Though the leading exporting nation for Shea nut and butter in the world, Nigeria is yet to take advantage of the vast opportunity that exist in the export and value addition of Shea nut and butter.
Incentives are offered for better quality nuts through premium that are paid to exporters and since most of the Shea tree in Nigeria are in bushes and forest which is not subjected to herbicides and fertilizers, Nigeria’s Shea nut is one of the best in the world and qualify for organic certification.
FACTS ABOUT SHEA NUT AND BUTTER
History: Shea nut butter has been used for centuries in Africa for cosmetics, funeral rites, medicinal, soap making and as cooking oil.
Estimated National Production: 500,000 MT annually.
Export from Nigeria: About 3% of the national production is exported.
Types: They are usually accessed based on the content.
Uses: They are used in the production of Shea butter which is used in the cosmetics, confectionary and other such industries.
Areas of Production: Shea nut is produced in Kwara State at Ode-Giwa in the Asa Local Government are and also in Minna area of Niger state in Nigeria. Other states include kogi, Oyo, Kebbi, Kogi and Ogun state.
Shea nuts are the fruits of Shea butter tree botanically know as Vitellaria. In Africa, there are two main commercial species namely Vitellaria paradoxa-mostly found in West African in countries like Nigeria, Ghana, Ivory Coast, Burkina Faso and Mali. The second specie is called Vitellaria nilotica is mostly in Uganda.
The fruit is usually 5-8 cm long and 3-4 cm wide, elliptic, a yellow or green berry with thick, butter-like, mucos pericap contains one seed which is oval or round. The seed is usually surrounded by a fragile shinning shell with large hillum on a broad base.
The following is the benchmark composition for the export of Shea nut
Free Fatty Acid {FFA} Content: Less than or equal to 60%
Moisture Content: Less than or equal to 70%
Oil Content: Greater than or equal to 45%
Latex: 4-10%
The oil content is the most crucial element of the Shea nut as that component is an important ingredient in the composition of the butter that goes into cocoa butter equivalent {CBE} and other by products. If the oil content is higher and the FFA and moisture content is lower, then the exporter will receive a price premium.
In terms of market share, the Chocolate and Confectionary market represents about 95% while the Cosmetics and Pharmaceuticals market represent 5% of the market share.
The return on investment on the export of Shea nut is estimated between 10%- 15%.
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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for beginners and exporters already in the commodity export market.
Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.
You can order our detailed feasibility report on the export of shea nut in Nigeria by clicking on the link below.
Report Title: SHEA NUTS EXPORT IN NIGERIA
Report Code: FORA/08/2011/034
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