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How to make huge profit from shea nut and butter processing and exporting

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Shea nuts are the source of Nigeria’s crop on tree tops,it can aptly be called “green tree” its high economical value in the new and emerging world order

What are Shea nuts?

These are the fruits of the shea tree horizontaly known as Vitellaria. There are two main commercial species in Africa- the vitellaria paradoxa- mostly found in West African countries like Ghana, Cote d”voire, Burkina faso, mali Republic of benin and mostly in abundant in nigeria. The second species called vitellaria is found mainly in Uganda.

The fruit is usually 5cm long and 3-4cm wide, elliptic, a yellow or green berry with tick butter-like, mucos pricap contian one seed which is oval or round. it is red in colour (the shea nut of trade). The second seed is normaly surrounded by a fragile shinning shell with large hilium on a broad base

Nigeria names are:

Igbo:Okwuma

Hausa:Dan ka’raye K”wara, Kadanya, man ka” dai, man ka” danya

Ibibio: Udi, aran asabo (a misnoma since this means python fat)

International names

(Arabic)- Lulu

(English)-Bambouk butter tree, Shea butter tree

(French)-arbre a beurre de galam beurre/graise de karate

INVESTMENT OPPORTUNITIES IN SHEA NUTS

The provision of good quality well processed shea nuts in the corner stone of the shea nuts industry. Nuts that have been cleaned and lightly sun-dried without previous maceration yield tasteless and odorless fat. Traditionally prepared shea butter, processed shea butter becomes tasteless and odorless only after refining. These fats are so important that every investor must keep in mind

The following are thearea of investment that would solve existing problems or provide a need in the shea butter value chain and therefore yield good profit for the investors in Nigeria

  1. Farming or cultivation of improved variety of shea plants for shea fruits production
  2. Gathering of shea nuts
  3. Processing of shea nuts
  4. Storage of shea nuts
  5. Extraction of shea nuts
  6. Marketing of shea nuts/shea butter in Nigeria

GATHERING

Statistics show that only 25-30% of the shea nuts produced in Nigeria wild is collected. Therefore to increase the production of shea nuts in Nigeria (the volume) all we need to do is to gather more from the wild. A good target might be 80% collection from the wild.

To achieve this there has to be planned and systematic collection using trained collectors and carried out at the best seasonal timing. This calls for the input of money and other resources. At the moment most of the shea plants are in bushes and forest not of herbicides and fertilizers and our product therefore qualify for organic certification. This is a plus for us.

What happens at moment is that pickers wake early in the morning and trek up to 5-15km to farmlands where they pick shea fruits that have fallen on their own from the trees. They carry the loads of shea nuts back in head pans and basins or baskets of 20-25kg (sometimes over 40kg). Apart from being a tedious labour they are exposed to such hazards scorpions ans snakes, especially beyond cultivation area, these challenges can easily be overcome by appropriate means of transportation, use of protective wears or traditional snakes scares, provision of sacks and perhaps location of drying centers within shorter distances in a gathering district. In all of these appropriate technology is needed for superlative Success

shea butter by misangreen on cokodeal
shea butter by misangreen on cokodeal

PROCESSING

In most villages one of two approaches are used in the processing of shea nuts. After gathering shea nuts are parboiled and sun-dried before storing in order to prepare the nuts for shelling. The shelling process involves the removal of the hard shell protecting the kernel. A shelling machine would make this process fun instead of hard labour. In some villages the gathering fruits are either consumed or buried in pits and allowed to ferment, which facilitates the disintegration of fleshy parts of the fruits.

The remaining nut is then boiled to remove any of the fruit pulp remaining. The nuts can be sundried or roasted over fire or in a traditional oven for two to three days. Dehulled kernels are then dried further until the moisture content appears very low. The kernels are then pounded into fire paste or powder ready for extraction of shea butter

Suggested useful machine for this stage would include

  1. A decorative machine- would make the edible portion of the fruit (pericap) available for food, reduce bulk and make for faster drying to avoid rancidity
  2. An effective dryer like a solar drier backed up with hot air oven principle
  3. Appropriate dehauling machines

A hot air oven under very controlled temperature not more than 40% can be used to reduce the moisture content of dehauling seeds to 7% or less

 

STORAGE

Nut that has been well dried can store well for up to 5 years without spoiling. Storage should aim at maintaining the quality through the storage period as well as eliminating pests that could destroy the nuts. Ware house at the appropriate location are needed.

EXTRACTION OF SHEA BUTTER/OIL

This is a well established aspect of the shea nut/better industry with the state of the art processing equipment from various centers in the world adapted to varying needs and purposes

Another aspect of technology relevant to investment in shea nut and shea buter processing is the need for indigenous technologies deodorization, decolourization and especially fractionazation. This is one area where Europe and Ameriica has always taken advantage of us. There is a very large mark up for the various shea nuts by – product at $1000 per MT (all prices CIF US)The detailed price for the refined butter is $6 per ounce in the US

. The unrefined Vitellaria nilotica from Uganda is priced at $60/Kg which is unrefined shea butter from West Africa is priced at $200/MT (CIF Europe)

These products are not only needed in Europe but are highly priced in Nigeria who in fact, currently import from abroad.

The price of shea nuts FOB (Lagos) is about $220MT with N300 you can gather 100 Kg and thus a ton for N3,000. $220 translates to about N22,000 at the exchange rate of only N360 per dollar. You could well spend about N3,000 per bag 100kg and still make huge profit. The moe value you add to the nuts the better

Women in Nigeria, one of the areas in the world where shea trees grow, have been applying shea butter, also known as Karite, since the days of Cleopatra,   as protection for skin and hair. Because its nut contains 50 per cent fat and is a good source of vitamin E, it is applied for treatment of burns, insects? bites and as lamp oil and nutritional supplement. In Europe, North America and Japan, for instance shea butter is now prized for its superb healing and moisturizing properties. It is an important ingredient in creams, sunscreens, conditioners and in treatment of burns and muscle pains.

With its varied usages, shea butter is a highly valued commodity among the world?s cosmetic companies, and as its demand has grown, so also it?s potential for exploitation and exportation.

The painful irony of shea butter production in the continent especially in the West Africa is that majority of its rural producers receive less than a dollar per day for their work because they sold it in bulks as a raw material instead of its finished products that could improve their earnings.

As much as shea butter seems to be a preserved of women in its various applications, the producing communities especially the rural women in Nigeria should take the initiatives of the forthcoming presence of the experts invited by the First Lady to learn new skills, acquire latest thinking towards improving their economy. The acquiring of skills in areas of aromatherapy and cosmetics will pave way for more job opportunities. This initiative come at a time when Government is making efforts in revitalizing and repositioning microfinance institutions towards making them a power house to economically empower men and women.

Probably sun-dried kernels will be found best, as the native process of drying in ovens is rather liable to cause damage to the kernels, with consequent deterioration of the fat.

Generally speaking, the collection and preparation of nuts and of shea butter is carried out by women, the men being employed in transporting the kernels or butter to the local markets.

The question as to whether it be better for the natives to sell the kernels, or to prepare and sell shea butter, depends almost entirely on local conditions of labour and transport. In districts remote from railways or navigable rivers it appears that the preparation and sale of shea butter will give the greater profit ; but, in view of the fact that the native methods for the preparation of the butter are inefficient, it appears better on the whole that the native should be encouraged to sell the dried kernels. The transport of the butter on a large scale is also a matter of some difficulty, as it must be packed in casks before being placed on board ship

Shea nuts and butter is a very lucrative business. Join or buy shea butter from  traders network on cokodeal

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Article credit:  Cokodeal contributor

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By Raymond A

International trade and export specialist. Content manager at cokodeal.com

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