governance and upgrading in high-value chains of non-timber forest
TRANSCRIPT
Department of Human Geography Goethe-University
Frankfurt/Main
GOVERNANCE AND UPGRADING IN HIGH-VALUE CHAINS OF NON-TIMBER FOREST PRODUCTS: THE CASE OF SHEA IN GHANA
DIPLOMA-THESIS IN HUMAN GEOGRAPHY (DIPLOMARBEIT)
WRITTEN BY: KAI SCHOLZ
BORN IN EBSDORFERGRUND (GERMANY), 29.09.1981 MÖRFELDER LANDSTRASSE 44
60598 FRANKFURT/MAIN MATRIKELNUMMER: 248837
26.08.2010
SUPERVISOR: PROF. DR. PETER LINDNER
CHAIR OF ECONOMIC GEOGRAPHY
FOREWORD AND ACKNOWLEDGMENT
When I first read about shea I was confused about the structure of the industry. This
confusion persisted during almost all my reading of the literature as well as my
research in Ghana. With this thesis I want not only to contribute to the sustainable
development of a region thus far so disadvantaged in growth, but also try to help
clarify this analytical and organizational disarray.
The thesis arose from a report prepared during an internship with Unique-
forestry GmbH. While the report had a more practical intention, this thesis also aims
at the epistemological level of research, trying to interconnect these two fields of
consultancy and academic research. In addition, it has also meant a continuous
reflection on my dual roles as both consultant and researcher.
The successful completion of this thesis could not have happened without the
knowledge and support of many others; people who supported me in this academic
endeavor. First of all I would like to thank Unique-forestry, namely Dr. C. Held for
providing me with the opportunity to carry out this study in Ghana. The continuing
support, supervision on site and collaboration of S. Ouma, MA, as well as critical
comments of Prof. Dr. P. Lindner from the Department of Human Geography at
Frankfurt’s Goethe- University, provided the foundation for improvements and
encouraged me to continue working on the study.
The work in Ghana was only possible through the support of many people
who offered me their time, knowledge or resources. While there are many people
who deserve my gratitude I shall only name a few: Dr. P. Lovett and his staff whose
connections opened many doors to actors in the field; Dr. J. Yidana of the University
for Development Studies at Tamale, who showed me insights and helped me make
valuable contacts and Ms. Safia Alhassan who was responsible for connecting me to
many women´s groups. I would also like to thank Ms. Adama Wuni for translating
between Dagbani and English and the transcription of numerous interviews, as well
as Sheikh Abdul Kareem of the Gub Katimali Society for lending me a motorbike.
I also would like to express my gratitude to Hanna Kallenberger, Shelly
Fleschute, Marcia and Byron Lewis as well as Katie Stevenson for patiently
reviewing my work. Finally, I would like to thank those individuals in the field who
patiently answered my questions; I hope that this thesis will benefit them by
contributing to the betterment of their lives.
ABSTRACT
This thesis examines the social and economic incorporation of actors in the global
shea value chain of Africa and Ghana in particular. By analyzing the entire value
chain and focusing on the upstream end, this thesis connects theoretical findings
with practical applications and provides a good overview of the shea value chain.
Focusing on governance issues and upgrading possibilities this study adopts an
extended global value chain approach which takes both vertical and horizontal
aspects of value chain organization and structuring into consideration. Utilizing a
qualitative methodology, experts at the upstream end of the shea value chain were
interviewed.
By researching the actors and their relationships along the value chain, this
thesis draws a picture of an industry crossed by various asymmetries of knowledge,
power, capital, and gender between different regions. Comparing the Ghanaian shea
value chain with other countries of the Sub-Saharan shea belt and with cocoa and
cashew value chains, the thesis contributes to an understanding of governance
patterns and further specifies upgrading possibilities for small scale producers and
businesses in the shea industry in Africa. Core findings include upgrading
opportunities with regard to organizational processes, products and niche markets
and emphasize required improvements in quality and quantity parameters.
EXECUTIVE SUMMARY
The study of governance and upgrading in high-value chains of non-timber forest
products: The case of shea in Ghana identifies patterns of incorporation of African
actors into a global network of production. Methods of analysis include qualitative
participant observations and semi-structured expert interviews with actors or groups
of actors at the upstream end of the shea value chain.
Shea often plays a significant role in both diet and subsistence income
generation of poor actors in Ghana and Africa because it grows semi-wild and is
readily available to most rural women to harvest. In contrast to alternative tree cash
crops, shea collection, production and trade have relatively low barriers to entry.
Because of different trade regimes, variation and unpredictability of species and
output quantity, performance in domestic and export production and trade varies
greatly between the countries of the Sub-Saharan shea belt.
The governance of shea trade in Ghana and other African producing countries
was heavily influenced by the state until structural adjustment took place in many
Sub-Sahara African countries. Today, state involvement is either still or once again an
important factor of governance in the industry. However, most markets have
undergone liberalization and have experienced concentration at downstream nodes
of the value chain. Oligopolistic transnational oil processors and global
manufacturers of food and cosmetic products have captured increasing shares of
value. After economic liberalization, new forms of governance evolved in producing
countries due to increased demand from global chocolate manufacturers, growing
transaction costs as well as risk of supply failure. First, especially in networks of nut
supply, vertical integration of trade in Africa became important to secure steady
supply. Second, along the value chain, shea transactions are increasingly done
through social networks and along family or ethnic ties of often globally connected
entrepreneurs. Third, proliferation of standards and certification of products are
greatly shaping the cosmetic value chain. In this case transactions are governed from
outside the value chain by nongovernmental organizations, and these organizations
are becoming actors of growing importance.
For actors at upstream nodes of the shea value chain, different upgrading
opportunities appear. Industrial processing is largely done outside Africa in
European, South American or Asian countries. Therefore, production of value-added
products for chocolate manufacturing, but also cosmetic markets would be of
particular benefit to African actors. However, a prerequisite is that governments
provide better financial and transport infrastructure. In order to enhance
involvement of producer groups´ and shorten supply chains as well as to prevent
purchases on speculations in the stock market, trade in West Africa should be
regulated.
At the traditional manual collection and processing levels, organization and
capacity building should be facilitated to enhance and upgrade livelihoods of rural
women. In contrast to other commodities from Africa, shea is unique in that it grows
with a variety of species and concentrations in various areas. If quality and quantity
constraints are overcome, different markets can be tackled. In particular, connections
to niche markets of certified or specialized products for the exportation and the new
invention of products for domestic markets are promising fields for upgrading.
V
TABLE OF CONTENTS
FOREWORD AND ACKNOWLEDGMENT .................................................................. III
ABSTRACT ............................................................................................................................ V
EXECUTIVE SUMMARY ................................................................................................... VI
TABLE OF CONTENTS ....................................................................................................... V
LIST OF ABBREVIATIONS AND ACRONYMS ......................................................... VII
LIST OF FIGURES, TABLES, PICTURES AND BOXES .............................................. IX
TECHNICAL REMARKS .....................................................................................................X
GLOSSARY ........................................................................................................................... XI
1. OBJECTIVE AND CONCEPTION OF THE THESIS ............................................ 14
1.1. Introduction ............................................................................................................ 14
1.2. Shea as a global commodity: State of research and epistemic value ........... 15
1.3. Objective and leading research question .......................................................... 19
1.4. Structure of the thesis ........................................................................................... 22
2. THEORETICAL FRAMEWORK AND METHODOLOGY .................................. 24
2.1. Researching global market connections: Theoretical approaches ............... 24
2.2. Methodology........................................................................................................... 31
2.2.1. Methodological approach ............................................................................. 31
2.2.2. Research methods, sampling and data analysis ....................................... 31
2.2.3. Data quality and limitations ........................................................................ 34
3. SECTOR AND VALUE CHAIN ANALYSIS OF SHEA WITH PARTICULAR EMPHASIS ON GHANA ................................................................................................... 37
3.1. Overview on the shea value chain...................................................................... 42
3.2. Shea value chain actors in Ghana ....................................................................... 43
3.2.1. Collectors ......................................................................................................... 43
3.2.2. Manual Processors .......................................................................................... 45
3.2.3. Women´s Groups ............................................................................................ 46
3.2.4. Small scale traders .......................................................................................... 48
3.2.5. Large scale traders .......................................................................................... 50
3.2.6. Exporters ........................................................................................................... 51
3.2.7. Industrial Refiners/Processors ..................................................................... 52
3.2.8. Manufacturers (end user) .............................................................................. 54
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3.3. Different local and global uses of shea ............................................................. 54
3.3.1. Traditional uses .............................................................................................. 54
3.3.2. Food uses .......................................................................................................... 56
3.3.3. Cosmetic and Pharmaceutical uses ............................................................. 57
3.4. Spatial and social organization of the shea value chain – a Ghanaian perspective ......................................................................................................................... 58
3.5. Governance in the global shea value chain ...................................................... 65
3.6. Upgrading opportunities and constraints for African actors ........................ 72
4. COMPARATIVE ANALYSIS OF THE SHEA VALUE CHAIN IN THE SUDANO-SAHELIAN ZONE ........................................................................................... 79
5. RELATIONS AND DIFFERENCES TO OTHER VALUE CHAINS IN THE REGION ................................................................................................................................. 83
5.1. The cocoa value chain ........................................................................................... 83
5.2. The cashew value chain ........................................................................................ 85
5.3. Lessons learned from cocoa and cashew ........................................................... 87
6. CONCLUSION AND A WAY FORWARD.............................................................. 89
BIBLIOGRAPHY .................................................................................................................. 95
APPENDIX I: ADDITIONAL FIGURES AND TABLES ............................................ 104
APPENDIX II: LIST OF INTERVIEWS ......................................................................... 112
APPENDIX III: INTERVIEW GUIDELINES ................................................................ 113
APPENDIX IV: SELBSTSTÄNDIGKEITSERKLÄRUNG ......................................... 120
VII
LIST OF ABBREVIATIONS AND ACRONYMS
AAK CBA CBE
Joint venture of Aarhus Olie United and Karlsham Cocoa Butter Alternative Cocoa Butter Equivalent
CBI CBS CMB CMC CNSL CSPPA EU FAO FFA FLO FOB g GCC GEPC GLOBALGAP GVC HACCP IBG INCO ISF ISO ITFC Kg Km LBC NGO NOP NTFP NWFP OECD OMOA p.a. PAHs PBC PV R&D SAP SFC
Cocoa Butter Improver Cocoa Butter Substitute Cocoa Marketing Board (COCOBOD) Cocoa Marketing Company Cashew Nut Shell Liquid Caisse de Stabilization des Prix et des Produits Agricoles European Union Food and Agricultural Organization Free Fatty Acids Fairtrade Labelling Organization Free-on-Board Gramm Global Commodity Chain Ghana Export Promotion Council Global Good Agricultural Practices Global Value Chain Hazard Assessment and Critical Control Points International Business Group Specific International Scientific Cooperation Activities International Society for Fat Research International Organization for Standardization Integrated Tamale Fruits Company Kilogram Kilometer Licensed Buying Company Non Government Organization National Organic Program Non-Timber Forest Product Non-Wood Forest Product Organization for Economic Cooperation and Development Organic Mango Outgrowers Association Per annum Polycyclic aromatic hydrocarbons Produce Buying Company Peroxide Value Research and Development Structural Adjustment Program(s) Savannah Fruits Company
VIII
SNV TNC UK US USADF USAID VC WATH WFTO
Stichting Nederlandse Vrijwilligers Transnational Corporation United Kingdom United States of America United States African Development Foundation United States Agency for International Development Value Chain West African Trade Hub World Fair Trade Organization
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LIST OF FIGURES, TABLES, PICTURES AND BOXES
Figure 1: Basic value chain highlighting horizontal and vertical elements .................. 26 Figure 2: Analytical framework and structure of the thesis............................................ 36 Figure 3: African shea producing countries export and local consumption 2004 as well as main shea belt ........................................................................................................... 38 Figure 4: Geographical overview of the basic global shea value chain ......................... 43 Figure 5: Actors network and relations in the global shea value chain ........................ 59 Figure 6: Five global value chains governance types ..................................................... 104 Figure 7: Transport governance through checkpoints on main trade routes in West Africa ..................................................................................................................................... 105 Figure 8: Traditional methods of shea kernel primary production ............................. 109 Figure 9: Extraction and refining vegetable oils ............................................................. 110 Figure 10: Governance types and power relations in African value chains of shea, cocoa and cashew ................................................................................................................ 111 Table 1: Shea nut and shea butter exports from Ghana 2000 – 2008 .............................. 40 Table 2: Key figures on Ghana........................................................................................... 104 Table 3: Shea kernel production and utilization (metric tons per annum) ................. 106 Table 4: Value chain shapers, opportunities and constraints by major producing countries................................................................................................................................ 107 Picture 1: Collecting of shea nuts on farmland and women returning from picking . 44 Picture 2: Primary processing in Ghana includes boiling, drying and de-husking .... 45 Picture 3: Processing of shea butter in a women´s group (near Tamale) using manual traditional methods ............................................................................................................... 47 Picture 4: Local female small scale trader with “loading boys” at Aboabo Market, Tamale ..................................................................................................................................... 50 Picture 5: Large scale trader stocking nuts in a warehouse at Tema ............................. 51 Picture 6: Mature shea fruits and nuts ............................................................................. 110 Box 1: Certification and Standards ..................................................................................... 72 Box 2: OMOA, a promising example of upgrading ......................................................... 78
X
TECHNICAL REMARKS
• Equivalencies: 1 Metric ton (MT or t) equals 1,000 kilograms (kg), (or 2,205
lbs). At the time of research, 1 Euro (1.3897 USD) was equal to 2.0621 GHC
(exchange rates July, 06th 2009).
• Citation/quotation: In text, citation follows the author (year: page) style. No
secondary sources have been used in the preparation of this thesis other than
those indicated in the Bibliography section itself. The literature used was
organized using the literature databank Endnote. Text passages from
interviews are cited under the code name (interview number: passage).
Interview and literal citations longer than 3 lines are quoted in italic, 10 pt. A
list of all interviews can be found in appendix II.
• Confidentiality: In order to guarantee anonymity, all names of the
interviewees have been changed.
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GLOSSARY1
• Certification: Third party confirmation that a product, process or service
matches certain characteristics or standards.
• Extraction: Separation of oil/fat from other components of the kernel.
• Fractionation: Method used (usually with the solvents acetone or hexane) to
separate the olein (oil) and stearin (fat) fractions.
• Free Fatty Acids (FFA): Indicator of degradation (glycerols separated through
the hydrolytic action of enzymes – lipases – on the triglycerides)
• Free On Board (FOB): term specifying port of loading and indicating that the
seller incur for the cost of transportation, loading and risk of goods until the
ship´s rail.
• Institutions: Established custom, system or organization that is considered an
important or typical feature of a social entity, governing the production,
marketing and consumption of shea.
• Magazia: women leader in the executive position of women´s groups. The
Magazia and her representative are responsible for the daily operations and
provide organizational and social guidance through regular meetings.
• Non-Timber Forest Products (NTFP) or Non-Wood Forest Product (NWFP):
All products of biological origin (plant or animal) other than wood derived
from forests, other wooded land and trees outside forests.2
• Olein: Low melting fraction (triacyl-glycerols high in oleic acid, e.g. O-St-O) of
shea nut, especially used in cosmetics.
• Organization: Social arrangement of an official group or corporation which
pursues collective goals. Organization can be process, functional or
institutional related.
1 Sources: LOVETT (2004); OUMA (2007); FAO (2008B), BATHELT and GLÜCKLER (2002: 29-30) and COLLINS (2009). 2 In this thesis NTFP and NWFP are used synonymously. For more information on certification and sustainability in NTFP see (WALTER et al. 2003).
XII
• Peroxide Value (PV): Indicator of rancidity degradation of unsaturated fat
through ‘auto-oxidation’ into peroxides. The value is defined by peroxide
oxygen per 1 Kg of fat.
• Polycyclic Aromatic Hydrocarbons (PAHs): Chemical compound consisting
of fused aromatic rings, which occur during smoking or roasting over open
wood fires and will hinder marketing.
• Primary processing: The accumulation, heating (boiling or oven-roasting) and
sun-drying stages required to produce dried kernel.
• Process(ing): Any stage by which the character of the shea fruit, nut, kernel or
butter is altered in terms of chemical quality or physical appearance.
• Refining: Method for purification of the shea butter. This process include
neutralization, bleaching, de-odorizing, filtering and drying
• Shea, Karité: The whole fresh fruit includes sweet edible pulp and whole nut.
The whole nut or seed consists of (de-pulped) kernel and husk. The kernel is
the (de-husked) nut or seed (FAO recommends drying below 7%). Shea butter
includes the oil/fat extracted from the kernel3
• Standard: Agreed criteria and external points of reference by which a product or
service‘s performance, its technical or physical characteristics, and/or the process
and the conditions under which it has been produced or delivered can be
assessed.
.
• Stearin: High melting fat fraction (high in stearic acid, e.g. St-O-St) of shea
nut, especially used in food products like chocolate.
• Traceability: The ability to trace and track food, feed, food-producing animals or
substances through every step in a production and distribution chain (from field
to fork).
3 If not specifically labeled, the term shea is used to describe shea nut, shea kernel or shea butter synonymously.
XIII
• Unsaponifiables: Large group of chemicals found in high concentrations in
shea butter (3-12%). Important for soap making and therapeutic properties
such as moisturization, conditioning, vitamins, and texture.
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1. OBJECTIVE AND CONCEPTION OF THE THESIS
1.1. Introduction
While Africa´s share of world exports declined about 50 % from 1980 to 2007, shea, a
nontraditional export commodity from Sub-Saharan Africa (SSA) increased in export
volume, linking this region to the global economy (LMC 2006; UNCTAD 2008). Shea
is a nut which grows endemic and semi-wild in twenty4
This thesis on “Governance and upgrading in high-value chains of non-timber
forest products: The case of shea in Ghana” arose from a consultancy report prepared
during a six month internship with Unique-forestry as part of the EU-funded INCO-
research program, “Innovative Tools and Techniques for Sustainable Use of the Shea
Tree in the Sudano-Sahelian Zone” (INNOVKAR). INNOVKAR is one of a number of
initiatives that propose an integrated and innovative approach which combines
biophysical, biological, chemical and socio-economic research to improve both
quantity and quality of the production of shea products in order to promote more
sustainable trade. The project is divided into ten work packages, with work package
(cf. ADDAQUAY 2004: 2;
HOLTZMAN 2004: 4; LOVETT 2004) countries of SSA. The nut is collected and
sometimes processed into shea butter by many African women in the rural areas of
these countries. Because both the nut as well as the butter are often exported and
consumed in the Global North, this commodity connects local actors with global
markets. Identifying and unveiling the exact ways of this incorporation into global
dynamics, this study adopts the analytical approach of global value chain (GVC)
analysis. The overall aim of this study is to understand governance structures within
the shea value chain (VC) and their relation to prospects of upgrading. In other
words this means reconstructing how local producers and processors in Ghana can
upgrade their operations to reap higher shares of value in global heterogeneously
structured value chains (VCs).
4 These are: Benin, Ghana, Chad, Burkina Faso, Cameroon, Central African Republic, Ethiopia, Guinea- Bissau, Cote D’Ivoire, Mali, Niger, Nigeria, Senegal, Sierra Leone, Sudan, Togo, Uganda, Democratic Republic of the Congo, Guinea- Conakry and The Gambia (see figure 3).
15
9 being handled by Unique-forestry consultants GmbH, for which the initial report
was made. The objective of work package 9 ”Markets and Trade Patterns”, is to
analyze the VC of shea products. It will also help to shape a trade and policy
environment, which can assist poor producers and economically marginalized
producer countries to participate more effectively in the global shea economy.
1.2. Shea as a global commodity: State of research and epistemic value
Historically the widespread use and trade of shea nut across West Africa is well
documented by sources such as PARK (1799), who was one of the first describing the
economic potential of shea. While shea had a local and regional importance for
centuries in the African Savannah region, in the past thirty years or so there is a
growing global prominence of shea and its various products5. This resulted in a vast
and heterogeneous body of literature from various disciplines with different
objectives6
With the proliferation of the ‘global value chain concept’ (GEREFFI et al. 2005;
GEREFFI et al. 1994) as a research tool to study the world economy, a growing number
of studies used this approach to analyze the governance structures of the shea
industry and its upgrading consequences for African actors. However, while many
studies are referring to the sustainable livelihood concept and gender issues in a
.
5 Evidence of such importance is the establishment of the program "Promotion and Development of Non-wood Forest Products (NWFP)" under the Forest Products Division (now the Forest Products and Industries Division) of FAO's Forestry Department in 1991. This program aims to improve sustainable utilization of NWFP in order to contribute to the wise management of the world's forests, to conserve their biodiversity, and to upgrade income-generation and food security (FAO 2008a). 6 HALL et al. (1996) elaborated a comprehensive standard reference, describing the biology, ecology, products, customs and uses of shea. For the most part however, the body of literature is confined to consultancy and technical reports such as the WATH technical reports, for example, on industrial shea processing and refining (ADDAQUAY 2004), on the opportunities, constraints and possible interventions for shea actors in West Africa (LOVETT 2004) and on the opportunities for distribution of high quality shea butter in US cosmetic market (STATHACOS 2004) (all three reports have been reviewed by HOLTZMAN 2004). Consultancy reports giving a market overview are offered by FERRIS et al. (2001) and FINTRAC (1999, 2002) describe the economic and environmental prospects for the shea sector of Uganda, especially the market prospects for a range of low value, traditional products and high value, export Shea products in the local, national and international context. A study by DERKS and LUSBY (2006) focused on the risks and Benefits for actors in Mali´s shea kernel VC investing in upgrading operations and its consequences to overall value chain competitiveness.
16
specific local setting, only a few have a profound epistemic value which is connected
to the theoretical background7
A well-researched book edited by FOLD and LARSEN (2008) reveals
globalization in Africa as an uneven process, integrating or re-integrating some
localities and communities in global flows of goods, finance and information, while
marginalizing or excluding others. Based on an GVC approach FOLD and PRITCHARD
(2005) specifically study the restructuring of global food chains under liberalization
and globalization processes. However, in an article issued in the Journal of Agrarian
Change, FOLD (2008) highlights the restructuring of transnational sourcing practices of
different commodities from Ghana. The analysis is based on a profound discussion of
VC approaches, taking different academic debates into account. FOLD (2000, 2004)
discusses in a hypothetic-deductive way the restructuring and dynamics of shea and
cocoa VCs in Ghana under liberalization. He addresses the local effects and
alterations to the quality control systems (also in respect to quality aspects and
standards), but largely fails to consider the people´s practices, challenges and
perceptions and the power structures and social relations in a global network
environment.
.
KONADU-AGYEMANG and ADANU (2003) argue that Ghana´s shift of emphasis
during the Structural Adjustment Programs (SAPs) from traditional to non-
traditional export goods (such as shea) is not only helping to reduce vulnerability of
the whole economy by diversifying earnings from export, but is especially helping
regions like the Northern Region traditionally left behind. Analyzing the connections
between gender inequality and poverty in Ghana, AWUMBILA (2006: 159) concludes
that, “women are generally more vulnerable to poverty and once poor, have less
options in terms of escape”. This elucidates the importance of recognizing unequal
gender relations and economically weaker regions in poverty reduction strategies
and upgrade possibilities in shea markets. Sustainable upgrading strategies can also
7 A good exception documenting the relationships and ethics embedded in fair trade coffee from Mexico is presented by JAFFEE (2007).
17
be derived from related studies in different commodities in Ghana. Here the work of
KAUFMANN and JACOBI-SAMBOU (2006) can be cited, as they examine a poverty-
orientated VC promotion for domestic and export markets in three commodities
(mango, gari and grasscutter)
CHALFIN (1996, 2000, 2004) discusses shea from an economic anthropology
perspective, emphasizing the effects of SAPs and the privatization and liberalization
of the shea markets during the 1990s. Concentrating on the Ghanaian market and the
state, CHALFIN points out that deregulation led to increased specialization and a
growing number of middlemen in shea trade, leaving many people in insecure
economic positions. She notes that new private firms (firms which, compared to
Ghanaian enterprises, had less restricted financial resources) entered the market and
emulated the former PBC system of quasi monopolies with their purchasing system.
According to CHALFIN, the economic uncertainty caused by the effects of structural
adjustment, world market price fluctuations, ambiguous state policy and local
political and environmental dynamics in shea markets is mitigated by social
networks and collective action. In particular, female actors at the bottom of the VC
guard their economic position through knowledge and adaption of flexible strategies.
However, CHALFIN´s (2004) discussion of the shea industry and its unidirectional
relations to the global market appears at times to lack precision and sophistication.
In a more practical debate8
8 There are several publications and symposiums which serve as guidelines for practitioners with a value chain approach showing experiences to secure market access for smallholder farmers and indigenous marginalized communities. See for example: KIT et al. (2006), the WATH Global Shea conferences, or the 2002 FAO workshop, attempting to increase and sustain the total shea resource productivity over time through a coordinated, regional approach to critical issues of technical development, training and extension, networking as well as exchange of technical and market information between producers and other stakeholders.
about upgrading possibilities in shea VCs, GREIG
(2006) notes that the export of fairly traded shea butter from Burkina Faso has the
potential to sustainably improve the livelihoods of rural women. Similarly,
D´AUTEUIL (2008), in a case study from the same country, emphasizes that organic
and fair trade certification offers both benefits and difficulties to rural women´s
18
organizations producing shea butter. In a study of supply and demand of NTFP in
Benin SCHRECKENBERG (2004a) investigates the contribution of shea butter to
women´s livelihoods, attributing shea as a vital function in local economy but only if
marketing constraints could be overcome. However, by stressing that “developing a
fair-trade industry, conscious effort and action need to address the barriers and
potentially negative side effects”, GREIG (2006: 473) also emphasizes the ambiguous
character of the shea sub sector.
After liberation processes in the African economies involved in shea
production, many works were focusing on oppotunities to increase productivity,
quality and quantity of the production process. For instance HYMAN (1991: 1265)
argues that labor saving technologies for processing shea nut butter and decreases in
unpaid labor time lead to upgrading of productivity and economic wellbeing in rural
areas of less developed countries like Mali. Here limited reach of these strategies
became obvious because of problems of power termination, maintenance and
replacement of equipment, training in proper operation and cost of the initial
investment. A similar study by GALLAT and COLLINSON (2000) examines the
profitability of small-scale shea butter processing by rural women´s groups (in
Ghana), using the hand operated bridge press technology. They conclude that the use
of the bridge press is neither economically viable nor a particular promising
technology to be managed within a group context. In a more recent thesis PERAKIS
(2009) proposes different quality improvement strategies in high VCs of shea in Mali
as upgrade possibilities in rural developments.
It becomes obvious that all the upgrading strategies for sustainable rural
development through trade in shea products need channeling and quality
improvements (MASTERS et al. 2004) instead of simple technology solutions.
However, reviewing the literature on upgrading, there is still much to be analyzed, if
such a heterogeneous and difficult to assess industry could be upgraded in a classical
way.
19
It becomes apparent then, that most literature reviewed is lacking a profound
theoretical basis and therefore fails to associate the empirical evidence to a
geographically epistemic scope. The presented body of literature serves as a
guideline, but it also underscores the need to consider the evidence experienced in
the field and critically evaluate it against the literature. Consequently, an actor-based
VC study which focuses primarily on shea is the matching tool to elaborate the
specific global and local patterns of governance in unequal structured trade networks
in an unpredictable environment.
1.3. Objective and leading research question
The objective of this study is to provide a profound understanding of VCs of shea
nuts and shea butter. Since the concepts of governance and upgrading are
fundamental elements of VC research, this thesis will go into detail on those basic
essentials.
Through the study of the Ghanaian shea industry, the scope of actions and
adjustments for local producers and actors of the VC will be assessed. Therefore, the
main focuses of the research are the women collectors and producers at the upstream
end of the VC. However, the broader VC environment of downstream actors and
surrounding institutions or organizations is also observed9
9 Descriptions of the term “institution” and “organization” often remain vague and ill-defined. Following BATHELT and GLÜCKLER (2002: 29-30) the term institution is used in this thesis in a broad sense, encompassing (1) informal rules, norms, conventions, customs and traditions mutually approved and reproduced by actors or (2) formal institutions established over time, which become predefined basis of transactions, including laws, research institutions and public authorities. Institutions facilitate coordination among people, by helping them to form expectations and assurance respecting the actions of others. The term organization though, is rather narrowly defined as a system of deliberate action based on the division of labor between a limited number of members delimited from its surrounding.
. Through a relational
perspective this thesis will elaborate the socioeconomic networks between women
pickers, local producers, traders, exporters and global actors in cosmetic,
confectionary and local markets. To capture a detailed and thus equally general
picture of the shea VC, this thesis connects the specific Ghanaian context by referring
20
to the whole sub sector literature. Using the empirical study of the perceptions,
constraints, challenges and potentials of actors in the shea VC the thesis attempts to
elaborate a profound understanding of the superior trends in chain governance as
well as implications and structures at the local level. From this perspective, a primary
research question can be outlined:
What are the governance structures within the shea VC, how do these relate to
prospects of upgrading, and how can local producers and processors in Ghana upgrade
their operations to reap higher shares of value?
Related to this question are six further, more detailed subjects which need
supplementary consideration. Assuming that it is not just individuals in a network
environment, but also institutions and organizations (such as customs, laws,
consumers or groups of actors) that have an interacting and governing role in the
shea VC, the following questions are required:
1. What roles do formal and informal institutions and organizations play in the
governance of the shea VC?
2. What roles do international actors such as global buyers of shea play in the
governance of shea VC?
These questions refers to a difficult to explore and therefore empirically insufficient
treated subject area in shea research. There are several reasons for this: the
international chocolate industry, which manufactures the bulk of shea produce, is
very reserved and secretive in giving information on their production and trading
patterns. At the same time, the growth of shea exports destined for high quality
cosmetic products is adversely structuring global trade patterns.
3. How and by what means and practices do these actors uphold governance
patterns?
This question is directly related to the previous, referring to actors maintaining trade
affiliations over distance in heterogeneously structured networks in an imponderable
environment. It is assumed that actors in shea VCs constantly invest in forging
connections on a global scale, in both directions on a North-South axis.
21
4. What implications do these patterns have for upgrading capacities for local
collectors, processors and traders?
This question refers to the interregional flows and patterns of social interaction that
deepen power asymmetries and dependencies between actors in territorial networks.
What are the perceptions resulting from these relationships and how could these
structures be changed to upgrade local economies? In order to successfully answer
this question, we need to revise our classical understanding of upgrading and take
into account the horizontal and contractual aspects of VC analysis. For that reason,
the open elaboration of positive and negative effects of vertical and horizontal
upgrading strategies, standards and certification is subject to the fifth and sixth
question:
5. What are the different factors influencing upgrading constraints and opportunities
in the shea VC in Ghana?
6. What problems, opportunities and differences in governance and upgrading can be
derived from a comparative analysis of the shea VC in the whole Sudano-Sahelian
Zone? What are the relations to and differences from coordination to other
commodities like cocoa and cashew?
These questions highlight the aspiration of this study to connect the findings to the
existing literature and to similar governed and related commodities of the Savannah
Parklands. Core issues are: what are the differences in coordination, how are
producers involved, what are the roles of institutions and organizations in these
chains in different countries, why are there differences in quality and quantity, how
are these VCs interrelated, what implications do differences and similarities have for
governance and upgrading in shea VCs?
7. How can VC governance and organization be changed in order to sustainably
improve the lives of the local actors involved?
This final question refers to the overall theoretical and practical conclusions that can
be drawn from the analyses of governance patterns in the shea VCs. It will position
the findings in the discussion about upgrading possibilities and overall meta-trends
22
in global shea governance patterns. This thesis includes the analysis of secondary
data as well as the collection and analysis of primary data, using an adopted global
VC approach. By analyzing the governance structures of cocoa and cashew VCs in
Ghana and its neighboring countries and comparing shea production in different
regions of Africa, this study focuses on governance patterns and upgrading
possibilities within the shea VC.
1.4. Structure of the thesis
To frame the research, chapter 2 outlines the theoretical structure and the
methodological conception of the study. It includes an introduction to the GVC
approach, its key propositions and background. Moreover, this chapter focuses on
the global production network (GPN) theory as an extended concept in VC analysis.
In addition, the theoretical aspects of governance and upgrading in VCs are
discussed. The second part of this chapter outlines the methodology used,
introducing the research methods and sampling procedures. Furthermore, it deals
with issues of data quality, validity, limitations and the process of data analysis.
Chapter 3 analyses the shea industry and the whole sub-sector VC with a
particular emphasis on Ghana. It gives a brief overview on the commodity, its market
structure, dynamics and development. The subchapter 3.1 provides a first overview
on the GVC. Subchapter 3.2 provides an overview on the different actors of shea in
Ghana. Subchapter 3.3 outlines the different uses of shea worldwide and at the same
time connects these to the constraints and opportunities for African actors.
Subchapter 3.4 gives a detailed map of the shea VC and discusses core findings from
the data obtained in the interviews, elaborating the social perceptions and problems
of the different actors of the African producing region in detail. Subchapter 3.5
analyses the governance structures within the VCs, whereas subchapter 3.6 discuss
upgrading possibilities for upstream actors under the specific institutional,
organizational and environmental conditions identified.
23
Shifting the focus to a cross-country perspective, chapter 4 compares other
African countries of shea production along a set of specific characteristics with the
Ghanaian case. Chapter 5 provides a comparative analysis of the differences and
similarities to the cocoa and cashew VCs to derive some conclusions for changes in
the shea VC. Finally, chapter 6 concludes the core findings and gives
recommendations for policy implications and further research.
24
2. THEORETICAL FRAMEWORK AND METHODOLOGY
This chapter provides an overview on the theoretical framework and the
methodology used in the thesis. The focus of this study, however, lies on the
interconnection between the broader theoretical background, further action research
and the practical implications for VC development. For more information on the
theoretical dimension of GVC analysis in general, see the attached bibliography.
2.1. Researching global market connections: Theoretical approaches
For at least the last 20 years, researchers from different disciplines have tried to come
up with systemic approaches to describe and analyze the vertical integration or
disintegration of production- and distribution processes in the global economy (see
for e.g.: DICKEN 1998; HENDERSON et al. 2002: 439; KAPLINSKY 2005; KAPLINSKY and
MORRIS 2001: 6-8; PORTER 1985, 1990; SCHMITZ 2004).
The early development of the VC research reaches back to the concept of VC
or value-adding chain in industrial economics and in business studies literature (see
for e.g., PORTER 1985, 1990). This approach concentrates on the value adding process
in each link (company) and the network structure of the chain evoked by input and
output intra-link activities (KAPLINSKY and MORRIS 2001: 6-8). The notion of
management is central to this perspective of the chain. The constant goals to cut costs
and exert control over the efficiency of each section as well as the “make or buy”
difficulty are essential criteria. This concept of the VC emerged from an economic
view, and by absence of corporate power issues, “the institutional contexts of – and
influences upon – firm-based activities, or the territorial arrangements (and their
profound economic and social asymmetries) in which the chains are embedded”; it
has little relevance for the study of economic development (HENDERSON et al. 2002:
439).
A second tool for studying commodity-focused development is the French
filière approach (see for example LENZ 1997; NUHN 1993). Filière studies started in
the 1960s as an empirical analysis tool for contract farming and vertical integration in
25
French, as well as in developing countries’ agriculture. During French (post) colonial
agricultural policy, the filière approach initially dealt in a practical way with local
production systems and consumption, but was soon applied to studies of trade and
networks. It also contributed to the French regulation school and its analysis of a
change in accumulation regime from “Fordist” to “Post-Fordist”.10
As a third concept within these attempts, GARY GEREFFI´s global commodity
chain (GCC) approach can be highlighted (GEREFFI et al. 1994). One can place
GEREFFI´s work within the ‘dependency ’ tradition of development analysis, where he
makes an effort to operationalize world-system categories for the empirical study of
cross-border, firm-based transactions and their relation to development (HENDERSON
et al. 2002: 440)
11
HOPKINS and WALLERSTEIN (1986: 159) define such a GCC simply as “a
network of labor and production processes whose end result is a finished
commodity”. Basically the commodity chain is composed of a natural resource, an
idea, item, or service which is combined with labor inputs, to be marketed,
distributed and consumed and eventually recycled (see figure 1). Refined by
GEREFFI´s definition (1994: 2), “the GCC consists of sets of interorganizational
networks clustered around one commodity or product, linking households,
enterprises, and states to one another within the world-economy”. These networks
are situation-specific, socially constructed (also by an institutional body, like the
state), and locally integrated (in territory), underscoring the inherent societal
foundations of economic organization.
.
10 For further information, see RAIKES, et al. (2000). 11 The concept of GCC emerges from broader world system theory concepts. In the critical tradition of the studies of global capitalism, the world-system (macro)-theory (HOPKINS and WALLERSTEIN 1986, 1994; WALLERSTEIN 1974) reveals the utopian fallacy of economical development through integration into the world economy. World-system theorists explain the growing differences in wealth among global South and North as a consequence of uneven balances of power between different places in the global “core” (capital accumulation, processing and upgrade of goods), “semi periphery” and “periphery” (processing of basic goods and exploitation).
26
Figure 1: Basic value chain highlighting horizontal and vertical elements (Source: Own design after
BOLWIG et al. 2008: 38)
With the special emphasis on governance within the GCC framework, GEREFFI
and others have shown that the various activities in the chain – both within
companies and in the division of labor between companies – are subject to explicit
non-market forms of coordination. This coordination differs from the notion of
management mentioned in earlier concepts of global economic organization. VC
governance is then conceived as driving power exerted by a specific actor. “Power
asymmetry is thus central to VC governance. That is, there are key actors in the chain
who take responsibility for the inter-firm division of labor, and for the capacities of
particular participants to upgrade their activities” (KAPLINSKY and MORRIS 2001: 29).
Within the GCC framework there are two distinctive types of players12
12 The terms “player” and “actor” are used synonymously in this thesis, because they both emerge in the literature.
who exert
power in the chain: producer and buyer. On one hand, in producer driven, or
vertically integrated commodity chains, governance springs from producers who are
main players in the chain, like assembly companies in the automotive or computer
industry. On the other hand, in buyer driven chains, buyers, like large retail brands,
marketers or traders, exert a high degree of control over spatially dispersed
27
producers. By concentrating on labeling, marketing and distribution, they generate a
much higher value than their producing counterparts.
A slightly differentiated view on the vertical integration or disintegration of
production- and distribution processes is provided by the GVC approach. This
approach outreaches the GCC concept by emphasizing the linkages between
governance and processes of value addition at individual firm level, showing the
sometimes very asymmetrical power relations and levels of participation in GVCs. It
also abandons the commodity term, which denotes a rather standardized product,
and thus is clearly inadequate for Post-Fordist production, where more and more
rents are generated through intangible activities (such as services) in the chain. This
deductive concept goes beyond the dichotomist typology of producer-driven vs.
buyer-driven chains and develops a more complete view on governance and
coordination.
In a paper coauthored by GEREFFI et al. (2005), (based on the work of
HUMPHREY and SCHMITZ 2000, 2002; STURGEON 2002; STURGEON and LEE 2001) which
was published in the Review of International Political Economy in 2005, the authors
identified five different types of GVCs ranging from market to hierarchy arrayed
along the dual spectrum of explicit coordination and power asymmetry (see
appendix I: figure 6). “According to this theory, the type of governance prevailing at
the link between two firms is determined by the values (measured as ‘low’ or ‘high’)
in three independent variables: the complexity of transactions, the codifiability of
information, and the capabilities of the supply base” to produce a product according
to specific quality requirements (BAIR 2009: 13).
New patterns of social interaction under changed structures of globalization
and VCs different from the manufacturing industry, however, need different
analyzing tools, describing social relations beyond nationally bounded social entities
(transnational networks). The interplay between local and global private and public
governance, how people, places, information, services, goods and capital are linked
together through production and value addition, is expressed by the term network
28
economy (MESSNER 2004)13
Like the work on GVC research, the “Manchester school” of GPN evolved in
dialogue with, and as critique of, the GCC framework (HENDERSON et al. 2002;
MESSNER 2004). This concept overcomes the notion of “commodity” and “chain” in
GCC or GVC approaches, where actors not directly involved in value added are only
fragmentary observed. In contrast to this concept, the GPN theory favors a value
chain perspective which is shaped by circular, iterative and complex interactions of
various actors. By considering territorial and network embeddedness
. This concept raises important questions about classical
center-periphery models (biased towards a world-system theory), as new
fragmentary spaces and configurations develop through integration and exclusion of
regions and actors in shea industries.
14
“[…] space is far better incorporated in the Global Production Network (GPN) approach in which
actors shaping global (production network) dynamics are anchored in different places and multiple
scales, thereby creating an explicit analytical link between a particular GPN and (subnational) regional
development”.
of VCs and
the analysis of social, institutional and local political dimensions it improves the VC
research (BAIR 2009: 4; STAMM 2004). FOLD (2008: 98) argues that,
Consequently, GPN serves as an appropriate basis for the analytical work in this
thesis, following the tradition of a relational economic geography where trade on a
global scale happens between different organizations and institutions in a socially
and economically interwoven way (DICKEN 1998: 1-8)15
13 KAPLINSKY (2000: 127) together with MORRIS (2001) acknowledges that, relational rent, the rent accruing from governorship itself, becomes an important factor in the economy of complex value chains subject to coordination.
.
14 In response to under- and oversocialized perceptions of economic action GRANOVETTER (1985) introduces the argument of ‘embeddedness’, illustrating how behavior and institutions are affected by social relations. From this perspective, economic behavior is closely embedded in networks of interpersonal relations. Consequently, markets are socially constructed (opposing an economist comprehension of behavior) and therefore need to be studied under an appropriate and flexible analytical framework linking economic and socio-cultural processes. 15 Such as ‘arm´s length’ relationships between states (sometimes asymmetrical and unequal) or the highly location-flexible production and distribution networks of transnational corporations´ (TNCs), transcending the boundaries and integrating parts of the economies of individual nation states.
29
However, researches in shea VCs need further reflection on horizontal levels
to elaborate a heterodox and herewith complete picture. BOLWIG et al. (2008), as well
as others (BAIR 2009; HENDERSON et al. 2002; HUMPHREY and SCHMITZ 2001;
KAPLINSKY and MORRIS 2001; LESLIE and REIMER 1999; STAMM 2004), note that certain
horizontal connections such as gender, class, wealth, environment and time must
also be considered. Consequently, adopting a flexible analytical framework referring
to a new economic geography the concept of livelihoods can be theoretically important,
approaching classic economic processes as well as social relations and diverse modes
of alimentation.
Besides the differences in the conceptualization of governance, there are also
differences in upgrading possibilities for players along VCs. Upgrading can be
roughly defined as the possibility of moving into more sophisticated and therefore
higher value adding processes, products, functions or different VCs/sectors by
recognition of economies of scale and scope (KAPLINSKY and MORRIS 2001: 37-39).
HUMPHREY (2003: 15-19) identifies strategies for companies to facilitate upgrading.
These strategies can include market diversification, excellence in manufacturing and
effective use of knowledge acquired from within the VC. From a policy perspective,
the integration into GVCs can be promoted through organizational support, national
policies for transport infrastructure development, facilitated access to imported
inputs, access to specialist foreign labor, and finally access to qualified labor and
certification. BOLWIG et al. (2008: 7) define upgrading as:
“[…] a desirable change in value chain ‘position’ [… by] strengthened value chain coordination
(improved linkages) around the production node, achieved either through vertical integration (one actor
undertaking multiple chain activities) or through increased contractualization (longer-term and more
complex economic relationships between chain actors), [or by] specific forms of upgrading that improve
performance within the production node, such as improving product quality, increasing volume,
complying with standards, etc.”.
According to SCHMITZ (2004: 7-8) the upgrading opportunities of local producers
vary according to the type of chain governance. He distinguishes between four
different types of upgrading, which should improve long-term relationships in a VC:
30
process upgrading (re-organizing the production system to be more efficient), product
upgrading (increasing unit-value by moving into more sophisticated product lines),
functional upgrading (increasing skill content by acquiring new functions in the chain)
and inter-sectoral upgrading (moving into new chains).
However, for prudent upgrading it is essential to carefully identify action
points along the chain where interventions are likely to have the most impact and
where no further entry barriers are formed. Following the governance patterns of the
GPN framework, in terms of upgrading, not only economic value but also value of
improved social relations or environmental benefits, such as gender equity, and
sustainability are taken into account. The target of strengthening supplier
organizations or rural women´s groups in bargaining power, marketing and
producing seems to be a good way to enhance rewards and/or reduce risks to weak
chain actors. BOLWIG et al. (2008: 17) notes, that “Rewards and risks are understood
not only in financial terms but also in relation to the environment, poverty alleviation
and gender equity”. Here, the critical review of classical upgrading categories call for
the strengthening of horizontal and contractual perspectives in theories of
upgrading. Especially in the case of the shea VC, with its heterogeneously structured
networks of production and consumption, this adapted theory forms a good basis for
this thesis.
Notwithstanding the broad discussion of the theoretical concepts of VC
research, there are sparse essential differences in the empirical implementation of the
various frameworks. An important practical aspect, however, is the adjustment of
these sometimes inflexible theories of governance and upgrading to different realities
where there can be different types of governance in one chain or more than one lead
firm exerting power over players in the same chain.
31
2.2. Methodology
2.2.1. Methodological approach
The empirical fieldwork in Ghana was conducted from the beginning of May until
the beginning of July 2009. This time was chosen to capture the season when shea is
produced and marketed. Following the theoretical framework and the objectives of
the INNOVKAR program, the research is focuses on the upstream end of the VC, but
it is also taking the whole VC into account.
In the sense of qualitative research, the social reality and the reality of socially
constructed markets of shea are induced through communication. Hence, the
versions and perceptions of reality people have in relation to others continuously
construct and affect reality. In this sense of truth, the researcher can only approach
the constant changing reality through discourse and openness (MAYER 2009: 23). In
the “qualitative paradigm” one can argue, that the analysis is structured by the
subject of study itself (GLASER and STRAUSS 1967: 37; GLÄSER and LAUDEL 2009: 30;
LAMNEK 2005: 21-22). The basis of the research design applied is a comparative statal-
analysis of the shea industry in Ghana. In contrast to the model of grounded theory
proposed by GLASER and STRAUSS (1967), the intention of this thesis is not the
development of new theories, but rather lies in the profound description of the
ongoing reality and follows the practical goals of the INNOVKAR objectives as well
as the private objective of the diploma-graduation. However some of the
methodological instruments GLASER and STRAUSS offered, such as the theoretical
sampling or the fundamental idea of openness, were integrated into the research
design of this thesis, but could only be partially realized due to limited resources as
well as epistemological and manageability concerns.
2.2.2. Research methods, sampling and data analysis
Because of the explorative scope of this study and the limitations in resources a
triangulation in qualitative and quantitative methods was renounced. However,
methodological triangulation was applied to ensure a maximum of theoretical
32
generalizability16
Three different types of methodology were adopted in this study: participant
observations, semi-structured expert interviews and group focus discussions. The
interviews were administered using an interview guide. These guidelines differed
from one actor of the VC to another, but had common characteristics: openness, low
situational structuring, low level of standardization, and an open-ended (non-
directional) question type. The prepared questions served as a guideline to keep the
interview focused on relevant topics, ensure comparability and prepare the
researcher as a competent interlocutor (FLICK 1998: 76-97). They were designed to
stimulate explanations, rather than asking suggestive questions which led in a certain
direction. This method of expert interviews is applied to get knowledge of the field of
research from a close subjective perception. However, the different “Lebenswelten”
of the researcher and the expert made a constant operationalization and translation
of the central questions necessary (GLÄSER and LAUDEL 2009: 112-115).
through the analysis of the shea industry. The strategy of
triangulation was used in this study to explain and safeguard perception through
additional perception (FLICK et al. 2003: 311) in an iterative and cyclical process (FLICK
2003b: 318). In this way triangulation enhances the quality of research through
different ways of analysis. “Triangulation puts the researcher in a frame of mind to
regard his or her own material critically, to test it, to identify its weakness, to identify
where to test further doing something different.” (FIELDING and FIELDING 1990: 24).
To ensure validity and feasibility of the study, the degree of organization and
the geographic proximity to Tamale, Ghana were the main criteria of selecting the
interviews with producers at the upstream end of the VC. Consequently, some of the
women´s groups had been in business for a long time, some were newly formed and
some were loosely organized or, as in case of the individual producers, without any
organization at all. By selecting various cases contrasted by difference in size,
organizational degree, outside support or market connection, a maximum variation
16 For a detailed and critical discussion on generalization in research theory see (PRZYBORSKI and WOHLRAB-SAHR 2008: 311-350).
33
of the sample was achieved (MERKENS 2003: 292). The sampling procedure of the
experts followed rules of triangulation and potential information of the experts,
resembling the procedure of theoretical sampling (GLASER and STRAUSS 1967; also
discussed in MERKENS 2003: 290-297). In contrast to the approach proposed by
GLASER and STRAUSS the researcher studied the literature and theoretical background
of the research field before entering the empirical work17. Consequently he had some
basic questions and ideas of sampling in mind, but selection and number of cases
were constructed and modified during the research process18
Altogether 21 interviews were carried out, fully transcribed and summarized.
The interviews were conducted in English, but in ten cases of the producing
individuals (3) and women´s groups (7) the interviewer was accompanied by an
interpreter for the local language Dagbani. To cover the rest of the Ghanaian VC,
seven traders/exporters were interviewed. Furthermore, it was important to conceive
the perspective from surrounding institutions. Therefore, one representative from an
NGO, one from the were interviewed. An overview of the interviewees is presented
in the appendix II section, whereas the analytical framework of the research is
visualized in figure 2.
.
The discussions and thoughts during the research process were accompanied
by field notes in a field log and a digital recording device for transcription. The notes
taken during the whole research process, later described as memos, were necessary
to document and reflect the experiences and problems in the field. In particular,
notes ascribing authenticity, openness, spontaneity, and reference to theory were
important. The interview transcripts were analyzed using the basic questions and
17 Prior knowledge and assumptions served not strictly as ex-ante hypotheses than more as a common thread guiding the research concept. A critical discussion on hypotheses and prior knowledge in qualitative social research gives MEINEFELD (2003) . 18 Because of practical and epistemically reasons the experts were approached in a “bottom up” hierarchy (cf. MERKENS 2003: 293).
34
theoretical assumptions to derive a multi-chain category system, ordering the
perceptions, problems and action of the actors in relation to the research objective19
The data evaluation neither followed the strict rules of deduction or induction,
nor did there appear flashes of genius in abduction. Instead, structuring and analysis
during the research process followed a combination of these strategies, giving the
opportunity to derive new insights and hypothesis as well as to get a profound and
more complete picture on the shea sub-sector (FLICK et al. 2003: 251; REICHERTZ 2003).
.
2.2.3. Data quality and limitations
In contrast to quantitative research, qualitative research methods need different data
quality criteria. These criteria relate mainly to the main phases of data collection,
interpretation and presentation in the research process. Besides these specific criteria
of quality, there are more universal quality criteria in qualitative research. According
to MAYRING (2002: 140-148) these are: (1) the documentation of research procedure,
(2) argumentative interpretation, (3) rule-governance, (4) contiguity to the research
object, (5) communicative validation, and (6) triangulation.
A weakness of qualitative research designs, as in the present case, is the
different relations the researcher has to the subject or object of study. As FLICK (1998:
54-61) points out, both scientific distance and at the same time participation are
needed to make good observations. The proximity to the research subject represents
both an advantage and a liability, as there is a danger of insufficient theoretical
reflection, construction of different realities in presence of the researcher and the
problem of over-identification, sometimes referred to as “going native“ (FLICK et al.
1995). It is imperative for the integrity of this study to follow both the ethical
guidelines of research while learning more about the role and impact of the
researcher (for further reading see ATTESLANDER 2008).
The study utilizes the strategy of mixed methods (triangulation) as a quality
control criterion that enables the study to obtain different views on the same research 19 For further reading on content analyses, see for example: ATTESLANDER (2008: 181-209)
35
field and to compare the results. However, as it only utilizes qualitative methods, it
cannot test general hypotheses on shea markets or come up with more quantitative
and robust data. Because of the relatively small number of cases this study raises no
claim to produce numerically generalizable results. As noted earlier, the theoretical
generalization comes with the maximum variation of cases and the scope of
interpretation of the results (FLICK 2003a: 260). Another constraint of the study is its
comparability to other countries and sectors due to limitations in resources such as
time, labor and capital.
Some of the data obtained, especially at the producer level, is limited in
quality because of the low levels of literacy and openness among the interviewees.
Moreover, there is a high probability that flaws occurred through the use of an
interpreter, which led to misinterpretation and loss of data. As it was necessary to
quote and transcribe the spoken words as detailed as possible to provide an
unfiltered description of reality and emphasize authenticity, quotations of interviews
may sometimes seem a little halting. However, to even out and make these
statements more understandable, minor changes of the initial quotations were
introduced.
The focus on the upstream end of the VC and the confined study area implies
an analytical limit to the downstream end of the VC and to the ability to generalize to
other regions, which therefore can only be addressed through secondary literature.
The analysis excludes most of the issues on biology, ecology, chemical properties,
and history while concentrating on the marketing of shea products and the social
realities at the production node. The work can be seen as a supplement to the existing
findings of the WP 9 of the INNOVKAR-program and therewith helps to provide
additional insights into the shea industry study.
The approach of the experts along the chain was difficult and sometimes only
possible through intermediaries (also reffered as “gatekeepers” MERKENS 2003: 298).
Time was consumed by the initial attempt to use the local INNOVKAR partners as
intermediaries, since it was decided not to rely on preliminary assumptions of
36
cooperation. However, these partners proved useful in linking up with insiders of
the VC who could arrange for interviews as well as translation assistance. The
sporadic failure of power, internet, telephone or transport as well as
misunderstandings due to “cultural differences” was a constant challenge to the
effective work and made adaptation of the initial approach and schedule necessary.
Figure 2: Analytical framework and structure of the thesis (Source: Own design after OUMA 2007:
19)
37
3. SECTOR AND VALUE CHAIN ANALYSIS OF SHEA WITH PARTICULAR
EMPHASIS ON GHANA
The shea tree (Vitellaria paradoxa, Butyrospermum parkii, Karité) is indigenous to a
vegetation zone South of the Sahara. A 6,000 km x 500 km band of wild-grown shea
trees stretches across the African Savannah between Senegal in the West and Uganda
in the South-East (see figure 3). These agriforestrial parklands are the result of
human cultivation. In Ghana, West Africa, trees are scattered on farmlands because
they are left standing, based on locally favored criteria such as sweetness of fruit,
total harvest yield, tree health or reduced competition with annual crops (MASTERS et
al. 2004: 47). The shea trees also grow in the wild, where collection becomes difficult.
Because of customary practices, land, and tree tenure arrangements, the purposeful
planting of trees is not common in Ghana20. This fact, and the long gestation period21,
which depends on location and human interventions, prevented cultivation and
large-scale plantation almost entirely in most parts of the Northern Regions of Ghana
and African growing regions22
20 As well as in most other countries.
. Consequently the shea nut is traditionally collected in
the wild or on farmlands and processed into the raw nut, oil or butter by women.
21 Gestation period is stated between 7 and 20 years (15 years according to FERRIS et al. 2001: 10; 20 years according to FINTRAC 1999: 1; 8-15 years according to HYMAN 1991: 1248; 15-20 years according to MASTERS et al. 2004: 47; 7-12 years according to SNV 2006: 41). The tree reaches maturity at about 45 years, bearing fruits for about 200 years. Currently, more research focused on reducing the maturation rate of shea trees through new breeding techniques and by developing easily replicable shea tree grafting techniques is conducted by the Institut d’Economie Rural (IER), IPR/IFRA de Katibougou, and ICRAF (PERAKIS 2009: 90). 22 According to PHILLIPS (14: 00:33:01-6) there is a plantation at Sunyani, Brong Ahafo Region, Ghana.
38
Figure 3: African shea producing countries export and local consumption 2004 as well as main shea belt (Source: Own design after ELIAS and CARNEY 2007: 38; FAO 2010a, 2010b; LOVETT 2004: 3 and 8;
MAPLIBRARY 2010; UN 2010)
39
Climate variation and a three year natural cycle of yields23
23 According to SCHRECKENBERG (2004b: 31), CHALFIN (2000: 992) and LOVETT (May 2009, personal communication) the shea trees of the parklands exhibit a three-year cycle of good, fair and poor yields. ELIAS and CARNEY (2004: 78) suggest a average yield of about 20 kg fresh fruits per individual tree, per season, containing three to six kg kernels, manually extracting 0,7 to 2,5 kg of butter.
result in
unpredictability of productivity, both in terms of individual trees of the same species
and on an annual basis, making sustainable production difficult. Although
dispersion of the species over the large Savannah-parkland region and lack of
reliable figures because of natural variety make an estimation of shea kernel
production difficult, there are estimations in the literature. Following LOVETT (2004:
8) (see table 3 in the appendix I) total potential production in the twenty major shea
countries is more than 1,400,000 t dry kernels per annum. But actually, only little
more than 44 % is estimated to be collected annually (slightly above 620,000 t dry
kernel p.a.). The estimated exports are 267,410 t p.a. for all countries. The export of
raw dried shea nuts is valued at 82% of the total whereas the remaining 18% are
exported as shea butter. One estimate from WATH (2009) suggests at least three
million rural African women are involved in shea export. Others, like BOFFA (1999:
156 et seq.), estimate the total potential production of dry kernel from 500 million
producing shea trees (based on five kg dry kernel per tree) to be at 2.5 million t p.a.,
while ADDAQUAY (2004) points out that Africa´s potential production is about
1,760,000 t of raw shea nuts annually. According to this source, out of the total
African production of 600,000 t only seven West African countries (Ghana, Burkina
Faso, Benin, Cote d’Ivoire, Nigeria, Mali and Togo) produce about 500,000 t of shea
nuts annually. These countries export an estimated 270,000 t as raw nuts and convert
the remaining 230,000 t into roughly 60,000 t of crude shea butter, half of which is
later exported (ADDAQUAY 2004: 2). KASSARDJIAN (2004, cited in LOVETT 2004: 2)
estimates the yearly export of raw shea kernel at only 150,000 t. This variation in
quantity estimates demonstrates the uncertainty of predictions on overall
40
production, collection and export and does provide little clarification on the true
state of the industry24
The shea industry in Ghana has been more accurately documented, thus
providing slightly more reliable data on export tonnages. Although Ghana is a major
exporting country, it remains unclear whether all the exports of (about 60,000 to
65,000 t) shea (nuts and butter) p.a. (FAO 2009b; LOVETT 2004: 8) are produced in
Ghana. Due to its coastal location, it may be assumed that neighboring land-locked
countries also export their produce through Ghana. A detailed record of Ghana’s
exports value and volume is presented in table one.
.
Table 1: Shea nut and shea butter exports from Ghana 2000 – 2008 (Source: GEPC 2009 & LMC 2006)
Year Shea Nuts Shea Butter
Weight (t) GEPC
Weight (t) LMC
Value (US$) GEPC
Weight (t) GEPC
Value (US$) GEPC
2000 35,983 4,674,272 1,041 829,744 2001 45,281 1,680 1,131,247 2002 27,626 6,125,465 2,531 2,584,282 2003 66,997 47,312 16,746,386 1,560 1,567,430 2004 5,548 33,946 2,463,114 362 200,199 2005 165,508 83,202 28,968,495 648 940,515 2006 104,757 27,248,779 648 940,515 2007 57,166 27,008,556 10,296 7,659,888 2008 55,488 24,939,825 4,013 6,487,683
According to the interviews25
24 Due to a very heterogeneously and untransparent market, where not all countries collect and share accurate and reliable data Figure 3 only gives a guesstimate of shea´s export and local consumption. However, it shows current trends and overall relations of export and consumption in the Savannah-region. Nevertheless there are questions which remain unanswered and need further research and reliable data collection: Why is there such a wide variance between different countries exports´? How does export and consumption of the various countries involved change over a period of time?
, shea nut quality in Ghana is high, even though
it had previously been negatively affected by poor-quality imports and smuggling
from neighboring countries. The poor quality in neighboring countries may be due to
difference in the initial processing techniques and skills. LOVETT (2004: 8) estimates a
total actual annual collection in Ghana of 130,000 t and local consumption of 70,000 t.
25 The empirical study and most of the interviews were carried out in the Tamale Municipal of the Northern Region in Ghana, illustrated in Figure 3.
41
An estimated 500,000 to 600,000 of the roughly 5 million economically active women
work directly or indirectly in the Ghanaian shea industry (SNV 2006: 12). Similar to
other producing countries (e.g., neighboring Burkina Faso), shea revenues, in
contrast to other, often price-depressed export commodities, contribute directly to
the income of poor rural women in the least developed regions of Northern Ghana
and SSA (cf. HARSCH 2001). Work with shea can be conducted between agricultural
labor and in times where extra earnings are most needed, making it a flexible source
of income.
In Ghana and Africa shea nut has been used domestically for hundreds of
years as a natural fat for consumption, cosmetics and health care, but was also traded
during this time. The ubiquity of shea and the fact that shea fruit ripen during the
“hungry season”, when the old food stocks have been consumed and the new crop
are not yet ready to harvest, makes shea a resource with low barriers to entry for
quick cash that serves the needs of many rural women in the politically neglected
Northern regions of Ghana. However, interviews with women pickers showed that
engagement in shea collection depends on density, accessibility and the productivity
of shea trees, with competition intensifying where population density and price
incentive rise. This connection becomes obvious in the statement of a women´s group
Magazia called AMINA YEBOAH (6: 00:05:24-5):
“There is competition in the picking of the shea nuts. If you don´t go early your colleagues will go and
collect. So you make sure you get there first to collect. By the time the others will come you might have
finished collecting. We compete in terms of the collection of the shea nuts from the farms or from the
shea trees. […] But they have cleared all the shea nut trees for human settlement. So we go to the farms
and the farms are far away from this place”.
Additional problems of engagement in the shea industry are also stated by
SCHRECKENBERG (2004b: 32), she notes:
“Since harvesting and processing don't require capital investment, shea kernels are particularly
important for those with few other options, including elderly or newlywed women. But as collection is
time consuming and yields and prices are uncertain, more lucrative activities are sought. The
combination of agricultural pressures, declining butter consumption and the preference of women for
42
alternative activities, means the future of shea will depend on international (and to some extent
domestic) demand”.
The coexistence of low barriers to market entry on the one hand and limited
market on the other hand, was also cited by the interviewees as a typical
characteristic of the shea industry in Ghana. A market surplus opposed to relatively
few buyers in international markets results in an oversupply of shea. Today’s uses of
shea butter as a cacao equivalent (some consider it an improvement) and to some
extent in the cosmetic and health industry has brought a new focus on the
commodity. From a global perspective, just a few buyers of shea nut from Europe,
India, Brazil, Singapore and China, process the raw commodity into various fat
products for both the food (mainly chocolate) and the cosmetics industry.
3.1. Overview on the shea value chain
Figure 4 presents a basic map of the global shea VC, showing the main loci from
harvest to consumption of products containing shea. After collection and primary
production in Africa, the majority of the nuts are processed and consumed in various
countries outside of Africa. Only a fraction of the nuts are either industrially or
manually processed within Africa. The derived shea butter is used domestically or
abroad in food and cosmetic products. A detailed analysis of the actors involved in
the industry is provided in chapter 3.2, whereas chapter 3.4 expands the subject in a
detailed VC analysis.
43
Figure 4: Geographical overview of the basic global shea value chain (Source: Own design)
3.2. Shea value chain actors in Ghana
3.2.1. Collectors
The first node of the VC is represented by the harvesters of the shea fruit in the rural
areas of Africa. In Ghana these are generally women and sometimes children who go
to either their farmland, community land or into the wild to gather the mature shea
fruit26 from the ground, typically “canvassing an area within a radius that extends
between one and three kilometres from the household” (ELIAS and CARNEY 2007: 40;
and interviews with collectors and traders)27
26 The plum-sized fruit has a green, sweet-tasting pulp, which covers the shea nut inside. Usually, this pulp is roughly removed or eaten during the gathering process. A picture of the mature shea fruit is provided in the appendix I by figure 6.
. Collectors try to avoid picking in the
wild because they can face dangerous animals, and bushes make getting through to
the trees very demanding. The picking season usually starts at the end of the dry
season in April/May and ends in August/September. This coincides with the
traditional hungry season, when work on the subsistence farms is physically most
demanding, but the crops are not yet ready to be harvested. The pulp of the shea nut
27 According to HALL et al. (1996) pickers trek up to 15 km, then carry the loads back in head pans of 20-25 kg (but sometimes over 40 kg!).
44
also serves as a nutritious snack during this time and is sold as shea fruit on local
markets and at roadsides.
Picture 1: Collecting of shea nuts on farmland and women returning from picking (Source: Own
picture 2009)
The Ghanaian women, who operate either as individuals or groups of
individuals usually get up early in the morning to leave for picking and return when
they have gathered a head load (a basin and a bucket) of shea nuts (see picture 1). In
most cases they collect the nuts that grow within walking distance, but they
sometimes organize some type of transportation back to their homes. Once they
return home, they complete the primary processing to cure the shea nuts (see picture
2 and figure 8). After processing the collectors either store or sell the nuts, typically to
small scale traders or agents at local markets in Ghana. The storage of some of the
best quality nuts can also serve as emergency capital. The returns from sales typically
serve as much needed resources for family expenditures such as food, health care,
farming or education.
45
Picture 2: Primary processing in Ghana includes boiling, drying and de-husking (Source: Own
picture 2009)
3.2.2. Manual Processors
While collecting the nuts is a resource- and time-consuming work, some of the
pickers also process butter out of the nuts by using traditional methods28
“Because we don´t have enough or sufficient money to buy in bulk, it is a problem. It is just the money
which is the problem. If we could get money we could also buy more to produce more for sale. During
the wet season or the rainy season we normally get plenty shea nut to collect. But because we don´t have
enough money to buy some for storage, whenever it is lean or dry season we don´t get shea nuts for
processing. Because we don´t normally buy the shea nuts during the dry season, we buy them during
the wet or the collection period when the prices are lower. So it is a problem” (AMINA YEBOAH,
Magazia from South Tamale 6: 00:18:07-6).
. Some
women pick only a few nuts and buy the larger part to focus solely on processing the
nuts into butter for consumption and/or sale. They typically purchase the nuts from
community members or from the local markets, trying to buy as many as possible at
the beginning of the season when the price is low. These women producers,
however, frequently lack sufficient funds to purchase significant quantities. This is
confirmed in several interviews, for example by YEBOAH and AGYEMAN:
28 After collection the shea fruit is de-pulped, boiled and sun dried. Then the kernel is removed from the shell by de-husking and the kernel is again sun-dried. After that the kernel can be stored. To extract the butter, the kernel is crushed into grits, roasted to aid the oil extraction, and then milled into a paste. The paste is mixed with cold and hot water and kneaded to capture the fat in an emulsion. Finally, the mixture is boiled to separate the fat from the water and clear impurities. Cooling produces the crude shea butter (for detailed information see figure 8: Traditional methods of shea kernel primary production in appendix I).
46
“Actually, apart from the ones we normally collect from the parklands and the farmlands, we buy it
from the market. But our problem is that we can´t buy enough shea nuts to cater for the whole year,
because of lack of capital. Our capital is not sufficient enough to buy for the whole year. Most of the
time when we finished with the ones we collected and then the ones we bought for storage, we normally
go to buy - even when the prices of the nuts are higher. Another reason why we buy from the market is
because there are times where the shea nuts don´t germinate well around here. They will germinate here
well seasonally. And geminate well at other communities or other villages. So when we are not in luck
here and we don´t get plenty shea nuts to collect in any particular year, we normally rely on the
market” (KHADIJA AGYEMAN, Magazia from South Tamale 7: 00:13:21-6).
Because the women who process nuts act as entrepreneurs in the market, they must
continuously gather information and work to maintain or forge new connections to
nut suppliers and buyers of butter. However, at the same time, nature´s supply of the
resource and the market´s demand are very precarious and influenced externally,
leaving little control to the processors.
3.2.3. Women´s Groups
The formation of women´s groups as cooperatives is one strategy developed to cope
with the manual processors´ problem of relatively small influence in the shea VC.
Such voluntary cooperation can support commodity system investments and
coordination because a) of the increased ability of sharing marketing infrastructure
and services fixed costs b) the group can serve to internalize certain externalities and
allow for private provision of certain public goods, c) it can reduce or pool member
risks d) it can lower transaction costs and e) can exercise or counter market power.
However, there are also generic problems associated with the cooperation of women
in groups. For example, members outside the group are sometimes able to capture
part of the benefits from the cooperative effort without contributing to the costs.
While larger groups achieve higher economies of scale with reduced cost and risk per
member they also face increased transaction costs. In contrast, individuals in small-
sized groups contribute significantly to total costs and receive a large share of total
benefits, promoting commitment and mutual trust, but limiting mobilization of
47
capital and cooperative insurance alike (JAFFEE 1995: 54-56). Women´s groups exist
throughout the rural production areas of Northern Ghana (as well as other African
countries) and vary in their organizational structure and degree. The organizational,
managerial and/or technical improvement of these groups is often supported by
developmental organizations, NGO´s or other individual actors downstream.
According to the interviews with the women producers, primary reasons for forming
the groups are: (1) better marketing of the produce through collective action and
improved negotiation power, (2) division of labor and (input) economies of scale, (3)
management and budgeting skills through training, (4) quality and quantity
improvements, (5) better support of family livelihoods, and (6) social security system
for emergency situations.
Picture 3: Processing of shea butter in a women´s group (near Tamale) using manual traditional
methods (Source: Own picture 2009)
48
According to ADDAQUAY (2004: 2), individual women or groups of women
extract about 60% of all the crude butter produced in West Africa at an extraction
rate of about 20% using manual traditional methods (see picture 3)29. Indeed,
compared to industrial processing these methods yield less butter from the nuts (also
depending on quality). SAIBU MBIA, a managing director of a local production and
export company in Tamale, Ghana (17: 00:25:57-4) expects a minimum yield of 33%,
while experienced and trained women can yield 37-40% (MASTERS et al. 2004: 47
indicate an estimated 30-35%), but if the women are trained quality improves
significantly. Group work allows for division of labor according to physical fitness
and skill level, builds social capital and serves as a social security system. However,
manual traditional methods also consume significant resources such as labor, time,
firewood and water. According to ADDAQUAY (2004: 4) “the processing input of 18.5
kg of raw shea nuts requires 48 kg of wood and 67 litres of water”. Here also arise
questions of sustainable resource conservation, the problem of global warming and
low-carbon production.30
Processing methods using mechanical hand presses (bridge press) result in
excellent quality butter, but in Ghana marketing in high quality cosmetic VCs for
reasonably prices remains very difficult (according to personal communication with
RAHIDA AMANFU, chairperson of a women´s group from North Tamale, June 2009).
As a result, processing using this method is not common (GALLAT and COLLINSON
2000: 6).
3.2.4. Small scale traders
In the rural markets, small scale traders are usually individual women, men, or
women´s groups who have their own financial means and networks in place. These
networks, created through personalized, recurrent trading relationships and
29 This seems to be a very conservative estimation 30 Currently there is a growing interest in carbon footprint and carbon credit of shea production, resulting in ongoing research and debates (see for example the presentations on WATH (2010).
49
developed under the aegis of unwritten, informal understandings, reduce
information and transaction costs but also give rise to malfeasance and can lock in
counterproductive situations or relationships between buyers and sellers. The small
scale traders achieve economies of scale in deal-making by accumulating small
supplies from many parties and selling to multiple other parties (JAFFEE 1995: 50 and
51). They simply bulk, pack and organize loading and transport of nuts (see picture
4). Due to limited capital, their scale of operation is sometimes low, but they also try
to take advantage of price increases over time. They sell to company agents, large
traders or industrial processing companies (SNV 2006: 14).
Brokered trade can be less costly for suppliers and customers for several
reasons. Brokers are likely to be better informed about market conditions due to
regular involvement in the nut trade in different localities. They may also have the
social standing, experience and bargaining skills to effectively bring together buyers
and sellers from different location, ethnic group or social setting (JAFFEE 1995: 51 and
52).
Small scale traders are also involved in the trade of butter for domestic use.
Here it is usually women who sell their own processed butter or buy in the village or
market level to sell at domestic markets. The traditional uses of butter (later
described in detail) vary in different countries but generally decline with the
availability and influence of Western-style cosmetic products and food consumption
stuffs.
50
Picture 4: Local female small scale trader with “loading boys” at Aboabo Market, Tamale (Source:
Own picture 2009)
3.2.5. Large scale traders
Large scale traders typically operate from major shea centers or markets and usually
have a solid base of capital. The majority are men, though women are not excluded.
They source their capital from private networks or financial institutions (the latter
implies repaying interests and makes trading more difficult since the Ghanaian
banks charge between 20-30% interest p.a.). Through a network which can include
small scale traders, women´s groups, agents and personal relations, these traders buy
in rural areas where prices are low. If they have reliable agents, they sometimes
provide money for pre- financing. Permanent local buying centers in different
regions are also typical for operational success of large scale traders. They sell the
shea nuts directly through forward market contracts to exporters, importers, or to
large national buyers. Operating in different countries, large scale traders also
51
integrate parts of nation-states’ economies, by trading various commodities within
the firm and through a set of relationships to other firms, resembling TNCs in a
network economy. They also engage in speculation to take advantage of price
increases after the picking season. Conversely, in 2009 low demand, oversupply, and
a price drop resulted in large stocks of nuts from 2008/2009 season in warehouses like
the one in picture 5.
Picture 5: Large scale trader stocking nuts in a warehouse at Tema (Source: Own picture 2009)
3.2.6. Exporters
Some of the large scale traders also act as exporters31 on a free on board (FOB32) basis.
The majority of the nuts are exported through large transnational buyers33
31 African bulk exporters are: Ghana Nuts, Burkarina, SFC, Meena Agro (list is not intended to be exhaustive) .
who
32 See “Glossary” for description.
52
employ agents all over the shea producing countries on forward resource or
management contracts. These agents are usually well equipped and buy nuts from
individual women and women´s groups in rural areas across West Africa.
Large traders are also involved in the trade and export of crude shea butter
from Ghana. Some only do this occasionally on demand, but there are those who
concentrate solely on this market. They typically negotiate with groups of women at
the Northern community level to process butter on either a formal contractual or
informal basis. These arrangements reduce the uncertainty of buyers regarding
access to suppliers and the uncertainty of sellers regarding access to markets.
Forward market contracts can also reduce the price and income risks of one or both
parties and serve as a means of transferring complex technical information (on
production and storage) production inputs (nuts) and credit to producers of butter
(JAFFEE 1995: 53). In this manner the buyers provide resources such as nuts,
equipment, financing or organizational training for quality and quantity
improvements.
3.2.7. Industrial Refiners/Processors
Mechanized processing34
33 According to SNV (2006: 14) these international specialty fat firms are: Kassardjian, Bluemont, IBG and Three F´s Group. Peter Lovett (WATH 2010) adds AAK, IOI Corporation (Loders Croklaan) and Ghana Speciality Fats as well as ISF, Cargill and Fuji Oils as newcomers.
done in West Africa or abroad use hot presses (hydraulic,
filter, screw), expellers and chemical solvents (cf. HALL et al. 1996: 73). A process
called fractionation separates the liquid oil (olein) and solid butter (stearin). This
process enriches the amount of unsaponifiable components. Although the use of
chemicals and heat increases the overall extraction up to 80% (HALL et al. 1996: 73)
(other sources like ADDAQUAY 2004: 2; MASTERS et al. 2004: 219 only state a 30-45%
increase), chemical treatment also tends to destroy important biological and chemical
features of the shea butter, such as vitamin E and A content and raises the peroxide
value (cf. ALANDER 2004; KAR and MITAL 1980). On a global scale, only a limited
34 Figure 9 in appendix I outlines details of the industrial extraction and refining process.
53
number of companies do the processing/-refining of shea nuts into specialty fats.
According to FOLD (2004: 66-67), ADDAQUAY (2004: 3) and personal communication
with traders from Ghana (e.g., MARC PHILLIPS.; FARID JABOUR) these are: Fuji Oil
(Japan), Unilever (UK/Netherlands), Foods, Fats and Fertilizers (Three F´s Group,
India), IOI Corporation Berhad (Malaysia) via Loders Croklaan, (Netherlands), Olam
(Singapore), International Business Group (IBG), Bluemont Trading Ltd (Ghana, UK),
as well as AAK a joint venture of Aarhus Olie United (Denmark) and Karlsham
(Sweden). However, in an interview with the trader FARID JABOUR (13: 00:33:58-2),
from North Tamale, it was revealed that in the 2008/2009 season, only Loders
Croklaan and AAK bought substantial amounts of nuts on the open market in
Ghana.
Industrial processing in Ghana is done by Shebu (with support from Loders
Croklaan Ltd.) at Savelugu, Northern Region and Juaben Oilmills (with support from
Olam) at Juaben, Ashanti Region (LOVETT 2004: 4). Other domestic processors are:
Bosbel Vegetable Oil Mills Ltd., West African Mills, and Bluemont Ltd.
In Ghana, Produce Buying Company Shea Limited, a subsidiary of Produce
Buying Company (PBC)35
Similar industrial processing plants have already been established in Togo and
Nigeria (Mena Agro Oil). In Burkina Faso, Burkarina, a subsidiary of the French
company Olvea, (SIRH Group), has the largest semi-industrial production capacity of
, recently signed an agreement with Sysgate Limited of
Brazil towards the establishment of a shea nut processing plant at Buipe, Northern
Region. The plant will process between 40,000-100,000 t of nuts yearly. This facility is
the first of three plants proposed by the Savannah Accelerated Development
Authority to be established as part of the governmental plan to revive the shea
industry (GBC 2009; GBN 2009; GLOVER-MEN 2009; OTAL 2009).
35 “Nana Aye Kusi, Chairman of the new Board of Directors of the PBC, has […] announced the creation of a separate entity, PBC Shea Limited, a 10-million dollar subsidiary of the parent company charged with overseeing the purchasing, processing and marketing of shea nut in commercial quantities” (GLOVER-MEN 2009).
54
about 3000 t nuts p.a. (own account by BURKARINA 2009). These enterprises are one
way to add value in Southern producing countries; unfortunately, such operations
involves high barriers to entry because of the knowledge, capital and technology
requirements, and pos the risk of crowding out traditional rural women producers.
3.2.8. Manufacturers (end user)
The main users of shea fats are the chocolate industry (90-95%) and cosmetics
industry (5-10%) (ELIAS and CARNEY 2007: 49; PERAKIS 2009: 11; TEKLEHAIMANOT
2004: 212). These manufacturers need different quality and quantity of shea products.
Most end markets for shea products are highly competitive and oligopolistic. A
detailed analysis of the different markets of consumption is provided in chapter 3.3.
3.3. Different local and global uses of shea
3.3.1. Traditional uses
This section draws mainly from HALL et al. (1996: 66-68) and the interviews
conducted. It gives a basic overview of the traditional uses of shea in Africa, which
can be considered a multi-purpose crop.
Shea butter is typically used as cooking oil and a food ingredient. The crude
butter is also used for cosmetic purposes because of its protective and healing
properties. It is applied to the skin due to its moisturizing and anti-inflammatory
properties as well as to cure rheumatic diseases, joint pain, burns and sun burns. It is
also applied to protect against the sun and other weather influences and is often used
for hairdressing. In Ghana, low quality butter (e.g. rancid, smelly, or smoky) is
usually used to make soap either for domestic use or sold to generate additional
income. These traditional uses have declined in importance over the years because of
changes in consumer preferences and the availability of cheaper substitutes, such as
other vegetable oils and Western-style cosmetic products. In urban beauty shops and
local markets in Ghana, only small amounts of crude shea butter is offered, and
cosmetic products containing shea are almost non-existent.
55
The butter is also used in traditional rituals and shrines as well as a salve for
new-born babies. Its use as fuel for lamps or as candles has become less important
since cheaper and better products are available. A unique use of spoiled or impure
butter is as waterproofing agent on walls, doors, windows and beehives.
In Ghana, water from shea butter production is also used as a waterproofing
agent as it contains residues from the fat. Furthermore, it is sometimes used for
composting to create fertilizer for subsistence farming. The water also serves as a
light insecticide when spread over crops.
The pulp or shea fruit can be eaten and serves as a valuable food source. It is
also known for its slight laxative properties. The flower is often deep-fried and eaten
as a snack. Both humans and cattle can eat the raw nut, but only in small amounts
due to its toxic properties. The husk has widespread use as mulch or fertilizer and as
fuel for fires. The cake of solids, which is a byproduct of shea butter production, is
commonly used as fertilizer, a waterproofing layer on buildings and most
importantly as fuel.
The leaves of the shea tree provide a medicine for stomachaches and are used
to prepare a vapor bath for headaches. They are also used to make traditional masks
in Burkina Faso. The branches are hung in doorways and serve as a traditional
protection for new-born babies when the mother needs to leave the house. They are
also used to cover the dead prior to burial. The roots are used in Nigeria as a
chewing stick, or in a ground form taken orally to cure jaundice, stomachache and
diarrhea. While the bark has anti-microbial properties and is used in many African
countries for various, purposes, harvesting it can pose a risk to the survival of the
tree if too much is removed. The wood is used throughout the Savannah-region as a
building material and increasingly serves as fuel as other Savannah trees continue to
decrease and population pressures have resulted in large-scale clearings (WALTER et
al. 2003: 11).
56
3.3.2. Food uses
The shea butter stearin fraction is not only remarkably similar to cocoa butter; it is
also cheaper, making shea nuts a commodity of high demand in the confectionary
industry36. The West African Karité vitellaria paradoxa subspecies paradoxa is preferred
for the extraction of this stearin fraction. The majority (90-95%; ELIAS and CARNEY
2007: 49; PERAKIS 2009: 11; TEKLEHAIMANOT 2004: 212) of exported shea nuts is used
as a cocoa butter equivalent (CBA, CBE, CBS or CBI) in the European chocolate
industry. Since 2000, the EU directive 2000/36/EC permits the addition of vegetable
fats other than cocoa butter to chocolate products, up to a maximum of 5% in certain
member states (EU 2000)37. Similar legislation has been introduced in Australia and
Brazil, changing these non-tariff barriers to trade allowing more fat substitutes in
chocolate production38. The chocolate producers appreciate not only the lower price
of shea compared to cocoa, but also its technical qualities39
The ban on the use of cocoa butter equivalents (CBE´s) in the US chocolate
industry poses as a large constraint to the growth of the shea industry, and there are
no signs of changes in the foreseeable future. However, demand could increase by
enhanced consumption of chocolate in new markets (such as Asia, Eastern Europe,
Latin America and Africa) and additional allowance for the use of CBE´s in
producing countries. Nevertheless, the current economic crisis and recession led to
, specifically its high
proportion of mono-unsaturated symmetrical triglycerides (BOFFA 1999: 177). Other
uses of shea in the food industry are predominantly in bakery and pastry products.
These specialty fats usually contain the olein part of shea nut, which is a by-product
of the fractionation process.
36 According to FOLD (2000: 102) “The price difference between cocoa butter and CBEs is substantial, the former being up to five times more expensive, depending on the quality of the cocoa beans and the CBE considered”. Therefore, shea prices closely correlate to international cocoa and palm oil prices. 37 Besides shea, these are: palm, sal, illipe, mango and kokum oil. 38 for details see the AUSTRALIANGOVERNMENT (2003) and FOODNAVIGATOR.COM (2004). 39 CBE´s act as a buffer and reduces variation in final product quality due to different cocoa quality. Furthermore they improve the final product in characteristics such as melting point, appearance, breaking properties and shelf life (cf. FOLD 2000, 2004).
57
decrease in chocolate and other luxury products´ consumption, especially in these
emerging markets.
The labeling of shea content in food or confectionary products generally does
not inform consumers of the shea content as product information only refers to
“vegetable fats” rather than to shea in particular. This ambiguity represents a
limitation to pro-active consumer involvement and pressure for fair trade conditions
and producer equity. However, regulations on increased traceability from tree to
supermarket shelf for food products sold in the EU (2002), could imply shifts in VC
management and sourcing practices of shea.
3.3.3. Cosmetic and Pharmaceutical uses
In contrast to the mass market for shea in industrial food processing, the global
cosmetic and pharmaceutical market is still small, but growth has been slow yet
remarkably consistent since the early 1990s. It’s natural, biochemical, environmental,
and social qualities appeal to the growing segment of “conscious”, “environmental”
and “ethical” consumers in the Global North and herewith form a growing market
sector of shea exports. According to TEKLEHAIMANOT (2004), the cosmetic and
pharmaceutical industry has preferred the liquid fat of the East African Vitellaria
paradoxa subspecies nilotica which needs no fractionation to yield the olein. However,
large industrial processors also sell the olein part of shea fractionation to the
cosmetics industry40
40 Detailed data on this subject is still missing, mainly because of traceability problems and the secretive manner of the global oil and cosmetic industry.
. Cosmetic firms (Such as The Body Shop) also buy traditionally
processed crude shea butter from African countries such as Ghana via direct linkages
to processors or through traders on demand. Although some cosmetic firms offer
pure shea butter, most of the butter is refined or additionally processed before added
(in sometimes very small amounts) to cosmetic or pharmaceutical products. Yet,
while demand for quantity is far less than it is in food markets, cosmetic firms are
willing to pay more for better quality shea. As seen in the market for food products,
58
transparency and labeling of shea products sometimes remains incomplete. On the
other hand, labeling is often used to attract consumers who are aware of shea´s
ethical, biological or social features. Because of the heterogeneity and geographic
dispersion of these buyers, definitive statements for supply and demand are difficult
to make. It further remains unclear what the exact demand of the shea butter for
cosmetic markets is, due to the fact that most of the nuts are processed and refined in
Europe and then sold to the various end users in the food and cosmetics industry.
The few firms that dominate production (not only in cosmetic markets but also in
food markets) conduct their activities in a secretive manner, which further hampers
transparency. However, MARC PHILLIPS, exporting trader from Accra, Ghana (14:
00:12:10-9), acknowledges a significant shift in buyers demand from nuts to butter,
emphasizing the future potential in this sector: “99% of the people are looking for the
butter, refined […]”.
3.4. Spatial and social organization of the shea value chain – a Ghanaian
perspective
Figure 5 presents a detailed map of the global shea VC41. Starting in rural Africa,
women pick the mature shea fruit from the Savannah ground. Depending on the
yield, which varies greatly within a three year cycle and from tree to tree, women
collect the nuts from quasi-private fields (since in many cases only usufruct right and
not permanent private ownership prevails42
41 The map is divided into the African market and market actors outside to Africa. The export of 1000 t of shea kernel by one exporter is typically acquired trough five large traders and 100 collectors (small scale traders) involving more than 20.000 purchasing transactions (each approx. 50 kg) on the rural level.
), communal land or wild bush lands.
Then they process the nuts to make them storable for selling in the future. While they
may sell immediately if they need cash, they usually try to store the nuts as long as
possible because prices usually increase over time.
42 Land and tree tenure issues in Africa are highly complex and heterogeneously. Many land tenure systems co-exists and arrangements are sometimes tightly controlled by various actors, leaving only use rights to women collectors of shea (a comprehensive thesis about this subject is given by POUDYAL 2009).
59
Figure 5: Actors network and relations in the global shea value chain (Source: Own design after
DERKS and LUSBY 2006; UNIQUE 2009: 24; VAN BRUGGEN 2001: 45)
Depending on the area of collection, women pick shea nuts individually or in
small groups, do primary processing at home and sell the nuts on local markets to
women traders or middlemen. If a community or area is known for good quality and
quantity shea nuts, company agents and individual traders buy directly from
individuals rather than on markets. According to SULEYMAN ALHASSAN, a trader from
60
Tamale in Ghana (11: 00:05:45-2), individual pickers can collect up to 10 bags43
“Recently there is a very big change, a very big setback. Like everybody will agree, some are saying the
economy or something that might have hit the whole world, which everybody is aware, has also affected
our crop season 2008/2009. And started early, or the late part of 2007/2008” (YAHYA ISSAKA, small
scale trader from Tamale 12: 00:36:36-3).
of nuts
per season, but productivity varies greatly. Prices decrease with distance to roads
and markets as well as in response to increasing supply or decreasing demand.
Quality of nuts is only important in terms of basic parameters such as absence of
mold, high fat content, low levels of moisture and impurities. In order to gain
sufficient quantities, traders use different strategies and need to have social ties and
establish a reputation in these communities. Alternatively, pre-financing, payments
in kind or offers above market prices have impact on the decision to sell and
herewith build mutual dependence and trust. Nevertheless, collectors usually try to
hold their stock of shea nuts as long as possible in order to benefit from increases in
market prices, but the market price only rises when total demand exceeds the
season´s supply. This is notably dependant on the parklands´ varying yields, and the
world market demand which is primarily driven by the demand from the chocolate
industry as a result of cocoa prices. This correlation became evident in the 2008/2009
season, when large yields and decreased demand came together to dampen the
euphoria of the African shea industry. One Ghanaian trader also remembers the
collapse of demand because of the financial and economic crisis beginning at the end
of the 2007/2008 season which resulted in a dramatic reduction of local and export
markets:
The prospective poor yield of the 2009/2010 season and the effects of the
continuing world economic crisis will pose additional challenges to the Ghanaian
and African producers and traders. Still, the tendency of oligopolistic market
structure at the downstream end of the VC vis-à-vis a surplus of shea nuts from a
vast number of collectors is likely to persist.
43 One bag usually contains about 80-90 kg, which equals 30 to 40 bowls or calabashes (depending on the moisture content of the nuts).
61
Women primarily engaged in traditional butter extraction only collect nuts
occasionally in addition to their other tasks. Studies in Ghana have shown that those
who are processing in groups are concentrating on the extraction work and usually
buy nuts from local markets using personal money. These women´s groups have
different organizational structures. Typically it is younger women or children who
do the physically demanding tasks, and older, experienced women who supervise
and assign tasks within the group. In Ghana the executive position is usually held by
one woman called “Magazia”. She and her representative are responsible for the
daily operations and provide organizational and social guidance through regular
meetings. Secretarial jobs are usually assigned to literate people and are therefore
typically male occupied, but there are recent initiatives to give these duties to young,
literate women of the community. Problems occasionally arise from embezzling by
those who keep the books, but can be avoided through transparency and democratic
structures within the group. Problems can also arise through the organization and
dependence on actors outside the group (like NGO´s, or traditional male or female
leaders). This dependency is described by a Magazia of a women´s group in Tamale:
“As I told you earlier on, we were seen as poor and needy people who are depending on the women´s
group for our livelihood. So we are depending on people like Madame Hadiza. That was the reason why
I wanted to stop the interview, because somebody called me and cautioned me about doing the
interview. You see there that we are not on our own. We are depending on her and the group. So
whatever we do, we depend on them. An example of the dependency was this incident. The secretary
didn´t want to let me go ahead, because the Hadiza didn´t told the secretary to inform the group that
you are coming. So we can´t do things on our own here, unless we consult her. So even though you
called Madam Safia and she called Madam Hadiza, but Hadiza didn´t made us aware. For that matter
we are depending on the secretary and the other group leaders. So I am afraid to express my feelings,
because I may say something wrong, which is not in favor of the Hadiza and I may be in trouble”
(Maimuna Appiah 3: 00:44:11-3).
Production in groups can either fulfill direct orders from outside the group, or
enables individual extraction. The input of nuts for the group´s production can be
pre-financed by the buyer or contributed by the individual members. Earnings from
group production are sometimes directly reinvested into shea nuts for individual
62
extraction. If there are regular orders for a group, individual and group production
work is divided on a weekly basis. The butter, which is produced by the group, is
sometimes packed and marketed via male agents within the group or sold directly to
freelance agents, traders, exporting companies or domestic and international
cosmetic firms. Quality plays a bigger role in cosmetic markets and can lead to
rejection of produce. Before being used in production of cosmetic or pharmaceutical
goods, the crude shea butter is usually refined or further processed. Quality
parameters such as low levels of free fatty acids (FFA) and peroxide value (PA), as
well as moisture content are sometimes tested before large amounts are ordered. If
not suitable for export markets, imperfect butter is sold or used domestically and/or
used for soap production.
In Ghana, the butter from individual production is sold at the local markets to
community members or privately consumed. Marketing at local markets can also be
organized in groups when one member takes over the selling for other individuals.
Traditional processors of shea butter typically sell to women traders who are
located at regional and major city markets throughout the Savannah parklands. The
study in Ghana has shown that some of these traders have fairly good access to
financial means from private friendships or bank institutions. Core findings of the
interviews, however, show that these traders exploit the neediness of collectors and
processors by underpaying or buying on credit, paying late or not at all. These
problems are revealed by the women butter producers during the interviews:
“Our main problem is that when our buyers buy on credit but do not pay us on time, -so we become
locked up financially” (ADISATU ROKOTO, Magazia from Sagnarigu, Ghana 2: 00:50:21-4).
“The problem is that, sometimes the business women from the market will buy the butter, but don't pay.
Every time you go to the market, every three days, every week, you go to collect your money, -they don't
pay you. And even sometimes, it comes that some of the buyers buy your butter and run away with the
money” (MAHIRA ABDULAI, individual producer and head of a family 00:04:49-4).
63
“We make the butter and bring it to the market, but the market is not good. We sell at the market, but
sometimes the buyers don't pay us. […] The problem is that, sometimes, we take the butter to the
market and the women at the market will buy and they tell us: o.k. there is no money today; you go
home and come on the next market day for the money. So we go home and are stranded in the house,
because we don't know what to do without the money to trade again” (MARY SHAHADU, individual
producer and head of a family 00:02:32-1).
The manually produced butter also attracts out-of-town buyers who purchase in bulk
directly from local markets and offer better prices and more secure payments than
women traders. However, this results in anxiety and pressure from local women
traders on the processors, because they deduct and undermine traditional market
share. The lack of appropriate contracts and problems of enforcing also gives rise to
the exploitation of trading women in the markets by out-of-town buyers, who mostly
externalize the resulting expenses further upstream. Consequently, this moral hazard
of market actors results in debts on the side of collectors or processors.
Following the commodity along its way from the Global South to the Global
North44, shea kernels are bought on spot market basis45
44 The labels ´North´ and ´South´ are extremely crude descriptions for what are in reality highly discussed and variegated categories (see also HOPKINS and WALLERSTEIN on the world-system theory discussion). One important issue of this discussion is the division of rich and poor nations or economies. In an increasingly interdependent world the call for a New International Economic Order is demanding a more equitable restructuring of the world economy (DICKEN 1998: 6), taking a more complex global allocation of power and wealth into account (compared to preliminary findings).
from women traders,
collectors, middlemen or bulking agents and shipped either to African ports for
international export by large predominantly male traders, exporters or foreign
refiners, or to processing plants within Africa. These deliveries between the
intermediaries, exporter and importer are sometimes coordinated by a forward
market contract upon an FOB basis, which regulates fundamental terms and
conditions like price (which is subject to change) time of delivery, packaging, quality
and quantity of the nuts. These traders organize the packaging, loading, and
shipment of shea nuts from source to vessel and (according to managing director of
45 This conception of transaction implies a rather impersonal, one time encounter between a buyer and a seller of a standardized good, where the market prices serve as the primary source of information. However, in practice the market transactions are more complex and interwoven with other forms of allocation such as gift exchange and hierarchies (see also (FAFCHAMPS 2004: 3-21).
64
an import, export and general merchant company ABASS OBASI, as well as the traders
FARID JABOUR AND MARC PHILLIPS) earn a profit margin of approximately 15 %
(slightly higher in nut trade). But according to PHILLIPS, a trader from Accra, profits
are predominantly earned on volume. Prices are more or less dictated by
downstream actors, like transnational processors and manufacturers, as there are
only a few companies buying shea, and traders pass on the price pressure to their
supply base. On the other hand, the trader needs many middlemen or agents at
various community markets to get a reasonable quantity for export markets. One
interviewed exporter from Accra (MARC PHILLIPS), trades through networks well-
maintained through personal friendships, but often faces the problem of negotiating
the price down to the level demanded by the importer. This is one reason why many
traders are only occasionally involved in the shea business. According to one trader
(FARID JABOUR) in the Northern Region, business organization relies on extended
personal networks with middlemen in the rural markets. Additionally, traders can
assure a greater supply when they have equity capital and can offer better prices to
middlemen than those who have implicitly high bank interests rates. The trader
strategy becomes clear in the interview with FARID JABOUR:
“So you see, there is no 100% guarantee that the agent will stick to you. You know, this is trade.
Because me too, when I have some quantity if I try to find a better market is everything. But because me
myself, for instance, I don´t take any pre-financing. So I can sell to any big buyer who is paying more.
The nature of every business is like that. Sometimes, when we do sell it, maybe somebody will offer you
a higher price, but we do sell it with the other person, which is a bit lower. Maybe there is some
agreement between us, maybe because of something in the future, -or do you understand? We do such
things, but those agents that if we have given it to them, we try as much as we can, apart from the
business for instance, we create some small parties, or we give them some gifts, you know, you have to
create a way of gaining the attention of that supplier, you know. Or sometimes, we do surprises, we
have fixed the price for instance 2000 per kilo, for instance, when the supplier comes I will tell (him?)(?)
Now it is 2100 I will give you. And they are happy. He knows that you are taking care of him (?) and
you are keeping his (?). So I don´t think such person will just leave you and go. I don´t think so. Some
few things can happen once or twice, can divert something (with?) your supplier, but when you know
65
how to communicate with them and to keep them to stick with you; I think that you are on the safe side”
(13: 00:48:25-1).
In a confusing, volatile and nontransparent field which is difficult to calculate,
informal and personal networks based on reciprocity, past and future obligations
and expectations are crucial for ensuring a reliable supply of a sufficient quantity and
quality of shea upstream the VC. These social practices in shea markets are one
aspect of reducing risk and transaction costs. Ethnic-based networks, which can span
across large distances, are playing a decisive role in shea trade and are further
discussed in the following chapter, examining the governance patterns in the shea
VC more closely.
3.5. Governance in the global shea value chain
Inside the shea VC, governance is enforced through large, TNCs´ control over
transactions and their high degrees of power due to market share, material and
organizational resources, and privileged access to information and markets (cf. figure
10). By concentrating on labeling, marketing and distribution, the manufacturers of
chocolate, confectionary and cosmetic products in the Global North generate a much
higher value than supplying producers of shea in West Africa (cf. LMC 2006). At the
downstream nodes, problems of oligopolistic structures and opportunistic behavior
result in restricted demand, imperfect competition and lock-in situations between
domestic suppliers and international buyers.
Large foreign and domestic industrial processors can purchase through
middlemen or company agents in an almost unlimited supplier market in the
Savannah parklands. Consequently, price pressures and risks are forwarded to
upstream actors in the shea VC such as collectors and traders. Large scale traders
typically buy nuts in different rural markets via a dense network of smaller collectors
or traders (sub-traders). Female and male traders at local rural markets buy shea nuts
from the women collectors via informal market transactions. Because of the ubiquity
of shea, supply often exceeds demand and results in low prices for producers. The
66
low producer price is reinforced through consolidated downstream negotiating
power asymmetries and gender inequalities along the chain. Due to lack of resources
and alternative markets, pickers are forced to sell to downstream actors. Both male
and female middlemen contribute to negative trading conditions because they try to
exploit the dependent “no-choice situation” of the collectors or producers of shea.
Many traders try to cheat the women by using improperly calibrated scales,
underpaying or not paying them at all. The interviews elucidated that middlemen
often add no value to the produce but try to earn as much as possible from trade with
rural women and speculation in the stock market. But when women are selling shea
at local markets, they are also trying to gain as much revenue from their produce,
although they sometimes lack basic skills for calculating their expenditures, by
cheating on volumes per value (at rural markets shea nuts and butter is normally
sold per volume, traditionally in bags or calabashes) or selling their produce early in
the season when nuts are soaked with water, larger (thus heavier) and sometimes not
completely processed (and therefore of reduced quality)46
Examining the shea VC, a lack of formal standards and contractual
agreements (“contractualization”, see BOLWIG et al. 2008: 13 for further information)
becomes apparent (FOLD 2000: 97). This lack of formality and protected property
rights result in additional risks and transaction costs for the actors involved in the
global shea production networks. To reduce such costs, and as protection against
opportunistic behavior, three governance systems of rules, relationships, and
informal standards evolved within these networks and are enforced either from
inside or outside the chain. First, especially at the downstream end, vertical
integration of transactions in nut trade is substituting market transactions. Second,
flexible networks between mutually dependent actors are governing trade
relationships. And third, standards and certification from outside by governmental
.
46 A more general and comprehensive analyses of markets and traders in SSA presents FAFCHAMPS (2004).
67
or non-governmental institutions are increasingly regulating the chain. These
governance systems are examined in detail below.
Recently changes have occurred at the downstream actor’s nodes. Formerly,
international and national processing firms bought nuts from individual and
independent traders. Today, most of these companies have (partially) incorporated
these buying transactions using company agents. These agents get financial and
logistical support, and in butter markets, they are sometimes bound to a
management contract, where the buyer may act to advise, supervise or take over the
management of particular production or trading activities) (interviews 11 and 13)47
Another practice being incorporated to reduce such risks along the VC is the
use of social networks and ties between actors of the same nationality or ethnicity.
This tends to diminish the costs of monitoring and sanctioning while reducing
problems of opportunism and moral hazards and at the same time allowing for
flexibility. Especially between collectors and producers of shea and small scale
traders, these kin relationships can be the foundation of transactions. Trade in nuts
between African exporters and international processors or importers are usually
based on price and basic quality parameters. However, they are also governed
through global ethnic production networks, as in the case of Indian immigrants
supplying processors in their country of origin, or Lebanese trade networks which
.
As a result, there is high competition between independent traders and company
agents who have better financial support, better means of transport and more
experience, and therefore can pay better prices. In addition, they can more easily
reach remote (and cheaper) markets and have access to a bigger and more reliable
network of sub-traders. This trend to increasingly hierarchical structures could be
interpreted as a result of the need to control and reduce transaction and logistical
costs as well as risks previously faced with spot-market transactions. While the
traditional supply via spot-market transaction retains flexibility, it is happening less
and less often.
47 For a detailed theoretical analysis of contemporary changes in GVC theory see BAIR (2008, 2009).
68
span across the globe. These relationships also gain in importance as a result of
utilization of information and telecommunication technologies. Investments in such
intermediate “relational” forms of governance48
In contrast to these governance systems interior to the chain, there are
standards and certification controls imposed from outside the VC. Governance
parameters can be set and enforced, for example, by NGO´s or governments
(HUMPHREY and SCHMITZ 2001: 6; KAPLINSKY 2000: 125). Public governance (or better
“governance in the classic sense) dominated the shea trade and marketing in Ghana
from 1949 until the liberalization in 1990. During this period, the government was
less involved at the beginning but accelerated buying and governance during the
1970s. During the peak times of the 1980´s the state controlled most of the
community trade through produce-buying centers run by the PBC while controlling
the export by issuing licenses, collecting duties and direct involvement through
Cocoa Marketing Company (CMC), a subsidiary of Cocoa Marketing Board (CMB).
However, these efforts were largely unsuccessful and SAPs finally led to the
liberalization of the Ghanaian shea VC (in sharp contrast to the ongoing governance
of cocoa from Ghana). After 1992, issuing export licenses to shea exporters became
the single purpose of the CMB, documenting the Ghanaian state´s growing
which go beyond classical market
perceptions (between market and hierarchy) are also conducted by traders or
middlemen to assure supply from their trade network. While inclusion of actors in a
certain trade network can have positive effect on Ghanaian or African livelihoods,
these trade networks can also act exclusionary. Different barriers to entry, such as
ethnicity, gender, class or skill can impede upstream actors to enter the industry or
upgrade their VC position.
48 Along with four other descriptions of governance, the term relational value chain governance, was introduced by GEREFFI et al. (2005), studying manufacturing value chains, where compared to the shea industry, different chain actors in a more sophisticated production process are involved.
69
negligence of the shea industry as an important piece in development (CHALFIN 1996,
2004; FOLD 2004, 2008: 111-112)49
Due to the concentration in markets shares and limited competition at
downstream nodes of the VC (which resulted in the current situation of low
producer prices and abuse of market power) governmental plans for restructuring
the industry have once again become central. The state plans will affect different
levels of the VC. According to an interview with COCOBOD officials (KOFI
NGONLOMAH), one approach will be to try to revamp the industry by motivating the
collectors and by promising incentives such as wellington boots, gloves and
tarpaulins to facilitate their work. A strategic roadmap created during a workshop in
2007 with various stakeholders of the shea VC, stipulates that there needs to be more
research on domestication and reduction of maturing time as well as measurements
for improving quality. The COCOBOD steering committee has decided to establish
cooperative groups in collaboration with the Department of Co-operatives (DOC)
under the ministry of Manpower Development and Employment and on the regional
and local level with farmer associations. To foster competition vis-à-vis transnational
processors/refiners of shea, and to bypass traders, the government decided to buy
shea nuts directly from rural collectors through PBC. To assist the local actors in the
2008/2009 season, PBC paid above market prices. However, after the collection
season, prices declined and CMC charged with the marketing of the nuts had
problems selling the produce. One solution to this problem was created by the
governmental cooperation between Brazil and Ghana. PBC signed an agreement with
Saka Worldwide Trading Limited, a Ghanaian company and Sysgate Limited of
Brazil to establish a shea nut processing plant (the first of three in Ghana) at Buipe at
the cost of $ 6.5 million for the export of shea butter to Brazil (GBC 2009; GBN 2009).
.
While involvement of governmental organizations in the shea VC and
industrial processing helps to increase public revenues, it does little to avoid the
49 A comprehensive overview on the impact of structural adjustment on women in the African context is given by GLADWIN (1991).
70
monopsony of shea markets and it adds little value in the traditional processing
regions of Northern Ghana. Looking back to previous failed state involvements by
Marketing Boards, and not only in Ghana, recent actions seem questionable.
However, state involvement also can be successful and actually result in enhanced
collection of nuts, better quality and increasing returns to poor actors because of
greater demand and competition at the buyer level, as well as support at the
producer level50
While national public governance declined over the past decades in almost all
African shea producing countries, certification and NGO involvement grew
proportionally
. Government intervention can also reduce the risks and transaction
costs faced by private firms and individuals. It can compensate for missing or
deficient markets and influence the organization and performance of commodity
systems so as to enhance benefits to the country or to particular interest groups (for
details on state interventions and the operational environment in Africa see also
JAFFEE 1995: 21-148).
51
50 A profound examination of "An African Success Story: Ghanas Cocoa Marketing System" provides WILLIAMS (2009).
. Prevailing practice in these governance systems is a direct
marketing of producers´ shea butter for a guaranteed price above market as well as
technical and capacity assistance that ultimately leads to value added and
sustainable development. Although certification and compliance with standards also
involve implementation and compliance costs (even more to producers and outside
actors), they are being increasingly introduced to high VCs of shea cosmetic
products. Because cosmetic firms tend to control and monitor production from tree
to finished product to avoid risks of supplier default, these VCs can be described as
quasi-hierarchical. Key determinants, however, are not the price, but rather
“credence attributes” such as quality, safety, health, nutrition, authenticity,
production processes that promote a safe environment and sustainable agriculture,
51 In Africa there are a number of NGOs, private sector companies and agencies active in the shea industry. The Body Shop (in Ghana) and COVOL (in Uganda) assist women´s groups in a long-term partnership model exchanging Shea butter for technical and financial support (FERRIS et al. 2001: 61-62).
71
and fair trade attributes (e.g., working conditions) (REARDON et al. 2001). Higher
transaction costs of these GPNs as well as changes in consumer demand make
“translation” of these attributes into standards and certification increasingly
important (a detailed discussion on certification and standards is presented in box
1)(cf. NADVI 2008). These certificate schemes also interface between the opposing
terms “rural” (shea is collected and processed by women in remote areas) and
“global” (consumers and the international network economy) as well as “nature”
(shea as a wilderness crop) and “market” (for high value cosmetics and high volume
chocolates), creating a fashionable marketing scenario. However, the participation in
such regimes can have positive outcomes for producers in global shea VCs, but can
also have negative effects such as lock-in situations with buyers, additional barriers
to entry or increasing labor and compliance costs.
72
Certification and standards schemes can focus on environmental, social and economical, or quality parameters and can be public/mandatory, voluntary or private. “Certification schemes distinguish between first, second and third party certification as well as between system-based and performance-based certification” (WALTER et al. 2003: 3).
First, environmental certification schemes can be forest management certification programs, which focus on sustainable economical, social and ecological aspects of resource management at the forest, species and product level of timber goods (FSC 2009; PEFC 2009).
Second, organic certification schemes enforce agricultural production management which promotes and “sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects” (EU 2009; IFOAM 2009). The term organic needs closer examination, as Non-Timber Forest Products (NFTP, NWFP) like shea grow semi wild in the Savannah of Africa. Most shea nuts are collected from easily accessible farm lands where organic production is neither guaranteed nor customary. Consequently nuts collected from these grounds can be tainted with pesticides or chemical fertilizers. However, contaminations with these chemical inputs seem very unlikely, because of high poverty levels in these rural areas although compliance still does require collection from organically certified or wild areas.
Third, social certification and standard systems include ethical and fair trade principles. These assure sustainable production and investments in social, economic and environmental development as well as empowerment of producers in a long term trading partnership. A widely accepted definition is provided by the World Fair Trade Organization (WFTO 2009): “Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South“.
Other standards and certification schemes for sanitary and phytosanitary quality aspects of products, production processes and processing are implemented through a variety of systems. These are ISO norms, HACCP (Hazard Analysis Critical Control Points), EU food safety regulations, Good Manufacturing Practice and Good Laboratory Practices guidelines as well as GLOBALGAP Good Agricultural Practices.
There are already standards and certification available for shea from Africa. Nevertheless all the certifications introduced are not combined into one scheme suitable for a product like shea. Therefore most certification of shea VCs are based on organic or fair trade principles, but present a minor fraction of traded products. Definition of standards, certification, inspection and sanctioning lies in hands of certification bodies such as Ecocert, FairWild, Fair Labeling Organization, and National Organic Program.
3.6. Upgrading opportunities and constraints for African actors
Following the work of KAPLINSKY and MORRIS (2001: 38), upgrading opportunities for
actors in the shea VC arise from four different trajectories: process upgrading,
product upgrading, functional upgrading and chain upgrading. Apart from these
vertical dimensions of upgrading along the VC, one must also consider horizontal
aspects of upgrading. The upgrading possibilities presented here could improve
participation and income at the upstream end of the shea VC. Upgrading measures
Box 1: Certification and Standards
73
can be either technical, organizational or institutional and therefore have different
requirements and implications for actors along the VC.
Process upgrading is achieved by producing in a more efficient way, both at
individual nodes and between the nodes of the chain. Approaches could include
technological changes for more productive processing of shea, improvement in
processing and collection techniques and organization, reducing depressive norms
such as the bias against cultivation of shea trees, and enhanced information
management and networking between chain actors. Moreover, there is a potential for
sustainable modification in production processes, such as the use of firewood, water,
and child labor, and along with these modifications, a certification of processes along
the entire VC could be an option. In addition, access to training or credit could
improve product quality and quantity.
Product upgrading involves the introduction of new products or the
improvement of old products faster than those of competitors. Points of leverage for
shea VC actors include the production of new, or improvement of old products for
domestic and international markets. Particularly the Latin American, Middle East
and East Asian markets may offer new opportunities for diversification into
regionally and culturally adapted products. Product upgrading can also include
changes in product development processes such as producing, labeling and
marketing of niche products of fair traded and organic goods. Alternatively, there
could be demand for new, final-products of shea such as for bio-fuel markets.
Functional Upgrading can be achieved through increasing value-added by
performing different activities within the firm. This type of upgrading promises to be
most effective for actors at the upstream end of the VC. Performance can be
improved through the organization of producer groups into a cooperative that
encourages marketing for pickers and processors. Cooperatives can also be pooled
within associations to improve management along the VC. These women´s groups
are able to conduct such multiple activities as collecting, processing nuts and/or
butter, and marketing of shea and other products. They can also shift their operations
74
according to different external conditions based on the market, such as from picking
to intermediary function to export marketing.
Chain upgrading is described as movement into a completely new chain.
Much of the literature posits this option as the last step in the upgrading trajectory.
This would require that a cooperative or association transfer their activities
previously focused on the shea VC to a new product VC.
Finally, the horizontal dimension of governance and upgrading possibilities
completes the analysis. However, this dimension adds complexity as intertwined and
broad issues must be included. In horizontal terms, aspects of poverty, gender, labor,
and environment as well as the institutionalization of VCs need to be considered.
Related to these there are other forms of upgrading such as compliance to
standards, getting paid better for the same product (e.g. fair trade), increased vertical
integration or contractualization, which can lead to producer’s access to information
and/or resources. Stabilizing and entering VCs according to good financial terms but
also in relation to environment, poverty alleviation and gender equity can be important
for upgrading. In contrast to the work of KAPLINSKY and MORRIS (2001) and to the
dominant notion that functional upgrading is the “best path”, BOLWIG et al (2008: 17)
highlights that the other forms of upgrading are likely to be most common among small
producers, often mutually reinforcing effects on upgrading.
In the case of shea, distribution of income along the VC is highly dependent
on the location of the transaction and on the actor’s power resources. Profit margins
are determined by the quality and quantity of the product, the position in the VC as
well as the time of transaction52
52 For a comparative analyses of trading cost, profit margins and processing profitability in shea VCs see FERRIS et al. (2001: 33 and 56). According to SCHRECKENBERG (2004a: 98) households´ income from shea makes up only about 2.8%, but the importance for women´s annual source of lump income is considerably more (BOFFA 1999: 174).
. Participation of the rural poor in the African shea
industry is sometimes precarious and problematic. However, because the nut can be
collected within an extended area of the African Savannah, without any input other
than labor, it makes it an important cash crop for many poor women, which grants
75
them a notable degree of economic independence in often patriarchically structured
social settings. Participation in the VC can contribute to the well-being of those
previously not engaged. The collection, processing and trade fits with the subsistence
farming activities and concepts of income diversification of family livelihoods.
Positive chain interventions at the upstream levels can boost pro-poor growth and
rural development in a number of poor countries in Africa. Nevertheless, rural
women picking or processing shea nuts regularly act as price takers, accepting a
price reflecting neither the value of the work nor time they invested.
Upgrading strategies need to overcome a vicious cycle of poverty, where high
levels of illiteracy leads to disadvantages in allocation of resources and distribution
of knowledge, which in turn leads to diminished access to education, health and
rights. One possibility to overcome economic, social and environmental constraints,
discussed in this paper is the strengthening of producer organization through
cooperatives and associations. Through these organizations women could upgrade
their work by input and output economies of scale, improved negotiation power,
price controls through consolidation of producer market instead of fragmented
hyper-competition, better access to information and knowledge, and resistance to
external shocks as a result of improved social security. Sometimes, existing
organizational infrastructure can be used for synergy reasons. For instance, North of
Tamale, during the past few years an organic mango outgrower scheme (Organic
Mango Outgrowers Association, OMOA) has been organized and the organizational
and material infrastructure of the scheme (mostly made up of male farmers) could be
also utilized to link up their women and kin to the market of shea products53
53 For a detailed review of OMOA as a promising example of upgrading see Box 2.
.
However, these interventions always require parallel capacity building, education on
basic management and business skills as well as information and linkage to markets.
To avoid default, fraud and low transparency, organization and implementation of
such structures also needs to comply with basic democratic rules in addition to
originating from within existing social ties. Consequently, gender equity and
76
women´s empowerment need to be changed in order to facilitate pro-poor growth
through upgrading.
Additionally, there are great opportunities for tackling other problems
(environmental and social security) related to better involvement of African rural
women in the shea trade. A number of current studies explore connections between
shea trade, forestation and carbon credit markets (see presentations on WATH 2010)
while one is also researching ways of marketing shea from rural African women for
services in health micro insurances, instead of payments in cash (OSTER 2010).
Clearly, export trade with shea can be a way out of poverty, but it is
questionable whether liberalization of trade and better access to markets will lead to
better living conditions in producing countries per se (cf. KAPLINSKY 2005). On the
one hand, the concept of fair trade and other certification standards schemes are
promising strategies of linking vertical and horizontal dimension of VC upgrading
(BOLWIG et al. 2008: 14) and these can serve to access specific export markets. On the
other hand, standards which set entry barriers to new actors of the global shea VC
can challenge existing suppliers. Certification schemes (such as organic or fair trade)
are also difficult to implement, due to problems with traceability as a result of the
geographical dispersion of actors and the wild collection of nuts.
Trade in certified shea products in food markets is almost non-existent,
though it exists marginally in the limited market of cosmetic and pharmaceutical
shea products. Growing consumer awareness of natural ingredients in cosmetic, as
well as demand for healthier products, represents opportunities for shea producers
in Africa. Because of consumer demand in the Global North for products with
limited or no trans fats, food manufacturers are increasingly replacing these
hydrogenated fats with healthier substitutes such as shea (USITC 2008: 28-32). Also,
growing demand for organic products and the continued rising prices for cocoa and
other vegetable fats could cause increased demand for organic certified shea as
edible fat.
77
Demand for organic and natural cosmetics products is fairly small, but
continue to rise, and this opens up new markets, in particularly for added value
unrefined shea butter from rural women´s groups. Potentials for shea pickers and
producers also arise from increasing proliferation of standards in global production
and consumer markets. The niche markets for certified organic or fair trade products
are fast growing, thus important factors in upgrading possibilities for producers and
small scale traders.
Considering the institutional and organizational embeddedness54 of the
production network of shea in Africa, governmental organizations and NGOs could
help to upgrade operations of actors at the upstream end. However, current
initiatives by the Ghanaian government to revamp the industry by actively buying
and marketing shea nuts must be viewed critically. Notwithstanding, however,
strengthening South-South trade relationships and the sustainable development of
the three Northern regions is a good approach to improve the national economy and
assist other Southern states. Nevertheless the governmental should provide an
enabling environment for the shea industry and should allocate market
requirements, such as infrastructure in finance, roads, research and development
(R&D) as well as information on quality (including a quality guide for grades) and
prices. The government could also provide training and consulting services to
producer organizations through extension officers55. Technical support, capacity
building and assistance on producer organization could also be important functions
of NGO´s involved. Moreover, activity of key entrepreneurs of the trading network
can be supportive, if there is an interest from downstream actors within the VC to
actively assist their supply base. However, to prevent malpractice, actions should be
transparent, concerted and have a mid-term orientation56
54 JAFFEE and GORDON (1992) recognize supplementary economic and institutional issues in the marketing of high- value foods from development countries.
.
55 Additional policy implications for fundamental governance upgrading presents (KAPLINSKY and MORRIS (2001: 101-104). 56 More details of possible upgrading strategies is also given by SNV (2006: 42-43).
78
In the year 2000, Integrated Tamale Fruits Company (ITFC), a Ghanaian based company in the agro forestry industry (which was established in 1999) initiated a mango farm outgrower association north of Tamale, where there was a potential to help the local farmers organize themselves in order to reduce poverty in the region. The project started with 57 farmers, within 6 communities in the region around a nucleus farm. The head office is based in Gushie (Northern Region), 45 Kilometers North of Tamale on the Bolgatanga road.
ITFC supports the farmers with a long term, low interest loan in the form of inputs for their small-scale farms and the necessary capacity building and technical advice to successfully farm mangos. They also make irrigation infrastructure available for farmers previously without permanent access to water. The famers provide the labor and the land to produce the mangos. In most cases the farmers use their fallow ground to plant the mangos. After the trees have reached maturity (approximately 5 years) ITFC provides the farmers with technical assistance to harvest and transport the fruits to ITFC, where the fruits are cleaned, sorted, and packed. ITFC also assists the farmers with the marketing of the mangos. Until 2006 the mangos were marketed via regional markets and Blue Skies Ghana Ltd. (Accra), whereas in 2007 they started to export the mangos to the Middle East, Germany and Holland. The farmers are certified in accordance with organic standards by the Soil Association Certification Ltd (UK) and ITFC is also complying with GLOBALGAP standards. The geographical dispersion over 44 communities made recent plans to join Fair Trade certification by FLO problematic, as the internal rules intend to support community based projects through the premiums generated by the label.
The 1240 (predominately male,) famers (whereof in 2009 approx. 400 were in production) contracted by ITFC have unified themselves under the umbrella of the Organic Mango Outgrowers Association (OMOA), a registered organization that was formed as means of internal control and to negotiate collectively for the benefit of all. According to the OMOA management, there are high numbers of shea trees in the region the mango farmers are working. For flexible and disperse sources of income farmers and their families cultivate other agricultural crops besides the mango and shea trees on their small properties. This presents a good opportunity to upgrade the work and income of the mango farmer’s wives and kin, by organizing them in groups, similar to OMOA and developing long-lasting relationships with international buyers. Upgrading could have considerable advantages in relation to the environment, poverty alleviation and gender equity in these rural poor communities. The formation of shea women´s groups and associations could benefit the economic and social wellbeing as previously mentioned in section 3.2.3 (page 46-48) and also intended by the objectives of ITFC´s initiation.
As an agro forestry organization that is already in place and long experienced in exporting commodities, ITFC suits the requirements of supporting the picking, production, packaging and marketing of shea nuts and butter from rural areas North of Tamale. In addition, low-interest microcredit schemes and provision of capital in the beginning of the season could promote low cost production of butter throughout the whole year. Moreover, organic and fair trade certification could be implemented within these upgrading strategies. Increased regulations for traceability of food (and certified) commodities in consuming markets pose an opportunity to use the spatial data infrastructure already in place. However, the trees and communities are scattered; hence gathering of the nuts can be labor-intensive and unprofitable by competing with the other agricultural work of the farmers. Therefore anything which helps to improve the utilizing of the resource could help to reduce the poverty of the women in the region. Here, as a compromise solution, the OMOA structures could help to provide the women with training, capacity building and financial resources to buy shea nuts and produce high quality shea butter as well as to commonly negotiate with buyers to achieve better prices for shea nuts and butter.
Box 2: OMOA, a promising example of upgrading (ITFC 2010)
79
4. COMPARATIVE ANALYSIS OF THE SHEA VALUE CHAIN IN THE
SUDANO-SAHELIAN ZONE
Although there are twenty SSA countries where shea grows, major production and
trade especially in international shea VCs originate in the countries of Ghana, Benin,
Burkina Faso, Togo and Mali. Biologically, there are two main species with different
quality outcomes, and these divide the area of production between the East (Vitellaria
paradoxa nilotica) and West (Vitellaria paradoxa paradoxa) of the Savannah belt.
Collection of the nuts is traditionally women’s work57, or is done by children who
also sell fresh shea fruits along the main roads (e.g. in Burkina Faso). Resource
availability varies greatly over space and time, resulting in very different harvesting
efforts and yields58
After collection, primary processing is done in different ways, depending on
local traditions and access to information on buyers´ preferences, respectively.
Fermentation via burying the nut underground is a common practice (e.g. in Mali
and Uganda). This process ferments the nut and preserves it for future processing
and at the same time disengages the women from additional work in times of labor
. Upgrading constraints or opportunities for upstream actors are
dependent on various factors, which vary greatly between different regions of the
Savannah parklands. These factors are: (1) availability of shea, (2) processing
methods, (3) institutional and political structures such as Governmental or NGO
support, (4) secure transportation at low cost with uncorrupt customs (see also figure
7 in appendix I for details on road governance in West Africa), (8) access to
affordable capital and skilled labor, (9) information from and connection to
international downstream actors as well as (10) access to ports. Consequently,
involvement in export markets and prices vary greatly across the production area.
An overview on VC shapers, opportunities and constraints by major producing
countries is provided in table 4 in appendix I.
57 Although HALL et al. (1996: 61) notes that, in Uganda and, under exceptional circumstances in parts of West Africa, the involvement of men has been recorded. 58 Data on yield and collection in the respective countries presents HALL et al. (1996: 61 and 62).
80
shortage. However, this process is also known to compromise quality as it increases
FFA content. Other quality constraints result from drying, roasting or smoking the
nuts on fires or ovens, which increases polycyclic aromatic hydrocarbons (PAH),
resulting in a smoky odor, and also from boiling, which is presumed to increase PA,
but which together with sun drying, remains the best traditional processing practice
(LOVETT 2004: 12).
Another quality problem stems from inappropriate storage, which can result
in mold or fungus. According to MASTERS; YIDANA and LOVETT (2004: 50), quality
improvements in traditional processing procedures could pay off in premium prices
at local markets in Mali, the Central African Republic, Senegal, Sudan and Uganda.
Such improvements support investments in additional inputs, such as time, labor, or
equipment such as solar driers. Better quality can also attract international buyers
and enhance regular trade with intermediate nut buyers.
Differences in established trade networks, levels of organization among
producers and market institutions lead to a very different levels of export of shea of
the countries involved (c. f. table 3 and 4 in appendix I). Flow of market information
down to the production level is also very differently distributed between the
producing countries which results in problems of quality and quantity supply. It is
important to note that these problems are greatest in countries where export markets
have little relevance in overall trade. Reductions of these informational asymmetries
have impacts on supply capacities for both export and domestic markets and could
be improved by new forms of information broadcasting via radio or mobile phones
(DERKS and LUSBY 2006).
Competitiveness gaps between the different producing countries occur.
Despite having a large production potential, for instance, Mali competes poorly with
other countries involved. This is because of higher prices due to bad transportation,
bribery costs and its land-locked position, worse quality (as a result of poor
processing, packaging and storage routines), and unreliability of trade networks
(shea kernel export was banned in the 1980s resulting in the absence of long-term
81
trade relationships and quality controls (MASTERS et al. 2004: 48)). However,
opportunities also arise from international buyers who need to expand their supply
base. The expansion can only succeed, however, if at the same time, suppliers sell
their best quality nuts, and receive information on quality and quantity preferences
from downstream actors. Therefore, key market drivers or lead firms need to be
identified and encouraged to support knowledge transfer, learning and sustainable
relations in the shea VC (DERKS and LUSBY 2006). While DERKS and LUSBY (2006: 15-
17) observe that producers lack incentives to upgrade their operations, they also
show that benefits could arise from higher sales volumes (economies of scale) rather
than price premiums.
The Ugandan shea market is, first of all, determined by the olein rich shea
subspecies nilotica. Therefore, produce from Uganda and other parts of East Africa
could target niche markets of the cosmetic industries, which prefer high quality and
low quantity olein rich shea. In comparison to West Africa, Ugandan (and other East
African, e.g. Sudan) market channels are undefined and rather traditional in
collection and production, because of lower tree concentration, high levels of local oil
consumption, and softer shea butter (which is unsuitable to CBE users). Like many
other areas of SSA, Uganda and Sudan suffer from time to time from states of civil
unrest, which hinders development of consolidated market structures in general.
Similar to most producing countries, there are only few long-lasting connections
between producers and users in industrialized nations. Nevertheless, there remain
good potentials for East African shea. As in many other countries, supplies in East
Africa come from women processors located at rural poor areas. Thus, production
can be important for dietary needs, food security and income generation. Demand
from the domestic and international cosmetics industry will be likely to increase, but
this demand will require intimate involvements from actors both inside and outside
the VC to upgrade producer participation (FERRIS et al. 2001).
Burkina Faso also faces a landlocked position and is considered one of the
poorest countries in the world. Like other countries of the shea belt, development
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constraints for upgrading opportunities for over half of Burkinabé women involved
in shea (GATI 2009; HARSCH 2001) are stressed according to GREIG (2006) by
uncertainty of supplies resulting from tree output fluctuations, women’s restricted
access to shea nut trees, and unequal gender division of household decision-making
and responsibilities. According to PERAKIS (2009: 58), Burkinabé traders
systematically pay a higher price for shea than Malian traders, for example, despite
the lack of an appropriate village-level quality testing. This price advantage results
from a reputation for good quality shea produce resulting in the establishment of
preferred-supplier relationships between larger primary producer groups and
foreign oilseed and cosmetic firms (PERAKIS 2009: 59). However, unit value per ton of
shea nuts from Burkina Faso is far less compared to Benin, for example (FAO 2009a).
Similar to what happened in Ghana, the government of Burkina Faso dismantled the
national export promotion board (Caisse de Stabilization des Prix et des Produits
Agricoles (CSPPA)) as part of the country´s SAP in the 1990s. Nonetheless, (in
contrast to Ghana) the state continued to stress the importance of a national shea
sector for rural women´s livelihood by promoting subsector institutions and by
coordination of donor involvement. This led to the formation of long-term
contractual arrangements between producer groups and transnational companies
such as Aarhus United and L´Occitane (France) (GATI 2009; HARSCH 2001; PERAKIS
2009; UNDP 2004). Similar relationships are also in place in Ghana between The
Body Shop (UK) and women´s groups in the Northern Region (Tamale).
Public institutional arrangements also determine the minimum buying price
or the opening and closing of the buying season. This is the case in Benin, where
governmental trade restrictions before September 15th result in a far different market
regime than in other producing countries. Quoting an experienced trader (FARID
JABOUR 13: 01:04:17-3), big traders in Benin can supply amounts up to 10,000 t at once,
but international buyers have difficulties introducing and obtaining agents and
therefore end up buying via informal pre-financing arrangements.
83
5. RELATIONS AND DIFFERENCES TO OTHER VALUE CHAINS IN THE
REGION
The traditional use of shea as CBE in the food industry leads to an obvious
connection to cocoa markets. This chapter compares the shea VC with the VC of
cocoa and cashew, with the goal to derive some lessons for governance and
upgrading (see also figure 10).
5.1. The cocoa value chain
Cocoa is used predominantly for production of chocolate and food products and to a
small extent as cocoa butter in the cosmetics industry. It only grows in the Southern
hemisphere and with the exception of Brazil and Peru, almost all consumption and
manufacturing takes place in OECD countries (TIFFIN et al. 2004: 24).
Historically, cocoa has been the most important traditional tree cash crop in
Ghana and other West African countries. In Ghana, cocoa is predominantly grown
on Southern smallholder farms and bought, traded and exported through the
governmental Cocoa Marketing Board. Through various SAPs, many African
countries liberalized cocoa and other markets following events of the 1980s. This
resulted in serious quality reductions and loss of price premiums and reputation
(Nigeria, Cameroon, and Côte d´Ivoire) (FOLD and LARSEN 2008). However, in
Ghana, limited liberalization and marketing under regulations of the COCOBOD has
led to the preservation of quality and reputation.
According to FOLD (2004, 2005, 2008) as well as FOLD and PONTE (2008), quality
parameters are first determined by a few international roasters and grinders, based
on size, mold and proper fermentation and second, then again further downstream,
by chocolate manufacturers by means of appropriate taste and odor of the beans.
Because of good processing practices adopted at the farm level and a public quality
control system, international buyers pay price premiums, usually according to
forward sales contracts with Ghana CMC. Through these forward contracts, the
COCOBOD is able to cushion fluctuations in world market prices and pay a constant
84
share through fixed prices to the producers. Moreover, CMB is also able to support
producers via largely privatized input suppliers for the provision of fertilizer,
pesticides, loans and transportation (such as the major player Wienco Ghana
Limited). However, during the last decade, privatization reshaped the purchasing of
the nuts in the country. The formerly state-owned PBC was privatized, and three
large and many small licensed buying companies (LBCs) started to buy and trade
cocoa in the country at different rates. Because of forward contracting, the revenue of
LBCs is a function of their ability to increase volume and speed of purchasing,
transportation and delivery to CMC. Therefore, competence in these transactions
arises from either capital (usually foreign), transportation capacity or social capital,
often in the form of ethno-based business-networks (FOLD 2008: 104). These networks
help to gain support from traditional leaders of rural producing communities, set up
buying operations before official seasons start, and also reduce risk of fraud or
supply failure. In addition, payments in cash and fringe benefits (payments in kind)
serve as a way to convince farmers to sell to a particular LBC. According to FOLD and
PONTE (2008: 150), currently LBC´s, the oligopolistic transnational grinders and
World Bank are pressuring the government of Ghana to implement a more flexible,
and market-like quality control system which should increase vertical integration of
governance in the cocoa VC.
The VC of cocoa in other African countries fundamentally changed after
implementation of SAPs. Dismantling of the marketing boards in cocoa VCs led to
the emergence of both old and new actors in the producing countries. Some
experienced personnel tried to form new companies, while others jumped at the
chance to fill in the gap. The new and experienced traders rushed into the business
with costly capital and were forced to increase the velocity of capital turnaround by
pushing farmers to sell their crop before it had been properly processed.
Consequently, most African cocoa industries, under structural adjustment lost
quality control systems and as noted by FOLD and PONTE (2008: 142), “production
seems to fluctuate closely with the world market price, indicating the sector's heavy
85
reliance on old, decaying trees that are only harvested if prices are considered
sufficiently high”.
Companies with sufficient access to capital, as well as the foreign trading
houses and processors, have managed to stay competitive, while many others
withdrew from the cocoa business. Furthermore, consolidation of international
buyers (as well as decline in quality) squeezed domestic prices and transformed local
trading and exporting companies into purchasing agents of transnational grinders.
After final liberalization in Côte d´Ivoire after 2000, the major global cocoa processors
controlled about 50 percent of the largest producing countries´ annual harvest,
leaving another 30 percent to five foreign trading companies that had taken over
local exporters (FOLD and PONTE 2008: 144).
After decades of global price recession for cocoa there has recently been a rise
in prices due to persistent increases in demand in Asia and Eastern Europe, political
instability in producing countries (Côte d´Ivoire, Nigeria), plant diseases (in
particular, fungal), and speculations on exchange markets. Despite all these factors,
compared to the long run, prices remain fairly low.
5.2. The cashew value chain
Many of the countries involved in shea production are also producing cashew nuts.
The tree was adopted from Brazil in the sixteenth century and grows in different
countries all over the world. Similar to shea, the cashew tree is extremely variable but
unpredictable in yield and is planted in various regions of Africa both for
consumption and trade. For the most part, cashew nut is farmed on a small scale
basis, collected and traded, often informally by female producers (CHEN 2008: 42). It
is usually sold in a raw condition to traders who sell the nut for primary processing
to India or to plants located near production zones.
Processors require a great deal of working capital to buy the needed yearly
production input in advance of the approximately three month season. Most raw
nuts, which are not processed in Africa, are processed in India, Vietnam or China,
86
and then sold via international traders to European and North American
roasters/salters, who then distribute them to consumer markets (AZAM-ALI and
JUDGE 2004; KANJI et al. 2004; WATH 2007). Most of the value is captured at this
Northern end of the buyer driven VC, where processors, wholesalers and large
retailer generate rents through marketing, packaging and branding of cashew
products.
In Ghana, cashew is a non-traditional crop, and compared to other SSA
countries like Guinea-Bissau or Mozambique, has no processing or export tradition.
However, cashew is also seen as a way for poor rural communities to diversify their
income generation and secure livelihoods, as cashew has a nutritious nut and fruit,
making it also attractive to international buyers. KANJI et al. (2004: 84) also points out
that local processing into nuts or various products can serve for domestic
consumption, payment in kind or gifts, and thereby play an important role for
household food security, income provision and strengthening of social relations
(building social capital) via market transactions.
Sustainable production and export of cashew are threatened by increased
competition from other producing countries around the world, low producer prices
paid by predominantly ethnic Indian or Pakistani buyer cartels, changes in demand
due to different consumer preferences and rise in vulnerability as result from over-
reliance on export markets. These problems result in declining incentives for
producers to invest and are further enhanced by high costs for capital and low
domestic demand (AFRICANAGRICULTURE 2009).
In Ghana and other producing countries, there are opportunities for
production ranging from small to large scale and increased value adding through
processing (the most promising method seems to be semi-mechanical processing
through small scale factories), product development and retail in domestic markets
(KANJI et al. 2004). In addition, the increasing demand from the chemistry industry
for Cashew Nut Shell Liquid (CNSL) is promising, although it also needs enhanced
processing methods and inputs (POLLMER 2008).
87
Prices of raw cashew usually reflect supply and demand, but the international
market increasingly awards quality parameters such as size, color and integrity.
Prices also tend to increase during the season, encouraging farmers to hold on to
their harvest in order to obtain better revenue. In practice, however, farmers are often
forced to consume or sell their produce due to the need of food or quick cash. Other
factors influencing the volatility of cashew prices are the location of sale, the number
of intermediaries, proximity to port, and the time of sale in relation to the marketing
season (KANJI et al. 2004: 83-84; WATH 2007: 6-7).
5.3. Lessons learned from cocoa and cashew
Some basic lessons for upgrading opportunities in the shea VC can be derived from
the cocoa and cashew sector/chain analysis. First of all, upgrading possibilities arise
as the use of low trans-fats like shea in chocolate products increases. This increase
can be due to changes in consumer preferences and health awareness, legislative
changes, and the need for global competition requiring manufacturers to cut costs. In
contrast to the large US market EU and other chocolate producers can substitute up
to 5% of cocoa butter with other, cheaper fats like shea. Additionally, due to obsolete
plants, mismanagement by inexperienced and unskilled farmers as well as the
previous social and economic problems, Côte d'Ivoire´s recent chocolate bean supply
problems are likely to persist and increase, resulting in the likelihood that there will
be raise of cocoa market prices (cf. HÄFLIGER 2010).
But there are other connections to cocoa and cashew VCs that are not as
obvious. Production and primary processing are mostly done by rural women, which
have considerable effects on quality. Therefore, successful production and effective
marketing of these products contributes significantly to reduction of poverty and
underdevelopment of these people and regions. Governance in the form of driving
power in all three commodity markets exerted by oligopolistic actors concentrated
downstream the VC appears alike. Where governments reduced their involvement
through liberalization, other “authorities” take the lead. Consequently, reduced
88
flows of market information and inputs, advantages in value adding and capital -
squeezed prices and actors in almost all “structurally adjusted” countries affected
profits to the people in rural areas. Apart from niche markets, producers of all three
commodities face serious pressure from oligopolistic international buyers and
volatile pricing regimes. Increases in transaction costs and risk along the chain are
compensated through vertical integration or investments in ethical or social networks
to secure supply in producing countries. With all three commodities, liberalization
has given rise to loss of quality because of informational and capital asymmetries.
In Ghana’s cocoa sector, the price pressure is reduced through state marketing
and control, leading to secured revenues, awards for higher quality, but also
impeding contact to international actors, information flows, and upgrading
possibilities for upstream producers. However, the state involvement in Ghana´s
cocoa market demonstrates that a quality control system and public intervention in
shea markets could also have positive results for upstream actors.
The similarities in markets of cocoa, cashew and shea emerge in different
subjects or areas. These are: (1) production, (2) formation of prices, (3) rise in
governance through prevalence of standardization and certification through quality,
social, or environmental parameters, (4) levels of concentration of large international
buyers and capital potent processors as opposed to multiple rural poor producers as
well as (5) high demand from Northern consumers opposed to low consumption in
producing countries (see also KANJI et al. 2004: 94). In contrast to cocoa and cashew,
however, shea features some unique characteristics, such as the limited SSA semi-dry
forest area of production, low barriers to entry at the production and processing
level, and multiple market opportunities (food, cosmetic, domestic, export, niche)
due to differences in biological features.
In all three commodities, producers face similar problems, which have to be
changed in order to upgrade operations. These are: quality of the raw produce,
productivity, linkages between producers and the marketplace, African processing
capacity, and sustainable global market conditions for African products. The
89
seasonal character of all three crops poses difficulties and opportunities to Southern
actors. On the one hand, seasonality challenges upgrading and year-round
production59
The example of state involvement in Ghana´s cocoa market demonstrates that
reduction of risks and redistribution of income can have similar effects on producers
as standards and certification schemes are implemented, as, for instance the
successful fair trade certified Kuapa Kokoo Cooperative shows
. This makes diversification of producer household income generation
inevitable in order to reduce vulnerability to external shocks. On the other hand,
seasonality enables traders and exporters to operate all year round in different
commodities and transfer capital from one division to other commodity transactions
(FOLD 2008: 114). In the case of all three commodities, would producers profits from
better prices and upgrading could help improve areas like health care, education and
household expenses, ensuing a reduction of child labor.
60
. Moreover the
governmental role should include the provision of basic infrastructure for transport,
information and finances, which seems to be lacking in most producing countries.
6. CONCLUSION AND A WAY FORWARD
This study adopted an extended GVC/GPN approach to analyze the vertical and
horizontal governance structures and upgrading possibilities in the global shea VC.
Taking the state of research into account, the importance of a theory-driven
approach, considering difficulties and negative effects of upgrading as well as issues
of rural livelihood, became apparent. Combining the examination of economic
processes and social relations, this study incorporated aspects of gender equity, class,
wealth, environment and time into a qualitative economic geography analysis.
Therefore, the thesis adopted a relational perspective on the upstream producers and
collectors, the downstream actors as well as the surrounding institutions and
59 This problem can be seen in opposition to other vegetable fats and enzymatically modified oils. 60 See http://kuapakokoo.com/kuapa/ and (TIFFIN et al. 2004).
90
organizations to capture the social interactions in the territorial and network
embedded shea VC.
In summary, the chain is driven by large buyers in the global fat processing
industry and by brand manufacturers of food and cosmetic products. At this end,
value is captured by rather intangible features like labeling, marketing and
distribution, and in the case of chocolate, by using shea as a cheaper substitute for
cocoa butter. Rising export of high value shea from Africa increasingly incorporates
local actors into global dynamics, while excluding others. The growing market power
and oligopolistic structures at buyers’ level resulting in restricted demand as
opposed to a varying yield. The almost unlimited supply increase opportunistic
behavior and volatile prices, making global participation of African actors difficult.
Informational flow and upgrading opportunities are impeded by the secretive
manner and sporadic transaction of global buyers of shea. Although the yield of shea
is unpredictable and varies greatly in territorial and biological terms, the Ghanaian
case study showed that, it is like cashew, a flexible source of income for many rural
poor women, making it a gendered commodity. Flexibility also appears at the
brokered trade level, through personalized and informal relationships. The network
between producer, trader and exporter transfers information and resources, but also
reduces uncertainty as well as risks in a volatile and geographically disperse market.
Focusing on Africa, and Ghana in particular, the shea network has faced major
changes in upholding governance patterns. Where market transactions or
governmental marketing previously structured trade of shea, new forms of
governance have emerged. The lack of formality, increased risks, transaction costs
and opportunistic behavior resulted in specific governance systems. Certain key
governance systems at work today, including, (1) flexible and dense social (often kin-
, ethnic- or gender-based) trading networks, (2) vertical integration of transactions
and (3) certification as well as standards schemes (imposed from outside by
governmental and non-governmental institutions and organizations) are increasingly
structuring the shea VC over large distances. Consequently, these governance
91
systems cause inclusion and exclusion of African actors and generate economical and
social winners as well as losers within the VC and on a geographical level.
Meanwhile, governments and NGOs are trying to counterbalance the power
asymmetry induced by large transnational companies by shaping the local
institutional framework for the benefit of local producers. These regulations of
market forces by states and other global institutions – pushed by organized civil
society and grassroots movements – will be able to counteract the harmful effects of
global free trade and rein in corporate power (JAFFEE 2007: 263). However, public
organizations and institutions should critically review “classic” public governance
systems which are in place or planned in the national shea industry.
For African actors upgrading opportunities and adverse effect of existing
modes of governance are complex. At the upstream end, the seasonality and
variability of shea makes long term participation challenging. Great spatial
dispersion and remoteness of actors also challenges traceability and efforts of
consolidation. Geographical dispersion, Africa´s complex land and tree tenure issues
as well as customs that preclude cultivation of shea trees are conditions against
extensive and prompt upgrading. However, similar to cashew VCs, upgrading will
require incorporation of strategic partners at traders, exporters, importers processors
and manufacturers level into long-term business relations with organized producer
associations, better integration of upstream actors into shea VC by longer term and
more complex economic relationships between chain participants, reduced economic,
social and environmental risks as well as improved chain positioning of producers.
Here, improvements in formal trade and relationships among chain actors as well as
surrounding institutions and organizations could be an area of intervention (e.g.
rules defining, allocation and enforcing property rights and conventions, defining
permissible and non-permissible forms of cooperation and competition, through
contractualization, dispute settlement mechanism, round tables, or industry codes of
conduct) to adjust the allocation of benefits across the VC.
92
How can governance and organization be changed in order to sustainably
improve the lives of the local actors involved? Rural women, who manually process
shea need first and foremost capacity building and organizational support to form
cooperatives and associations to improve the quality and quantity of production.
Such changes could both improve their integration into as well as their negotiating
power within the shea VCs. Facilitating of training workshops for trainers and
producing women´s groups to improve capacity and skills among the upstream
nodes could be an important action. Enhanced market information access on buyers
in cosmetic and food markets to local producers, traders and exporters, also by
implementation of an information system via radio, pamphlets internet and
television, could promote market connections at the upstream end. Differences in nut
quality supply between the various producing nations need to be harmonized in
order to promote sustainable development among producing countries. In addition,
there is a need for diversifying products and markets. Domestic markets for high
value cosmetic and soap products, as well as small but fast growing export niche
markets for (organic/fair trade) certified high-quality shea nuts and butter, are
promising upgrade possibilities. East African regions, where there was previously
little involvement in export markets, have good prospects for marketing high quality
olein rich shea for cosmetic markets, especially if political and production constraints
can be improved. Consequently, promoting the implementation of standards and
certification schemes could consolidate vertical and horizontal trajectories of
upgrading. Here, the opportunity of consumer’s power in the global shea VC can be
highlighted.
Strengthening of South-South trade relationships61
61 Between Africa, Latin America, Eastern Europe, Middle East and East or South East Asia.
shows potential to
extended export markets for African shea products. Due to new markets in emerging
countries, demand from food and cosmetic manufacturers is likely to increase in the
future; however, the global economic crisis is challenging the latest boost in the shea
industry and is likely to dampen the rising demand of “luxury” products such as
93
cosmetics and chocolate – limiting the connections rural African women have with
international markets. Additionally, changed consumer preferences for chocolates
with high amounts of cocoa adversely affect shea marketing. Especially in this case,
manual producers´ organization into women’s groups could be a promising
approach to market Shea butter for the cosmetic industry. A more sustainable
manual processing method could be adopted to reduce inputs and carbon dioxide
emission, consequently improving the livelihoods of producers. To this writer,
demands from downstream actors in cosmetic and food markets often seem very
ambiguous and require additional research. In addition, organic and fair trade niche
markets need closer revision. The relationship between large transnational
processors and manufacturers has not been adequately examined but seems very
difficult to explore.
There are serious challenges to upgrading operations of producers and traders
in the shea VCs. For traders and industrial processors, the main barriers appear to be
capital limitation both in terms of availability and costs (high interest rates), access to
market information and the transport infrastructure. Local buyers, who are price
takers of downstream actors, often try to increase their margins from shea trade by
exploiting producer’s narrow scope of marketing. Limitations in market institutions
and governmental enforcements lead to disadvantage and exclusion of actors at the
upstream end of the VC. Therefore, governmental institutions are responsible for the
provision of fundamentals such as macroeconomic and political stability, definition
and consistent enforcement of property rights and regulations, provision of physical
and social infrastructure as well as standard setting, monitoring and sanctioning for
mandatory and voluntary standards. Additionally, linking women´s groups and shea
traders to microfinance or low interest credit institutions, lowering financial
dependency of pre-financing lock-ins and trade on credit as well as R&D measures
for improved plantation are further areas for governmental intervention. Creation of
an organizational body for regular industry meetings and lobbying purposes could
94
help to pool African countries and actors together, ultimately strengthening their
market power.
The comparative analysis of the shea VC has shown that quality constraints
from biological differences as well as processing and storage practices result in great
inequities between countries. Similarly, export is dependent on trade networks,
transportation and other hard and soft infrastructure prerequisites, which vary
greatly between the observed nations, as a direct result of varied and diverse support
of the shea industry by governmental and non-governmental organizations.
95
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APPENDIX I: ADDITIONAL FIGURES AND TABLES
Figure 6: Five global value chains governance types (Source: GEREFFI et al. 2005: 89)
Table 2: Key figures on Ghana (Source: CIA 2009; UNDP 2009)
Capital Accra Population 23,832,495 (2009 est.)
Human Development Index (HDI) 0.526 (rank 152 of 182, 2009) Purchasing Power Parity (GDP) $34.2 billion (2008 est.)
GDP per capita (PPP) $1,500 (2008 est.)
GDP - composition by sector: agriculture: 37.3%
industry: 25.3% services: 37.5% (2006 est.)
Distribution of family income - Gini index 39.4 (2005-06)62
Gender-related Development Index (GDI) as % of HDI
99.5% (2007)
Literacy (definition: age 15 and over can read and write)
total population: 57.9% male: 66.4%
female: 49.8% (2000 census) Labor force 10.12 million (2008 est.)
62 Ghana: rank 65, compared to rank 134: Sweden (date of information: 2005) and rank 1: Namibia 70.7 (date of information: 2003).
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Labor force by occupation agriculture: 56%
industry: 15% services: 29% (2005 est.)
Population below poverty line/HPI 28.5% (2007 est.)
Exports- partners Netherlands 15.3%, UK 9.1%, France 6.5%, US
5.8% (2008)
Agricultural products cocoa, rice, cassava (tapioca), peanuts, corn, shea
nuts, bananas, timber Exports $5.245 billion (2008 est.)
Export commodities gold, cocoa, timber, tuna, bauxite, aluminum,
manganese ore, diamonds, shea nut, horticulture Ports and terminals Tema
Figure 7: Transport governance through checkpoints on main trade routes in West Africa (Source: WATH 2008)
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Table 3: Shea kernel production and utilization (metric tons per annum) (Source: LOVETT 2004: 8)
Country Est. Total Potential
Production63
Est. Actual Collection
Estimated Consumption
Total Exports
Export as Shea
kernels
Export as Shea Butter
Benin 80,000 50,00064 14,900 35,100 35,000 100 Burkina Faso 150,000 75,000 35,000 40,000 37,000 3,000 Cote d’Ivoire 150,000 40,000 15,000 25,000 15,000 10,000
Ghana 200,000 130,000 70,000 60,000 45,000 15,000 Mali 250,000 150,000 97,000 53,000 50,000 3,000
Nigeria 250,000 100,000 80,00065 20,000 20,000 0 Togo 50,000 40,000 10,000 30,000 15,000 15,000
WATH Major
Exporters Sub-total
1,130,000 585,000 321,900 263,100 217,000 46,100
Gambia 100 0 0 0 0 0 Guinea-Conakry
25,000 5,000 4,500 500 450 50
Guinea-Bissau
1,000 100 100 0 0 0
Niger 5,000 5,000 4,000 1,000 0 1,00066
Senegal
10,000 500 490 10 0 10 Sierra Leone 100 0 0 0 0 0 Cameroon 30,000 5,000 2,500 2,500 2,500 0
Chad 10,000 2,000 2,000 0 0 0 WATH Minor
Exporters Sub-total
81,200 17,600 13,590 4,010 2,950 1,060
Ethiopia 1,000 100 100 0 0 0 Sudan 100,000 10,000 9,800 200 0 200
Uganda 70,000 6,000 5,900 100 0 100 Central African
Republic 15,000 2,500 2,500 0 0 0
Dem. Republic of
Congo 5,000 750 750 0 0 0
Not WATH Sub-total
191,000 19,350 19,050 300 0 300
63 Since not all African countries collect detailed or reliable data, the figures above represent estimates from personal observations of Peter Lovett and give an approximate order of magnitude for maximum annual production, collection and export figures (given as standard MTs of dry kernel per annum.) To convert into fresh shea nuts, multiply by 35-40% and to convert to actual butter quantities, divide kernel weight by 33% (the latter is dependent on the method of extraction and the quality of kernel – according to Lovett empirically determined figures range from 20-45%). 64 Includes an estimated 10,000 t imported from Nigeria, also included as exported to Benin in Nigerian figures, therefore, this quantity is double counted in total exports. 65 Includes traditional consumption and mechanically processed in vegetable oil industry. 66 Exported to Nigeria for traditional consumption purposes.
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Table 4: Value chain shapers, opportunities and constraints by major producing countries (Source: Modified after LOVETT 2004: 18)
Country Potential to
Increase Kernel Export
Potential to Increase Butter
Export
Potential to
Increase Domestic marketing
Quality Issues Certification Trade
Network Organization of Processors
Transportation Issues Industrial
Processing Capacity
Benin Med. (trade
currently in process of being improved)
High (also options for finished products)
Med
Further upstream training required, threat from
Nigerian high FFA ‘raw’ imports.
Good options for developing fair-trade & organic
certification
Strong - Société
Knar-Bénin
Weak – some previous
CECI/UNIFEM intervention
Only 30 t per lorry, roads reasonable. Ports more expensive than Togo
None known (other reports give 20,000 MT)
Burkina Faso
Low (unless access to resource increased)
High (also options for finished products)
High Need for training on kernel quality. Very high stearin
Ongoing fair-trade & organic
certification projects
Strong Strong but complex
Landlocked exports through Ghana & Togo
ports (Côte d’Ivoire currently insecure)
30,000 t (but unsure if any current operation: SITEC
& SOFIB)
Cote d’Ivoire
Low-Med. (unless access to resource increased: due to
insecurity & focus on cocoa)
High (due to high technology in South but insecurity & N-S divide may prevent)
Med
Information lacking due to current insecurity probably high stearin in N.E. (some
kernel is oven roasted)
No information
Good according
to K.I. When no security issues
Unknown Good & has sea ports but
current insecurity between N & S
10,000+ t (unsure if any current operation:
Trituraf?)
Ghana Low (unless access
to resource increased)
High (also options for finished products)
High Need for training on kernel quality. Very high stearin
Ongoing fair-trade & organic
certification projects
Strong
Still weak (lacks national producer
assoc.) despite extensive donor
support
Improving road network & has two major sea ports
20,000 t & increasing (Sheaba & Juaben)
Mali High V. High (also
options for finished products)
High
Large amount of training needed to improve kernel
quality (most kernel is oven roasted)
Strengthening options for fair-trade & organic
certification projects
Improving with
support from
USAID projects
Improving with support from CECI, SNV &
USAID projects
Landlocked but road network being developed –
also rail link to coast
Potential for mills to process up to 50,000 t but not currently looking at shea – Huicoma & Sika)
Nigeria High High (also options
for finished products)
High
Huge amount of training needed to improve kernel
quality. Range of fat profiles! (Kernels being
dried raw!)
Need for organization!
Some areas have
improving network (Olam)
Mostly weak opportunity for
formation of producers association
Road network good, 30MT per lorry & costs to cross state borders. Number of sea ports but concern on
losses
Potentially huge but most processors not interested
in shea due to quality concerns (RIVOC,
10,000MT?)
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Togo Med Med Med Probable training required, threat from Nigerian high
FFA imports. Unknown
Thought to be strong Unknown
Good North-South links & well-supported sea-port 15,000+ t (Nioto)
Gambia V. low V. low Unknown High olein types (limited
occurrence) None
Non existent
Non existent Unknown Non existent
Guinea-Conakry
High High Unknown Large amount of training to improve kernel production
Good potential for projects
Weak Weak Has sea port. Inland maybe difficult due to insecurity &
poor roads Unknown
Guinea-Bissau
Low (unconfirmed whether shea exists)
Low Low Unknown Unknown Unknown Unknown Unknown Unknown
Niger Med (limited
production base) Med Low to Med R&D ongoing on resource None
Nigerian women buying butter
Strengthening Good E-W roads but
landlocked None
Senegal Med (limited
production area)
High (good options for finished products)
Low to Med Need for training on kernel
quality –some areas high olein varieties
Strengthening options for fair-trade & organic
Very limited
Strong with ongoing projects
(PROMER)
Isolated production zone in S.E. of country with poor
road access
None - except improving option for manual-
pressing
Sierra Leone
Low (unconfirmed whether shea still
exists) Low Low Unknown Unknown Unknown Unknown Unknown Unknown
Cameroon Med. Med. Unknown Good R&D ongoing – some
high olein types Unknown Unknown Unknown Unknown Unknown
Chad Med. Med. Unknown R&D ongoing – high olein &
good cosmetic types None None None Weak None
Ethiopia Low Low Low High olein types (only
occurs in Gambela region) None None None Impossible due to insecurity None
Sudan High High Med
Many groups being trained for drying quality raw
kernels for pressing. Range of fat profiles?
Ongoing fair-trade & good
options for organic
certification
Apart from NGOs,
non-existent
Strong for those linked with NGOs, otherwise v. weak
V. difficult due to insecurity in Southern Sudan
Only from manual presses(<100MT p.a.?)
Uganda Med High Med
High olein varieties (liquid) but groups trained to dry
raw & use mechanical presses
Good options for fair-trade &
organic
Weak due to
insecurity
One strong organization if
security allows - NUSPA
Insecurity & landlocked but East African trade links
improving
From both manual & small scale expellers (<100t p.a.?)
Central African
Republic Med. Med. Unknown
R&D ongoing –probable high olein & good cosmetic
types None None None Insecure & landlocked None
Dem. Republic of Congo
Low Low Unknown Unknown – probable high
olein varieties Unknown Unknown Unknown
Insecurity in Northeast & large distance to port
Unknown
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Figure 8: Traditional methods of shea kernel primary production (Source: LOVETT 2004: 12)
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Figure 9: Extraction and refining vegetable oils (Source: Modified after LOVETT 2004: 4)
Picture 6: Mature shea fruits and nuts (Source: Own picture 2009)
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Figure 10: Governance types and power relations in African value chains of shea, cocoa and cashew (Source: Own design 2009)67
67 This figure is an attempt to categorize the governance structures within the three VCs according to classic categories from market to hierarchy and to highlight the driving power originating from the actors. It raises no claim to completeness or perfect accuracy as there remains contentious points of friction.
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APPENDIX II: LIST OF INTERVIEWS
No Name68 Function Organization Place Date
1 Rahida Amanfu Chairperson Women group Tamale North
08.06.2009
2 Adisatu Rokoto Magazia Women group Sagnarigu 13.06.2009
3 Maimuna Appiah
Magazia Women group Tamale 13.06.2009
4 Aisha Mahama Magazia Women group Tamale 13.06.2009
5 Zahra Asamoha Magazia Women group Tamale South
16.06.2009
6 Amina Yeboah Magazia Women group Tamale South
16.06.2009
7 Khadija
Agyeman Magazia Women group
Tamale South
17.06.2009
8 Mahira Abdulai Head of family Individual Kukuo Yepalsi
23.06.2009
9 Mary Shahadu Head of family Individual Kukuo Yepalsi
23.06.2009
10 Adamu Sarpong Head of family Individual Kukuo Yepalsi
23.06.2009
11 Suleyman Alhassan
Managing Director
Trader Tamale 26.05.2009
12 Yahya Issaka Managing Director
Trader Tamale 10.06.2009
13 Farid Jabour Managing Director
Trader Tamale North
08.07.2009
14 Marc Phillips Managing Director
Trader Accra 29.06.2009
15 Kojo Annan Managing Director
Trader Tamale 17.06.2009
16 Abass Obasi Managing Director
Import, Export & General Merchant
Accra 30.06.2009
17 Saibu Mbia Managing Director
Production and Export Tamale 23.06.2009
18 Salifu Sulemana Executive Advisor
SNV Tamale 23.06.2009
19 Kofi Ngonlomah Deputy Director Ghana Cocoa Board Accra 02.07.2009
20 Akwasi Boateng Manager Ghana Export Promotion
Council Accra 02.07.2009
68 Names changed.
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APPENDIX III: INTERVIEW GUIDELINES
Interview Guide small scale Collectors/Processors
Interviewer: Date/Time: Location: Interviewee: Gender: Age: Profession (since): Institution: Function/Position: Situation/Atmosphere: • Personal and project introduction. • Explanation about the questionnaire form and the openness. • Announcement of recording the interview for eventual transcription and the anonymization of it. General Research Question What are the governance structures within the shea value chain, how do these relate to prospects of upgrading, and how can local producers and processors in Ghana upgrade their operations to reap higher shares of value? 1. Chain actors role and work
1.1. Please tell me something about your daily work with shea? 1.1.1. What are you doing? 1.1.2. Where do you collect shea (radius)? 1.1.3. When do you collect shea? 1.1.4. How much sheanuts are you collecting? 1.1.5. What are you doing with the sheanuts after collection? 1.1.6. How do you process (ferment, dry) the nut before pressing/grinding? 1.1.7. What technique/equipment do you use for the extraction of oil? 1.1.8. What are you doing with the byproducts of processing (shell, pulp, ash, water)? 1.1.9. For how long are you keeping the kernel/butter?
1.2. Which shea products are you trading? 1.3. Where do you sell these products? 1.4. Why are you working with shea? 1.5. What input are you adding on the value of the product (collecting, processing fuel wood,
water, technology, transport, fees, cost of labor for etc.)?
2. Work organization 2.1. How is the work organized? 2.2. Are you a member of a producer association, women society (collective bargaining group,
cooperation)? 2.3. Have you tried to organize with other collectors or processors to improve work and trade?
2.3.1. If not, why not? 2.3.2. If yes, how is it organized?
2.4. Please tell me something about the ownership of the area of harvest? 2.4.1. Who owns the lands on which the tree grows? 2.4.2. Who owns the trees themselves?
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2.4.3. Who has the right to their harvest? 2.5. Do you remember any problems or conflicts regarding equity and ownership?
2.5.1. Is it easy to access the area of collection? 2.5.2. Do you have to pay for collectors rights?
3. Trade and relationships
3.1. Where are you trading (rural buying stations, in the village, markets, etc.)? 3.2. When are you trading (off season, on season)? 3.3. Are you buying nuts for processing? 3.4. To whom are you selling (also: intermediates, middlemen)?
3.4.1. Are you always selling to the same buyer? 3.4.2. To how many buyers are you selling to? 3.4.3. Have you changed the buyer?
3.5. How would you describe the relationships to buyers (trust, stable/unstable, personal/impersonal, formal/informal, contracts/loose ties, negotiation, duration, etc.)?
3.5.1. What difficulties do you see in these relationships? 3.5.2. What potentials for improvements do you see in these relationships?
3.6. Do you get pre-financing or regular payments (cooperation, hierarchy)? 3.7. When do you get paid? 3.8. What determines the price (also: time of selling and other dependencies like quality)?
3.8.1. How are prices negotiated? 3.8.2. Who negotiates the price?
3.9. Do you deliver on a regular schedule? 3.10. Why are your costumers buying from you?
3.10.1. What are your customers tell you about the quality you are trading (changes in the dependence on quality, quality-price connection, difference in domestic/export markets demand, differences in local, regional, national and international processing demand)?
3.11. Which standards do you have to meet (Organic; fair, ethical or equitable trade; quality assurance, traceability, EurepGAP)?
3.11.1. How are they established (formal/informal)? 3.11.2. Who is controlling these standards?
3.12. Do your customers support you anyhow (to improve quality, stability, etc.)? 3.13. Do you have the support of sector unions or state organizations? 3.14. Have you received external help from NGO´s, governmental, or other organizations
(financial, information, technology etc.)? 3.15. Where do you get information, regarding the shea market (for e.g. market price) (Research
institutions, fairs, markets, governmental institutions, friends, other business woman/men, producer groups…)?
4. Changes
4.1. Have there been any changes in your business recently (what kind of changes, and why did they occur)?
4.1.1. How do these changes affect you? 4.2. What are the main problems you have to face? 4.3. Do you feel that you are depending on others (hierarchy)?
4.3.1. How much do you trust your buyers? 4.3.2. Are the buyers reliable?
4.4. How would you describe the competition between similar collectors, processors or traders (market)?
5. (Optional) Business/family structure 5.1. Please tell me something about the structure of your family/business?
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5.2. For how long have you been involved in shea business? 5.3. What prospect do you have for your work with shea (expansions, reductions, and
expectations)? 5.4. How many people are living in your household (size of organization)? 5.5. How old are these family members? 5.6. How much do you earn from shea products/kernels? 5.7. What are you buying with the shea revenues (expenses for: food, education, health, wage
labor, community fees, Electricity, water, interests on dept, other)? 5.8. Who is getting the profits of your shea sale? 5.9. Do you do agriculture besides shea collecting/processing? 5.10. Do you sell other crops? 5.11. Do you work for other people?
Interview Guide Trader/Intermediary
Interviewer: Date/Time: Location: Interviewee: Gender: Age: Profession (since): Institution: Function/Position: Situation/Atmosphere: • Personal and project introduction. • Explanation about the questionnaire form and the openness. • Announcement of recording the interview for eventual transcription and the anonymization of it. General Research Question What are the governance structures within the shea value chain, how do these relate to prospects of upgrading, and how can local producers and processors in Ghana upgrade their operations to reap higher shares of value? 1. Chain actors role and work organization
1.1. Please tell me something about your daily work with shea? 1.1.1. What are you doing?
1.2. What products do you trade? 1.3. How are these products processed? 1.4. Why are your costumers buying from you?
1.4.1. What are your customers tell you about the quality you are trading (quality-price connection, difference in domestic/export markets demand, differences in local, regional, national and international processing demand)?
1.5. What determines the price (also: time of selling and other dependencies like quality)? 1.5.1. How are prices negotiated? 1.5.2. Who negotiates the price?
1.6. Where are you buying (rural buying stations, markets, etc.)? 1.6.1. Local 1.6.2. Regional 1.6.3. National
1.7. From whom are you buying what product (single collectors, producer groups)?
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1.8. Transportation (how, how much, where, cost (also cost of labor for packing, loading, and fees etc.)?
1.9. How do you store or/and cool the product? 1.10. When are you trading (off season, on season, on demand)? 1.11. To whom are you selling?
1.11.1. Are you always selling to one buyer? 1.11.2. When do you change the supplier? 1.11.3. To how many buyers are you selling to? 1.11.4. Have you changed the buyer?
2. Trade and relationships
2.1. What input are you adding on the value of the product (processing, transport, fees, bribes, cost of labor etc.)?
2.2. How would you describe the relationships to suppliers (stable/unstable, personal/impersonal, formal/informal, contracts/loose ties, duration, etc.)?
2.2.1. What difficulties do you see in these relationships? 2.2.2. What potentials for improvements do you see in these relationships?
2.3. How would you describe the relationships to buyers (stable/unstable, personal/impersonal, formal/informal, contracts/loose ties, duration, etc.)?
2.3.1. What difficulties do you see in these relationships? 2.3.2. What potentials for improvements do you see in these relationships?
2.4. How do you keep record of these relationships (traceability from origin) 2.5. Do you have any standards to meet (Organic; fair, ethical or equitable trade; quality
assurance, traceability, EurepGAP)? 2.6. Have you received external help from NGO´s, governmental, or other institutions (financial,
information, technology etc.)? 2.7. How does competition to other traders affect you (market)? 2.8. Do you get Pre-financing (cooperation, hierarchy)? 2.9. What are the final markets of your product? 2.10. What are the main problems occurring in trade?
3. Changes and upgrading
3.1. Have there been any changes in your business recently (what kind of changes, and why did they occur)?
3.2. Have there been price variations and why did they occur (competition, world market, cacao prices, supply and demand, etc.)?
3.3. Do you remember any changes in supply or retail relationships between importers, exporters, middlemen and collectors?
3.3.1. If so, when and why are these changes evolving and how do they affect you? 3.4. Do you feel that you are depending on others (hierarchy)? 3.5. Would you support self-organization of collectors? 3.6. If yes, how would you support them? 3.7. What are the final markets of your product? 3.8. What expectations or prospects do you have regarding domestic and international markets
for shea butter or shea nuts? 3.9. Informational network: where do you get information, regarding the shea market, for e.g.
prices, demand, supply etc. (Research institutions, fairs, markets, governmental institutions, friends, other business woman/men)?
4. (Optional) Business/family structure 4.1. (Optional) Please tell me something about the structure of your business? 4.2. For how long have you been involved in shea business?
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4.3. How much do you pay per bag of shea? 4.4. For how much do you sell the bag of shea? 4.5. How much do you earn from shea products/kernels? 4.6. Do you sell other crops?
Interview Guide Exporter/Importer
Interviewer: Date/Time: Location: Interviewee: Gender: Age: Profession (since): Institution: Function/Position: Situation/Atmosphere: • Personal and project introduction. • Explanation about the questionnaire form and the openness. • Announcement of recording the interview for eventual transcription and the anonymization of it. General Research Question What are the governance structures within the shea value chain, how do these relate to prospects of upgrading, and how can local producers and processors in Ghana upgrade their operations to reap higher shares of value? 6. Chain actors role and work
6.1. Please tell me something about your daily work with shea? 6.2. What are you doing? 6.3. What products do you trade? 6.4. Where do you ship/transport which products?
6.4.1. National 6.4.2. International (West Africa, EU/US etc.)
6.5. What are the main problems occurring in trade and import/export? 6.6. Where are you sourcing shea kernel/butter?
6.6.1. National 6.6.2. International
7. Trade and relationships
7.1. Why are your costumers buying from you? 7.2. Which shea products are you trading? 7.3. How are these products processed? 7.4. What are your customers tell you about the quality you are trading (quality-price
connection, difference in domestic/export markets demand, differences in local, regional, national and international processing demand)?
7.5. How do you organize buying shea? 7.6. What determines the price (also: time of selling and other dependencies like quality)?
7.6.1. How are prices negotiated? 7.6.2. Who negotiates the price?
7.7. Where are you buying (rural buying stations, markets, etc.)?
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7.8. When are you trading (off season, on season, on demand)? 7.9. From whom are you buying what product (wholesalers, retailers, single middlemen,
producer groups)? 7.10. To whom are you selling? 7.11. What input are you adding on the value of the product (processing, transport, fees, cost of
labor etc.)? 7.11.1. How do you market shea products through branding?
7.12. How would you describe the relationships to suppliers (stable/unstable, personal/impersonal, formal/informal, contracts/loose ties, duration, etc.)?
4.6.1. What difficulties do you see in these relationships? 7.12.1. What potentials for improvements do you see in these relationships? 7.12.2. Would you support self-organization of collectors? 7.12.3. If yes, how would you support them?
7.13. How would you describe the relationships to buyers (stable/unstable, personal/impersonal, formal/informal, contracts/loose ties, duration, etc.)?
4.6.2. What difficulties do you see in these relationships? 7.13.1. What potentials for improvements do you see in these relationships?
7.14. How do you keep record of these relationships (traceability from origin)? 7.15. What are the entry barriers to markets of shea (quality, capital, technology etc.)? 7.16. Do you have any standards to meet (Organic; fair, ethical or equitable trade; quality
assurance, traceability, EurepGAP)? 7.17. What are future aspects of certification in the shea sector? 7.18. How would you describe the competition between similar organizations (Exporters,
Importers) (market)? 7.19. What are the modes of payment upstream and downstream the value chain (cooperation,
hierarchy)? 7.20. Who is the main importer of shea kernel/butter? 7.21. What are the final markets of your product?
8. Changes and upgrading
8.1. Have there been any changes in your business recently (what kind of changes, and why did they occur)?
8.2. Have there been price variations and why did they occur (competition, world market, cacao prices, supply and demand, etc.)?
8.3. How did the EU directive for the use of cacao equivalent in confectionary markets change the shea business?
8.4. How does the dependency and competition to cacao markets affect you? 8.5. Do you remember any changes in supply or retail relationships between importers,
exporters, middlemen and collectors? If so, when and why are these changes evolving and how do they affect you?
8.6. How does competition affect you (market, tendency to oligopolistic structures in trading networks)?
8.7. What is the minimum quantity of butter/kernel for export sales? 8.8. What is the minimum quality of butter/kernel for export sales? 8.9. Do you feel that you are depending on others (hierarchy)? 8.10. What expectations or prospects do you have regarding domestic and international markets
for Shea butter or shea nuts? 8.11. Informational network: where do you get information, regarding the shea market (Research
institutions, fairs, markets, governmental institutions, friends, other business woman/men)?
8.12. (Optional) Please tell me something about the structure of your business? 8.13. For how long have you been involved in shea business?
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8.14. Do you sell other products? 8.15. Have you received external help from NGO´s, governmental, or other institutions (financial,
information, technology etc.)? 8.16. Transportation (how, how much, where, cost (also cost of labor for packing, loading, and
fees etc.)? 8.17. How do you store or/and cool the product?
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APPENDIX IV: SELBSTSTÄNDIGKEITSERKLÄRUNG
Hiermit versichere ich, Kai Scholz, geb. am 29. September 1981, gem. § 18, Abs. 6 der
Diplomprüfungsordnung der Johann Wolfgang Goethe-Universität Frankfurt am
Main für das Fach Geographie (vom 14. Dezember 1999), dass ich die vorliegende
Diplomarbeit selbständig verfasst und keine anderen als die angegebenen Quellen
und Hilfsmittel verwendet habe. Diese Arbeit hat in dieser oder einer ähnlichen
Form noch nicht im Rahmen einer anderen Prüfung vorgelegen.
Hereby, I certify that I have written this thesis without using any other sources of
information than those indicated in the Bibliography.
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Frankfurt am Main, den 26. August 2010
