Following the Tree Crops Development Authority’s (TCDA) decision to introduce a minimum producer price for shea nuts, some local processors are urging the government to adopt a more transparent and inclusive pricing system. While the intervention aims to protect the sector, concerns are growing over weak enforcement, middlemen interference, and the continued export of raw shea nuts that deprive local processors of supply.

Effective July 1, the TCDA set the minimum price for 1kg of raw shea nuts at GH¢9.01, as part of efforts to ensure sustainability, protect local producers, and enhance the sector’s global competitiveness. Under this new pricing, a 2.3kg bowl (olonka) of shea nuts costs around GH¢20.70, while an 85kg bag is priced at GH¢765.63, provided the nuts meet certain quality standards – including moisture content of 8-10%, free fatty acids between 6-8%, and impurities of 2-4%.

Despite the new pricing being in place for two weeks, market prices remain inconsistent across the country. In Tamale and surrounding areas, a bowl of shea nuts is selling for GH¢20–GH¢25, while in the northernmost regions like Navrongo and Bolgatanga, the same quantity is selling for as much as GH¢40.

This disparity raises serious concerns about enforcement. Many industry players are questioning the TCDA’s ability to regulate prices and prevent market manipulation by middlemen and multinational buyers.

Local processors are also renewing calls for a complete ban on the export of raw shea nuts, warning that without such a move, the country could face an imminent shortage. Burkina Faso and Mali have already instituted such bans, placing increased pressure on Ghana’s output to meet both domestic and international demand.

“Without strong policies and enforcement, the market remains vulnerable,” said Imoro Abu Kassim, Manager of Maltiti Enterprise Limited, a shea butter processor in Tamale. “The price controls alone won’t work. The big players are teaming up with middlemen to drive up prices and push us out.”

Mr. Kassim added that Maltiti Enterprise, which has a yearly processing capacity of 150 metric tonnes, has halted production due to difficulties sourcing shea nuts. He now produces only based on confirmed orders, as rising prices and limited supply make it difficult to build stock.

Mr. Kassim also highlighted the lack of tools and resources needed to comply with TCDA’s new quality standards. “We don’t have moisture meters. This wasn’t something we were doing before. It’s going to be tough for our suppliers to adapt,” he noted.

Additionally, high interest rates – hovering around 30% in Ghana – make it almost impossible for small processors to access affordable financing to stockpile shea nuts. “Our challenge isn’t just price – it’s also the lack of capital,” Mr. Kassim said. “Compare that to foreign companies borrowing at 3-5%. How do we compete?”

Echoing these concerns, Ibrahim Jabir Mohammed, founder of Right Shea Group, emphasized the need to add value locally rather than exporting raw materials. “Setting a minimum price solves only about 30% of the problem,” he said. “The real issue is exporting raw nuts without value addition.”

Mr. Mohammed added that shea nut shortages, especially between October and January, force many processing centres to shut down – affecting production and livelihoods, especially for women. “Last year, we had to shut down as early as November due to the shortage,” he said. “Prices peaked at GH¢70 per bowl before the nuts ran out completely.”

Although this year’s harvest has shown promise, adverse weather conditions – including a windstorm that damaged many shea trees during flowering – have raised concerns of another looming shortage. This, coupled with Burkina Faso and Mali’s export bans, is expected to place even greater strain on Ghana’s shea supply.

Prof. Bukari Alhassan, Director of the West African Centre for Shea Innovation and Research at the University for Development Studies, warned that Ghana’s shea output is not enough to meet both local and export demands. “Generally, what we pick is not even enough for the local processors,” he said. “A shortage is imminent.”

He also explained that the shea tree’s natural fruiting cycles are highly irregular and climate-dependent, making the sector even more vulnerable to shocks.

Prof. Alhassan acknowledged the challenges in implementing quality standards but sees the price intervention as a positive step: “It’s a significant milestone in protecting vulnerable women who pick these nuts. They go through so much hardship, and this move will help ensure they get fair returns.”

However, he also urged government to properly equip the TCDA, including boosting its staff and logistics capacity to monitor the activities of large buyers and enforce the pricing system. “Government should empower TCDA with enforcement tools to sanction violations and regulate the market more effectively,” he said.

Mr. Kassim believes price controls alone are not enough. He is advocating for a dual-pricing model that also sets a minimum price for processed shea butter – to safeguard the entire value chain.

He further called on the government to introduce low-interest loan schemes for shea processors to help them secure raw materials and maintain production throughout the year. “Price regulation is just one part. Without affordable finance, small processors can’t survive,” he said.

With July declared as global shea month, stakeholders say it is the perfect time for Ghana to reflect and act decisively to secure the future of its shea industry – one that provides livelihoods for thousands, especially women, across northern Ghana.