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

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Peace Corps Ghana Version 1, March 2008 percentage of the profit (I suggest 5% - 10%). Finally, the administrator should be trusted by the women and able to communicate effectively with the women in order to set realistic expectations. • Be prepared for the unexpected and possible major issue to occur, such as a possible loss on a particular order. • If a firm will pay 50% (for example) of the money up front so the women can get started, monitor if the women are starting to use there own money to complete the order and how much so they don’t exceed an amount that would eliminate their profit. Also, monitor what a the nuts are yielding in butter by weighing them on initial production. You may want to double check the figures as you continue production. • 1 rounded market bowl of nuts (a bowl of nuts that are piled above the rim of the calabash) produces approximately 1 kilogram of butter • 30 rounded bowls of nuts equals one bag of nuts • 40 flat bowls of nuts (a bowl of nuts where they level the nuts off to the equal the rim of the calabash) equals one bag of nuts • 1 bag of nuts produces approximately 30 kilograms of butter Be sure to measure and check your local measuring system. Break-Even Analysis from a UNDP-JICA study near Tamale (Personal communication via Oliver Hoellige (DED Wa NBSSI Regional Office) Preliminary findings: Sagnarigu: I started the study around May-June this year when price of shea nuts is GHc 20 per jute bag (between 90-94 kg). Daily wage rate was computed at US$1=GHc 0.92. Semi-mechanized processing. Yield=40%. Break-even is GHc 0.97/kg of shea butter. Walewale: The same activities were conducted in Walewale (100km further north of Tamale) around the same time. The price of a jute sack of nuts is GHc 25 per jute bag (between 92-95 kg). Semi-mechanized processing. Yield=33%. Break-even is GHc 1.63/kg shea butter. This higher break-even price might be attributed to transportation costs of firewood, water, and milling station. Note: Break-even price for unrefined shea butter in these two examples does not include packaging, marketing expenses, etc. Page 20 of 28
Peace Corps Ghana Version 1, March 2008 7: Supporting Actors in the Shea Industry/Contacts NGOs and Companies Involved in the Ghanaian Shea Industry 1. SARI (Savannah Agriculture Research Institute) 2. JICA – Village group training programs 3. Africa 2000 has some Shea programs (Office located in Kalpohene Estates) 4. SNV – shea is a focus product in their private sector development program. Chris Bakaweri is the Tamale coordinator for their Private Sector Development program working in shea. cbakaweri@snvworld.org. Balma also works with him at the SNV Tamale office. 5. NGO Ride – this is the social responsibility arm of the Company. Katharina Woener is the Country Director, telephone number: 020 932 2693. e-mail: katharinawoener@gmx.de. Kwabena Badu-Yeboah is the Director, F&A, tel 0244 523 594 and 020 813 1258, e-mail: kwabena_yeboah2001@yahoo.com. Major International Companies in the Shea Industry: 1. L’OReale 2. L’Occitane 3. AarhusKarlshamns- in Denmark / Sweden 4. IOI group (Loders-Croklaan in Holland) 5. Feeds, Fats & Fertilisers in India 6. The Pure Company (International Market Demands high butter content, stearin rich, boiled, sun-dried, low free fatty acid & no foreign bodies Local Buyers in Ghana (Nuts & Butter) 1. Bosbel Industries Email: bosbelus1962@yahoo.com Phone: 0244-864799 Tamale 2. Kassardjian Industries Limited PO Box 2246, Accra, Ghana Tamale 3. Ghana Nuts Techiman Buying Shea Nuts, Cashews, Groundnuts, and Soybeans 4. Savannah Fruits Company – Shea Butter Pre-finances groups of rural women to supply quality Butter to Company Page 21 of 28
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