Abstract

The shea butter business contributes significantly to rural entrepreneurship through nut collection, processing, and packaging. This study was conducted to evaluate the process and activities associated with shea butter production along the value chain and how they have affected the livelihoods of the value chain actors in Oyo state of Nigeria. Shea butter value chain entrepreneurs were sampled using a snowballing approach, and participants were identified as collectors, processors, and marketers. Primary data was collected through the use of structured interviews and group discussions. Data collected were analyzed using descriptive statistics, gross margin analysis, marketing margin estimation, and fuzzy logic to identify the impact of respondents’ participation in shea butter activities. The business in the study area is female-dominated, as its operations are carried out by women with an average age of 48 years, and majority have been in the business for more than 15 years. The gross margin of the collectors, processors and marketers for every 100kg of shea nuts was ₦8,930 and ₦3,893.78k and ₦46,851.62, respectively. The study recommended a plantation establishment to encourage the continuous supply of shea nuts for processing and a need to intensify more efforts on improved technologies in production and modern processing techniques.

Keywords: Shea butter, Value chain, Well-being, Rural communities