Ghana’s decision to introduce a minimum producer price for shea nuts has been met with mixed reactions from local processors, who are calling for a more transparent and enforceable pricing regime to address supply shortages, market manipulation, and the unchecked export of raw nuts.
Effective July 1, the Tree Crops Development Authority (TCDA) pegged the minimum price of 1kg of raw shea nuts at GH¢9.01. This translates to about GH¢20.70 per 2.3kg bowl (olonka) and GH¢765.63 per 85kg bag, provided the nuts meet set quality standards, including moisture content of 8–10%, free fatty acids of 6–8%, and impurities between 2–4%.
The initiative aims to ensure fair returns for local producers, enhance sustainability, and boost Ghana’s competitiveness in the global shea market. But two weeks into implementation, processors and market actors report wide price disparities and inconsistent enforcement across producing regions.
In Tamale, bowls of shea nuts are selling for GH¢20–GH¢25, while in Navrongo and Bolgatanga, prices soar to as high as GH¢40. These fluctuations have raised doubts about the TCDA’s capacity to regulate prices and curb interference by middlemen and multinational buyers.
Enforcement Gaps and Market Disruptions
“The price controls alone won’t work,” said Imoro Abu Kassim, Manager of Maltiti Enterprise Limited, a Tamale-based shea butter processing company. “Big buyers are collaborating with middlemen to manipulate prices and sideline local processors.”
Kassim revealed that Maltiti Enterprise, which has an annual processing capacity of 150 metric tonnes, has halted bulk production due to rising prices and difficulties sourcing raw materials. “We now process only on confirmed orders. There’s no way to stockpile under these conditions.”
He also expressed concern over the practicalities of implementing TCDA’s quality standards. “We’ve never measured moisture content before, and now we need moisture meters. How are small-scale collectors supposed to comply without support?”
Beyond price and quality enforcement, access to affordable finance remains a major hurdle. With interest rates hovering around 30%, small processors say they cannot compete with foreign companies that borrow at rates as low as 3–5%.
“Our challenge isn’t just pricing; it’s also capital,” Kassim stressed. “Without low-interest loans, how can local businesses survive, let alone scale?”
Raw Exports Undermine Local Value Addition
The continued export of raw shea nuts is another pressing concern. Processors argue that this undermines efforts to add value locally and worsens supply shortages, especially during the lean season from October to January.
“Setting a floor price solves only 30% of the problem,” said Ibrahim Jabir Mohammed, founder of Right Shea Group. “The real issue is the unchecked export of raw nuts, which deprives local processors of supply.”
Mohammed noted that last year, some processing centres had to shut down by November due to raw nut shortages, with prices peaking at GH¢70 per bowl. “This isn’t sustainable. We need bold action to prioritize local industry.”
Both Burkina Faso and Mali have already banned raw shea nut exports, putting additional pressure on Ghana’s supply to serve both domestic and international markets.
Climate Risks and Production Uncertainty
Adverse weather has further complicated matters. A recent windstorm during the flowering season destroyed significant numbers of shea trees, raising fears of another shortfall despite initial optimism about this year’s harvest.
Prof. Bukari Alhassan, Director of the West African Centre for Shea Innovation and Research at the University for Development Studies, warned that Ghana’s shea output is insufficient to meet both local processing and export demands.
“What we harvest is already inadequate for our processors,” he said. “With the impact of climate change, irregular fruiting, and increasing demand, a supply crisis is imminent.”
Despite the challenges, Prof. Alhassan welcomed the minimum pricing policy as a vital first step in protecting vulnerable women who collect shea nuts under difficult conditions.
“This is a milestone for equity,” he said. “But the TCDA needs to be well-resourced to monitor compliance, sanction violators, and create a level playing field for all actors.”
Inclusive Policies and Financing Support
Industry leaders are urging the government to introduce a dual-pricing system that includes a minimum price for processed shea butter, not just raw nuts, to secure the entire value chain.
Kassim also called for low-interest financing tailored to small processors. “Without access to affordable capital, even fair pricing won’t make a difference,” he said.
As July marks Global Shea Month, stakeholders say the moment is ripe for Ghana to take decisive action. The shea industry, a lifeline for thousands of women across northern Ghana, is at a critical crossroads.
“If we don’t act now,” Kassim warned, “we risk losing control of an industry that should be creating jobs and building local wealth.”
