Assessing the profitability of small scale local shea butter processing: Empirical evidence from Kaleo in the Upper West region of Ghana

Theophilus Tweneboah Kodua, Jacob Ankamah, Mary Addae, Fatih Yildiz
2018 Cogent Food & Agriculture  
This paper assesses profitability of small scale local shea butter production in Ghana. The study used cross-sectional data from 110 sampled shea butter processors randomly selected from Kaleo in the Upper West region of Ghana. Profitability methods such as gross margins, net incomes and net returns on investments of production units were employed to evaluate the profitability of shea butter producers. Simple linear regression model was also employed to estimate identified determinants of
more » ... terminants of profitability using gross margin as the dependent variable. The results showed that shea butter making in the study area is profitable with positive average values of gross margins, net incomes and net returns on investments. Access to market information, access to credit, length of production cycle (time), savings, experience and household size were found to be significant determinants of gross margin. It is recommended that existing producer groups/cooperatives
doi:10.1080/23311932.2018.1453318 fatcat:cl4tljfyanfhlhkzuaos6snwym