Shea Butter A Guide to Production and Marketing - AGOA Export ...

Peace Corps Ghana Version 1, March 2008
AN EXAMPLE OF COSTING
SHEA BUTTER COST OF PRODUCTION
(Kalophin Shea Butter Extractors Assoc)
Order = 2 TONS (4000 Lbs or 2000 Kgs)
40 WOMEN TOTAL
50 Kgs EACH = 2000 Kgs
Cost breakdown to produce 1 kg of shea butter for a 2000 kg order, as
of 24 July 2007
Cost
Cost Item Cost Per Kg
Bowl of shea nuts
Firewood
7,500.00
30,000.00
7,500.00
15.00
Assuming 1
bowl nuts = 1
kg butter
Milling
Transportation to
30,000.00 15.00
processing point 15,000.00 7.50
DA Tax 1,000.00 0.50
Total Cost 7,538.00
Profit Item
Profit
Per Kg Total
Profit For Administrator 50.00 100,000.00
Profit For Women 1,000.00 2,000,000.00
Total Profit Per Woman (40 women) 50,000.00
Total Cost with Profit 8,588.00
Other possible variable:
Packaging
Transportation to Buyer
For those interested in creating shea butter women’s groups, this is an opportunity to
develop the skill set of an administrator and/or help a group of women improve their
lives and their families. Another benefit is that if the group is successful, the younger
women of the village would be more likely to continue with this craft and less likely
to flee the village to head south for what they think are bigger and better
opportunities. The women that leave the village are at a higher risk of prostitution,
becoming pregnant or getting AIDS. Overall this is a very positive opportunity, but
be very aware of what you and the group is embarking on.
Here are a few suggestions and general information;
• Assuming your women’s group do not speak English and/or are uneducated,
you will need to look for someone to handle the management and
administration of the women’s group within the community.
• The administrator should be able to open a bank account, do the accounting
for the income and outflow of money, be able to determine costs in detail to
make sure the group is making money, etc. The administrator should receive a
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