Womens' participation in organic shea butter processing and its effect on household income in the Tamale Metropolis, Ghana

Abstract or Introduction

Organic production is considered a potential tool to improve rural livelihoods, especially as the market for organic products continue to surge in many countries. Against this backdrop, the study examined women's participation in organic Shea butter processing (OSBP) and its impact on household income in the Tamale Metropolis, Ghana. A multi-stage sampling technique was used to select 202 women processors, while semi-structured questionnaires were employed to collect primary data. The relative importance index was used to analyze the reasons for processing Shea butter organically or conventionally, while the Garrett ranking technique was used to identify the constraints of organic Shea butter processing. The propensity score matching (PSM) approach was also employed to determine the impact of OSBP participation on household income. The results revealed that women process Shea nut organically to earn premium, international recognition and market for organic products, financial support, and higher profit. Women who did not participate in OSBP complained about limited availability of raw high-quality materials, long-distance to the source of raw materials and lack of credit. Household size, years in Shea butter processing, own processing equipment, perception about premium for organic processing, perception about ready market for organic Shea butter, perception about accessing credit for organic processing, and record-keeping significantly influenced participation in OSBP. The results from the PSM analysis revealed that the average household income of organic Shea butter processors (GHȻ 4192.037) was statistically higher than the average household income of conventional Shea butter processors (GHȻ 1527.883) at 1% significance level. The study suggests that women should be educated, trained, and stimulated with credit to increase their participation in OSBP and increase household income.