Arabfields, Maleeka Kassou, East, West and Central Africa Agriculture Correspondent — Ghana has reduced the minimum purchase price for raw shea nuts by nearly 8%, as authorities seek to maintain the competitiveness of the domestic market amid changing regional trade conditions and growing competition between local processors and international exporters.

The Tree Crops Development Authority (TCDA) announced a revised minimum producer price of GH¢8.30 per kilogramme, down from GH¢9.01 previously. The new rate, effective from November 3, will remain in place for the rest of the 2026/2027 marketing season.

The adjustment follows a review by the Shea Value Chain Price Committee, which considered exchange-rate movements, inflation expectations and developments in the regional market. Authorities say the decision is intended to reflect current economic conditions while preserving Ghana’s position as an important supplier of shea nuts.

For women collecting and selling shea nuts in northern Ghana, the decision comes at a sensitive time. Shea collection provides an important source of income for rural households, particularly women who gather, dry, sort and sell the nuts to traders and processing businesses. Any change in purchasing conditions can directly affect their earnings and household finances.

The revised price also highlights the difficulties facing Ghana’s domestic shea processing industry. Local manufacturers need reliable access to raw materials to produce shea butter and other higher-value products used in cosmetics, food processing and personal care.

However, they increasingly face competition from exporters seeking to purchase raw nuts for international markets. This competition has made it difficult for some local processors to secure sufficient supplies at affordable prices.

Ghana produces an estimated 130,000 to 150,000 tonnes of shea nuts annually, making the sector an important contributor to rural economic activity and agricultural exports. In 2025, exports of raw shea nuts generated approximately $177.8 million, slightly exceeding the $174.3 million earned from shea oil.

The figures illustrate the economic importance of both raw commodity exports and domestic processing. While exporting unprocessed nuts provides immediate commercial opportunities, transforming them locally offers the possibility of creating additional jobs and retaining more value within the country.

Regional developments are adding further pressure to the market. Nigeria has extended restrictions on raw shea nut exports until February 25, 2027, as part of its strategy to encourage domestic processing. Similar policy changes elsewhere in West Africa have altered trading patterns, increasing the importance of Ghana as a source of raw materials for international buyers.

This situation could create opportunities for Ghanaian exporters, but it also risks intensifying competition for local processing companies. Smaller businesses and women’s cooperatives may find it particularly difficult to compete with larger traders that have greater access to financing, storage facilities and international buyers.

The government has been attempting to address these challenges through stronger regulation. Since April 2026, exporters of shea and several other tree crops have been required to obtain written permits from the TCDA. The authority has also strengthened enforcement of minimum purchasing prices and quality standards.

Industry representatives have nevertheless warned that restrictions alone will not solve the problem. Expanding domestic processing requires investment in machinery, reliable electricity, working capital and access to international markets for finished products.

Looking ahead, Ghana’s shea industry could experience further restructuring during the 2026/2027 season. If neighbouring countries maintain restrictions on raw exports, demand for Ghanaian supplies may remain strong, potentially limiting the impact of the lower minimum price on actual market transactions.

At the same time, local processors will need better access to raw materials if the country is to increase the share of shea production transformed domestically. Greater investment in processing facilities and improved access to credit could help reduce dependence on raw commodity exports over the next two to three years.

The challenge for policymakers will be to balance the interests of farmers, women collectors, exporters and manufacturers. A competitive export market remains important for rural incomes, but stronger domestic processing could generate more employment and increase the value captured by Ghana’s economy.

For now, the reduction in the minimum price offers a new reference point for buyers and producers. Whether it delivers cheaper raw materials to manufacturers or simply reflects changing market conditions will depend on competition, available supplies and the prices actually paid in rural trading centres.