Prospective Agrobusines Investors in Nigeria are invited to explore Shea nut & Butter Investment opportunities in Nigeria as the commodities are fast becoming a toast of Agrobusiness Investors and Exporters in Nigeria.
Nigeria is a leading producer of Shea nut and butter in the world. However due to issues around quality, the nation is yet to fully tap into the benefit of the expanding market for Shea nut & Butter Investment.
The oil content is the most crucial element of the shea nut as that component is an important ingredient in the composition of the shea butter that goes into Cocoa Butter Equivalents and other by-products.
Shea nut and shea products are mainly produced in Niger, Kwara,Oyo, Kogi, Oyo, Benue, Edo.
Estimated National Production is 500,000 MT annually, about 3% of the national production is exported.
Shea butter is the major derivative from shea nuts. Shea Butter is mainly used as cooking oil, in the making of chocolate and candle and as moisturizers in the cosmetic industry.
It is used in the treatment of skin disorders like eczema, burns, rashes, stretch marks, acne, wrinkles, skin discolorations, itching and other skin problems.
It also provides natural protection from the sun’s UV rays. It is also an excellent agent for softening skin. It can also be used to maintain hair moisturization especially in dry hair.
Shea nuts currently sells for between N110,000 to N130,000 in Nigeria, depending on the state sourced from.
Shea Butter currently sells for about N750 per Kg and N750,000 per tonne; MT. Again, prices defer with location.
The price of Shea nuts and butter follows the movement in the price of cocoa beans and butter.
Major destinations for Nigeria’s Sheanut and Butter are the Europe, United States and Japan.
The export season for Shea nut commences by June and ends in October.
The harvesting period for Shea Nuts in Nigeria, runs from June till about November. The fruits are allowed to ripen on the tree and then drop to the ground.
Nut that has been well dried can store well for up to 5 years without spoiling. Storage should aim at maintaining the quality through the storage period as well as eliminating pests that could destroy the nuts. Ware house at the appropriate location are needed.
Investors are advised to explore Shea Nuts & Butter Processing Investment Opportunities.
Shea Butter is produced by steaming the Shea fruit for the kernel inside to shrink away from the shell to prevent the kernel from damaging. After the shells are cracked and the kernels are extracted. They are placed in the sun to dry for a prolonged period in order for the shea nuts to maintain a long shelf life of 5 years. After drying, the best nuts will be sorted out to for crushing and left till the next day. Thereafter, other processes like Roasting of Crushed Shea Kernels, Milling, Kneading, Boiling, Filtration and Solidification, Packaging and Storage will commence.
Main buyers of Sheanut and Sheabutter are chocolate manufacturers, Cosmetic Industries, Pharmaceutical Industries as well as households.
CHALLENGES IN SHEA NUT & BUTTER INVESTMENT OPPORTUNITIES.
Quality of processed Shea Butter remains the major challenge in Nigeria. Nigeria currently exports(Shea Butter) less than 5% of its produced shea nut. Hence potentials and earning from this crop is yet to be tapped and fully maximized.
SUMMARY OF SHEA NUT & BUTTER INVESTMENT OPPORTUNITIES
For further information on Shea nut & Butter investment; Business Plan, Supply, Processing
Contact; Agro News Nigeria Research and Investment Unit
Email; agronewsnigeria@gmail .com or firstname.lastname@example.org
Call; 08035044364, 07031097516.