Integrated approaches for profitable shea nut value chain enhancement: A case study in rural Ghana

Abstract

Shea nut production is a critical economic activity for rural communities in the Sahel Region of Sub-Saharan Africa, particularly Ghana, where it contributes significantly to rural household incomes. However, challenges in post-harvest management and value-added processing hinder the full economic potential of the shea value chain. This dissertation investigated three key aspects of shea nut production: post-harvest loss (PHL) assessment, storage technology evaluation, and economic viability of shea butter processing methods in rural Ghana. By addressing these areas, the research aimed to provide sustainable solutions for improving the quality of shea nuts, reducing post-harvest losses, and guiding investment decisions in processing methods. The first study documented post-harvest handling practices and assessed the extent of post-harvest loss in the Ullo Traditional Area, Upper West Region, Ghana. Surveys of 280 women involved in shea nut production revealed that more than 60% of respondents experienced post-harvest losses exceeding 12%, primarily due to inadequate drying methods and poor storage conditions. Most women relied on traditional sun-drying techniques that exposed nuts to adverse weather and pests. The study highlighted the need for low-cost, scalable post-harvest technologies, such as drying platforms and hermetic bags, to reduce losses and enhance the quality of shea nuts. This study also highlighted some of the on-going interventions we have initiated in the Ullo Traditional Area in collaboration with Self Help International. The second study evaluated the effectiveness of Hermetic Bag Storage Technology (HBST) in preserving the physical quality of shea nuts. Over a 30-week storage period, HBST was compared to traditional jute sacks and woven polypropylene bags. The results showed that HBST significantly reduced moisture variation and insect damage, maintaining insect infestation below 30%, compared to over 80% in the other two methods. The study demonstrated that HBST is a viable, cost-effective solution for preserving quality and quantity of shea nuts and recommended their adoption in rural production systems. The third study investigated the moisture sorption isotherm characteristics of shea nuts, identifying safe storage moisture content between 5-7% over a temperature range of 20-35°C. By evaluating equilibrium moisture content (EMC) models across that temperature range, this research expanded the application of a handheld commercially available low-cost moisture meter to monitor drying and storage conditions. Additionally, practical recommendations for improving post-harvest handling, drying and storage resulted that can be utilized by Extension workers and others to train smallholder farmers in best practices and technologies that prevent spoilage and improve quality of shea nuts. The fourth study assessed the financial profitability of four shea butter processing methods: fully manual (S1), semi-mechanized with process-outsourcing (S2A), semi-mechanized with group-owned equipment (S2B), and mechanized (S3). Using financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR), and Payback Period (PBP), this study identified the mechanized process (S3) as the most financially attractive option, with an NPV of GHC 50,175, an IRR of 85%, and a PBP of 1.2 years, making it ideal for large-scale investors. However, for rural women’s groups, the semi-mechanized method with group-owned equipment (S2B) purchased through grant funds could be a viable path to profitability, allowing these groups to scale production and increase income with moderate investment in equipment and manageable financial risk. The study recommends a phased approach to mechanization, integrating technical training and grant funds from NGO partnerships to empower rural women and enable sustainable shea butter production adapted to local and regional markets. Overall, this dissertation comprehensively analyzed post-harvest management practices and technologies, and the economics of value-added processing in the shea value chain. By addressing these key areas, the research offers valuable insights for policymakers, rural cooperatives, and development organizations seeking to improve women's livelihoods in Sub-Saharan Africa by engaging in shea production and processing sustainably and profitably.