Shea butter production and marketing efficiency in Kwara State, Nigeria
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The study was conducted to determine the effectiveness of the marketing chain of shea-butter in Kwara State, Nigeria. A multi-stage sampling technique was adopted to select respondents for the study. Data were collected using three different sets of questionnaires administered on producers, wholesalers and retailers of shea-butter. Descriptive statistics, profit analysis, marketing margin and marketing efficiency tools were used for the study. Results show that shea-butter production in the study area is based on the traditional method. Total cost and revenue were highest for the producers compared to wholesalers and retailers (Producers- N31,360.00; N81,150.00, Wholesalers- N23,400.00; N54,550.00, Retailers-N10,300.00; N28,550.00). The wholesalers received the highest net profit (N31,150.00 per week), while the retailers received the lowest (N18,250.00). The rate of return on investment was highest for the producers (28.10), while the lowest was the retailers (16.70). Conversely, the benefit-cost ratio was highest for the retailers (2.77) and lowest for the producers (1.41). Estimates of marketing efficiency showed that efficiency of wholesaler (961.54%) was more than that of the retailer (436.90%). The production and marketing of shea-butter in the study area is profitable with some levels of market efficiency in the trade. Nevertheless, to enhance production of shea-butter in the study area, improved production methods should be adopted. The level of supply of shea nut must also be enhanced by focusing on domestication of the shea tree. Furthermore, there is need for product differentiation through innovative concepts among the wholesalers and retailers so as to increase their share of the gross marketing margin in the trade.
Keywords: Value chain, Decent employment, Gender, Sustainable forest management
ID: 3475468