To not sell shea for less than FCFA 150-200 per kilo in Western Africa

Published 2021년 7월 8일

Tridge summary

The high prices of edible oils, exceeding $1000 per tonne, have led the food industry to consider shea butter as a substitute for palm oil. However, the stocks of shea from the previous season are low, which might limit the potential increase in prices for the 2021/22 season. Despite this, the prices are expected to remain above those of the previous season due to the high prices of all oils and food inflation in Western Africa. Self-consumed shea butter consumption and sales in West African retail markets are likely to rise as palm oil becomes more expensive. Pierre Ricau suggests that collectors should negotiate a minimum price of 150 FCFA / kg (or 200 FCFA / kg in Burkina and Ghana) when selling large stocks of shea kernels.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The interest of the food industry in shea butter, especially as a substitute for palm oil, should continue to be sustained since the prices of edible oils in general are at historically high levels, at over $ 1000 per tonne. , estimates Pierre Ricau de n'kalô in his last newsletter published on Monday. As a result of these high prices, stocks of shea from the previous season are relatively low at the level of West African wholesale traders while stocks in the industry remain higher than anticipated last month. "This could limit the upside potential at the start of the next campaign," writes the specialist. "In fact, at the start of July, contrary to our expectations, manufacturers do not seem to be positioning themselves particularly early to start their supply. " That said, shea prices for the upcoming 2021/22 season should remain above those of the previous season given the high price of all oils but also due to food inflation in Africa. the West, further specifies the ...

Source: Commodafrica