African Journal of
Agricultural Research

  • Abbreviation: Afr. J. Agric. Res.
  • Language: English
  • ISSN: 1991-637X
  • DOI: 10.5897/AJAR
  • Start Year: 2006
  • Published Articles: 6801

Article in Press

Examining the viability of the shea industry in Ghana

Patrick Muotono Izideen Maanikuu, Kenan Peker

  •  Received: 03 October 2018
  •  Accepted: 05 December 2018
This study examined the viability of the shea butter industry in Ghana and the potential for establishing shea tree plantations in Ghana and. The financial costs and returns of establishing shea tree orchards in Ghana were examined. 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. The analysis also indicated that the lower the discount rate as calculated in the cost factor, the higher the viability of the enterprise.

Keywords: Income, Shea cultivar, Shea butter; Shea nut; Shea processing, Women,