The Production-to-Consumption System of shea (Vitellaria paradoxa) Products from Sub-Saharan Africa

Transcription

1 The Production-to-Consumption System of shea (Vitellaria paradoxa) Products from Sub-Saharan Africa Jochen Statz, Institute of Forest Policy, Section Market and Marketing, University of Freiburg

2

3 EU/INCO project Improved Parkland Management in sub-saharan Africa Project purpose to develop strategies that can help promote security and self-sufficiency in food production without further eroding the land Means by enhancing the productivity of traditional agroforestry parkland systems, esp shea stands by maximising the economic values and improving the marketing of parkland tree products (shea and others); by conserving the (bio-)diversity and the unique character of the parklands with its stands of shea

4

5 Research Activities of the Project 1. Conservation of biodiversity + improved management of parklands 2. Enhancement of productivity and quality of parkland trees 3. Improved marketing and processing of parkland trees Study of the value-added chain of shea and related marketing practices

6 Research approach: Production-to-Consumption Analysis A PCS covers the entire set of actors, materials, activities and institutions involved in growing and harvesting a particular raw material, transforming it into higher value products and marketing of the final product... flow of physical goods and its institutional framework PCS comprise three dimensions Vertical structure: integration Horizontal structure: linkages and cooperation Quantity and quality of inputs: intensity

7 Production-to-Consumption Analysis Basic patterns Consumer Marketing Manufacturing Semi-processing Wholesale Regional traders Local traders Post-harvest treatment Raw material production low Capital intensity high Spot sale Transformation Vertical integration

8 The PCS of shea 1.: Collectors of raw material

9 The PCS of shea 1.: Collectors of raw material practically all interviewed households use shea butter; more then 80% sell shea nuts (together with other agricultural products) but little over 3 % of them are selling shea butter post harvest treatment: removal of pulp and shell all of the interviewed users sell at least a part of their production to intermediaries (these buy around 80% of the volumes traded locally) transport to market place done together with agricultural products, i.e. without additional costs production of shea-nut in the whole of Africa in the year 2000: tons (about tons more than in 1991)

10 The PCS of shea 2.: Local intermediary traders only 5% of shea-nut production sold by cooperatives; producers generally operate alone, some organise transport together generally various levels of intermediaries besides transport and packing (if required), no value added to products by retailers little investment required, except for purchase of raw material ( and a bicycle) no occupation with a tradition, rather a desperate attempt to make a modest living

11 The PCS of shea 3.: Exporters typical exporters are wholesalers who trade everything from chillies to used plastic shoes they buy the products either in rural centres or at the gate of their depots in the larger towns African export of shea in 1999: tons of shea nuts (1990: tons) exports of shea-butter: tons (stable export since 1996)

12 The PCS of shea 3.: Exports from 4 African countries Burkina Faso: o shea-nuts: tons in 1999 (stable export since 1995) o shea-butter: 30 tons in 1999 (stable export since 1992) Mali: o shea-nuts: 500 tons in 1997 (stable export since 1993) o shea-butter: no data available Nigeria: o shea-nuts: tons in 1994 (unstable export figures: tons in 1990; tons in 1992) o shea-butter: no data available Uganda: o No data available

13 The PCS of shea 3./4.: Exports from Africa to Europe European import of shea-nuts: between up to tons/year (EUROSTAT data) Europe the only continent where shea nuts are imported on a regular basis. Yearly import fluctuates around tons, with some extremes up to almost tons German imports of shea-nuts: 24 tons in 1991; 54 tons in 2000 (Jan.-Aug.) total of European imports in 1999 amounted to tons transport from producers to the coast mainly done by African traders/ companies FOB prices Abidjan: US $ /ton raw nuts (90% of price goes to African wholesaler/exporter)

14 The PCS of shea 4.: European Oil&Fat Industry US$ 200/ton for shea nuts (mainly to DK), US$ 800/ton for shea-butter (mainly to NL), US$ 2.000/ton for shea stearin all shea used in European chocolate industries originates from West Africa shea is transported by ship to Europe (loads of tons) European importers buy from both, local and international organisations tendency: European buyers focus more on buying directly from the producers, thus avoiding the African intermediate traders

15 The PCS of shea 5.: Manufacturers multinationals : companies in the food (esp. chocolate) sector artisans : small companies in the cosmetic sector >both are extremely restrained when asked to provide insights in the sector

16 The PCS of shea 6.: Consumers largely unaware of shea as an ingredient of chocolate production and cosmetics largely unaware of the cocoa butter substitution debate and the role of shea in it little is known as to the end consumer s willingness to pay price premiums for shea products originating from fair trade

17 The shea PCS Consumers Retailers Manufacturers European oil&fat industry Wholesalers/exporters Local intermediary traders Post harvest treatment Collectors of shea nuts low Capital intensity high Spot sale Transformation Vertical integration

18 Current Trends (1): Shea as a cocoa butter equivalent shea as the most versatile CBE so far, jungle nuts were needed for CBE production but: technology now available to produce CBEs enzymatically shea fat has a higher melting point than chocolate fat shea prevents the chocolate from blooming most member states of the EU have not allowed the use of vegetable fats to substitute cocoa butter in chocolate for more then 25 years

19 Current Trends (2): 5% rule and its possible impact since the beginning of the 1990ies: attempts to harmonise chocolate manufacturing regulations at EU level 5% of the cocoa butter content of chocolate can be replaced by vegetable fats, so-called cocoa butter equivalents (CBEs) a clone is being proposed but it would be false chocolate (M. Gauze, Minister for Primary Commodities, Ivory Coast) 5% rule could cause substitution of 62,000 to 125,000 tons of cocoa beans annually; ~ 10% of the world cocoa production

20 Current Trends (3): Substitution of the substitute other oils might replace shea; shea follows the price patterns of these commodities: o o o o Sal: most constant crop next to shea; both sal olein and stearin used in CBE industries Illipe: no fractionation needed but only one harvest in three to four years Cocum: Virtually identical to shea stearin but very small crop (300 to 400 tons/year) Palm oil: large world market; high import taxes almost everywhere; increasingly used in CBE production

21 Potentials (1): Use of shea in the cosmetics sector

22 Potentials (1): Use of shea in the cosmetics sector current demand in the EU for cosmetic purposes: ~ 200 tons/year of shea butter potential demand world-wide has been estimated at a maximum of tons/year increasing focus on direct contact to producers importers buy raw shea-butter at US$ 0.8/kg (2001) refining industries sell it for a bit under US$ 2/kg cosmetic industries buy shea-butter at US$ 2,5 9/kg but: a mere 0.3% is required so that an end product can bear a label with shea butter

23 Potentials (2): Fair trade fair trade organisations have opposed the 5% rule, thus protecting cocoa farmers fair trade with shea products only in the cosmetics sector volumes traded are minimal, even a key player like The Body Shop imports a mere 6 tons per year trend: from ecologically and socially correct products to speciality and lifestyle products?

24 Conclusions and Outlook: African producer countries high growth potential of naturally growing shea Burkina Faso alone could produce tons some countries have made up own shea-butter producing industries (but: low extraction rate, varying qualities) obstacles: extensive collection mechanisms, benefit return to basic producers is minimal, infrastructure, high costs due to long chain of custody in Africa

25 Conclusions and Outlook: European buyers and consumers chocolate industry by far major consumer for African sheanut products future of African-European shea trade is closely linked to developments in this sector European industries expect growth of demand for chocolate products following EU regulation, CBE processors expected stable growth rates for shea use, but are more reserved today worst case scenario: enzymatic production could reduce shea use in CBE production to 0% in the future in the cosmetic sector: stable growth expected, yet at a very low level importers try increasingly to buy directly from producers new boom of shea demand by cholesterol lowering (!) vegetable fat designed by Aarhus Olie?

26 The shea PCS options for its improvement Consumers Retailers Manufacturers European oil&fat industry 3 Wholesalers/exporters Local intermediary traders Post harvest treatment 2 Collectors of shea nuts 1 low Capital intensity high Spot sale Transformation Vertical integration

27 Synthesis: Savannah conservation through improved marketing? shea commodity markets hold little potential for African producers need to develop institutions in order to increase bargaining power of producers stronger focus on speciality products strengthening of personal linkages (primary producers, manufacturers and consumers) intensification (plantations) is not likely

28

29