Here is the first part of this series. Agro Business in Nigeria Part I
Today we shall be profiling the agricultural products and raw materials that are fairly abundant in Nigeria and which has demand outside the shores of this country and also their location locally.
SHEA NUT
History: Shea butter 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.
Type: They are usually accessed based on the content.
Uses: They are used in the production of Shea butter which is used in the cosmetics, confectionery and other such industries.
Areas of Production: Shea nut is produced in Kwara State at Ode-Giwa in the Asa Local Government Area and also in Minna area of Niger state in Nigeria. Other states include Kogi, Oyo, Kebbi and Ogun State.
Shea nuts are the fruits of shea butter tree botanically know as Vitellaria. In Africa, there re 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 5-8cm 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 shining shell with large hillum on a broad base.
The following is the benchmark composition of 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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