Investment Opportunities in Shea nut

Nigeria is the leading producer of Shea nut and butter in the world. However due to issues around quality, the nation is yet to fully tap into the benefit of the expanding market for Shea nut and butter.

The oil content is the most crucial element of the shea nut as that component is an important ingredient in the composition of the shea butter that goes into Cocoa Butter Equivalents and other by-products.

SOURCING

 
Shea nut and shea products are mainly produced in Kwara, Katsina, Plateau, Kogi, Oyo, Benue, Edo, Zamfara, Taraba, Borno, Niger, Nasarawa, Kebbi, Sokoto, and Adamawa states.

PRODUCTION STATISTICS

 
Estimated National Production is 500,000 MT annually, about 3% of the national production is exported.

USES

 
Shea butter is mainly used as cooking oil, in the making of chocolate and candle and as moisturizers in the cosmetic industry.

It is used in the treatment of skin disorders like eczema, burns, rashes, stretch marks, acne, wrinkles, skin discolorations, itching and other skin problems.

It also provides natural protection from the sun’s UV rays. It is also an excellent agent for softening skin. It can also be used to maintain hair moisturization especially in dry hair.

PRICING

 
In the international market, the price per ton for Shea butter packed in 20 pound dark plastic sacks or 50 kilo dark plastic containers or coated steel drums ranges from $1,800 to 2,800/MT depending on the quality, while the local market price per tonne ranges from N180,000 to N250,000

The price of Shea nuts and butter follows the movement in the price of cocoa beans and butter.

EXPORT MARKET

 
Major destinations for Nigeria’s Sheanut and Butter are the Europe, United States and Japan.

EXPORT SEASON

 
The export season for Shea nut commences by June and ends in October.

HARVESTING PERIOD

 
The harvesting period for Shea Nuts in Nigeria, runs from July till about November. The fruits are allowed to ripen on the tree and then drop to the ground.

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.

PROCESSING

 
Shea Butter is produced by steaming the Shea fruit for the kernel inside to shrink away from the shell to prevent the kernel from damaging. After the shells are cracked and the kernels are extracted. They are placed in the sun to dry for a prolonged period in order for the shea nuts to maintain a long shelf life of 5 years. After drying, the best nuts will be sorted out to for crushing and left till the next day. Thereafter, other processes like Roasting of Crushed Shea Kernels, Milling, Kneading, Boiling, Filtration and Solidification, Packaging and Storage will commence.

MARKETING

 
Main buyers of Sheanut and Sheabutter are chocolate manufacturers, Cosmetic Industries, Pharmaceutical Industries as well as households.

INVESTMENT SUMMARY

 
Production
Processing
Export
Storage
Marketing