A socio-economic analysis of the emerging Shea value chain in Northern region, Ghana
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Date
February, 2015
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Abstract
The shea VC chain in the Northern Region comprises varied actors including shea
nut collectors and/ processors of kernel, shea kernel traders, shea butter processors
and shea butter traders with perceived disproportionate variations among the actors
in terms of profit margins distribution. This study examines the emerging shea value
chain in the Northern Region of Ghana, with emphasis on shea butter processors.
Specifically, the study investigates the effects of group formation on shea butter
processors participation in the shea value chain and aims to compare shea butter
processors operating in groups and shea butter processors operating individually
with regards to specific variables such as costs, profit margins and outputs. The
analysis in this study involved mapping the shea supply chain and assessing the
profit margins and cost structures of the actors at different segments of the chain.
Using gross margin analysis and independent sample t-tests results the study
revealed that butter processors bear the largest share of cost and receive the lowest
profit margin. The independent t- test results show significant differences in profit
margins between butter processors operating in groups and butter processors
operating individually. Beyond these empirical findings the study also shed light on
the issue of governance and upgrading as it relates to the shea value chain in the
Northern Region, highlighting various lead firms and auxiliary organizations in the
chain and the role they play in the governance and upgrading process in the shea
value chain in the Northern Region.
Description
A thesis submitted to the School of Graduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana in fulfillment of the requirement for the degree of Master of Philosophy, 2015