T.C.
SELÇUK ÜNĠVERSĠTESĠ FEN BĠLĠMLERĠ ENSTĠTÜSÜ
AGRIBUSINESS MANAGEMENT OF SHEA INDUSTRY IN NORTHERN GHANA
Patrick Muotono Izideen Maanikuu DOKTORAL THESIS
Agrıcultural Economıcs
January-2018 KONYA Her Hakkı Saklıdır
iv ABSTRACT
Ph.D THESIS
AGRIBUSĠNESS MANAGEMENT OF SHEA INDUSTRYY IN NORTHERN GHANA
Patrick Muotono Izideen MAANIKUU
THE GRADUATE SCHOOL OF NATURAL AND APPLIED SCIENCE OF SELÇUK UNIVERSITY
THE DEGREE OF DOCTOR OF PHILOSOPHY IN AGRICULTURAL ECONOMICS
Advisor: Prof. Dr. Kenan Peker 2018, 128
Jüri
Advisor Prof. Dr. Kenan PEKER Prof. Dr. Cennet OĞUZ Prof. Dr. Erdoğan GÜNEġ
Prof. Dr. Yusuf ÇELĠK Prof. Dr. Mehmet AKBULUT
Economic plants that grow naturally in the wild are still plentiful across the globe. Most of these wild economic plants have been domesticated and cultivated in farms and plantations. Most of the World has moved from peasant agricultural to commercial agriculture and industrialisation. In resource rich developing countries however there are wild trees of huge economic importance that grow in the wild. The shea tree in sub-Saharan Africa is such an example. This study applied agribusiness management to examine the potential for establishing shea tree plantations in Ghana and the viability of the shea butter industry in Ghana. The financial costs and returns of establishing shea tree orchards in Ghana were examined using research information from the Cocoa Research Institute in Bole which is responsible for scientific research about the shea tree and the shea industry as a whole.
The viability of shea processing was also examined using household level data from 14 shea producing communities. 150 shea butter processors were interviewed using semi-structured questionnaire. Net Present Value (NPV) and Benefit / Cost (B/C) ratio were the analytical techniques used to examine the viability of shea butter processing. NPV and B/C ratios were calculated using different discount rates and compared.The financial analysis of establishing an acre shea tree orchards will generate a net profit of GhȻ516.33 ($129.08) while a 3 acre farm will generate a profit of GhȻ23,448.99($5862.25). The NPV of GhȻ 2909.01, GhȻ1969.717 and GhȻ32.2039 at 8%, 15% and 65.69% respectively with B/C ratios of 1.285611, 1.286539, 1.0175 at 8%, 15% and 65.69% discount rates respectively indicated that shea butter processing is generally a viable enterprise. It also indicated that the lower the discount rate as calculated in the cost factor, the higher the viability of the enterprise. Community mobilisation and cooperation is needed in establishing modern commercial plantations
v
and processing plants with extensive support from local and international organisations to enhance efforts for poverty eradication. Agricultural policies and legislation should be streamlined to enhance economic, social, technical, and environmental aspects of the shea business industry.
Keywords: Shea butter; Shea nut; Shea processing, Women, Income, shea cultivar
FOREWOOD
I am most grateful to Allah Subhanahu Wata‟ala for the blessing of this life, the opportunity to pursue this course and the wisdom and guidance to reach this stage. I cannot thank Him enough. I will also acknowledge the unrelenting support of my family, particularmy father and my siblings for the support and encourage during this period. My special acknowledgment goes to my sweet and loving for showing all the love and care in my most distressed moments.
I am especially thankful to my dynamic, supportive and caring supervisor Prof. Dr. Kenan PEKER for given me the most meticulous advice, for his patience, consistent and systematic guidance through the period. I will also wish to extend sincere gratitude to Prof. Dr. Yusuf ÇELĠK and Prof. Dr. Mehmet AKBULUT who comprised the Thesis committee for their guidance and support. I also extend sincere thanks to the Head of Department, Agricultural Economics, Prof. Dr. Cennet OĞUZ for the genuine and honest support and guidance received from her.
Patrick Muotono Izideen MAANIKUU KONYA-2018
vi CONTENT ABSTRACT ... I FOREWOOD ... II CONTENT ... II TABLES...VI FIGURES AND ABREVIATIONS ... VIII
1. INTRODUCTION ... 1
1.1. Significance of the Study ... 2
1.2. The Goal of the Study ... 3
1.3. The Shea Butter/Nut Sector ... 5
1.3.1. The Shea Tree ... 6
1.3.2. Shea Tree Yield ... 8
1.3.3. Tree Management and Regeneration ... 9
1.3.4. Sustainability of Shea tree Management ... 10
1.4. Ghana‟s Shea Industry‟s Trade ... 11
1.5. Shea Nut Processing (Traditional Manual Extraction) ... 17
1.6. Shea Nut/Butter Production in Africa ... 19
1.7 Shea Nut/Butter Producing Areas in Ghana ... 20
1.8. Role of Agriculture in the Ghanaian Economy ... 21
1.9. Public Expenditure for Agriculture in the Ghanaian Economy ... 22
1.10. Women in Shea Butter Processing and Rural Poverty in Ghana ... 23
1.11. Conceptual Framework...26
1.11.1 Agribusiness management...27
1.12. Limitations of the Study...29
2. LITERATURE REVIEW ... 30
2.1. Macro-Economic Context of Ghana: Post-Colonial to Present ... 30
2.2. Efficiency Analysis ... 33
2.3. Women, Shea Butter Processing and Poverty Reduction ... 35
2.4. Shea Butter Processing Women and Contribution to Household Agriculture ... 37
2.5. Types of Shea Butter Processing Technology ... 41
2.5.1. Traditional Manual System of Production ... 41
2.5.2. Semi-Mechanized System of Production ... 42
2.5.3. Fully Mechanized System of Production ... 43
2.6 Benefits of the Shea Tree...43
2.6.1 Traditional Uses of the Shea Tree...44
2.6.2 Nutrient Content of the Shea Fruit………...45
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2.6.4. Benefits of Shea Butter ... 49
2.6.4.1 Healing Qualities...49
2.6.4.2 Sun-Screening Function...49
2.6.4.3 Anti-ageing Properties...49
2.6.4.4 Anti-Inflamatory Properties...50
2.6.4.5 Effect on Cholesterol Metabolism...50
2.6.4.6 Effect on Protein Metabolism...51
2.6.4.7 Allergy...51
2.6.4.8 As an Emollient and Skin Moisturiser...51
2.6.4.9 Hair Protection and Softener...52
2.6.4.10 Conclusion...52
2.7 Uses Of Waste Products from Shea Processing...53
MATERIAL AND METHOD... 55
3.1. Material ... 55
3.1.1. Study Area ... 56
3.1.2. Shea Processing Regions ... 57
3.1.3. Climate and Vegetation...58
3.1.4. Population Size and Distribution ... 59
3.1.5. Shea Processing Districts in Ghana ... 60
3.2, Material and Method ... 61
3.2.1. Viability Analysis ... 61
3.2.2. NPV and B/C Ratio of Shea Butter Production ... 63
3.2.3. Costs of Shea Butter Production ... 65
3.2.4. Cost Analysis for Establishing a Shea Farm ... 66
3.2.5. Business Level Analysis ... 67
3.2.6. Strengths, Weaknesses, Opportunities, Threats ... 68
3.2.7. Sampling Procedure and Data Collection ... 71
3.2.8. Analytical Techniques ... 71
4. RESULTS AND DISCUSSION ... 72
4.1.Human Resource Management; Characteristics of Shea Producers ... 72
4.1.1. Age of Respondents ... 73
4.1.2. Marriage ... 75
4.1.3. Household Size ... 76
4.1.4. Education ... 76
4.1.5. Main Occupation ... 77
4.2. Technology and Productivity ... 78
4.3. Production Management; Shea Butter Production ... 78
4.4. Shea Tree Development ... 79
4.5. Establishing a Shea Farm ... 80
4.5.1. Land Preparation ... 82
4.5.2. Production Costs (per acre)- Non Fruiting Period (yr 2-4). ... 83
4.5.3. Production Costs and Revenue- Rature Trees (yr 5+) ... 83
4.5.4 : Production Costs and Revenue- Mature Trees (5-10) ... 84
4.6. Financial Management; Estimatted Revenue ... 84
4.7. Estimating Viability of Shea Butter Processing ... 86
viii
4.9. Farm Production ... 90
4.9.1. Farm Size ... 91
4.9.2. Farm Incomes...92
4.10. Challenges in The Shea Industry ... 94
4.10.1. Environment ... 94
4.10.2. Government policy ... 95
4.10.3. Research ... 96
4.10.4. Production and marketing ... 97
4.10.5. Picking of nuts ... 97
4.10.6. Processing ... 97
4.10.7. Marketing ... 97
4.11. Marketing ... 98
4.11.1. Marketing Companies ... 98
4.11.2. Other Financial Institutions and NGOs ... 99
4.12. Key Findings ... 99
4.12.1. Viability of Shea Processing ... 99
4.12.2. Financing and Marketing of Butter ... 100
4.12.3. Equipment and Training ... 100
4.12.4. Women‟s Groups ... 100
4.12.5. Establishing the Shea Tree Cultivar ... 101
4.12.6. SWOT Analysis ... 101
4.12.7. Farm Production ... 102
5. CONCLUSIONS AND RECOMMENDATIONS... 103
5.1. SUMMARY AND CONCLUSĠONS ... 103
5.1.1. Summary ... 103
5.1.2. Conclusion ... ....104
5..2. Recommendations...104
5.2.1 Establishing Regulation...105
5.2.2 Investing in Infrastructure and Financing...105
5.2.3 Research and Public Education………...………….106
5.2.4 Establishment of a Shea Cooperatives Organisation...107
5.3 Concluding Remark………...……….108
REFERENCES ... 110
ix TABLES
Table 1.1 Quantity of Shea Nuts Exported………..…………13
Table 1.2 Quantity of Shea Butter Exported………...……...14
Table 1.3 Export Prices of Shea Nuts………..………..……..15
Table 1.4 Export Prices of Shea Butter………...………….16
Table 1.5 Estimated Shea Nut Exports………..…………..20
Table 2.1 Nutrient Composition of Shea Fruit Pulp, Kernels and Butter…..…..46
Table 2.2 Nutrient Composition of Shea Fruit Pulp, Kernels and Butter..……..47
Table 2.3 Amino acids (g/100g proteins of Shea Fruit Pulp)….…………..…...47
Table 2.4: Fatty acid Composition of Shea Butter……….……...48
Table 3.1 Food Sources in 3 Northern Regions...59
Table 3.2 Women Population in Shea Processing Districts Northern Region….60 Table 3.3 Shea Nut and Butter Processing Districts in the Upper East Region..60
Table 3.4 Shea Nut and Butter Processing Districts in the Upper West Region.61 Table 3.5 NPV Estimation...65
Table 3.6 Shea Trees Costs (per acre)- Land Preparation (year 0)...65
Table 3.7.Shea Trees Production Costs/per acre- Establishment (planting)(yr1)66 Table 3.8.Production Costs (per acre)- Non Fruiting Period (yr 2-4)...66
Table 3.9.Production Costs and Revenue- Mature Trees (yr 5+)...67
Table 4.1.Socio-economic Characteristics of Shea Processors...73
Table 4.2.Age of Respondents...74
Table 4.3.Marital Status of Respondents...75
Table 4.4.Household Size...76
Table 4.5.Educational Status of Respondents...76
Table 4.6.Main Occupation...77
Table 4.7.Quantities of Shea Nuts Processed...79
Table 4.8 Shea Tree Costs/acre-LandPreparation and Establishment (yr0-1)….82 Table 4.9.Production Costs/acre- Non Fruiting Period (yr 2-4)...83
Table 4.10.Production Costs and Revenue- Mature Trees (yr 5+)...83
Table 4.11.Production Costs and Revenue- Mature Trees (5-10)...84
Table 4.12.Estimated Cost and Revenue for a Shea Tree Farm (1 acre)...84
Table 4.13.Estimated Cost And Revenue For A Shea Tree Farm (3 Acres)...85
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Table 4.15.PV Calculation for 1Ton of Nuts at 15% Discount Rate ………...87
Table 4.16.PV Calculation for 1Ton of Nuts at 65.69% Discount Rate……...88
Table 4.17 Comparison of NPV and B/C Ratios at Different Discounts Rates .88 Table 4.18. SWOT Analysis of the Shea Industry...89
Table 4.19.Farm Ownership...91
Table 4.20.Farm Size...91
Table 4.21.Crops Cultivated and Income Earned...92
Table 4.22.Income from Farming...92
Table 5.1: Establishing Regulation………....105
Table 5.2: Investing in Infrastructure and Financing………...106
Table 5.3: Research and Public Education………....107
Table 5.4: Establishment of a Shea Cooperatives Organisation………108
FIGURES AND ABREVIATIONS Figures Figure 1.1: Quantity of Shea Nuts Exported...14
Figure 1.2: Quantity of Shea Nuts Exported………..……15
Figure 1.3: Export Prices of Shea Nuts………..16
Figure 1.4: Export Prices of Shea Butter………..………..17
Figure 1.5: Shea Butter Processing Steps...18
Figure 1.6: Existing Shea Tree Distribution Map...19
Figure 1.7: Ecological zones of Ghana...21
Figure 3.1: Map of Ghana...42
Figure 3.2: Map of Northern Region...43
Abbreviations
ARSO : African Organization for Standardization BCR : Benefit Cost Ratio
BP : Bridge Press
CBOs : Community Based Organizations CRIG : Cocoa Research Institute of Ghana
CSIR : Council for Scientific and Industrial Research DID : Difference In-Differences
ECOWAS : Economic Community of West African States FA : Full Adopters
FAO : Food and Agriculture Organization GCMB : Ghana Cocoa Marketing Board GDP : Gross Domestic Product
GLSS : Ghana Living Standards Survey GSS : Ghana Statistical Service
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IFAD : International Fund For Agricultural Development IMF : International Monetary Fund
ISBPT : Improved Shea Butter Processing Technology
ISSER : Institute of Statistical, Social and Economic Research MDGs : Millennium Development Goals
MT : Metric Tones
NA :Non Adopters
NARS : National Agricultural Research System NES : National Export Strategy
NGO : Non-Governmental Organization NPV : Net Present Value
NTE : Non-Traditional Export PA : Partial Adopters
PNDC : Provisional National Defense Council R&D : Research and Development
SADA : Savannah Accelerated Development Agency SPSS : Statistical Package for Social Scientist
SWOT : Strengths, Weaknesses, Opportunities and Threats. TEWL : Trans-Epidermal Water Loss
UNDP : United Nations Development Program me
UNICEF : United Nations International Children and Education Fund UN : United Nations
USA : United States of America UV : Ultra violet
1. INTRODUCTION
Ghana is currently ranked as a middle income economy after the revaluation of the economy by the Ghana Statistical Service in 2010. As such major international donors and sponsors are rethinking and redrawing crucial international aid vis a vis its new economic status. The government of Ghana therefore is under strain to find new sources of capital to fill the void created by the decline in international aid. The government of Ghana has recognised a number of sectors that have the real potential of enhancing economic growth and properity. Expansion in the export sector is crucial to this drive. Ghana‟s export sector is relatively weak and under-developed compared to other countries within the middle income bracket. Government is therefore as a matter of policy seriously exploring ways of developing the productive and export sectors of the economy.
One critical sector that has been identified and earmarked with the potential of substantially contributing to the national economy is the Non-Traditional Export (NTE) sector. The development of the Non-Traditional Export sector is being promoted by the government of Ghana and its international donor partners as part of efforts to diversify the economy, increase foreign exchange earnings and increase its resilience. The National Export Strategy (NES) of which NTEs is a crucial component is driven by a vision in which Ghana is viewed as a country with the capacity to produce and export competitive products and services that are of world class (Iddrisu, 2013).
Priority products under this strategy include vegetable oils and seeds, tree crop oils and seeds- raw and processed shea/karite nuts and butter, cashew nuts, oil palm, groundnuts, soya, sunflower among others. The shea industry which forms part of this overall strategy has vast potential in contributing greatly to its attainment. It is imperative that the shea industry in its entirety is carefully studied in order to examine the opportunities and constraints facing the shea industry in Ghana. To throw more light on the factors that affects distibuters, buyers and processors who are the main actors in the shea value chain. Supply chain will include the processing systems, the traders, transporters, the buyers and the consumers. This examination is important it is essential that there is a thorough understanding of operations and connections within the shea supply chain. This knowledge will enhance the process of identifying and tackling the opportunities and constraints of the sector. The importance of the contribution of the shea industry to the Ghanaian economy can then be ascertained. The macro and micro
economic context in the Ghanaian situation is needed to throw more light on the socio-economic environment within which the shea industry operates.
1.1. Significance of the Study
The three northern-most regions of Ghana, the Northern region, Upper East, and Upper West regions are home to those considered the poorest part of the popuplation in the country. However, in recent years there has been a gradual decline in the poverty rate in these regions. It was recorded that in the Upper East region the poverty rate decreased from 72.9% to 44.4% between 2006 and 2013. This is substantial progress in the fight against hunger and poverty. However the Northern region did not make much of a progess as poverty rates fell from 55.7% to 50.4% within the same period (GSS, 2016). Over the last two decades, the Northern region has recorded the lowest rates in terms of poverty reduction in the country. This becomes a major problems of the fact that the Northern region makes up a large chunk of the proportion of the Ghanaian population that is included in the poor bracket. The Northern region also happens to have the largest number of shea butter processing women, hence the selection of the region for this study. This also implies that the potential for reducing poverty using a shea butter strategy has a higher chance of succeeding. As has been mentioned earlier, there have been a number of studies that have been done on the shea butter processing business, rural poverty and women‟s contribution to agricultural production.
In Ghana the shea butter processing industry is a very crucial sector in the nation‟s economy. It is the chief source of personal income for rural women in the shea growing areas. It is the only economic activity which is traditionally reserved for only women. Women are allowed full ownership of this vital resource in its entirety. The quests to eradicate poverty and empower women are two sides of the same coin. Women statistically are usually among the most economically disadvantaged in society. They own less of all economic resources and incomes. Shea processing which can be a highly profitable venture is therefore a unique opportunity for women‟s empowerment. Agriculture is known to be the maintstay of the rural economy. For a sustainable economic development it is important women participate and contribute to agricultural production. Their ability to participate and contribute to household agricultural production are contigent on financial empowerment. Shea butter processing presents an opportunity to fill this need. The governnment of Ghana through the Savannah
Accelerated Development Agency (SADA) iniatiative is focusing developing the productive capacity of the savannah zone.
The shea nut and butter industry is of prime importance in this regard. This study links all the sectors of the shea butter processing industry to agricultural development and hence economic and social development. The objectives of this study when achieved will provide a critical and credible analysis of the entire shea industry, its strengths and weaknesses, its opportunities and threat. This study will help throw more light on the relationship between shea butter processing, strategies for poverty eradication, women‟s empowerment and agricultural growth and development. Most previous studies in this sector have provided piecemeal analysis of the sector. This study attempts a comprehensive scrutiny of the entire industry providing a wholistic assessment and understanding. This will give the final conclusions and policy recommendations a higher standard of acceptability and success.
1.2. The Goal of the Study
Ghana has often been described as taking examplary and leading role in African development and its success in implementing democracy, freedom and the rule of law (UNICEF, 2011) in its annual report indicated that economic development and social wellbeing growth in Ghana hovered around 5-6%, and that the nation is headed in the right direction to halving income poverty by the year 2015, on track to meet the Millennium Development Goals (MDGs). The country has been ranked in the 140th position out of 185 countries in the United Nations Human Development Index (HDI) (UNDP, 2015).
There are multiple setbacks that bedevil the empowerment of women in Ghana. The Ghana Living Standards Survey (GLSS 6) recently released (GSS, 2016) indicates that, women are recorded as using a lot of their labour hours per day on household activities, whereas men are reported to spend less time on household activities in relative terms. One of the biggest challenge to the developmental agenda and women‟s empowerment is the issue of women being able to gain access to productive land, be able to own and control assets and productive inputs. Although women play very crucial roles in agriculture they are constarined in terms of productivity. They are limited in their ability to access and own land, they also hindered intheir ability to access credit facilities and farm inputs (ISSER, 2015). Inspite of these revealing reports government and other social policies enacted to alleviate poverty, ensure wellbeing and social
protection have their attention to managing economic risks and financial vulnerability such as income fluctuation and consumption shocks and rather place less emphasis on social vulnerabilities.
When women have access to more opportunities to the productive sectors it will inevitably lead to tremendous growth in productivity especially in the agricultural sector. When women have access to resources and training services, they can attain efficient levels of productivity in agriculture. In Ghana most women are involved in off-farm petty trading of both agricultural and non-agricultural products as a means of livelihood. In the rural commnunities where opportunities are limited, agro-processing and shea nut and butter processing are the mainstay of economic activity for the majority of women. The main economic activity of most rural women in the three northern parts of the is shea nut and shea butter processing especially during the dry season. Since shea nut/butter processsing business is mainly a female dominated enterprise, it is the chief source of income for the women who are involved. Most of these women are also involved in agricultural production. This study will therefore seek to examine the level of contribution shea processing makes to womens‟ income. The shea butter business is an extensive industry with many actors. There are the nut collectors and processors, which basically involves rural women who are the focus of this research. There are also the middle-men and women who buy from these women, there are the local buying companies and businesses and then the exporters of the processed nut and butter. The activities of all the various actors, their efficiecy and profitability are critical the the survival of the shea business industry. Their cost structures affect the prices paid to the women processors. It is therefore important that a thorough investigation is conducted to examine the bebenefits of the shea business and its impact on the incomes of the women processors. The other angle of this study is to examine to what ectent does the shea business industry affects household agricultural production. Most of the women who are in involved in the shea business are also involved in agricultural production. They either own their own farms or support their husbands and other family members in the farm activities. Ġn this study the relationship between shea processing and women‟s participation in agricultural production will be examined. The goals and objectives of this study can be summuraized as follows:
1. Determine the viability of shea butter processing in Northern Ghana. Specifically, to
b) Examine the various methods of shea butter production.
c) Examine the cost and constraints associated with shea processing.
2. Assess the contribution of shea processing to household income. Specifically, to
a) Determine the socio-economic status of women involved in sheabutter processing.
b) Determine the level of production of sheabutter by the women processors. c) Ascertain the level of income of sheabutter processors.
d) Assess the constraints encountered by the women involved in sheabutter production.
3. Develop a business level analysis of shea processing.
a. Analyse the potential viability of developing the shea tree cultivar b. Determine the strenghts and weaknesses of shea processing
1.3. The Shea Butter/Nut Sector
Although Ghana‟s economy has been recently categorised as a lower middle-income country and among some of the best performing economies in the sub-saharan Africa region, little has changed about its basic economic fundamentals. The economy is still largely dependent on agriculture as its main source of export commodity and employment. The over-bloated service sector largely provides service for imported products. The real economic activity is still agriculture. Agricultural activities are dominated by small holder farmers in rural areas. Among the small holder farmers poverty is widespread. Most farmers in the country are peasant farmers who operate on a subsistence level. They are barley able to sustain themselves and their families with income from their farm activities. According the Ghana Statistical Service‟s Living Standard Survey (GSS, 2016) poverty is prevalent among smallholder peasant farmers with the highest prevalence of poverty occurring in families where the head of household is self employed in agriculture. It is apparent therefore that to be able to address the issue of poverty in the country the annual gowth rate of the agricultural sector will need to increase significantly.
As part of the drive to reduce and/or finally eliminate poverty in Ghana, the government has identified key sectors for investment to enhance economic growth and development. The fundamental objective of this new drive is to develop the export
sector through diversification of the economy. Ghana is an open trade regime both at the regional and international levels. Export led growth requires diversification into many sectors. In line with this strategy government has in the recent past highlighted the need to shift focus to non-traditional exports. In a the policy document by the National Export Strategy (NES) it set out its main objective. Its core objective as set out the ministry is to focus on and develop the potential of the non-traditional export (NTE) sector to enable it make maximum contribution to GDP growth and national development to consolidate and enhance Ghana‟s middle-income status, create formal decent job opportunities and ensure high standards of living for the people (Iddrisu, 2013). Priority products under this strategy include “Vegetable oils and seeds, tree crop oils and seeds such as raw and processed Shea nuts, cashew nuts, oil palm, groundnuts, soya, sunflower as identified by the government, an important non-traditional export commodity is shea butter.
1.3.1. The Shea Tree
The shea tree known scientifically as Vitellaria paradoxa is indigenous to and occurs uniquely in the sub-saharan Africa region. It is classified in the family Sapotaceae. It grows naturally across a vast area stretching from the semi-arid Sahel region from Senegal in West Afica to Uganda in east covering the land area of about 20 countries. The most important product of the tree is the fruit which can contain between 20% to 50% edible fat (Caroline et al 2009). The nut contained in the fruit is processed into butter. The processed butter has been known and used traditionally by the people for thousands of years for food, skin balms, soaps, medicines and lamp oils. In recent times the use of shea butter has even broadened. There has been a steady rise in recent years for shea products. This increase in demand is as a result of a rise in consumer awareness of the medicinal and cosmetic properties of shea butter and hence are demanding better quality natural products that have gone through minimal processing as constituents in personal care products and food. Shea butter has long been known to possess emollient and healing properties, ideal for soothing and moisturing the skin in the dry weather conditions that prevail in the region. The use of shea butter dates back to the 14th century (Reynolds, 2010).
The shea tree is an important economic tree. Its importance has put it in the spotlight and made it the subject of much interest and discussion in the past few years. It has attracted attention from governments and policy makers, research institutions, civil
society and development partners. This energized interest in the shea tree and its products can be attributed to the recent recognition of the real value and importance of the tree. The shea tree is a very important economic and cultural tree for the people living in the semi-deciduous region of the continent where it grows. Its fruit, the shea fruit is a delicacy whiles its nut is of economic value.
The tree is also a very important component of the natural ecological system. It is a deciduous tree which grows wild in the savanna regions. It requires a minimal rainfall of about 400-500mm to survive. It thrives in temperatures ranging from about 30 degrees celcius to 45 degrees celcius, and relative humidity of less than 10%. A shea tree has an average height of about 13 metres (Hall, Aebischer, Tomlinson, Osei-Amaning, & Hindle, 1996). It acts as a source of cover for the soil. It is drought resistant and can survive in poor soils with less that 5% organic matter. The pulp of its fruit has high nutritional properties. It is however butter extracted from its nut that gives the tree its real economic and social importance to the people living in the geographical catchment area of the tree. Shea butter is the chief source of income for most women living in the rural savanna areas where it grows. In Ghana the tree grows in the savannah zone which occupies about 40% of the countries land size, which is an estimated 77,670 square kilomitres (Hall et al., 1996).
The shea tree is a wild tree that grows and regenerates on its own. Ġts population dentsity is largely dependent on the natural climatic and soil conditions. However its repoduction can afected positively through human interventions positively by beoing protected from bush fires and grazing livestock, or negatively by felling. The sub-species nilotica is the one that occurs in the East Africa region. The butter from this sub-species is more liquid than its West African counterpart. Ġts liquid nature is a results of a higher oleic acid content in the kernels usually in the range of between 50 to 60 % in Uganda (Carette, Malotaux, van Leeuwen, & Tolkamp, 2009).
The West Africa sub-species of the shea tree (Vitellaria paradoxa) produces a more solid shea butter because it contains more stearic acid. Ġt can be planted though this practice is not widespread. This is mainly due to the fact the tree has a long growth period. The tree typically starts to bear fruit after about 15 years in the wild. Ġt continues to bear fruit yearly through its lifespan which can be as much as 200-300 years (Hall et al., 1996). Ġn Ghana the harvesting season corresponds with the rainy season from starts in May through till September. The tree naturally reaches its optimum yield between the ages of 25-40 years although there has been some attempts
at shortening it through genetic improvements and grafting withsome positive results (Sanou H, 2010).
Improved seedlings can begin to fruit after 4-5 years. The value of shea trees is found generally in its fruits and nuts as recognised by the rural communities. Other parts of the tree are also useful, the bark is used as in traditional medicine, the leaves are used to make local paint and as feed for livestock, the wood from the shea tree is tough and hardy and is used to make bowls, mortars and other utensils. Its wood is also used for local furniture or as construction material in the building of local houses and sheds. Furthermore, charcoal from the shea tree wood is often of the best quality. After the extraction of the butter, the waste paste is often used to plaster house and sheds. This paste has anti insect repellent properties. The waste paste from the extraction process when dried is used as fuel wood and can also be used for the extraction of alkaline. Shea butter is also sometimes mixed with different types of alkaline to make soap.
1.3.2 Shea Tree Yield
The yield of the shea fruits varies significantly per tree. A good yielding tree can produce as much as five times that of an average yielding tree. The average yield of an average tree hovers around 5kg of kernels per tree (Schreckenberg, 2004). Apart from the fact that yields vary according to tress, yield of the same tree also varies per year. The shea tree starts flowering in December and January during the harmattan season, the fruits mature and ripen from around April/March and peak in June/July. Shea nut picking starts as soon the fruits begins to ripen and fall from the trees. The growth and development of the shea tree is affected by varied environmental factors. Some of these environmental hazards are man made. The most serious challenge facing the shea tree population is felling by people to either primarily increase farm sizes or for use as fuel wood and charcoal. Other adverse environmental hazards include the effect of climate change, bush burning and disease and pest infestation. These factors can have adverse effect on shea tree yield (Dwomoh, 2004). According to (Dwomoh, 2004) droughts usually tend to have the most significant effect of shea tree yield. Droughts can cause wrinkling shea fruit and seed thereby reducing its quality or even lead the abrogation of fruit development. Strong winds during rainstorms can also lead to destruction of flowers and fruits altogether.
Bush fires which are largely caused by people but can also result from natural causes such as lightening can also lead to the destrcution of shea fruit developemnt or
even entire populations of shea trees. Damages caused by bush fires are season related. Bushfires in the rainy season cause less destruction that fires that burn during the dry season. Bush fires in the dry season tend to burn with more ferocity and over larger areas and hence cause more destruction and devastation. This is also the period when shea trees bear flowers and begin fruiting. So a fire during this stage has more destructive effect than when the fruits are already formed and growing. Young shea trees sprouting in the dry season are easily destroyed by bushfires which inadvertently affects the shea tree regeneration process (Carette et al., 2009). Some insect species that thrives in the north are to feed on the leaves and fruits of the shea trees, these caterpillars of many insects in the region. There are however other beneficial insects such as the bees that helps in the polination of the shea tree flowers. The shea tree is a resilient tree and can grow on a variety of soil types and altitudes. Shea trees however do not do well in waterlogged areas. The most common parasitic plant that affects the shea tree is the mistletoe. This plant can be destructive to the shea tree and can even cause its death (Boffa, Taonda, Dickey, & Knudson, 2000).
1.3.3. Tree Management and Regeneration
Since the shea tree is an economic tree, special effort is made even traditionally to protect the shea tree. Most trees or unwanted plants that grow on farmlands are usually cut down for cultivation. However in most parts of northern Ghana shea trees can be found on cultivated lands. The trees that are usually maintaned on farmlands selected for a number of reasons. Firstly they provide a source of shade for the farmer when he/she needs to take a rest. These trees are also selected for the fruit yield. Shea fuirts are a delicacy during the farming season and a very nutritious source of snack. These trees also provide needed fuel wood for the farmer when needed. The trees that are usually maintained tend to be big trees on average and high yielding in terms of shea quantity and quality (Djossa et al., 2008). (Lovett & Haq, 2000) reported as much as 70-90% of all woody mass on farmlands in Uganda is shea trees while the proportion of shea tree mass in unmanaged wild lands is only 10%. This implies that farmers selectively maintain shea trees on their farmlands while cutting off other tree species. Regeneration of the shea tree largely occurs naturally in the wild since the tree is hardly planted. In unmanaged wild fields this process is continuous but slow. Regeneration in farmland is almost non-existent since the trees will be seen as hindrance to cultivation. Natural regeneration could occur on farmlands in fallow periods but this phenomena is
gradually dying out since there is more pressure on the existing farmlands and fallow periods are highly reduced or even non-existent (Schreckenberg, 2004)).
The long gestation period of the shea tree is one most important obstacle to the domestication and cultivation of the shea. In the wild shea trees begin bear fruit from about the age of 15- 20 years depending on the soil and other growth factors. They continue to bear fruit each year and peaking at about the age of 40. There have been recent attempts mainly by the Cocoa Research institute in Bole to scientifically reduce the long gestation period of the shea tree through grafting. (Sanou H, 2010) also carried research into the process of grafting the shea trees in order to reduce its lifespan. His study concludes that it was possible to reduce the gestation period drastically with grafted shea trees starting to fruit after two years. This method however is not known by farmers. A lot of education is needed in his area to encourage local cultivation of the shea tree.
1.3.4. Sustainability of Shea Tree Management
Land degradation and desertification pose a serious environmental threat to the sustainability of shea trees. Shea trees generally regenerate during fallow periods of non-farm activity. However with the rapid population growth and the greater demand for food crops, there is pressure on farmlands. Fallow periods are getting shorter or even non existent. This situation has dire consequence for shea tree population. Most farmers do not have land to practice long fallows hence they cultivate continuously. This also has negative consequences on soil quality and crop yield in general. Ġn many communities in Ghana, there are traditional practices associated with the mangement of the shea trees. Ġn some communities cutting down shea trees for firewood, for cultivation or other needs are forbidden. Permission must be sought from local traditional authorities before a shea tree is cut down. This commendable traditional conservation practice is highly effective in reducing the rapid decline in shea tree population.
Many interest groups including local government authorities, traditional authorities, civil society organisations and environmemtally oriented non-governmental orgainsations are invloved in the education and sensitisation of the rural population on the importance of protecting and maintaining the shea tree population. Farmers view foreign plants on their farmlands as weeds that will hinder the growth of thier crops. This includes the shea tree. A study by (Teklehaimanot, 2004) however found that the
presence of shea tress on farmlands actually improved soil fertility by reducing evapotranspiration. (Boffa et al., 2000) analysed the soil around shea trees on farm lands and found that they contained higher amounts of soil moisture, organic carbon content and potassium than soils that was taken a distance away from shea trees. It was found that crops that were growing directly under the shea tree crown had the lowest yield while crops growing at the edge of the shea tree crown produced the highest yield. It was therefore concluded that an amount of shea tree shading was positive for improved crop yield while total shading was undesirable. The yield of older shea trees is enhanced when pruned. The use of tractor ploughing has been demonstated to have negative repercussions for shea tree density (Carette et al., 2009).
1.4. Ghana’s Shea Industry’s Trade
In recent times the shea industry in Ghana has attained some amount of publicity both in the academic and social spheres due to its recognised potential for extensive poverty reduction and contribution to national income. The shea industry is known to employ many poor people especially women in rural communities in northern Ghana in processing and marketing of shea products. It is estimated that over 20 million Ghanaians depend on the shea industry directly and indirectly for their livilihoods. The shea industry generates employment and income for about a million rural women in Northern Ghana involved in picking nuts and marketing processed shea kernels and shea butter (Alhassan, 2015).
Shea activities involve picking and processing nuts, processing nuts into butter and marketing. The industry activities are dominated by women. The shea business is traditionally considered femine adventure. This gives the industry the unique opprtunity to empower women through its growth and development. In recent times the shea business has attracted interest from government including export companies and NGOs. Shea nuts in Ghana are picked during the rainy season when the riped fruits fall from the trees. Picking is done over 3-4 month period from April/May to July/August while procesing of nuts and butter is an all year round activity. According to the (Al-Hassan & Poulton, 2009)shea nut harvesting and processing in the rural north contributes one-third of women‟s income among smallholders. Trade in shea products is increasing both locally and internationally.
The entire West African savannah regions are shea procuding areas. This presents a good potential for strengthening collaboration across the boders, regional
cooperation and integration. Growth in international trade of shea products will inevitably lead to enhanced incomes for rural shea processors and marketers. The West African sub-region is the highest producer and exporter of shea nuts and butter. According to a (PN Lovett, 2004), there are about 20 countries in Africa that produce shea nuts and butter. If all the 20 or so of the shea producing countries in Africa were fully participating in the market; total output could easily surpass the 1 million tons per year mark. However there are eight countries from which shea buyers mainly seek their product from because their shea butter product meets the international standard for stearin content in shea butter and are also able to produce in large quantities to meet the market demands. These countries are Burkina Faso, Mali, Ghana, Nigeria, Côte d‟Ivoire, Benin, Togo and Guinea. Until recently, as much as 90% of shea butter exported from Africa was raw nuts. That figure decreased to 65% in 2010 as commercial shea processing businesses in West Africa have increased in the last five years (PN Lovett, 2004).
Europe is the main producer of refined shea butter. Refined shea butter is then exported to manufacturers in the food and cosmetics industries. Africa basically like in most other industries produces and exports the raw unrefined products. This is an important distinction because the higher value added products come from refined shea butter and fractionated stearin sought after by cosmetics and confectionary producers. Due to this trade relationship, West Africa where the raw shea butter is produced receives very little from the shea value chain. There are however a few exceptions, an example is Ghana Specialty Fats, a joint venture co-owned by an Archer Daniels Midland Company and its Singaporean partner Wilmar Holdings. Ghana is estimated to have produced 130,000MT of shea per annum (PN Lovett, 2004). The country also produces the best quality of shea nuts worldwide. And this was reflected in a steady increase in premium price for Ghanaian shea in the international market, that is, US$220/MT on average in 2000 (Alhassan, 2015). (Peter Lovett, 2004) estimates that 46% of nuts produced in Ghana are exported either as nuts (75%) or as butter (25%). The price of shea nuts and butter has seen a steady increase over the years. This has led to in steady increase in the value of shea butter exported over the yeras. The production of shea nut and butter has increased steadily over the years. Estimates by (Peter Lovett, 2004) in 2004 showed a 10-20% annual growth of shea butter as an ingredient for shea butter based prouducts.
The growth trajectory of shea trade and shea based products has attracted many more companies into the shea business. In Ghana there are over 40 licensed companies involved in the export of shea nuts and butter. The largest exporters of shea nuts and butter in 2010 include SDV Ghana limited, KI Ghana limited, 3F Ghana limited, Vinayak Company limited, Royal Commodities Export, Ghana Nuts limited Loders Croklaan B.V, Ghana Speciality Fats Industries Ltd, Juaben Oil Mills Ltd among others. These companies exported shea nuts in volumes of over 100MT of shea nuts in the year 2010. SDV Ghana limited exported the largest amount of shea nuts amounting to 10,523.94MT in 2011(Yaw Ahenkorah, 2011).
The shea butter trade comprises almost the same particpants with companies exporting both shea nuts and shea butter. In 2010 about 20 companies in Ghana exported over a hundred metric tonnes of processed shea butter. Ghana Speciality Fats Industries Ltd exported an amount of 17,286.774 MT of shea butter in 2010. This was followed closely by KI Ghana ltd and Ghana Nuts Ltd with 10,000MT and 1,797.932MT respectively. Many more companies exported less than 100MT of shea nuts and shea butter. The total amount of shea nuts exportted in 2010 stood at 39,219.242MT while the total amount of shea butter exported amounted to 32,774.66MT.
Table 1.1: Quantity of Shea Nuts Exported
Sheanuts (Karite Nuts)
Year WT/kg ValueE ($) Av. Price ($/tonne)
2008 52,891,042 24,939,825 471.53 2009 67,826,340 26853367 395.91 2010 39219242 13791266 351.65
Figure 1.1: Quantity of Shea Nuts Exported
Source: Source: Constructed from (Yaw Ahenkorah, 2011).
The total amount of shea nuts exported increased between 2008 and 2009 from 52,891.042MT to 67,826.340MT recpectively. It however dropped to 39,219.242 in 2010. This was largely due to environmental factors leading to low yield of shea trees. The shea tree is largely a wild tree and hence is vulnerable to climatic conditions. The shea trees also have a natural cycle of peaks and lows which ocurs averagely at every 4-5 years in the wild. Trade in shea butter however showed a steady more pattern.
Table 1.2: Quantity of Shea Butter Exported
Shea Butter Year WT/kg Value ($) Av. Price ($/tonne) 2008 4013120 6487683 1616.618242 2009 12561376 19010609 1513.417718 2010 32774660 24764995 755.6140933 (Yaw Ahenkorah, 2011) 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00 2008 2009 2010 SHEANUTS TONNAGE SHEANUTS VALUE
Figure 1.2: Quantity of Shea Butter Exported
Source: Constructed from (Yaw Ahenkorah, 2011)
Shea butter exports showed a steady increase in volume from 4,013.12MT in 2008 to 12,561.376MT and 32,774.66MT in 2010. The growth is largely attributed to growth in demand in the international market. Shea butter processing is an all year round activity unlike shea nut processing which takes place during the 3-month shea season from April/May to July/August annually. Processed nuts are stored in warehouses to be processed into butter when demanded.
The value of exported shea butter has shown a similar trajectory over the period. This is basically due to a consistent rise in the price of butter. The price of nuts has however prooved to be more unstable. Export price of shea butter in Ghana has risen since 2000. Shea butter price per metric tonne was US$797 in 2000, US$673.4 in 2001, US$1,018 in 2002 and US$1,005.4 in 2003 (PN Lovett, 2004).
Table 1.3: Export Prices of Shea Nuts
Sheanut (Karite Nuts) ($)
2008 2009 2010 Average Americas 422.90 483.35 244.64 383.63 Asia 478.90 342.16 339.25 386.77 Europe 464.93 426.73 360.33 417.33 Average 455.58 417.41 314.74 395.91 (Yaw Ahenkorah, 2011) 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 2008 2009 2010
SHEA BUTTER TONNAGE SHEA BUTTER VALUE
Figure 1.3: Export Prices of Shea Nuts
Source: Constructed from (Yaw Ahenkorah, 2011)
The major destination of shea nuts from Ghana is America, Asia and Europe. Prices of shea nuts have been sporadic in all these areas over the period. The average of nuts worldwide was US$351.645/tonne in 2010. The lowest average was in America with an amont of US$244.637/tonne while highest was in Europe with US$360.33/Tonne.
Table 1.4:Export Prices of Shea Butter
SHEA BUTTER ($/ton)
2008 2009 2010 Average Americas 442.97 1,655.12 6,167.65 2,755.24 Asia 1,868.04 1,221.70 839.98 1,309.91 Europe 1,594.60 5,958.30 625.80 2,726.23 Average Annual 1,616.62 2,022.20 755.61 1,464.81 (Yaw Ahenkorah, 2011) 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00 2008 2009 2010 Pr ic e ( US $/To m m e )
Export Prices of Sheanut
AMERICAS ASIA EUROPE
Figure 1.4: Export Prices of Shea Butter
Source: Source: Constructed from (Yaw Ahenkorah, 2011).
The price of shea butter has seen a steady growth in the American market. Prices of shea products have always varied with the destination of the buyer based on demand. The average price of shea butter in America was US$6,167.65 in 2010 compared US$ 839.98 and US$625.8 in Asia and Europe respectively. Ghana earned an estimated US$38.556 million from the export of shea nuts and butter in 2010 (Yaw Ahenkorah, 2011).
1.5. Shea Nut Processing (Traditional Manuel Extraction)
Depulping and boiling: The process of making shea butter begins at the point of collection. The shea fruits are collected after they fall to ground. They are depulped, boiled and dried. When they have dried enough the cracked to remove the shells and separated from the nut within. The nuts are further dried to reduce the moisture content. Nuts that are not well dried become mouldy when stored.
Shea butter extraction: the steps involved in the extraction proces are shown in figure 1.5 below. 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 2008 2009 2010 Pr ic e ( US $/To n n e )
Export Prices of Shea Butter
AMERICAS ASIA EUROPE
Figure 1.5: Shea Butter Processing Steps
Roasting and milling and kneading: in the manual extraction process the nuts are crushed into tinier pieces, and then it is roasted till chocolate brown and the milled. Breaking is done in grinding mill, a mortar and pestle when a grinding mill is unavailable. Then the ground nut pieces are roasted. Once the nuts have beeen grinded it is crucial the rest of the processes follow suit without delay in order to obtain good quality butter. The roated nuts are then milled into paste. The next step is to knead the paste till the butter is separated from the rest of the liquid mass. Warm water is added several times during kneading to keep the paste warm enough to enable the extraction. During this process the fat in the nut separates as a white creamy mass on the surface. This mass is the butter (Carette et al., 2009).
Boiling: The white creamy mass is washed in water and then boiled or melted. The process of washing is done to remove impurities from the butter. Due to the lower boiling point of water compared to the butter, the water will evaporate leaving the butter behind. The oil is then cooled and decanted to remove any remaining impurities, leaving a clear yellow oil. After this the oil is allowed to solidify into a solid white butter (Carette et al., 2009).
1.6. Shea Nut/Butter Production in Africa
Figure 1.6: Existing Shea Tree Distribution Map
Source:(Alliance, 2014).
The global shea industry involves trade in both the processed nuts and butter. Until recently, as much as 90% of exported shea product was raw nuts that were processed abroad. That figure reduced to 65% in 2012 as processing operations in West Africa have increased over the years. (PN Lovett, 2004) estimates that 30,000 to 35,000 tons of butter are processed in Africa for export to Europe and Asia for further refinement into value added shea butter to be used in food and cosmetics. The prices of raw shea nut have risen steadily in the last few years as well. The average price per ton was $180 in the late 1990s, and by 2008 the average price had increased to as high as $800 during its peak to settle later at a price of about $450 on average. Ġt is expected that the total market for shea nuts and butter within the next five years will grow to an estimated $500 million (Kambhampati, 2010). The global share of shea nuts and shea butter is summarised in the table below (Carette et al., 2009).
Table 1.5: Estimated Sheanuts Exports Country (major stearin producers only: Vitelleria paradoxa subs. paradoxa) Estimated total exports as sheanuts (Tons) Estimated shea butter converted pre-export (kernel equivalent of country crop* Tons) Estimated total shea export Benin** 15,000 10,000 25,000 Burkina Faso*** 45,000 25,000 70,000 Cote d’Voire 30,000 10,000 40,000 Ghana 30,000 30,000 60,000 Guinea Conakry 7,000 3,000 10,000 Mali 60,000 15,000 75,000 Nigeria 30,000 15,000 45,000 Togo 15,000 10,000 25,000 Total 232,000 118,000 350,000
*All figures given as dry kernel equivalent, that is, 1ton butter exported requires 3tons of shea nuts and so butter is given as kernel (sheanut) equivalent.
**Figures for Benin are given as an estimate exclusive of imports from Nigeria.
***Calculation of figures for conversion into butter where country is different from origin is confounded by customs data Source:(Carette et al., 2009)
1.7 Shea Nut/Butter Producing Areas in Ghana
Ghana is located on the southern coast of West Africa. It is situated between latitudes 4° 44‟ N and 11° 11‟N and longitudes 3° 11‟ W and 1° 11‟ E. Adminitratively the country is divided into ten regions. The country is divided into six agro-ecological zones on the basis of their climate. The natural vegetation is determined by the different climatic conditions and influenced by different soil types. These agro-ecological zones from north to south are: Sudan Savannah Zone, Guinea Savannah Zone, Transition Zone, Semi-deciduous Forest zone, Rain Forest Zone and the Coastal Savannah Zone as shown in figure 1.9 below. The shea tree grows only in the transitional and savannah zones.
Figure 1.7 Ecological Zones of Ghana
Source:(Allotey, 2004)
1.8. Role of Agriculture in the Ghanaian Economy
Agriculture has often been accurately touted as the backbone of the Ghanaian economy. Ġts importance can no more be exagerated. The dependence of the Ghanaian economy on agriculture has been the case for the country‟s entire pre and post independence period. However in recent times agriculture‟s contribution to national Gross Domestic Product (GDP) output has been declining over the years. Agriculture in 2015 accounted for 19% GDP compared to 21.5% in 2014 (Terpker, 2015). This decline is as a result a consistent decrease in growth rate over the past few years. The agricultural sector comprises five sectors namely crops other than cocoa, cocoa, livestock, forestry and logging and fishing. Agricultural growth rate declined from 5.7% in 2013 to 4.6% and then further declined to 0.04% in 2015. To make matters worse the crops sub-sector realised a negetive growth rate of -1.7 % in 2015(Budget statement 2016). All the other subsectors recorded positive growth rates in 2015 as in the previous years. This creates a very worrying situation because the crops sub-sector is the most important sector of the economy in terms of providing the food requirements of the
nation. Ġt also employs large chunk of the Ghanaian population. Although agriculture accounts for around 19% of GDP, it remains the mainstay of the economy in terms of food production and employment. Agriculture is the main source of employment for people in the rural and semi-urban communities across the country employing up to an estimated 40% of the total labour force (Terpker, 2015).
While policy and political failure had caused per capita GDP growth to decline over the decades, the agricultural sector had been less affected than the non-agricultural sector because it is less intervened by the government than the non-agricultural sector and its growth is primarily led by smallholders who produce for subsistence purposes. However, in the northern zone most of the agricultural income comes from staple crops and livestock. There have been recent efforts by government to modernize agriculture in Ghana. The aim is to transform agriculture from simple smallholder peasantry to large scale commercial production. Agricultural transformation is characterized as a process of sustainably modernizing agriculture and such a process is often measured by significant improvement in land and labour productivity, greater market-orientation and diversified production, diversification, as well increased domestic and international competitiveness (Diao, Hazell, & Thurlow, 2010). Agricultural growth is mainly driven by land expansion in Ghana as is the expected case for most developing countries espeicially on the African continent. The goal of moving to a productivity-led growth in the agricultural sector still remains a challenge for developing economies due to the the amount of commitments and investment that is required.
1.9. Public Expenditure for Agriculture in the Ghanaian Economy
The Ghanaian economy is a strained economy. Annual budget deficits are a headeache for the financial managers of the economy. With a limited government revenue basket budget deficits are a constant problem in national budgeting. Wages and salaries of governemnt employees alone take a chunk of the national revenue. As of september 2015 total expenditure and arears clearence in the national budget stood at 22% of GDP. Spending a large portion of the national income on wages and salaries leaves very little for investment. Ġnvestments that is necessary for growth and development of the various sectors of the economy. The total budgeted expenditure for the Agriculture Sector was GH¢395.19 million. By the end of September 2015, GH¢91.54 million had been spent. About GH¢82.57 million of this actual sector expenditure, representing 90.21 percent, was spent on poverty focused expenditures
such as the Fertilizer Subsidy programme and the establishment of Agricultural Mechanisation Service Centres, among others to boost agricultural production (Terpker, 2015).
For 2016, a total of GH¢355.14 million had been allocated for this sector. About GH¢302.46 million of this allocation, representing 85.17 percent, is to be spent on the Fertilizer Subsidy programme and the Agricultural Mechanisation Service Centres, among others. Also total spending on Agriculture Modernisation amounted to GH¢27.04 million against a budget of GH¢30.57 million. GH¢26.24 million of this amount was spent on food and agriculture infrastructure. This was particularly for the construction and rehabilitation of dams and irrigation infrastructure and fertiliser subsidy. Additionally, GH¢0.80 million was advanced towards the construction of the Fisheries College and aquaculture development (Terpker, 2015). These expenditures are hardly adequate to meet the level of investment required to by the sector (Terpker, 2015).
1.10. Women in Shea Butter Production and Rural Poverty in Ghana
Women in rural communities have been identified as important players in the quest for attaining the transformational economic, environmental and social changes necessary for sustainable development. But they are faced with obstacles that include limited access to education and health care among many challenges. This situation is further enhanced by the global food and economic crises and climate change. Ensuring that rural women are empowered is key not only for ensuring the well-being of individuals, families and rural communities, but also to overall economic productivity. This is because women contribute hugely to the agricultural workforce worldwide.
Maternal deaths disproportionately affect rural women. In the least developed countries, a rural woman is 38 per cent less likely than an urban women to give birth with the assistance of a skilled health Professional (UN, 2017). Throughout the developing world, rural women engage in multiple economic activities that are critical to the survival of poor households. Rural poor women play an essential role in crop production and livestock care, and they provide the food, water and fuel their families need. This is particularly the case in some of the poorest and most marginal areas characterized by extensive and increasing male migration. In these areas, agriculture has become increasingly feminized. In 1997, in fact, almost 70 per cent of the women of working age in low-income, food-deficit countries were engaged in agricultural work.
At the same time, the proportion of woman-headed households continues to grow, reaching almost one third in some developing countries (UN, 2017). Despite the essential economic and caregiving roles they perform, women have significantly less access to financial, physical and social assets than men do; fewer opportunities to improve their knowledge and skills; and less voice in public decision-making. Women are said to own less than 2 per cent of all land, and they receive about only 5% of extension services worldwide. In Africa it is estimated of all credit going to farmers, women receive less than 10 per cent and a mere 1% of the total credit going to the agricultural sector. The most extreme manifestation of gender inequality and the disregard of women‟s human rights is the fact that at least 60 million girls are „missing‟, mostly in Asia, due to female infanticide or sex-selective abortions. Added to these are an estimated 5,000 women murdered each year in „honour killings (IFAD, 2003).
Over the last two decades, Ghana has achieved strong economic growth and halved the national poverty rate, making it one of the few countries on track to meet Millennium Development Goal 1. Nevertheless, inequality persists. Poverty rates are still high in rural areas, especially in the north, where chronic food insecurity is widespread and livelihoods are more vulnerable. 2 Poverty is most severe among food crop farmers, who are mainly traditional scale producers; about six in ten small-scale farmers are poor. Women are responsible for about 60 per cent of total agricultural production, and more than half of the women who head rural households are among the poorest 20 per cent of the population. The main causes of rural poverty include low productivity, poorly functioning markets, and land degradation (GSS, 2016)
Most rural men and women are employed mainly in the agricultural secor. The wholesale retail, marketing and tourism as well as the manufacturing sector are also known to have a high employment rate for rural women. Rural Ghanaians are mostly selfemployed, either in agriculture or not, and 56 percent of the rural working population has a second job or more. There are very few rural Ghanains engaged in paid labour. However when such opportunities exist, it is the women who are disadvantaged. Ġn rural Ghana men are five times more likely to take part in in wage-employment than women (FAO, 2012). Conversely, rural women are more likely to be engaged in unpaid family work and in non-agricultural self-employment activities than rural men. Self-employed workers are more likely to fall under the low earnings classification, suggesting that selfemployment in rural Ghana, as it is, may not be conducive to higher earnings and thus is not a way of overcoming poverty and food insecurity. Of those
engaged in rural self-employment activities, 45 percent of men and 57 percent of women described their earnings as “low”. These percentages are even greater among the self-employed in agriculture, particularly for females: 72 percent of self-employed women in agriculture are within the low income classification, compared to 48 percent of their male counterparts (FAO, 2012).
Ghana‟s economy largely depends on agriculture, which contributes 36 percent to GDP, and employs 70 percent of the country‟s labor force. The sector comprises 5 subsectors: (i) crops other than cocoa (63 percent of agricultural GDP); cocoa (14 percent); livestock (7 percent); fisheries (5 percent); and forestry (11 percent). Close to 80 percent of the total agricultural production in the country is produced by smallholder farmers using underdeveloped technology (Duncan, 2004). Women are the most important actors in the food chain which begins from farm production through to marketing and intra household distribution of food. Ġn post harvest activities such as shelling of grains, storage, processing and marketing they usually play lead roles. Ġn farm tasks which have been previously designated as male activites, women are increasing taking part. This has resulted in women taking part in farm activities such as land clearancing, weeding and even the cultivation of cash crops. Women therefore remain the centrepiece of food security and hold the key to a sound and healthy economy (Duncan, 2004). Despite the central role of women in the economic development of the country, they have much more limited access to resources than their male counterparts especially in the areas of education, land, agricultural extension and access to credit, all of which combine to restram their ability to increase their productivity and incomes.There is a distinct division of labor in Ghanaian agricultural production and marketing. Women are more engaged in tasks such as planting, weeding, watering, harvesting, the transportation of farm produce, agro-processing and the marketing of small amounts of farm produce. However there is evidence from across the country to show that apart from being actively involved activities associated with family farms, women are also involved in the cultivation of their own farms in which they grow their own crops (IFAD, 2011).
