ROLE OF NIGERIAN EXPORT PROMOTION COUNCIL IN SHEANUT/BUTTER

DEVELOPMENT

DELIVERED

BY MRS.OMOWUNMI OSIBO

DIRECTOR (PRODUCT DEVELOPMENT) NIGERIAN EXPORT PROMOTION COUNCIL

AT THE 2013 GLOBAL SHEA ALLIANCE

CONFERENCE VENUE:- THE SHERATON HOTELS AND

TOWERS , ABUJA.4TH-6TH

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Protocol INTRODUCTION

• Ladies and Gentlemen, I am delighted to make this presentation on the Role of Nigerian Export Promotion Council in the development of SHEANUTS. In order to do justice to this paper, I believe i should also touch on the effort carried out on shea through the STDF Project 172, a WTO funded program on Shea and Sesame in Nigeria

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• The chosen topic is very apt at this time because of the giant stride the Council and indeed other collaborating agencies have achieved through the STDF172 project. At this type of forum, Exporters, Potential ones and all relevant stakeholders are aware of the huge opportunity available in the shea value chain for economic growth of the country

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NIGERIAN EXPORT PROMOTION COUNCIL (NEPC)

VISION: Make the non-oil export sector a significant contributor to Nigeria’s GDP. MISSION: We facilitate opportunities for exporters & promote sustainable economic development.

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THE ROLE OF NEPC IS 4-PRONGED IN NATURE)

ACTIVITIES:

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CORE RESPONSIBILITIES To promote the development and diversification of

Nigerian’s export trade. To assist in promoting the development of export

related industries in Nigeria. To spearhead the creation of appropriate export

incentives. To actively articulate and promote the

implementation of export polices and programs of the Nigerian Government

Human Capital Development in the Non- Oil Export Sector 6

FACT FILE ON SHEANUT The shea tree grows naturally in the wild in the

dry Savannah belt of West Africa from Senegal in the west to Sudan in the east, and onto the foothills of the Ethiopian highlands.

Shea nuts grows in about 20 countries in the

world, all of which are in Africa, Nigeria inclusive.

In recent years the shea tree has gained importance as an economic crop because of the heavy demand for its butter, both locally and internationally.

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Cont’d

• The nuts are shipped out of West Africa mainly from ports in Dakar, Senegal, Lome, Togo and Ghana.

• Nigeria is the largest producer of sheanuts in the

world but have not been able to take economic advantage of the huge export potentials the product offers in view of the many uses that the product could be put to.

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Sheanut Production in Nigeria The local shea market is dominated by

the women in Nigeria. There are men who trade in nuts and work in processing but women are the primary pickers, processors and sellers of shea butter in the local marketplace. The majority of shea butter consumption in

our country is in the butter form for cooking, cosmetics and skin care,etc.

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SHEANUT PRODUCTION FROM WEST AFRICA

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Year Production (M/T) • 2008 433,369 • 2009 441,560 • 2010 325,610 Source: FAO

SHEANUT PRODUCTION IN NIGERIA (ESTIMATE)

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TOP SHEANUT EXPORTING COUNTRIES

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NIGERIA’S EXPORT OF SHEANUTS 2008 TO 2011 Net weight Value in Naira 2008 052 BARBADOS 20,300 3,514,773 208 DENMARK 4,000,000 133,226,016 528 NETHERLANDS 40,700 8,831,526 2009 356 INDIA 427,900 8,815,570 2010 1020 ANDORRA 113 45,786,550 204 BENIN 38 2,283,832 356 INDIA 320 20,224,000 840 UNITED STATES 1,000 3,925,721 Source National Bureau of Statistics

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Sheabutter:- Very little is packaged, labeled or certified

before sale and it is sold in small balls or bowls in major markets throughout the country. Currently, there are 21 shea producing

states in Nigeria.

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Map of Shea Producing States

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INTERNATIONAL MARKET FOR SHEA The world’s biggest international markets

for shea butter are in Europe and North America.

• it is used as a cocoa butter equivalent or improver in chocolate and other confectionaries, margarine, and in cosmetic and personal care products.

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• Nigerian exporters indicated that the main problem

encountered with export of shea products is aflatoxin content in the nut while in storage.

• Quality assurance for shea products to meet importers’ requirement is a technical issue for which Nigeria needs to develop expertise in order to safeguard and increase market penetration.

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• There are also certain organizations buying shea butter from individual communities but standard quality is a challenge.

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• Lack of quality control activities during the

post-harvest processing (particularly the first three steps of traditional post-harvest processing)

• It is important to note that the way the fresh shea fruit is handled and processed into shea kernel determines the quality of the kernel and the quality of the kernels in turn determines the quality of the shea butter.

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Cont’d

• Poor quality sheanut/butter accounts for majority of reasons why sheabutter export from Nigeria is low compared to its local production volume.

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THE COUNCIL’S EFFORTS AT DEVELOPING AND PROMOTING SHEA FOR EXPORT

• The Council had sponsored some Shea- butter

processors to the West African Trade Hub (WATT), Accra; Ghana – a USAID sponsored trade network. The training was meant to improve the quality of Nigerian Shea- butter to ensure market access to the large USA market.

• Also, in 2006, the Council engaged the services of a foreign based Consultant called Whitaker Group to source for market for Nigeria products including Shea- butter in the USA and to source fund for processing of same.

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• In the area of capacity building, the Council in conjunction with West African Trade Hub (WATH) conducted a training programme for producers/processors in Abuja.

In 2011 • The Council went a step further by engaging a GSA

consultant who trained over 600 women on proper processing of sheanut into butter.

• The trainings involved practical demonstrations on every step involved in the proper processing of sheanut/butter

• . It was carried out in 3 different location across the country namely; (Ilua in Oyo State, Zuru in Kebbi State and kaiama in Kwara State 26

• Pictorials and manuals were also

produced to aid the training sessions. • Another batch of processors have been

programmed for training this year in proper processing of sheanuts. Focus is on train-the –trainer in the processing.

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• The council has also been involved in a World Trade Organization sponsored programme (STDF 172) targeted at expanding Nigeria’s export of sesame and Sheanut/Butter through addressing sanitary and photo-sanitary issues in the production and processing of these products.

• The STDF Project 172 commenced in October 2010 with a dedicated website(www.sesame-shea-stdf172.org.ng) . It is funded 65% by the WTO and 35% by the NEPC. It has the International Trade Center (ITC) as the Supervising Agency

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. • The NEPC is the Implementing Agency, there is

also a Project Coordinator who is supported by the International Consultant.

• There are about 14 public and private sector organizations involved in the project implementation.

• The project consist of 5 Components, each with series of activities under each Component spearheaded by a Lead Agency with Supporting

Agencies providing assistance.

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. The project seeks to improve the quality of Nigerian shea for export through improved quality control along the value chain. • It is scheduled to end tentatively in March, 2013

and has recorded enormous achievements in implementation, principally the characterization of the Nigerian sesame seed shea value chain and extension physico-chemical and biological analysis. Critical Control Points for intervention vis-à-vis Good Processing Practices has been conducted and identified.

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• Under the STDF 172 project, series of capacity building programmes will be conducted for the extension workers and women processors with fabricated machines to aid proper processing of the nuts at every stage of production.

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Cont’d

• The efforts of the council is in line with the objectives of the Millennium Development Goals (MDGs), and the transformation agenda of the Federal Government of Nigeria.

• Specifically, the efforts of the council is

geared towards the following objectives:

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Objectives:- • Equip the local sheanut/butter producers

with the right skills and tools to process high quality sheanut/butter.

• To empower women, create wealth and for poverty reduction

• Encourage the collection of sheanut as a commercial venture

• Creation of employment and generation of more income for rural dwellers across the shea value chain.

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• Reduce rural-urban migration • Opportunity to organize the local

producers into cooperative entities • Act as a catalyst to develop the shea

industry in Nigeria • Serve as a means of developing

infrastructural facilities in the rural areas.

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Challenges in the Shea sector Restricted access to credit

Infrastructural deficiency and weak logistics to support value addition in the supply chain. Shea exports is dominated by the nuts with its limitations. External barriers ( Non-tariff barriers) Inadequate export-oriented sheabutter manufacturing company and low productive capacity. Unrecorded export trade, especially butter ( Informal sector)

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• Poor standardisation of products (quality, labelling, packaging)

• High production costs • Lack of vital skills and technology

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Strategy for Nigeria sheanut/butter growth and development

Shift from Primary resource dependent to value Addition in the long term.

Maintain quality standard Focus more on the quality of sheanuts Adopt Good Processing Practices Increased production. Provide easy access to Agric credit. Attract Investors. Remain competitive. Provide market information system (local and International). Export formally.

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Way Forward

Capacity Building Enhancing Shea processors with request knowledge Providing Special Skill for shea exporters and Potential ones. Creating Export Awareness. Simplify Export Procedures and Documentations Imbibe e Commerce Enhance Synergy amongst relevant stakeholders Best approach to quality assurance through the creation of appropriate quality infrastructure. Product adaptation to meet the requirements of International Enlightenment campaign on non- felling of sheanuts tree for (coal, mortars, etc) Research work on early maturing sheanut trees (graft & tissue manipulation). This is necessary to continuously provide the raw materials Getting certification for organic sheanut/butter Step up campaign for increased use locally for its use in cosmetics and for its medicinal use.

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Conclusion

Ladies and Gentlemen, the shea sector if fully developed, has the high potential of poverty reduction in the rural areas and also be a major revenue earner for the country.

With Nigeria having the largest concentration of sheanuts in the world, the nation should exploit this opportunity. There is the need for partnership between the Government and the private sector to engage in production, processing and marketing of shea.

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THANK YOU

Local Women Processors in Bosso, Niger State.

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FOR FURTHER INFORMATION, PLS

VISIT OUR WEBSITE. www.nepc.gov.ng , www.sesame-shea-stdf172.org.ng or

reach us at enquiries@nepc.gov.ng

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www.nepc.gov.ng info@nepc.gov.ng

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