DOI QR코드

DOI QR Code

Profit efficiency and constraints analysis of shea butter industry: northern region of Ghana

  • Tanko, Mohammed (Faculty of Business and Law, Newcastle Business School, University of Newcastle)
  • Received : 2017.02.02
  • Accepted : 2017.03.24
  • Published : 2017.09.30

Abstract

This study was undertaken to examine the profit efficiency and its determining factors, the investment opportunity, and the challenges of shea butter producers in the northern region of Ghana. The methods employed in this research were the Stochastic Profit Frontier (SPF) model, gain-cost and investment return analyses, as well as Kendall's W statistic using primary data collected from 120 purposively-selected respondents. Results from the analysis indicated that profit efficiency was positively influenced by sex, household size, marital status, educational level, transportation cost, store rent, and price of shea nut with a gain in profit efficiency of 58.5%. The investment analysis demonstrated a net gain per person of $8,077 equivalent to GH₵ 28,270 Ghanaian cedi (GH₵) using 2016 exchange rate (GH₵ 3.5 = $1). Among the challenges identified, the poor quality of shea nuts was the most prioritised challenge with 72.8% agreement among the respondents. Based on these findings, it was recommended that proper training and education, as well as improvement in shea nut quality, should be promoted to improve the profit efficiency of shea butter producers.

Keywords

References

  1. Abbiw DK. 1990. Useful plants of Ghana, West Africa. Uses of wild and cultivated plants. pp. 66-67. Intermediate Technology Publication and the Royal Botanic gardens, Kew, London, UK.
  2. Abdulai A, Huffman WE. 1988. An examination of profit inefficiency of rice farmers in northern Ghana. Working Paper in Department of Economics Iowa State University, Ames, USA.
  3. Aboyella C. 2002. An economic analysis of shea nuts and cashew production in the Bawku East District. Bsc. dissertation, Department of Economics & Agribusiness, University of Ghana.
  4. Abujaja AM, Adam H, Zakaria H. 2013. Effects of development interventions on the productivity and profitability of women shea butter processors in the west Gonja district of northern Ghana. Asian Journal of Agriculture and Rural Development 3:914-923.
  5. Adegeye AJ, Dittoh JS. 1985. Essential of agricultural economics. pp. 210-226. Impact publisher, Nigeria Limited.
  6. Agbahungba G, Depommier D. 1989. Aspects dup arc a karites-neres (Vitellaria paradoxa Gaertn.f.Parkia biglobosa Jacq. Benth.) dans le sud du Borgou (Benin). Bois et Forets et Forets des Tropiques 41-54.
  7. Akihisa T, Toahi A, James W. 2010. Anti-inflammatory and chemopreventive effects of triterpene cinnamates and acetates from shea fat. Journal of Oleo Science 8:7-12.
  8. Ali M, Flin JC. 1989. Profit efficiency among basmati rice producers in Pakistan Punjab. American Journal of Agricultural Economics 71:303-310. https://doi.org/10.2307/1241587
  9. Ampofo O. 1983. First aid in plant medicine. Ghana rural reconstruction movement, Annual Report.
  10. Battese GE, Coelli TJ. 1995. A model for technical inefficiency effect in stochastic frontier production for panel data. Empirical Economics 20:325-345. https://doi.org/10.1007/BF01205442
  11. Bravo-Ureta BE, Pinheira AE. 1993. Efficiency analysis of developing country agriculture: A review of frontier function literature. Agricultural Resource economics 22:88-101. https://doi.org/10.1017/S1068280500000320
  12. Christian B, Larry M. 2011. One in every six Americans living below poverty line, U.S. Census Bureau announces. Accessed in articles.nydailynews.com/2011-09-13.
  13. Cocoa Research Institute of Ghana. Undated. Research by the cocoa research institute of Ghana into the cultivation and processing of shea nuts as an alternative to cocoa products.
  14. Dalziel JM. 1937. The useful plants of west tropical Africa. pp. 350-354. Crown Agents, London.
  15. Delabre G, Paris P, Clamagirand B. 1987. Etude de marche et commercialisation des équipements villageois de fabrication du beurre de karite au Mali. Centre d'Echanges et Promotion des Artisans a Equiper, Paris.
  16. Farayola CO, Okpodu V, Oni OO. 2012. Economic analysis of locust beans processing and marketing in Ilorin, Kwara State, Nigeria. International Journal of Agricultural Research Innovation & Technology 2:36-43.
  17. Fluery JM. 1981. The butter tree. IDRC-reports. 10:6-9.
  18. Hauser F, Pilgrim K. 1999. Agriculture and poverty reduction: The Benin example. Agricultural and Rural Development 2:57-60.
  19. Huffman WE. 1974. Decision making: The role of education. American Journal of Agricultural Economics 56:85-97. https://doi.org/10.2307/1239349
  20. Issahaku H, Ramatu A, Sarpong DB. 2011. An analysis of allocative efficiency of shea butter processing methods in the northern region of Ghana. Journal of Development and Agricultural Economics 3:165-173.
  21. Kumbhakar SC, Ghosh S, McGuckin T. 1991. A generalised production frontier approach for estimating determinants of inefficiency in US dairy farms. Journal of Business and Economic Statistics 9:279-286.
  22. Legendre P. 2005. Species association: Kendall's coefficient of concordance revised. Journal of Agriculture, Biological and Environmental Statistics 9:34-65.
  23. Lovett PNC, Haq N. Undated. Literature review on the shea butter nut tree. Unpublished Report.
  24. Mattson DE. 1986. Statistics-difficult concepts understandable explanations. Bolchazy-Carducci Publicatio Incorporation 3:281-183.
  25. Maydell HJV. 1983. Arbres et arbustes du Sahel, leurs utilisation et leurs caracteristiques. Eschborn, Germany, GTZ.
  26. MDPI. 2016. Open source of google. Accessed in https://www.google.com.tr/search?q=shea+butter+processing&rlz=1C1CHBH_enTR719TR719&espv=2&biw=1366&bih=662&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjJydrs4q7SAhXFCSwKHUcfBxcQ_AUIBigB.
  27. Millee JK. Undated. Secondary products of species native to the Dinderesso Forest Reserve, Forestry Education and Development Project USAID, Ouagadougou.
  28. NARP. 1993. Annual report on plantations and industrial crops. Ghana 44.
  29. Ogbonnaya C, Adgidizi PP. 2008. Evaluation of some physico-chemical properties of shea butter (Butyrospermum paradoxum) related to its value for food and industrial utilization. International Journal of Post-Harvest Technology and Innovation 1:320-326. https://doi.org/10.1504/IJPTI.2008.021466
  30. Pascal AB. 1978. Shea butter production in the Dagomba district. A dissertation submitted to the Department of Agricultural Economics & Agribusiness, University of Ghana.
  31. Prasad NR, Faue J, Gauy K. 2009. Caffeic acid modulates ultraviolet radiation-b induced oxidative damage in human blood lymphocytes. Journal of Photochemistry and Photobiology 9:2-5.
  32. Soladoye MO, Orhiere SS, Ibimode BM. 1989. Ethnobotanical study of two indigenous multipurpose plants in the Guinea savanna of Kwara state -Vitellaria paradoxa and Parkia biglobosa. Biennial Conference of the Ecological Society of Nigeria. 14th August Forestry. p. 13. Research Institute, Ibadan.
  33. Teklehaimanot Z. 2003. Improved management of agroforestry parkland systems in sub-Saharan Africa. Final project report.
  34. World Bank. 1990. World tables. World Bank, Washington DC, USA.

Cited by

  1. Technical and resource-use efficiencies of cashew production in Ghana: implications on achieving sustainable development goals vol.14, pp.None, 2017, https://doi.org/10.1016/j.sciaf.2021.e01003