ABSTRACT

his study was performed to evaluate the profit potential of marketing shea butter, estimate the effect of socioeconomic variables of the shea butter marketers on the profit level, and the constraints associated with the marketing in some selected communities’ in Ngaski and Fakai Local Government Areas of Kebbi State, Nigeria. Four villages were purposely selected from the two local government areas, to draw the actual sample size of three hundred and six (306) shea butter marketers used for the study. Data collected were analysed using descriptive statistics, budgeting techniques and multiple regression analysis. The study revealed that 92.81% of those involved in the marketing of shea butter were women, 71.24% were married while more than 50% of the respondents had no formal education. Total revenue from the sale of the processed shea nut was on the average found to be N70, 361.01, while the net returns which accrued to the marketing activities was N22, 535.22 per respondents per month Regression analysis gave an R² value of 0.86, and a highly significant F-statistic at α = 0.01. The coefficients of total revenue, credit received, years of experience, quantity of butter sold, market information outlets, educational level were positive and statistically significant, while the total costs incurred during marketing had an inverse relationship with the profit level. The major problems faced by shea butter marketers were: low and unstable prices, lack of standard measurements for shea butter, poor storage facilities, discrimination from buyers, and lack of access to credit, transportation and packaging materials. To increase the marketer’s efficiency through the supply of quality butter that would meet the demands of both local and international markets, the study recommends the provision of credit facilities, technical assistance in terms of storage facilities, packaging items and standard markets.