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This article comes with a free business plan outline for a Shea Butter Production Business in Nigeria.
The agricultural sector still remains the strength of the Nigerian economy, and despite the lack of development this sector undergoes it still seems to thrive, the economic strength that could be derived from this sector if developed and harnessed constructively will be beyond imagination and comprehension.
Shea butter production is a venture that springs from value-added agriculture, the production of shea butter is not a major in the agricultural field but investors know better and that is why they always smile to the bank. Presently, Nigeria contributes a lion share to the mass production of the crop shea butter is derived, shea nuts and contributes to almost 2/3 of global production, and what is more surprising is that these numbers come from local production. The huge global opportunities that shea butter production and export presents make investing in shea butter production and export a profitable venture for investors.
What Is Shea Butter?
Shea butter is extracted from the nut of the African shea tree, it is ivory in color when unprocessed and has color variations after it is processed depending on refining processes, ranging from white to yellow.
How Is Shea Butter Produced?
The following steps below elucidate the processes that lead to the production of the shea butter found and used in homes and industries for all sort of useful things, well, here’s how to produce Shea Butter In Nigeria:
- Gather the nuts
- Crack the nuts open and wash thoroughly, then reduce the moisture content of the washed nuts by sun-drying or any other method
- The desiccated nuts are then roasted and ponded, this leaves it pasty with a dark color, then water is added to the paste and mixed properly
- The paste is heated to make the fat rise and float, distinguishing it from the oil
- Then the fat is manually separated from the oil, the oil is then allowed to cool and let to solidify to form the shea butter
While the process of shea Butter production in Nigeria is done locally in rural communities, the entire process can also be done with the aid of a machine, the shea nuts are processed by the machine and it removes the fats. The fat is then collected and caked by storing in containers. The cakes are now collected in bags for sale or further preparation for exportation.
IS SHEA BUTTER BUSINESS PROFITABLE?
Yes, the Shea butter business is profitable. if executed properly in these steps.
1). Production Facility:
You can lease your machines to producers so they can process their nuts for a fee, achieving this will relatively allow you to serve a very large market and have consistent income.
2). Cosmetic Market:
This is the major market for shea butter and it really explains why it is needed both locally and internationally, it is used in hair and skin products.
Challenges Of The Shea Butter Production In Nigeria
- It is a seasonal business, production cannot happen all year round.
- Lack of storage facilities for storing unprocessed nuts
- Lack of capital for large scale production
- Felling of Shea trees illegally
- Lack of access to the foreign market
- Instability of the international market price of Shea butter
Now that you know “how to start a shea butter business in Nigeria”. Shea butter production in Nigeria can be very lucrative, if harnessed and executed properly, the global demand keeps increasing. And profitability depends on production costs and the buyers too, this really influences the profit margin which has been statistically known to range from 20% to 80%, making it one of the largest and most profitable agribusiness to venture into.
How To Download The Complete Shea Butter Processing Business Plan Template
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