Agbanga Karite Shea Butter Newsletter
Issue 2 Volume 1- January 2005
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This Newsletter Contains:
THE IMPORTANCE OF FAIR TRADE SHEA
BUTTER As it has always been, Africa is a place of abundant natural resources. Today, the buzz word is shea butter. Some even have called it Africa's "liquid gold." However, we must take care that the monetary benefits of shea butter actually reach the women, men and children in small villages across West and central Africa who are ultimately responsible for bringing this oil to the rest of the world. While shea butter is a uniquely African resource (shea trees are native to West and Central Africa and grow wild throughout the wooded savanna), it is not Africans that are controlling the end product. Today, the majority of all the shea nuts collected in Africa, about 606,500 metric tons, are purchased and controlled by European and Asian corporations, such as Unilever (UK), Arhus (Denmark), Fuji Itoh and Kaneka-Mitsubishi (Japan), and Karlshams (Sweden). Together, these corporations have such buying power that they are able to control the price of shea nuts. The prices that these corporations pay do not equal a living wage, since the time to gather, dry and shell the shea nuts is not factored into the price. This is in part due to the fact that the entire trade is carried out by one or more middlemen, so the final price paid to the gatherers is very small. The current structure of the trade puts the gatherers at a distinct disadvantage. The process begins when multinationals visit the capital cities and find wealthy businessmen who are not averse to taking advantage of their own people. These middlemen go into the countryside and buy the shea nuts and traditionally processed shea butter at below the market price. The western corporations begin by setting a price that they will pay for the raw material. The businessmen from the capital then quote a lower price to the local officials. The local officials take their cut as well, and proclaim another even lower price. There may be as many as three more middlemen in the process. By the time the funds reach the gatherers and producers, the price paid per unit does not come close to reflecting the real market price. The women who have done all the back breaking work of bending, gathering, and transporting the nuts are left with no alternative but to accept the meager funds offered to them. Note that in countries where economic opportunities are limited, especially for women, one is left with little choice but to take what is offered. Furthermore, the shea nuts are then taken outside the country to be extracted and refined in the west. This takes potential employment away from the local people. Therefore, it is extremely important for shea producing communities that consumers are aware of the source of their shea butter. It is not enough to think that just purchasing any shea butter will benefit the producers. Peace Deal in Sudan (from Africa Action, www.africaaction.org):
Please read more about this peace deal, including an outline of what the deal actually is, the consequences for the Sudanese people, and the reality of what the deal means for the people of Darfur at http://www.africaaction.org GLOBAL ALLIANCE FOR COMMUNITY EMPOWERMENT The Agbanga Karite Group is pleased to announce the formation of the Global Alliance for Community Empowerment. The non-profit organization will oversee and implement our community enhancement projects. The website http://www.communityempowerment.org will be launched shortly, and will contain information on our projects and future plans. We welcome your thoughts and comments.
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2004 |