
6
5
6
126
Source: YARO, 2014.
3.4 Data Collection and Analysis Techniques
The instrument for data collection was questionnaires which were administered through
personal interviews due to the generally high illiteracy rate in the rural communities in the
Wa Municipality. According to Twumasi (2001: 54), as a method of data collection, the
questionnaire is an efficient way to collect statistically quantifiable information.
Both qualitative and quantitative techniques were employed in the data analysis. Data
obtained from the field was processed (edited, coded and tabulated) through the use of
Statistical Package for the Social Sciences (SPSS) version 20. Descriptive statistics such as
mean, standard deviation, frequencies and percentages were applied in the data analyses
which are presented in tables.
4. Results and Discussion
4.1 Livelihood from the Shea Nut Industry
Rural development literature maintains that livelihoods activities of women are diverse. The
results of this study confirm this in a number of ways. First, women do not engage in only
shea nut production activities alone as a source of livelihood. However, majority (93.7%)
participated in the shea value chain as a main source of livelihood strategy. The remaining
6.3% were engaged in the shea nut enterprise but it was not their main source of livelihood
activity. The shea business as a rural livelihood activity provides them with income, food,
medicine and employment which are strategies for poverty alleviation among the rural folks.
Actors in the shea value chain engage in their various enterprises to achieve various
objectives. The results of the study indicate that 15.95% of the women keep their enterprises
for subsistence purpose. They produce and consume greater proportion of their output
themselves. About 14.3% produce for commercial purpose. This implies that they produce
and sell greater proportion of their output. Majority (69.8%) of the women produce for both
consumption and for sale. These findings suggest that women in the Wa Municipality do not
48
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
have objectives that drive them towards commercialization. They produce to feed themselves
and sell some proportion to meet other households’ expenditures. This justifies how rural
households rely on the shea industry for a livelihood.
Shea industry was observed as important activities for the people. It is so important that rural
women keep multiple enterprises to add value and widened their scope of earnings. The
various livelihood activities in the shea value chain include fresh nut collection, nut
processing, local butter processing, nut buying, buying of shea butter and providing labour to
someone in shea enterprise. It is common to find an individual engaging in more than half of
these activities (see Table 2).
Table 2. Activities in the shea value chain (Table contains multiple responses)
Livelihood Activity
Fresh nut collector
Home processing of Nut
Local butter processing
Local nut buyer
Local shea butter buyer
Provides labour for shea business
Frequency
121
121
109
13
10
3
Percentage
96.0
96.0
86.5
10.3
7.9
2.4
Source: Field Survey, 2014.
Women who were engaged in fresh nuts collection indicated that they gather fresh nut from
the bush and farmland. This is what they term as “shea nut picking”. Shea fruits often fall
from the trees themselves under the influence of wind. This is what they collect and process
into nuts. Collection is done usually in the morning and transported home later in the day.
Fresh shea fruits collected may be eaten as diet at this stage by households or sell to urban
dwellers for income. The results indicate that 96% of the sample respondents were engaged
in fresh nut collection. Sale of shea fruits was however not a common livelihood activity
among the women. This is because they consider the nuts to have more value than the fruits
themselves. As a result, sale of shea fruits was a common practice often associated with
children.
It was established that unshelled shea fruit normally pass through series of processing
activities to obtain shea nuts. Shea fruits are conveyed from farmlands for home processing.
Home nut processing involves removing the shells of the nuts and drying them to obtained
nuts. This is the activity along the shea value chain immediately after nut collection. The
study revealed that 96% of the sample women were also engaged in home processing of nuts.
From the survey, all fresh nut collectors were also engaged in home processing of nuts. Shea
nuts may be sold outright after this stage. This was observed as a common phenomenon
among the respondents. Shea nuts can be sold in bags or small quantities in periodic intervals.
This however, varies with household financial requirements.
From the survey, 86.5% of the sample was engaged in shea butter processing which involves
turning the nuts into butter. This stage in the value chain requires investment in machinery for
the processing. Past studies indicate that one common equipment is the Bridge Press that
49
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
reduces the labour involve and safe time of processing. However, results from the survey
point out that the women often resorted to traditional methods of butter processing. Rural
women considered shea butter processing as a means of poverty reduction via its role of
employment and income generation.
Along the shea value chain, some of the women were engaged in trading in shea nuts. Their
main activity is to buy shea nuts either for butter processing or for direct resale for profit. It
was discovered that about 10.3% of the sample respondents were engaged in local shea nut
buying. The proportion of respondents engaged in this activity was low compared with those
in fresh nut collection, nut processing and butter processing. The nut buying involves a
considerable amount of starting capital which rural women often find it challenging to obtain.
This probably is the reason for low engagement of women in local shea nut buying. Empirical
literature acknowledged that some actors in the shea value chain engage in nut buying for the
international market. However, no evidence of this was found in this survey.
Like past studies, this survey observed that local shea butter buying is one of the livelihood
activities in the shea nut industry. Rural women buy processed shea butter and sell in local
markets. According to results of this survey, about 7.9% of respondents were observed to be
associated with this activity. Past studies have indicated that some individuals in the shea nut
industry acts as agents who buy the butter for some companies. Evidence from this survey
however maintains that local shea butter buying among the respondents was not a service
rendered to any company but in a form of sole proprietorship. Shea butter buying also
requires both initial and working capital which rural women sometimes find difficult to
obtain and this explains the relatively smaller proportion of respondents in that activity.
Some people provide labour for enterprises in the shea nut industry for daily wage. The
labour was specifically engaged in carrying of shea nut, processing, and sale of shea products.
This however, was not very common among the women. Only 2.4% of respondents provide
labour for wage. The justification is that there were no barriers to entry into shea business
since the industry is wide and rely mostly on the use of traditional technologies. Many of the
women therefore, had their own enterprises and do not necessarily have to work for others.
As a result, labour was only provided based on informal relations where a processor may only
compensate the labour for her assistance. Payment may be either in kind or cash. It was
further observed that those who provided labour were mostly household members. On
average, 2 persons in each household assist their family members in their shea business
activities. Refer to Table 2.
4.2 Uses of Shea Products
Shea products have been put to various uses among rural folks. All respondents indicated that
the shea fruits are eaten as source of diet; the shea butter is used as cooking oil, manufacture
of local soap, used as substitute for korosine in lightening and used in preparation of most
herbal medicine (especially those that are prepared as cream); the bark of the shea tree is used
as medicine for treatment of stomach ache; and dry shea trees used as firewood. These
different uses reduce household financial requirements thus suggesting that the shea nut
industry can reduce poverty among rural people.
50
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
4.3 Income Earned by Rural Women from the Shea Industry
The survey point out that all participants in the shea value chain earn income. They sell their
output periodically i.e., weekly, monthly, quarterly, semi-annually and annually. It was
observed that majority (77.8%) of them sell per week. About 16.7% of them sell monthly and
4.0% sell annually. Those who sell quarterly and semi-annually constitute 0.8% in either case.
Those who sell weekly are mostly nut processors and butter processors. Nut processors sell in
smaller quantities ranging from 2kg to 80kg. Some women can store the nuts for long and sell
only when they consider prices to be favorable. The regular earnings from the industry as was
observed among the respondents assist them to meet daily household financial requirements.
About 121 respondents sell dry nuts. They obtain a minimum of GH¢ 20.00 and a maximum
of GH¢1,060.00. The average annual income of this category is GH¢190.31 with a standard
deviation of GH¢209.93. The standard deviation is more than the mean. This indicates a
wider variation in terms of income among the women. Those who process butter earn a
minimum of GH¢240.00 and a maximum of GH¢5,760.00 per year. The mean earning for
this category of people is GH¢1,211.63. This also recorded a higher standard deviation of
GH¢1,373.28 suggesting wider dispersion of their earnings. Only 4 women were observed to
be engaged in nut buying. They earn a minimum of GH¢360.00 and a maximum of
GH¢1920.00 per annum. Besides, only one case of shea butter buying for sale was observed.
This person earns GH¢ 240.00 yearly.
Generally, the average annual income of all respondents irrespective of the particular shea
activity they were engaged in was GH¢846.85. Some receive as little as GH¢40.00 per
annum while others earn as high as GH¢846.85 per annum. This average earning is higher
than the average income of households in the region (GH¢130.00 per annum). The shea
industry therefore, contributes in reducing income poverty among the women in the Wa
Municipality. Table 3 shows descriptive statistics of the distribution of women earnings from
the shea industry.
Table 3. Annual income of women in shea business (in Ghana cedis)
Variable
Income from Nuts
Butter Processing
Nut Buyer
Shea Butter Buyer
Total Income
N
121
65
4
1
126
Min
20.00
240.00
360
240
40.00
Max
1060.00
5760.00
1920
240
6640.00
Mean
190.31
1211.63
1170.00
240.00
846.85
Std. Dev.
209.93
1373.28
667.23
1293.55
Source: Field Survey, 2014.
Households also consume shea products. On average GH¢89.13 worth of shea products were
consumed per household per annum. This consumption was either in the form of dry nuts or
butter. The survey also pointed out that shea nuts can be used to exchange food stuffs or
payment for an agreement. The evidence is that some of the women sometimes collect food
ingredients from others for a promise of paying back with some agreed quantity of shea nuts.
This system liberates households from their agent problems.
51
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
4.4 Challenges Confronting Rural Women in the Shea Nut Industry
4.4.1 Production Challenges
It was found from the survey that access to investment capital is a challenge confronting the
people. The survey also pointed out that 95.2% of the sample women indicated that access to
credit is a major challenge in their shea business activities. The women have the zeal for shea
nut processing but sometimes lack the starting and operation capital. Only 27% of the women
admitted that they ever received credit for their enterprise development. These credit
beneficiaries accessed the credit from only informal sources (Village Savings and Loans
Association) with repayment period of 3 months on average.
Technologically, the women are backwards. They rely on only rudimentary methods of nut
and butter processing. Results from the survey therefore indicate that only 15.9% of the
respondents ever had access to training service. As a result their operations are usually done
using traditional methods. About 93.7% of the respondents therefore, maintained that access
to training services is a constraint to their enterprise development. The respondents indicated
that they lack access to institutions that will train them on new ways of butter processing.
Equipment such as the bridge press, nut cracker and grinding mills are not available.
Sometimes one has to carry her inputs to other communities to access some of these facilities.
This makes the work laborious and unpleasant.
Cutting down of the shea trees was discovered as one of the most pressing challenge facing
all the respondents. The shea tress are often been cut down to provide space for building of
houses, roads construction, as materials for building houses and during land clearing for crop
production. This reduces the supply of shea nuts for sale. The shea tree has some oil in it that
support burning even if the tree is not dry. This makes it good for charcoal burning and has
been often been cut down to produce charcoal. Shea trees around the surroundings of the
communities have often been cut down thus compelling shea nut pickers to walk for long
distances to gather shea fruits.
Also, the respondents were equally challenged with the risk associated with gathering shea
nuts in the bush. Shea nuts picking is always in the rainy season when grasses are usually
grown. The risk associated with the collection of the fresh shea nuts is scopions and snakes
bites because the all the respondents indicated that they do not have protective cloths such as
rain coats, wellington boots and hand gloves to protect themselves. Therefore, cases of snake
bites during fresh nut collection are often common. This usually produces some fear in many
women during fresh nuts collection.
Besides, shea trees grow naturally in the bush and in farmlands. In the Upper West Region,
the tree is not cultivated in controlled farms. As a result, many shea trees suffer from the
effect of bush fires every year. This phenomenon reduces the quantity of nuts a tree can
produce. In some cases when the fire is very severe, the trees fail to produce fruits at all.
Besides, bush fires do not only reduces the quantity of fruits of affected trees but sometimes
result in the death of the trees. Such affected trees are used as firewood or burn as charcoal.
Moreover, the supply of the shea nuts is seasonal just like the supply of other products of
other economic trees such as dawadawa, cocoa, etc. The shea trees only fruits once in a year
which last for a period of three months (usually from April to June). Therefore, until the next
52
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
season there would not be fresh nuts for the women to pick and process. This implies that the
collection of fresh nuts and home processing of nuts are equally seasonal activities which do
not allow the women to continue to earn income throughout the year from these activities
unless they divert into buying the shea nuts and processing into butter for sale.
The last production challenge confronting women in the shea industry was difficulty in
transporting the fresh nuts collected from the bush or farms to home. After gathering the nuts
in the bush or farms, they are usually transported home for processing. Until recently, the
only means of transporting them was by head portage. However, due to advancement in
technology, those who can afford now employ the services of tricycles to transport them at a
fee.
4.4.2 Processing Challenges
From the study results, it was evident that the most pressing processing challenge confronting
the women was the lack of modern processing equipment that could reduce the labour
intensity of the process but at the same time makes it faster as admitted by most of the
respondents. The use of modern processing equipment has the potential of increasing the
earnings of the shea butter processors. Due to the lack of modern processing equipment, the
processors have no other choice than to relay on traditional processing methods which leads
to poor quality of the butter.
The next most pressing processing challenge was lack of electricity. Electricity could assist
them to undertake some of the processing activities in the night and could as well serve as
source of power supply for the processing machines. Currently some of the communities have
grinding mills which aid in the processing. However, these grinding mills are powered with
diesel which makes their operation less efficient.
Besides, lack of proper storage facilities was another challenge facing the women. Thus, they
do not access to proper storage facilities to keep the fresh nuts collected, processed nuts and
butter. This contributes to poor quality of the products and equally undermines the ability of
the women to store the nuts for a long period of time in order to wait for higher prices,
especially those involved in fresh nuts collection, nut processing and trading in the nuts.
4.4.3 Marketing Challenges
The study results indicate that poor pricing was the most pressing marketing challenge
confronting the women. Thus, the price at which the shea products (processed nuts and butter)
are usually being sold is too small as compared to their expectations. Related to this was the
issue of fluctuation in the prices of the processed nuts and butter which could sometimes
result in losses as well as reduction in profit margins of the butter processors, nut traders and
butter traders.
Besides, the respondents were of the view that there is generally low demand for the shea
butter especially in the urban settings. This is because most urban households do not usually
use the shea butter for both domestic and commercial cooking as compared to their rural
counterparts. This therefore created a limited local market for the shea butter.
5. Conclusions and Recommendations
The shea industry serves as a major livelihood activity for most rural women in the Wa
Municipality. Average income from shea business is higher than that of household income in
53
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
the Upper West Region. Notwithstanding the contribution of the shea industry to the
livelihood of rural women in the Wa Municipality, a multiple of challenges such as limited
access to investment capital; cutting down of wet shea trees; lack of modern processing
equipment and training; and poor prices of the shea products in the local market abound in
the industry.
Based on the findings of this study, the following recommendations have been proposed for
consideration by various stakeholders in the shea industry as well as development agents.
First, the chiefs and elders of the communities should promulgate bye-laws against the free
cutting down of live shea trees. Community taskforces should be constituted to monitor and
enforce the bye-law. Also, the Wa Municipal Assembly in collaboration with NGOs should
assist the women in the rural communities who are engaged in the shea industry to procure
modern processing equipment to enable them improve upon their production efficiency and
quality of their products while reducing the labour intensiveness of their production. This
should be complemented with training the women on modern processing techniques.
Besides, considering the fact that the shea industry holds a high potential for effective
contribution towards rural poverty reduction, particularly in northern Ghana, government
should vigorously promote the shea industry in Northern Ghana by formulating a clear cut
policy for the industry, targeting to increase the incomes of rural women and the current
export base of shea products. Additionally, since access to credit was one of the major
challenges of the rural women in the shea industry, the Wa Municipal Assembly in
collaboration with NGOs such as Care International and Plan Ghana should adopt Care’s
Village Savings and Loans Association (VSLA) model for implementation in most of the
rural communities in the Municipality. This would enable the rural women to have access to
credit at easy terms and also create opportunity for them to mobilize savings for investment
in the shea industry.
References
Addaquay, J. (2004). The Shea Butter Value Chain Production, Transformation and
Marketing in West Africa. WATH Technical Report No. 3, USAID.
Ahuja, R. (2001). Research Methods. Jaipur: Rawat Publications.
Al-hassan, S. (2012). Market Access Capacity of Women Shea Processors in Ghana.
European Journal of Business and Management, 4(6).
Austin, J. E. (1992). Agro-Industrial Project Analysis: Critical Design Factors. EDI series on
Economic Development. John Hopkins University Press. Baltimore and London base.
International Journal of Pharmacognosy, 30(44).
Bonkougou, E. G. (1987). Monographie du Karite, Butryospermum paradoxum (Gaertn. F.)
Hepper, espece agroforestiere a usages multiples. Ouagadougou, Burkina Faso: Institute de
Recherche en biologie et ecologie tropicale. p. 67.
Carette, C., Malotaux, M., Leeuwen, M. V., & Tolkamp, M. (2009). Shea nut and butter in
Ghana: Opportunities and constraints for local processing. Wegeningen: Wageningen
University.
Dalziel, J. M. (1937). Useful Plants of West Africa (p. 612). London: Crown Agents.
Elias, M., Bayala, J., & Dianda, M. (2006). Impediments and innovations in knowledge
54
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
sharing: the case of the African shea sector. KM4D Journal, 2(1), 52-67.
Ezema, D. O., & Ogujiofor, K. O. (1992). The Evolution of Butyrospermum Paradoxum as a
Suppository.
Ferris, R. S. B., Collinson, C., Wanda, K., Jagwe, J., & Wright, P. (2001). Evaluating the
marketing opportunities for Shea nu and Shea nut processed products in Uganda. Uganda:
The natural resource institute, University of Greenwhick.
Ferry, M. P., Gessain, M., & Geeain, R. (1974). Ethnobotanique Tenda. Documents du Centre
de Researches Anthropologiques du Muse de I‟Homme, Paris.
Ghana Statistical Service. (2008). Ghana Living Standards Survey: Report of Fifth Round
(GLSS 5). Accra: Ghana Statistical Service.
Ghana Statistical Service (2013). 2010 Population and Housing Census (PHC): Regional
Analytical Report, Upper West Region. Accra: Ghana Statistical Service.
Government of Ghana. (2003). Ghana Poverty Reduction Strategy (Volume I) 2003-2005: An
Agenda for Growth and Prosperity. Accra: National Development Planning Commission.
Government of Ghana. (2007). Food and Agricultural Sector Development Policy (FASDEP
II). Accra: Ministry of Food and Agriculture.
Government of Ghana (2010). Ghana Shared Growth and Development Agenda. Accra:
National Development Planning Commission.
Hatskevich A., Jeníček V., & Antwi, D. S. (2011). Shea Industry - A Means of Poverty
Reduction in Northern Ghana. Agricultura Tropica Et Subtropica, 44(4), 223-228.
Inkoom, D. K. B., & Zomanaa, C. (2011). Utilization of Irrigation Facilities towards Poverty
Reduction. Journal of Sustainable Development in Africa, 13(2).
Institute of Statistical, Social and Economic Research. (2011). The State of the Ghanaian
Economy. Legon, Accra.
Issahaku , H., Al-Hassan, R., & Sarpong, D. B. (2011). An Analysis of Allocative Efficiency
of Shea Butter Processing Methods in the Northern Region of Ghana. Journal of
Development and Agricultural Economics, 3(4), 165-173.
Kante, A., Igo, C. G., & Frick, M. J. (2008). Making Extension Efforts More Effective: A Case
Study of Malian Shea Butter Producers. Proceedings of the 24th Annual Meeting E.A.R.T.H.
University, Costa Rica.
Kent, R., & Bakaweri, C. (2010). Mechanisms to Ensure Participation in Shea Value Chain: A
Case Study of two Interventions in Northern Ghana. Report to FAO, CeDEP, SOAS:
University of London.
Marchand, D. (1988). Extracting Profit with a Shea Butter Press. International Development
Research Reports, 17.
Masters, E. T., Yidana, J. A., & Lovett, P. N. (2004). Reinforcing Sound Management through
Trade: Shea Tree Products in Africa. Unasylva, 219(55), 46-52.
McNally, D. (2008). Shea Butter: A guide to Production and Marketing. Peace Corps Ghana,
version 1.
Moore, S. (2008). The role of Vitellaria Paradoxa in Poverty Reduction and Food Security in
the Upper East Region of Ghana. Earth & Environment, 3, 209-245.
55
http://jsss.macrothink.org
Journal of Social Science Studies
ISSN 2329-9150
2016, Vol. 3, No. 2
Olaoye, J. O. (2001). Development Status of Production and Processing Machinery of Shea
Oil from a Woody Oil Plant in Nigeria. International Journal of Science Emerging
Technology, 3(5), 107-115.
Planet, F. (2010). Rural Microfinance: The Value Chain Approach, UMM Workshop in
Bergamo, Italy.
Rammohan, S. (2010). The Shea Value Chain Reinforcement Initiative in Ghana: Case Study.
Stanford Global Supply Chain Management Forum.
Swetman, T., Hammond, L., & Gray, A. (1997). Improved Processing of Shea Nuts in
Northern Ghana. Final Technical Report.
Trienekens, J. H. (2011). Agricultural Value Chains in Developing Countries: A Framework
for Analysis. International Food and Agribusiness Management Review, 14(2), 51-82
Twumasi, P. A. (2001). Social Research in Rural Communities. (2nd ed.) Accra: Ghana
Universities Press.
UNDP & JICA (n.d). Empowering Rural Women and Alleviating Poverty by Strengthening
the Local Shea Butter Industry in Northern Ghana.
Vuillet, J. (1911). Le karité et ses produits. Paris: Larose.
Wa Municipal Assembly. (2010). Draft Medium Term Development Plan (MTDP) 2010-2013.
Unpublished.
Note 1. YARO is a local NGO which is working with women in these rural communities who
are engaged in the shea nut industry.
Copyright Disclaimer
Copyright reserved by the author(s).
This article is an open-access article distributed under the terms and conditions of the
Creative Commons Attribution license (http://creativecommons.org/licenses/by/3.0/).
56
http://jsss.macrothink.org