Thursday, November 24, 2011

SHEA INDUSTRY FACES IMMINENT COLLAPSE ...Due to low prices


(Daily Graphic, Nov 23, 2011, Back Page)
THE National Association of Shea nut Farmers, Processors and Buyers of Ghana has cautioned the government of an imminent collapse of the shea industry following the drastic reduction in the price of a bag of shea nuts.
According to them, the government had, for the first time through the Ghana Cocoa Board, unilaterally announced that 90 kilograms of shea nut should be sold at GH¢36.
They noted that this price represents a 31 per cent reduction over the existing market price, which is GH¢52 for 85 kilograms.
They therefore intimated that if government’s involvement in the shea industry would be to worsen the plight of the players and supervise the crumbling of the industry, then it is better the government allowed the existing arrangement where market forces determined the prices to prevail.
At a press conference in Tamale to put forth their grievances, the actors of the shea nut value chain argued that the fixing of unfair prices had discouraged many of the farmers and processers, particularly the women and youth, from continuing with the business.
They cautioned that a collapse of the share industry would have dire consequences on poverty levels in the country, because many people in the three northern regions and parts of the Brong Ahafo and Volta regions depended on the shea industry for a living.
“The shea nut business is the main source of livelihood for the people of the Northern, Upper East and Upper West regions. Due to the poor prices, however, the business is in crisis, because the women are no more prepared to pick the nuts,” the General Secretary of the association, Mr Emmanuel Abu Alhassan Nyabto stated.
He said the National Democratic Congress (NDC) had promised during the 2008 election campaign to revamp the sector, only to come and further impoverish actors in the industry.
Mr Nyabto again raised issues with the Ghana Cocoa Board for failing to involve them in the process to fix the new price for shea nut and therefore blamed it for what it described as a wrong decision.
He alleged that the fixing of the low price was an attempt to favour the international and local companies that were buying the nuts because they would now pay less for more.
Meanwhile, a collapse of the shea industry could impact negatively on the livelihoods of many women, who go through risks, such as snake bites, to gather the nuts to sell to middle men.
“When the industry collapses, these women would lose their source of livelihood and this would deepen rural poverty,” Hajia Abiba Salifu, a shea nut dealer stated.
She said it was through the picking and selling of shea nuts and its butter that many women in the north were able to get some income to take care of their families, particularly the children.
“Since the new price was announced many of our colleagues have become discouraged and frustrated. Just imagine if you were managing with a little cedis and now you are being paid only some few pesewas. How can you survive? It just doesn’t pay to remain in this work,” Hajia Abiba lamented.

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