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ROLE OF NIGERIAN EXPORT PROMOTION
    COUNCIL IN SHEANUT/BUTTER
           DEVELOPMENT

                   DELIVERED
                       BY
              MRS.OMOWUNMI OSIBO
        DIRECTOR (PRODUCT DEVELOPMENT)
       NIGERIAN EXPORT PROMOTION COUNCIL

        AT THE 2013 GLOBAL SHEA ALLIANCE
                   CONFERENCE
        VENUE:- THE SHERATON HOTELS AND
             TOWERS , ABUJA.4TH-6TH


                                           1
Protocol
INTRODUCTION
• Ladies and Gentlemen, I am delighted to make this
  presentation on the Role of Nigerian Export Promotion
  Council in the development of SHEANUTS. In order to
  do justice to this paper, I believe i should also touch
  on the effort carried out on shea through the STDF
  Project 172, a WTO funded program on Shea and
  Sesame in Nigeria



                                                     2
• The chosen topic is very apt at this time because
  of the giant stride the Council and indeed other
  collaborating agencies have achieved through
  the STDF172 project. At this type of forum,
  Exporters, Potential ones and all relevant
  stakeholders are aware of the huge opportunity
  available in the shea value chain for economic
  growth of the country



                                                  3
NIGERIAN EXPORT PROMOTION COUNCIL
                 (NEPC)

VISION:
Make the non-oil export sector a significant
contributor to Nigeria’s GDP.

MISSION:
We facilitate opportunities for exporters &
promote sustainable economic
development.
                                               4
THE ROLE OF NEPC IS 4-PRONGED IN NATURE)


ACTIVITIES:




                                           5
CORE RESPONSIBILITIES
 To promote the development and diversification of
  Nigerian’s export trade.
 To assist in promoting the development of export
  related industries in Nigeria.
 To spearhead the creation of appropriate export
  incentives.
 To actively articulate and promote the
  implementation of export polices and programs of
  the Nigerian Government
 Human Capital Development in the Non- Oil
  Export Sector                                    6
 FACT FILE ON SHEANUT
    The shea tree grows naturally in the wild in the
     dry Savannah belt of West Africa from Senegal
     in the west to Sudan in the east, and onto the
     foothills of the Ethiopian highlands.

    Shea nuts grows in about 20 countries in the
     world, all of which are in Africa, Nigeria
     inclusive.
    In recent years the shea tree has gained
     importance as an economic crop because of the
     heavy demand for its butter, both locally and
     internationally.                              7
Cont’d

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

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



                                                        8
Sheanut Production in Nigeria
 The local shea market is dominated by
  the women in Nigeria. There are men who
  trade in nuts and work in processing but
  women are the primary pickers,
  processors and sellers of shea butter in
  the local marketplace.
 The majority of shea butter consumption in
  our country is in the butter form for
  cooking, cosmetics and skin care,etc.
                                           9
SHEANUT PRODUCTION FROM WEST AFRICA




                                      10
11
12
SHEANUT PRODUCTION IN NIGERIA
             (ESTIMATE)

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


                                   13
TOP SHEANUT EXPORTING COUNTRIES




                              14
15
16
NIGERIA’S EXPORT OF SHEANUTS 2008 TO 2011

                                                   Net weight                Value in Naira
2008
         052           BARBADOS                       20,300                          3,514,773
         208           DENMARK                     4,000,000                         133,226,016
         528           NETHERLANDS                   40,700                           8,831,526

2009
  356 INDIA                                           427,900                         8,815,570

2010

1020 ANDORRA                                            113                       45,786,550
204 BENIN                                                 38                      2,283,832
356 INDIA                                                320                     20,224,000
840 UNITED STATES                                      1,000                      3,925,721

Source National Bureau of Statistics




                                                                                                   17
Sheabutter:-
 Very little is packaged, labeled or certified
  before sale and it is sold in small balls or
  bowls in major markets throughout the
  country.
 Currently, there are 21 shea producing
  states in Nigeria.



                                              18
Map of Shea Producing States




                               19
INTERNATIONAL MARKET FOR SHEA


 The world’s biggest international markets
  for shea butter are in Europe and North
  America.
• it is used as a cocoa butter equivalent or
  improver in chocolate and other
  confectionaries, margarine, and in
  cosmetic and personal care products.

                                               20
• Nigerian exporters indicated that the main problem
  encountered with export of shea products is
  aflatoxin content in the nut while in storage.
• Quality assurance for shea products to meet
  importers’ requirement is a technical issue for which
  Nigeria needs to develop expertise in order to
  safeguard and increase market penetration.


                                                      21
• There are also certain organizations
  buying shea butter from individual
  communities but standard quality is a
  challenge.




                                          22
• Lack of quality control activities during the
  post-harvest processing (particularly the
  first three steps of traditional post-harvest
  processing)

• It is important to note that the way the fresh shea
  fruit is handled and processed into shea kernel
  determines the quality of the kernel and the
  quality of the kernels in turn determines the
  quality of the shea butter.
                                                   23
Cont’d
• Poor quality sheanut/butter accounts for
  majority of reasons why sheabutter export
  from Nigeria is low compared to its local
  production volume.




                                          24
THE COUNCIL’S EFFORTS AT DEVELOPING AND
         PROMOTING SHEA FOR EXPORT

• The Council had sponsored some Shea- butter
  processors to the West African Trade Hub (WATT),
  Accra; Ghana – a USAID sponsored trade network.
  The training was meant to improve the quality of
  Nigerian Shea- butter to ensure market access to the
  large USA market.
• Also, in 2006, the Council engaged the services of a
  foreign based Consultant called Whitaker Group to
  source for market for Nigeria products including
  Shea- butter in the USA and to source fund for       25

  processing of same.
• In the area of capacity building, the Council in
   conjunction with West African Trade Hub (WATH)
   conducted a training programme for
   producers/processors in Abuja.
In 2011
• The Council went a step further by engaging a GSA
   consultant who trained over 600 women on proper
   processing of sheanut into butter.
• The trainings involved practical demonstrations on every
   step involved in the proper processing of sheanut/butter
• . It was carried out in 3 different location across the
   country namely; (Ilua in Oyo State, Zuru in Kebbi State
                                                           26
   and kaiama in Kwara State
• Pictorials and manuals were also
  produced to aid the training sessions.
• Another batch of processors have been
  programmed for training this year in proper
  processing of sheanuts. Focus is on train-
  the –trainer in the processing.


                                           27
• The council has also been involved in a World
  Trade Organization sponsored programme
  (STDF 172) targeted at expanding Nigeria’s
  export of sesame and Sheanut/Butter through
  addressing sanitary and photo-sanitary issues in
  the production and processing of these
  products.
• The STDF Project 172 commenced in October
  2010 with a dedicated website(www.sesame-
  shea-stdf172.org.ng) . It is funded 65% by the
  WTO and 35% by the NEPC. It has the
  International Trade Center (ITC) as the        28
  Supervising Agency
.

• The NEPC is the Implementing Agency, there is
  also a Project Coordinator who is supported by
  the International Consultant.
• There are about 14 public and private sector
  organizations involved in the project
  implementation.
• The project consist of 5 Components, each with
  series of activities under each Component
  spearheaded by a Lead Agency with Supporting
   Agencies providing assistance.
                                             29
.

The project seeks to improve the quality of
Nigerian shea for export through improved quality
control along the value chain.
• It is scheduled to end tentatively in March, 2013
  and has recorded enormous achievements in
  implementation, principally the characterization of
  the Nigerian sesame seed shea value chain and
  extension physico-chemical and biological
  analysis. Critical Control Points for intervention
  vis-à-vis Good Processing Practices has been
  conducted and identified.
                                                   30
• Under the STDF 172 project, series of capacity
  building programmes will be conducted for the
  extension workers and women processors with
  fabricated machines to aid proper processing of the
  nuts at every stage of production.




                                                        31
Cont’d
• The efforts of the council is in line with the
  objectives of the Millennium Development
  Goals (MDGs), and the transformation
  agenda of the Federal Government of
  Nigeria.

• Specifically, the efforts of the council is
  geared towards the following objectives:

                                                32
Objectives:-
• Equip the local sheanut/butter producers
  with the right skills and tools to process
  high quality sheanut/butter.
• To empower women, create wealth and for
  poverty reduction
• Encourage the collection of sheanut as a
  commercial venture
• Creation of employment and generation of
  more income for rural dwellers across the
  shea value chain.
                                           33
• Reduce rural-urban migration
• Opportunity to organize the local
  producers into cooperative entities
• Act as a catalyst to develop the shea
  industry in Nigeria
• Serve as a means of developing
  infrastructural facilities in the rural areas.

                                                   34
Challenges in the Shea sector
 Restricted access to credit
 Infrastructural deficiency and weak logistics to
 support value addition in the supply chain.
 Shea exports is dominated by the nuts with its
 limitations.
 External barriers ( Non-tariff barriers)
 Inadequate export-oriented sheabutter
 manufacturing company and low productive
 capacity.
 Unrecorded export trade, especially butter ( 35
• Poor standardisation of products (quality,
  labelling, packaging)
• High production costs
• Lack of vital skills and technology




                                               36
Strategy for Nigeria sheanut/butter growth and
                     development
 Shift from Primary resource dependent to value Addition in
  the long term.
 Maintain quality standard
 Focus more on the quality of sheanuts
 Adopt Good Processing Practices
 Increased production.
 Provide easy access to Agric credit.
 Attract Investors.
 Remain competitive.
 Provide market information system (local and International).
                                                               37
 Export formally.
Capacity Building
                  Way Forward
  Enhancing Shea processors with request knowledge
  Providing Special Skill for shea exporters and Potential ones.
  Creating Export Awareness.
  Simplify Export Procedures and Documentations
  Imbibe e Commerce
  Enhance Synergy amongst relevant stakeholders
  Best approach to quality assurance through the creation of
  appropriate quality infrastructure.
  Product adaptation to meet the requirements of International
  Enlightenment campaign on non- felling of sheanuts tree for (coal,
  mortars, etc)
  Research work on early maturing sheanut trees (graft & tissue
  manipulation). This is necessary to continuously provide the raw
  materials
  Getting certification for organic sheanut/butter
  Step up campaign for increased use locally for its use in cosmetics and
  for its medicinal use.
                                                                       38
Conclusion
 Ladies and Gentlemen, the shea sector if fully
  developed, has the high potential of poverty
  reduction in the rural areas and also be a major
  revenue earner for the country.
 With Nigeria having the largest concentration of
  sheanuts in the world, the nation should exploit this
  opportunity. There is the need for partnership
  between the Government and the private sector to
  engage in production, processing and marketing of
  shea.
                                                     39
THANK YOU
  Local Women
Processors in Bosso,
Niger State.




                            40
FOR FURTHER INFORMATION, PLS
 VISIT OUR WEBSITE.
www.nepc.gov.ng ,
www.sesame-shea-stdf172.org.ng or
 reach us at enquiries@nepc.gov.ng



                                     41
www.nepc.gov.ng
info@nepc.gov.ng




                   42

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The Role of Nigerian Export Promotion Council in Sheanut/Butter Development

  • 1. ROLE OF NIGERIAN EXPORT PROMOTION COUNCIL IN SHEANUT/BUTTER DEVELOPMENT DELIVERED BY MRS.OMOWUNMI OSIBO DIRECTOR (PRODUCT DEVELOPMENT) NIGERIAN EXPORT PROMOTION COUNCIL AT THE 2013 GLOBAL SHEA ALLIANCE CONFERENCE VENUE:- THE SHERATON HOTELS AND TOWERS , ABUJA.4TH-6TH 1
  • 2. Protocol INTRODUCTION • Ladies and Gentlemen, I am delighted to make this presentation on the Role of Nigerian Export Promotion Council in the development of SHEANUTS. In order to do justice to this paper, I believe i should also touch on the effort carried out on shea through the STDF Project 172, a WTO funded program on Shea and Sesame in Nigeria 2
  • 3. • The chosen topic is very apt at this time because of the giant stride the Council and indeed other collaborating agencies have achieved through the STDF172 project. At this type of forum, Exporters, Potential ones and all relevant stakeholders are aware of the huge opportunity available in the shea value chain for economic growth of the country 3
  • 4. NIGERIAN EXPORT PROMOTION COUNCIL (NEPC) VISION: Make the non-oil export sector a significant contributor to Nigeria’s GDP. MISSION: We facilitate opportunities for exporters & promote sustainable economic development. 4
  • 5. THE ROLE OF NEPC IS 4-PRONGED IN NATURE) ACTIVITIES: 5
  • 6. CORE RESPONSIBILITIES  To promote the development and diversification of Nigerian’s export trade.  To assist in promoting the development of export related industries in Nigeria.  To spearhead the creation of appropriate export incentives.  To actively articulate and promote the implementation of export polices and programs of the Nigerian Government  Human Capital Development in the Non- Oil Export Sector 6
  • 7.  FACT FILE ON SHEANUT  The shea tree grows naturally in the wild in the dry Savannah belt of West Africa from Senegal in the west to Sudan in the east, and onto the foothills of the Ethiopian highlands.  Shea nuts grows in about 20 countries in the world, all of which are in Africa, Nigeria inclusive.  In recent years the shea tree has gained importance as an economic crop because of the heavy demand for its butter, both locally and internationally. 7
  • 8. Cont’d • The nuts are shipped out of West Africa mainly from ports in Dakar, Senegal, Lome, Togo and Ghana. • Nigeria is the largest producer of sheanuts in the world but have not been able to take economic advantage of the huge export potentials the product offers in view of the many uses that the product could be put to. 8
  • 9. Sheanut Production in Nigeria  The local shea market is dominated by the women in Nigeria. There are men who trade in nuts and work in processing but women are the primary pickers, processors and sellers of shea butter in the local marketplace.  The majority of shea butter consumption in our country is in the butter form for cooking, cosmetics and skin care,etc. 9
  • 10. SHEANUT PRODUCTION FROM WEST AFRICA 10
  • 11. 11
  • 12. 12
  • 13. SHEANUT PRODUCTION IN NIGERIA (ESTIMATE) Year Production (M/T) • 2008 433,369 • 2009 441,560 • 2010 325,610 Source: FAO 13
  • 14. TOP SHEANUT EXPORTING COUNTRIES 14
  • 15. 15
  • 16. 16
  • 17. NIGERIA’S EXPORT OF SHEANUTS 2008 TO 2011 Net weight Value in Naira 2008 052 BARBADOS 20,300 3,514,773 208 DENMARK 4,000,000 133,226,016 528 NETHERLANDS 40,700 8,831,526 2009 356 INDIA 427,900 8,815,570 2010 1020 ANDORRA 113 45,786,550 204 BENIN 38 2,283,832 356 INDIA 320 20,224,000 840 UNITED STATES 1,000 3,925,721 Source National Bureau of Statistics 17
  • 18. Sheabutter:-  Very little is packaged, labeled or certified before sale and it is sold in small balls or bowls in major markets throughout the country.  Currently, there are 21 shea producing states in Nigeria. 18
  • 19. Map of Shea Producing States 19
  • 20. INTERNATIONAL MARKET FOR SHEA  The world’s biggest international markets for shea butter are in Europe and North America. • it is used as a cocoa butter equivalent or improver in chocolate and other confectionaries, margarine, and in cosmetic and personal care products. 20
  • 21. • Nigerian exporters indicated that the main problem encountered with export of shea products is aflatoxin content in the nut while in storage. • Quality assurance for shea products to meet importers’ requirement is a technical issue for which Nigeria needs to develop expertise in order to safeguard and increase market penetration. 21
  • 22. • There are also certain organizations buying shea butter from individual communities but standard quality is a challenge. 22
  • 23. • Lack of quality control activities during the post-harvest processing (particularly the first three steps of traditional post-harvest processing) • It is important to note that the way the fresh shea fruit is handled and processed into shea kernel determines the quality of the kernel and the quality of the kernels in turn determines the quality of the shea butter. 23
  • 24. Cont’d • Poor quality sheanut/butter accounts for majority of reasons why sheabutter export from Nigeria is low compared to its local production volume. 24
  • 25. THE COUNCIL’S EFFORTS AT DEVELOPING AND PROMOTING SHEA FOR EXPORT • The Council had sponsored some Shea- butter processors to the West African Trade Hub (WATT), Accra; Ghana – a USAID sponsored trade network. The training was meant to improve the quality of Nigerian Shea- butter to ensure market access to the large USA market. • Also, in 2006, the Council engaged the services of a foreign based Consultant called Whitaker Group to source for market for Nigeria products including Shea- butter in the USA and to source fund for 25 processing of same.
  • 26. • In the area of capacity building, the Council in conjunction with West African Trade Hub (WATH) conducted a training programme for producers/processors in Abuja. In 2011 • The Council went a step further by engaging a GSA consultant who trained over 600 women on proper processing of sheanut into butter. • The trainings involved practical demonstrations on every step involved in the proper processing of sheanut/butter • . It was carried out in 3 different location across the country namely; (Ilua in Oyo State, Zuru in Kebbi State 26 and kaiama in Kwara State
  • 27. • Pictorials and manuals were also produced to aid the training sessions. • Another batch of processors have been programmed for training this year in proper processing of sheanuts. Focus is on train- the –trainer in the processing. 27
  • 28. • The council has also been involved in a World Trade Organization sponsored programme (STDF 172) targeted at expanding Nigeria’s export of sesame and Sheanut/Butter through addressing sanitary and photo-sanitary issues in the production and processing of these products. • The STDF Project 172 commenced in October 2010 with a dedicated website(www.sesame- shea-stdf172.org.ng) . It is funded 65% by the WTO and 35% by the NEPC. It has the International Trade Center (ITC) as the 28 Supervising Agency
  • 29. . • The NEPC is the Implementing Agency, there is also a Project Coordinator who is supported by the International Consultant. • There are about 14 public and private sector organizations involved in the project implementation. • The project consist of 5 Components, each with series of activities under each Component spearheaded by a Lead Agency with Supporting Agencies providing assistance. 29
  • 30. . The project seeks to improve the quality of Nigerian shea for export through improved quality control along the value chain. • It is scheduled to end tentatively in March, 2013 and has recorded enormous achievements in implementation, principally the characterization of the Nigerian sesame seed shea value chain and extension physico-chemical and biological analysis. Critical Control Points for intervention vis-à-vis Good Processing Practices has been conducted and identified. 30
  • 31. • Under the STDF 172 project, series of capacity building programmes will be conducted for the extension workers and women processors with fabricated machines to aid proper processing of the nuts at every stage of production. 31
  • 32. Cont’d • The efforts of the council is in line with the objectives of the Millennium Development Goals (MDGs), and the transformation agenda of the Federal Government of Nigeria. • Specifically, the efforts of the council is geared towards the following objectives: 32
  • 33. Objectives:- • Equip the local sheanut/butter producers with the right skills and tools to process high quality sheanut/butter. • To empower women, create wealth and for poverty reduction • Encourage the collection of sheanut as a commercial venture • Creation of employment and generation of more income for rural dwellers across the shea value chain. 33
  • 34. • Reduce rural-urban migration • Opportunity to organize the local producers into cooperative entities • Act as a catalyst to develop the shea industry in Nigeria • Serve as a means of developing infrastructural facilities in the rural areas. 34
  • 35. Challenges in the Shea sector Restricted access to credit Infrastructural deficiency and weak logistics to support value addition in the supply chain. Shea exports is dominated by the nuts with its limitations. External barriers ( Non-tariff barriers) Inadequate export-oriented sheabutter manufacturing company and low productive capacity. Unrecorded export trade, especially butter ( 35
  • 36. • Poor standardisation of products (quality, labelling, packaging) • High production costs • Lack of vital skills and technology 36
  • 37. Strategy for Nigeria sheanut/butter growth and development  Shift from Primary resource dependent to value Addition in the long term.  Maintain quality standard  Focus more on the quality of sheanuts  Adopt Good Processing Practices  Increased production.  Provide easy access to Agric credit.  Attract Investors.  Remain competitive.  Provide market information system (local and International). 37  Export formally.
  • 38. Capacity Building Way Forward Enhancing Shea processors with request knowledge Providing Special Skill for shea exporters and Potential ones. Creating Export Awareness. Simplify Export Procedures and Documentations Imbibe e Commerce Enhance Synergy amongst relevant stakeholders Best approach to quality assurance through the creation of appropriate quality infrastructure. Product adaptation to meet the requirements of International Enlightenment campaign on non- felling of sheanuts tree for (coal, mortars, etc) Research work on early maturing sheanut trees (graft & tissue manipulation). This is necessary to continuously provide the raw materials Getting certification for organic sheanut/butter Step up campaign for increased use locally for its use in cosmetics and for its medicinal use. 38
  • 39. Conclusion  Ladies and Gentlemen, the shea sector if fully developed, has the high potential of poverty reduction in the rural areas and also be a major revenue earner for the country.  With Nigeria having the largest concentration of sheanuts in the world, the nation should exploit this opportunity. There is the need for partnership between the Government and the private sector to engage in production, processing and marketing of shea. 39
  • 40. THANK YOU Local Women Processors in Bosso, Niger State. 40
  • 41. FOR FURTHER INFORMATION, PLS VISIT OUR WEBSITE. www.nepc.gov.ng , www.sesame-shea-stdf172.org.ng or reach us at enquiries@nepc.gov.ng 41