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Analysis of shea butter production and its socioeconomic importance in Ghana
 Mensah, Abigail Aurisla
The Shea nut and butter production industry has been a prominent feature of the economy of northern Ghana, dominated by women. Recent surge in international demand for the commodity has led to the claim that the local industry possesses the potential to alleviate poverty. This study has employed the Global Value Chain analysis together with the New Institutionalism theory to assess the socioeconomic importance of shea nut and butter production on the livelihoods of the people in northern Ghana. Given the significance of value chain governance on resource accumulation and distribution as well as opportunities for upgrading, market access and …the study focused particular attention on the effects of chain governance on the shea industry in northern Ghana and how that impacted the socioeconomic lives of the people. The study found that the shea industry provided employment and a source of income to the people especially women who dominate the sector. However, the incomes levels from shea are so low as to make any significant improvements in the lives of domestic actors especially those at the low end of the chain ie nut collectors and butter processors. The the challenges identified were the mode of insertion in GVC, the lack of institutions especially, an effective regulatory body to oversee the sector and a general reluctance of the government to invest in the sector by providing the necessary infrastructure to improve the industry. In addition, value chain governance has enabled a few leading downstream shea processing firms and product manufacturers to dominate the industry through their agents who have been indulging in exploitative activities thereby reaping huge profits at the expense of the low end actors. It is the recommendation of this study that the state should get actively involved in the management of the industry by setting up a regulatory body which will oversee the activities of the sector. Such a body should be de-coupled from the COCOBOD in order to move the industry from being under the shadow of the Cocoa industry. The extortionist and exploitative activities of some profit making NGOs, Development Agencies and Large scale shea nut and butter exporters should be checked so as to free the shea worker from being cheated.
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