Shea butter, others from Nigeria below global standards, says WTO

As many of the items do not fulfil the sanitary and phytosanitary procedures required for sale, the World Trade Organisation ordered Nigeria and other African nations on Tuesday to improve the quality of their shea exports.

It also made clear that a large portion of the potential of this commodity remained unrealized, even with the obvious advantages and benefits of shea cultivation. With its headquarters located in Geneva, Switzerland, the World Trade agency (WTO) is an international agency that deals with international trade regulations. It was founded in 1995.

The nut of the shea tree is indigenous to the savannas of West Africa. Shea butter, which can be used as a source of money and medicine, can be made from the nuts of the shea tree, making it an invaluable resource for the surrounding communities.

In an online speech at the Global Shea Alliance-hosted 2024 Shea Annual Conference in Abuja, WTO Director-General Dr. Ngozi Okonjo-Iweala stressed the importance of looking at the shea value chain beyond butter farming and processing.
"Shea is one of the main agricultural exports of over eight of our members, including Benin, Burkina Faso, Côte D'Ivoire, Ghana, Mali, Nigeria, and Togo," the spokesperson stated before the WTO. Over a million women work in the shea butter industry, with exports from Ghana alone valued at over $92 million in 2022.

Nevertheless, a large portion of this industry's potential remains unrealized despite the obvious advantages and benefits that shea offers to our ladies. Many countries are unable to export because a large number of our shea products do not adhere to the sanitary and phytosanitary standards needed for export.

Furthermore, it is imperative that we consider the entire shea value chain, not just the cultivation and butter production phases. In what way can we in Africa begin to manufacture more finished shea products?”
According to Okonjo-Iweala, her group has been helping Nigerians and other nations increase their shea product exports because doing so will strengthen the respective economies of the countries in question.

"I met with a group from an Oyo State shea cooperative that had taken part in an event hosted by the Nigerian Export Promotion Council when I first assumed office as WTO DG.

"To increase the cooperative's ability to produce high-quality shea butter that complied with international safety and quality standards, the WTO, International Trade Centre, and NEPC collaborated."

Previously, this cooperative was not allowed to export, but thanks to the efforts of all the agencies, they were able to obtain the international safety certification that now permits them to do so to the United States, United Kingdom, Middle East and South Africa.
The women's salaries increased—some almost tripling. And several of them told me about how they had invested in side ventures in addition to covering the cost of their kids' college tuition. This is how trade can benefit people and its power," said the head of the WTO.

She added, "shea butter, specifically trade in shea butter, can help with these objectives," after telling conference attendees that the WTO was established to help raise living standards, generate jobs, and promote sustainable development.

"Shea butter has been referred to as women's gold for centuries," stated Okonjo-Iweala. Shea nut farming and processing employ around 16 million women in West Africa at the moment.

“It is estimated that women make $237m in direct income from shea. 85 per cent of all shea exports are used as cocoa butter equivalence and 15 per cent are used for cosmetics.

“The cosmetics shea butter market is currently worth over $600m and it is expected to reach about $850m by the end of 2027. So we have to look at how African women can further benefit from this sector.”

On her part, the Chief Executive Officer, Nigerian Export Promotion Council, Nonye Ayeni, said Nigeria is among the major producers of shea globally.

“It may interest you to know that the following countries account for the largest producers of shea in the world, representing 60 per cent of global production. These countries are Burkina Faso, Mali, Ghana, Nigeria and Cote D’Ivoire,” she stated.

Ayeni stated that a cursory look at the global value of shea production and export showed that in 2023, the production and value of shea along the value chain was $2.17bn, while it was expected to grow at a Compound Annual Growth Rate of 7.1 per cent by 2030, representing the sum of $5.8bn.

“Global market value for chocolate is estimated to be approximately $113.16bn in 2021 and expected to reach $156.74bn in 2030. For the cosmetics industry, it stands at $380.2bn and is expected to reach $453bn in 2026.

“Presently, more countries like India, Japan and South Korea are approving the use of shea butter as cocoa butter equivalent, apart from China, Italy and Netherlands, that are among the leading importers of shea butter, there is therefore ready market for quality shea butter in the international market.

“Nigeria is one of the major producers of shea in the world. It is on record that presently, the country has about five million hectares of shea trees which are grown in about 21 states of the federation especially in Niger, Kebbi, Oyo, Kwara, Benue and Federal Capital Territory,” Ayeni stated.

The NEPC boss noted that the opportunities for shea to transform Nigeria’s economy could be seen in the areas of job creation, value addition and women empowerment.

She told delegates at the conference that the NEPC was doing a lot to enhance the production of the commodity in Nigeria to meet international standards.