Nigeria earns over $5 million yearly from shea butter exports.The country, however, is targeting about $100 million yearly earnings from the commodity.There are increasing efforts to achieve this through the commodities exchange, DANIEL ESSIET reports.
THERE is an increasing demand for shea butter on the European cosmetics market, the Centre for the Promotion of Imports from developing countries(CBI) has said.
The main driver is the demand for natural and organic cosmetics on the European market. It is expected that the demand for shea butter will continue to rise in Europe.
Furthermore, the Global Market Insights Inc report said Shea Butter Market revenue is projected to cross $2.9 billion by 2025.The Middle East and African shea butter market is expected to register 10 per cent from 2019 to 2025, driven by rising dependency on African countries for shea butter exports.
According to Research andMarkets.com’s report, the global shea butter market value is projected to display a robust growth by volume during 2019-2024.
Over the years, the shea butter market has been witnessing considerable growth on the back of increasing demand for chocolate in emerging and developing nations and growing urban population.
Moreover, the rise in the demand for heathy and nutritious food and rising number of high-net-worth individuals has been driving the market of shea butter globally.
Nigeria earns over $5 million yearly from shea butter exports. The country, however, is targeting about $100 million yearly earnings from the commodity.
The Federal Capital Territory (FCT) Minister of State, Dr. Ramatu Aliyu, in a message to a recent Third Technical Meeting of the National Committee on Export Promotion held in Abuja maintained that FCT administration has chosen shea butter and handicraft under the scheme because the commodity has been identified as a high economic impact export product.
According to her, the FCT administration resolved to key into the zero-oil plan with One-State-One Product (OSOP) initiative.
Similarly, the Securities and Exchange Commission (SEC), as part of its implementation of a 10-year Capital Market Master Plan, constituted a Technical Committee on Commodities Trading Ecosystem.
One of the recommendations of the committee was to identify commodities with good supply base in Nigeria for inclusion as a tradable commodity in the Nigeria Commodity Exchanges. Shea nut kernel is one of such commodities.
At a panel session entitled: “Trading shea nuts and shea butter in commodity exchanges in Nigeria: How to make it happen” at the Second Agribusiness Networking (AgNet) Shea Investors Forum organised by the Nigeria Agribusiness Register in partnership with the National Shea Products Association of Nigeria (NASPAN), the modalities for including shea as a tradable commodity was examined by representatives from the nation’s commodity exchanges.
Representatives of AFEX and the Lagos Commodity & Futures Exchange said trading shea butter would provide benefits, including increasing the focus on quality and sustainability of the product from the production areas.
Also, part of the benefits of listing shea products is that it would provide access to capital from the capital market and provide the needed liquidity to enhance production and trade of the product which will provide economic benefits to rural producers and the rural economy of the producing states.
Following the submissions, NASPAN, the Agribusiness Register, the Commodity Brokers Association of Nigeria, the nation’s commodity exchanges and other stakeholders will be working in the coming months to make shea trading on the nation’s exchanges a reality.
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