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Shea Kernel Supply Chain and Suppliers Relationships in Rural Borgu, Niger State, Nigeria

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Shea Kernel Supply Chain and Suppliers Relationships in Rural Borgu, Niger State, Nigeria Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-5, 2016 ISSN: 2454-1362, http://www.onlinejournal.in Shea Kernel Supply Chain and Suppliers Relationships in Rural Borgu, Niger State, Nigeria Sidikat Shitu1 & Rohaya Mohd-Nor2 1PhD Candidate, Faculty of Economics and Business, Universiti Malaysia Sarawak 2 Associate Professor, Faculty of Economics and Business, Universiti Malaysia Sarawak Abstract: This paper explores the roles of strong (1) Introduction suppliers in shea kernel supply chains and the impact of their roles on the livelihood of weak The solution to the exploitation of the weak suppliers (rural women) who are engaged in shea suppliers (rural women) and the smuggling of shea nut picking and processing. In the last few years, kernel for export lies within the collaborative the media recognised that the Nigerian shea butter efforts of the stakeholders involved in the shea industry is not fully regulated, and it is confronted butter industry, the public authorities, the non- with a lot of sustainability challenges. While there governmental organizations, the private sector and is a call on the relevant stakeholders to take the community stakeholders. The anti-smuggling responsible action such as public enlightenment plan has been a top agenda on the Niger state and reshaping of the supply chain network. The government shea sector development plan in mechanisms that supports and create connections collaboration with the Nigerian customs service for actors involved in the supply chain is not very (Kontagora, 2012). Also the federal government of clear and as such the measures taken by the Nigeria has also declared that, illegal exportation of stakeholders to curb the menace seems not to hit shea kernel out of Nigeria is a pressing issue for the target. Furthermore, the negative effect of these growth and development. Research revealed that activities on the weak suppliers seems to be greatly Nigeria lost about N3billion yearly to shea kernel ignored. Therefore, studying the relationships and butter smuggling through Benin Republic. In between the strong and weak suppliers defines the 2012, the Niger State Commodities and Export specific roles of actors involved in shea kernel Promotion Agency admit that the current effort in trade: More specifically, the local buying agents curbing the menace has failed woefully (LBAs) who create and hold the link to the broader (Kontagora, 2012). In line with this, the agency in domestic and export supply chain are studied. 2012 collaborated with Global Shea Alliance and Research Question: What is the nature of the GIZ to provide alternative ways to innovate the relationship between the strong and weak suppliers industry (GSA, 2012). Various strategies are in shea kernel supply chains? collectively advocated by the stakeholders involved Methodology: This study utilized qualitative case to check those illegal activities: first, community study design, a five-month fieldwork was conducted empowerment; second, implementation and in the rural communities of Borgu, Niger State, enforcement of legal instruments, third, Nigeria. We used various approaches to obtain collaborations among various actors. While these data such as semi-structured interviews, focus strategies are very much welcomed, very little is group discussions, review of policy documents, known about how these strategies will impact on articles published by the media and participant the local communities and the rural women who are observation. The result revealed that the LBAs the weaker suppliers in the supply chain. with a group of few buying companies benefit from This paper explores the role of the strong suppliers the supply chain, (specifically the local buying agents (LBAs), that while the expectation of the weak suppliers (rural link the weak suppliers to the buying companies) women) to benefit profitably is not guaranteed. and the effect of their activities on the livelihood of the rural women who are engaged in shea nut Keywords: Strong Suppliers, Weak Suppliers, picking and shea butter processing. It is evident Local Buying Agents, Rural Women, Supply Chain, that the local buying agents play both positive and Relationships, Sustainability. negative roles in the shea butter industry. We argue that the LBAs characteristics have repercussions on the livelihood of the people living in the local Imperial Journal of Interdisciplinary Research (IJIR) Page 427 Imperial Journal of Interdisciplinary Research (IJIR) Vol-2, Issue-5, 2016 ISSN: 2454-1362, http://www.onlinejournal.in communities where shea trees are found, nuts are Notably, a study conducted on regional shea supply picked and processed into shea kernel and butter. chain by Lovett (2010) and Chalfin (2004) gave a First, the local buying agents help the communities detail of how the shea industry can be sustainable to overcome the problem of finding buyers such as through policy implementation and use. the small and medium scale company owners Researchers are also addressing issues associated within Nigeria, exporters in neighbouring Benin with buyers-suppliers’ relationships in many West Republic and the multinational companies outside African states (Greig, 2006; Wardell & Fold, 2013; the shores of Africa; secondly, the local buying Rousseau et al., 2015). Yet the social implication of agents are seen to depend heavily on the weak these relationships on the livelihood of the weak suppliers in the rural communities. But the suppliers is still underexplored. In a nutshell, relationship that exist between the LBAs and weak exploring the role of the strong suppliers and their suppliers in the local communities is purely that of relationships with the weak suppliers will not only exploitation in terms of price. The LBAs take provide an understanding of the shea kernel supply advantage of the ignorance and lack of exposure of chain, it will also reveal the impact of the the rural people. These two characteristics cause relationship on the rural women’s livelihood which the rural people to distrust the local buying agents. is not very much discussed in the shea kernel/butter This is because the weak suppliers input a lot of supply chain literature. human energy and risk when picking shea nuts and during processing. But the rate at which shea kernel (3) Research Question from the rural communities, smuggling of the product out of their domain, coupled with the What is the nature of the relationship between the ‘nothing to write home about’ returns for the weak strong and weak suppliers in shea kernel supply actors leave the rural people in dilemma of trusting chains? the LBAs. These development is so alarming, and it constantly reported by the media. (4) Methodology (2) Research Gap This paper is developed from first writer’s PhD fieldwork, the methodology employed for this The implication of the local buying agent’s role in study is based on a qualitative case study, the shea kernel supply chain is less explored by techniques for data collection are semi-structured researchers. Researchers have therefore interview, observation, review of policy concentrated on exploring actors’ relationships in documents, articles published by the media as well domestic shea butter supply chain, rather than as focused group discussions over a period of five holistically exploring actors’ relationships in trans- months (December 2014 to May 2015). A total of border and export supply chain of shea products 34 semi-structured interviews were conducted in (Garba et al., 2012). The supply chain literature for Sabon-Pegi Rural Market, Monday-Market New- instance focus more on how external stakeholders Bussa, Karabonde Village and Tsohon-Dogongari shapes the dynamics of shea butter supply chain Village of Borgu, Niger State, Nigeria. The (Drost et al., 2012), living out how relationships are interviewees included the shea nut pickers, local shaped among the focal actors. The available buying agents, shea butter processors, community studies mostly focussed on impacts that are leaders, government officials and development quantifiable such as quantity of smuggled shea consultants. QSR Nvivo 10 was used for data kernel rather than the social impacts of the actions analysis. Significantly, collecting data for this of the strong suppliers on local communities such research was very difficult because of the sensitive as human rights violation and working conditions. nature of the study, which involves illegality in the Nevertheless, the literature on repercussion or supply chain of shea kernel which has to do with consequences of the role of actors in the African the trans-border smuggling and exploitation. The shea industry had focused more on the risk was high especially when collecting data from environmental implications rather than the social the local buying agents (LBAs), the issue of trust implications (Schreckenberg, 2004; Adams, 2015; strongly came up and challenges were encountered Kiptot, 2015). in the process especially with the use of voice- Some literature, focused on how government recorder, video-recorder and photo camera. The policies and pressure from non-governmental safety of our research team became extremely organizations respond to the loopholes in the shea important. butter industry particularly on the sustainability of The body of this paper contains the the shea industry (Noumi, et al., 2013). But the contextualization of shea kernel supply chain mechanisms to check the enforcement of policies relationships. Consequently, shea kernel supply along
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