Evaluating the Viability of Shea Butter Production: A Comparative Analysis

Abstract

This paper analysed the viability of shea butter processing in the Northern Region of Ghana using household level data on three different processing methods. Semi-structured questionnaires were administered to shea butter processing units. In all 110 processors were interviewed comprising 40 processing units for each of the Traditional and the Improved Shea Butter Processing Technology (ISBPT) methods and 30 for the Bridge Press (BP) method.  The analytical techniques used included NPV, B/C ratio, sensitivity analysis and switching values. From the NPV and B/C ratio analyses, shea butter processing generally is a viable enterprise. While the estimates (NPV and B/C) of the BP method are higher than those of the ISBPT method, the estimates of the ISBPT method are higher than those of the Traditional method. The switching value and sensitivity analysis showed that the BP and ISBPT methods are more conditioned to handle risk than the Traditional method. Based on the findings, shea butter processing is recommended to government, Non-governmental Organisations and other stakeholders involved in the fight against poverty as a viable enterprise that offers an opportunity for the economic empowerment of women in both urban and rural areas.

Keywords: NPV, B/C ratio, switching values, sensitivity analysis, shea butter, viability.