Tuesday, March 2, 2010

Globalization and the Shea Butter Industry



The process of globalization can have many negative aspects. Environmental degradation, human exploitation, and the breaking down of local economies are all facets of globalization. I would like to show how globalization could benefit an industry. Shea butter is the natural fat derived from the nut of the Magnifolia, or Shea, tree. It is also called Karite butter. Magnifolia (shea) trees are found in West and Central Africa in the sub-Saharan area known as the Sahel region.


The country with the largest concentration of shea production is Burkina Faso. Shea was the third largest export of Burkina Faso in 2000, behind livestock and cotton. In the 1970's and 1980's, shea butter was the second largest export. The world price for shea butter plunged in the mid 1980's, further exacerbating the economic problems in Africa.
The Sahel region in Africa is a transition zone between the Sahara desert in the north and the tropical forested areas in the south. The climate of these sub-Saharan countries is typified by periods of average rainfall followed by periods of below-average rainfall. Historically, when the rainfall is below average for several years, a drought can occur. In this century droughts occurred in 1910-14, 1930, 1940-44, 1968-73 and 1980 - 84. The periods of drought have been increasing in duration. The drought from 1980 - 84 was one contributing factor to the why the global price for shea butter dropped in the mid 1980's. The quality of the shea nuts declined during this period, lowering the export price.

Agricultural problems related to droughts, over population and increasing poverty in the area have led to declining terms of trade. Increasing population puts strains on households to provide the basic food and housing necessities. The price of the regions exports has been declining when compared to the price of exports from the rest of the world. This is related to the policy of the government to try and liberalize trade policies. Exported agricultural products previously were regulated. These policies were eliminated and a result was instability and disorganization of the agricultural market (United Nations Development Program; www.undp.org).

In the 1990's, the government of Burkina Faso began promoting the development of the shea butter industry. This led to a number of NGO's (Non-Governmental Organizations) taking an interest in and supporting various shea projects. In 1997, UNIFEM (The United Nations Development Fund for Women) became involved. UNIFEM helped organize the local women into shea cooperatives. They also emphasized the manufacturing and refining of the shea nuts. Women are trained to use specialized equipment to try and retain the value-added aspect of the production cycle. More profit can be made by selling a manufactured butter than by exporting the raw nut for manufacture in Europe. It also preserves the integrity of the product.

Shea nuts are all handpicked by the women of the villages and sold to farmers groups and cooperatives. One reason women perform this function is that the men of the villages have been migrating to urban areas in search of work. Traditionally, it is a patriarchal society and men are considered the family's providers. The seasonal migration of men has always been part of the lifestyle. The men consider it dishonorable to return to their families without any earnings. Because it is getting increasingly difficult to find work, the men are away for longer periods of time and are not sending money home as they used to. Women in turn, are placed into the role of sole supporters for their families. This means the women of the village are the ones who cultivate the crops as well as perform traditional tasks.


Environmental problems are rampant in the Sahel region. Population is probably the biggest factor in the economic problems. In the period of time from 1980 to 1992 the population grew at a rate of 2.8%. By the year 2015 the population could double from what it was in 1980. The countries of the Sahel region are fall somewhere in Stage 3 of the demographic model (some sources suggest the middle of Stage 3 and some suggest the end of Stage 3). Stage 3 of the Demographic Transition Model suggests that death rates are low (people are living longer) and birth rates are high (but tapering downward). Even though it is predicted that the average annual population growth rate will decrease, the population will continue to grow. The concern is that the carrying capacity of the region will not be able to support the increased population.


Large families are also part of the culture of Africa. It is seen as a sign of prosperity for men to have a lot of children. Women, traditionally, do not play an important role in family planning. Birth control is not practiced and it is not uncommon for women to have 5 or 6 children.

Urbanization is also causing problems for the Sahel area. Vast amounts of people migrate to the larger cities in search of work. Most of these people end up in slum areas outside of the cities. As the need for fuel increases, more trees are needed to produce charcoal, the cheapest form of fuel. Propane and kerosene are cleaner and more efficient for cooking, but also more expensive. This increases the demand for trees and more trees are cut down. Desertification usually follows.

Desertification occurs in the Sahel area when the land is overused and affected by human activity. Because the Sahel area is just south of the Sahara desert, the desert encroaches on the Sahel area for a number of reasons. Deforestation is one activity that increases desertification. The cutting of trees will degrade the soil and cause erosion. Trees are cut to clear land for agriculture, as a source of building materials and to be used as firewood. The over grazing of cattle is also a significant contributing factor to desertification. As the trees and vegetation disappear the soil becomes less fertile and unable to support plant life.

As the fruit of the shea tree has become more popular within the cosmetics and food industries problems are developing. Large multi-national companies are trying to take over the shea market. In some areas of West Africa these companies set the price for shea nuts. In Uganda the farmers themselves set the price through cooperatives. Some environmental groups such as COVOL, The Cooperative Office for Voluntary Organizations, are working with the people to keep the multi-nationals out and protect the biodiversity of the shea tree and its indigenous woodland savanna. Other environmental groups are NENFOUND, Neighbor in Need Foundation, UNIFEM, and RAISE (Rural and Agricultural Incomes with a Sustainable Environment).

Approximately half of the shea butter produced is consumed in Africa. The shea tree can be compared with the Neem tree for its many uses. Shea butter is used in the chocolate industry as a substitute for cocoa butter. Cocoa butter comes from the cocoa bean and is a tropical plant native to South America. The cocoa plant is now being cultivated in other parts of the world. Two areas with a high percentage of production output are the Ivory Coast in Africa and the countries of Indonesia. The Ivory Coast currently accounts for 42% of world production and Indonesia accounts for 13% (www.encyclopedia.com). The liquid oil and solid butter are used by the local people for cooking. As well as its use in food products it is also used in the cosmetics industry. Shea butter has many unique qualities that benefit the skin.

Part of the increase in demand for shea butter is its recent use in the cosmetics industry. L'Occitane, a French company, has been instrumental with the popularity of shea butter. According to the philosophy of the company's founder, Olivier Baussan, L'Occitane is dedicated to respect for the environment. Olivier Baussan founded the company in 1976. The company produces natural body and skincare products. It employs approximately 1200 people and operates 280 stores in 40 countries. (www.loccitane.com) L'Occitane worked with UNIFEM to buy shea butter directly from the cooperatives and bypassed the middlemen. A greater share of the profits goes directly back to the producers.

I use shea butter as a major ingredient in my soap. It has a high content of non-saponifiable fats. Non-saponifiable means that, in the soapmaking process, the fats do not combine with the sodium hydroxide. The excess fat remains in its original state adding moisturizing and nourishing qualities to the soap. Shea butter has a high triglyceride content and contains 6% free fatty acids, 7% moisture content or waxy esters, greater than 45% oil content, 4-10% latex, and up to 11% unsaponifiables. It is used by dermatologists to treat eczema, dry, wrinkled skin, burns, and rashes. It is an extremely good moisturizer penetrating the skin easily to restore elasticity. The native peoples of Africa also use it as a natural sunscreen because of its Vitamin K content. Other uses are to prevent and heal sunburn, scars, stretch marks, cold sores, and diaper rash. (The Soapmaker's Companion, Susan Miller-Cavitch).

One of the ethical issues I am concerned about is the attempt by large multi-national companies to control the shea butter market. These companies attempt to establish a low price for the shea nuts and process the nuts in Europe. This would transfer the profits from the indigenous people to the corporations. The more manufacturing of the nuts that can be done locally, the more valuable the product will be. The export price will be higher because their will be more value-added components to the product.

Because of the rising popularity of shea butter, the traditional manufacturing process is also being threatened. Shea trees do not bear fruit until they are 20 years old and do not reach maturity until they are 45. They continue to produce nuts for 200-300 years. The long period of time before they become an economic asset has deterred the cultivation of these trees on farms. Traditionally, shea nuts are collected when they mature during the harvesting period being June through August. Some of the nuts are stored in special huts to be used throughout the year. The nuts are buried in pits to facilitate fermenting of the pulp. This makes it easier to separate the kernel from the shell. The next process is heating and kneading the kernels to separate the oil from the butter. The nuts are cooked in pots of water, and the butter rises to the top as it separates and rises to the surface. The butter is then skimmed off the top.

A more unnatural technique being used in Europe is the use of hexane as a bleaching agent to aid in the food industry. Hexane is a solvent made from crude oil. Hexane is typically used to extract vegetable oils from the plant. It is also used as a cleaning agent in the textile, furniture and printing industries. It is an ingredient in mercury free thermometers, glues used in the shoe business, rubber cement, typing correction fluid and other general purpose solvents. Hexane is extremely toxic and a known carcinogen. For my purposes, using a product containing hexane would negate the skin benefits I am trying to impart. Another ethical concern is that some of the trees have been used as firewood. People need to be educated about the importance of the shea tree. Not only do the trees produce a viable product, but the tree acts as a block to erosion. The trees help the fertility of the land and prevent the soils from washing away during the rainy season. The shea tree is protected and it is illegal to pick the nuts. The mature nuts fall to the ground when they are mature. Due to the instability of some of the governments in Africa where the shea tree is grown the protection of the tree is not enforced. It is also not encouraged to be grown commercially because it has a long period before the tree becomes productive.

Perhaps the biggest benefit to the people of the Sahel region is the sense of empowerment they get from being able to support their families. Other NGO's (Non-Governmental Organizations) fund literacy programs as well. Women are not only learning about cultivation and harvesting techniques but are also developing marketing strategies. They learn technical skills and are able to educate the general public. Literacy also empowers people by developing better organization and management skills.

It is refreshing to see the positive effects of globalization. When NGO's and globally conscious companies such as L'Occitane come together to help people develop a sustainable economy it can transform nations. There are still many obstacles to overcome in this part of Africa, such as AIDS, disease, desertification, deforestation, the decline of the family structure and poverty in general but it is important to support the humanitarian efforts being made and encourage the education of the people. The shea butter industry in the Sahelian region is an example of the benefits of globalization.

Bibliography

Cavitch, Susan Miller
The Soapmaker's Companion. Pownal, Vermont: Storey Communications, 1997.

Reader, John
Africa the PBS Series. Willard, Ohio: National Geographic Society, 2001.

Websites

Market and Technical Survey: Shea Nuts: www.raise.com

UNIFEM, Eradicating Feminized Poverty: www.unifem.com

COVOL Uganda, The Shea Project: www.covol.org/Shea/indes.html

Natural Oils, Shea Butter: www.naturaloils.com

National Safety Organization: National Safety Organization

United Nations Development Program: United Nations Development Program

Sunday, February 28, 2010

Business Decisions

Over the winter I have had to make some tough decisions regarding my business. I needed to make a choice whether to raise my prices and keep the quality of my products high or keep my prices the same and use cheaper ingredients. The other option was to use smaller molds and decrease the size of my soap. I knew in my heart what my decision would be. I was afraid to raise my prices due mainly to the state of the economy. Wisconsin seems especially effected by the job loss in the paper manufacturing sector with many businesses going overseas. It has caused a huge ripple effect in this area of the country. The situation is aptly coined the "Race to the Bottom". David Green wrote a nice article over at the Common Dreams website. Here is a link to the article: Race to the Bottom.

When I got laid-off from my job this past spring it really hit me hard. It sent me in to a tailspin that I am still trying to recover from. The big positive is that I am now able to devote more time to my soap business. I have been developing new products and am experimenting with different oils and butters. I am now using a wonderful organic, fair trade shea butter that I am really excited about! You can read more about it in my next post.

Don't Make this FaceBook Mistake!



Do you have a FaceBook page? Almost everyone has a personal FaceBook these days. If you own a business it is imperative that you are on FaceBook. Their are currently over 400 million active FB users and that number is increasing every day. With that amount of exposure why would you not be on FB? This point was brought home to me last Wednesday when I saw a presentation by Mark and Deb Gehrke of Mandala Life Media. They are social networking gurus and have excellent ideas for small business owners.

I have had a personal FB for over two years and an inactive business FB for about that same amount of time. FB is so easy to use that I cannot believe I was idle on it for so long. Their are many common mistakes that people can make however. The biggest mistake I made was not knowing the difference between becoming a fan and adding to my favorites. Because I connected my business page to my personal page I found that I need to be on my business page and then add other businesses as "Favorite Pages". I believe it is important to add favorites to show support of other local businesses and to create awareness of your business by increasing exposure.

My place to check for really good tips is Donna Maria's Indie Business Blog:
Indie Business Blog

Update on Stick Blender

Do not waste your money on a Dualit Hand Blender. Although the motor is good the housing did not stand up. The outside is made of cheap plastic and cracked after only a few months of use. I am very disappointed! I bought a $25 Hamilton Beach, 200 watt hand blender from Fleet Farm last month. The price is right and if it breaks I am only out $25 not over $100!

Monday, February 15, 2010

Memory Stick

So much for getting more organized this year. If I did have a New Year's Resolution it was to become more organized this year (I say that every New Year). Last night I got out my homemade lightbox, tripod, cleaned the kitchen counter, got out my camera and walaa - no memory stick! Of course none of the kids knew anything about it. So, I am off today to buy a new one. I hate spending money when I shouldn't need to!

Tuesday, November 3, 2009

New Stick Blender


I finally bought a new stick blender. In ten years of making soap, I have always used - and loved - my Brauns. I probably went through at least 12 of them during my soapmaking career. For some reason, the Braun's were cheap and lasted a long time. Since they stopped making them I have tried at least three other brands. I burned through rather quickly; one lasted a month and the other two lasted about three months.

I bought a Dualit Hand Blender and am very happy with it - so far! It has a 500 watt motor and a turbo pulse button. It is stainless steel and unlike my last stick blender can go in the dishwasher. It is very easy to clean up which I love. I hated washing my last one by hand all the time. I got it from: . They have free shipping too!

Thursday, July 9, 2009

Been Bad!

Oh, I have really been bad. I promise I will be more diligent about updating. It has been crazy around the house with all the kids off of school and me trying to do three farm markets a week. I am leaving soon to do the Menasha Market.

This will be my third week there. It is a small market - only about 20 vendors. The location is really nice. It is right on the main street in front of the marina and directly across from Naut's Landing (a local restaurant). My friend Terry is just two vendors away. He has an elk farm just outside of Shiocton, Wisconsin. In fact tonight he and my friend Linda (she also makes soap) are coming over to have a few cocktails around my new fire pit.

Well, time to load up the car and sell some soap!