An assessment of the structure of shea global value chain in Ghana and implication for policy development

The global value chain for shea has witnessed major transformations in the last two decades. This study was aimed at providing a detailed understanding of the structure of the shea value chain in Ghana. Data were collected primarily from primary source and secondary sources. A total of 820 upstream actors, 20 aggregators, 2 processing companies and other experts were interviewed using both closed-ended and open-ended questionnaires to gather qualitative and quantitative data. The study employed the value chain framework to analyse the structure of the shea value chain in Ghana. Data analysis was primarily descriptive in nature. A value chain map, schematic diagram, and flow charts were generated to show the linkages between actors and the flow of resources, materials, products, information, and funds. The results show that the shea value chain is highly gendered, with women at the base of the chain, working as shea kernel producers and processors of crude shea butter, using mainly traditional methods, hence output is sub-optimal. The mid-stream actors were all males, whose main function involves aggregating shea kernels across several communities for industrial processors and export companies. Processing companies, using mechanised methods, process and export several derivatives of shea (shea grits, shea butter, stearin, and olein) to mainly to high-end markets in the E.U and Asia. Though female participation in the shea global value chain is prominent, their output is way too low at the current level to make significant impact. Policy focus must be on supporting upstream actors through the provision of improved processing facilities, community infrastructure, and skills training to enhance the capacity of upstream actors to improve their performance.