shea butter - a case study

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Sustainable, Fairly Traded, Natural and Organic Ingredients from Africa Shea Butter A JOBOMAX Case Study

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A case study on shea butter production methods and ingredient use in the US cosmetics industry. Read now to learn about the key differences between natural, Africa-based production and the chemical solvent extraction that is used for most of the shea butter on US shelves today. Researched and authored by JOBOMAX Global, LTD

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Page 1: Shea Butter - A Case Study

Sustainable, Fairly Traded,

Natural and Organic

Ingredients from Africa

Shea ButterA JOBOMAX Case Study

Page 2: Shea Butter - A Case Study

A Better Way To Sourcing for Health & Beauty JOBOMAX Global Ltd. was created by a partnership of former Peace Corps volunteers, economic development specialists and native West Africans to develop and expand external markets for natural, chemical free products from Africa. With extensive professional and kinship relationships across Africa, and a commitment to equitable engagement with supplier communities, JOBOMAX is the ideal partner for manufacturers seeking high-quality, chemical-free natural ingredients sourced via socially responsible local partnerships.

Shea Butter HistoryThe production of shea butter is an ancient practice extending back to the roots of West African civilization.

For centuries people of many nations in West and Central Africa have gathered the nut of the Karité tree and ground it into a butter with hundreds of uses. Shea butter (or Beurre de Karité as it is known in French) has long served Africans as food, a soothing balm, a skin preservative, cooking oil, and in countless other ways.

The shea nut grows inside the fruit of the shea tree, indigenous across much of West Africa and parts of Central and East Africa. Shea trees are typically not cultivated, but grow wild in rural areas where village women harvest the fruit and nuts. Trees can take over 20 years to mature, making commercial cultivation a daunting investment proposition in an area where land tenure and property rights are often unclear. As with many other agricultural products from the region, community cooperatives are the most effective local supply source.

Since the colonial era, European and Arab traders have purchased shea nuts from local producers across West Africa. More recently, Dutch, Swedish, French and German conglomerates have monopolized the market for shea nut exports, buying in bulk and chemically process-ing the nuts in industrial facilities in Europe, principally for food use.

JOBOMAX Global LTD

Copyright © 2005-2010 www.jobomax.com

Page 3: Shea Butter - A Case Study

Shea Butter TodayIn recent decades, understanding of the healing and regenerative powers of shea has spread outside Africa.

European cosmetics manufacturers began adding shea stearin (produced via chemical solvent extraction and frac-tionation) to skin and hair care products. As consumer understanding of the benefits of natural shea butter grew, the product migrated from the fine print of the ingredient list to a prominent spot on cosmetics labels - even in formulation concentrations well below 10 percent. Between 2000 and 2005, growth began to accelerate rapidly in

the natural products segment. From relative ob-scurity a decade ago, shea has become a leading ingredient demanded by both conventional and natural products consumers. Practically every health and beauty products retailer offers a range of shea butter products today.

Unfortunately for cosmetics consumers, the bulk of shea butter used in skin and hair care products is not a naturally produced, full-spectrum shea butter, but rather a neutral, standardized shea stearin produced by chemical industry conglom-

erates. Over 90 percent of the shea nuts harvested in West Africa are exported for chemical extraction by these (primarily European) conglomerates, and the vast majority of the resulting shea stearin is destined for confection-ery use. This highly stable - but far from natural - product has become the convenient choice for many high-volume cosmetic formulations where shea butter is desired. However, the benefits end-users expect from the shea butter on the label are in many cases simply not delivered.

Natural vs. Chemical Solvent ExtractionShea butter’s principal skin healing and moisturizing qualities are most evident in its raw, natural state. It is a

great irony of global commerce that the vast majority of shea butter used as an ingredient in cosmetic products in Europe, Asia and North America is not this natural African healing oil, but instead a chemically refined, some-times hydrogenated stearin created by agribusiness and chemical manufacturers as an industrial-grade food fat. Solvent extraction and fractionation create a product with different chemical properties and fatty acid profiles than raw shea butter - proper-ties well-suited to the rigors of highly standard-ized food production. Sadly, many manufactur-ers who - out of a sincere desire to provide quality products to their customers - have in recent years incorporated shea butter into their skin care lines, now find themselves temporarily “locked in” to formulations that depend on the chemical proper-ties of the neutral confectionery fat.

JOBOMAX Global LTD

Copyright © 2005-2010 www.jobomax.com

“Poverty often compels women to sell their shea products to agents who then sell them on to exporters, who in turn sell them to the international food or cosmetic industry. The women—without whom shea products would be unavailable—thus profit little from their weeks of hard labor ... Even as grower cooperatives show in-creasing promise, old marketing patterns remain difficult to over-come.”National Research Council of the National Academies, Lost Crops of Africa, Vol. II (Washington: The National Academies Press, 2006)

“The oils that are commonly used in cosmetic products are complex mixtures of different triglycerides, but also contain various other components that are useful ... Solvent extraction ... would remove much of this material ... Many times, it is exactly these fractions that provide the unique skin feel or conditioning to the product. It should be clear that the different processes used in the preparation of an oil may be critical to functionality.”Anthony J. O’Lenick, “Triglycerides - Important Cosmetic Raw Materials,” New York SCC Tech Notes, August 2002

Page 4: Shea Butter - A Case Study

Concentration of the symmetrical monounsaturated triglycerides in natural shea for the confectionery busi-ness relies on fractionation, which in turn often relies on chemical extraction (typically with hexane or acetone)1. While this process produces high stability and near six-sigma predictability of ingredient performance across a wide range of product formulations, it comes at the cost of being able to provide end-users the full-spectrum benefits of the combination of natural emolliency and bioactive unsaponifiables that comes only with natural, un-hydrogenated shea butter.2

Comparison of Natural and Solvent-Refined Shea Butters

Typical Industrial Shea Butter

Europe (Solvent Refined)

Typical Natural Shea Butter

Burkina Faso (Village Refined)

Typical Natural Shea Butter

Ghana (Village Refined)

Typical Natural Shea Butter West Africa

(Water-Refined)

Melting Point (degrees Celsius)

42 - 46 28-34 31 - 37 28 - 34

Free Fatty Acid (%)

<1 <2 <1.5 <1.0

Peroxide Number <5 <25 <10 <3

Iodine Number 71 - 77 50 - 80 48 - 72 50 - 70

Oleic Acid (%) 43 - 45 43 - 47 43 - 47 43 - 47

Chemicals Used in Processing

Acetone, Hexane, Caustic Soda

Water Water Water

The Trend to NaturalWhether viewed from the macro perspective of the EU REACH legislation and other initiatives around the

world to identify and trace chemical additives in ingredients, or from the micro perspective of the myriad indi-vidual households who have begun to read carefully the ingredient lists of the products they put on and into their bodies, the trend is clear: end-user consumers increasingly believe that natural, chemical-free products are the safest choice for them and their children.

Debates over standards, certification and labeling for “organic” ingredients will continue for years to come, but the inevitable march toward broad preference for natural ingredients has begun and cannot be reversed. The door remains open, however, for strong leadership from key global manufacturers in delivering chemical-free health and beauty products to a large consumer base. Those who lead the field by embracing and promoting the benefits of natural ingredients will gain key credibility across critical con-sumer segments ranging from aging baby boomers to activist post Gen-X youth.

JOBOMAX Global LTD

Copyright © 2005-2010 www.jobomax.com

1 Wolf Hamm, “Fractionation Technology,” 11/13/05 <www.britanniafood.com/download/?mode=dynamic&id=3>

2 Jari Alander, “Shea Butter - A Multifunctional Ingredient for Food and Cosmetics,” Lipid Technology, 16.9 (2004), 202-205

“US demand for cosmetic and toiletry chemicals is forecast to rise 5.4% per year to $7.6 billion in 2010 ... Natural products, such as natural fats and oils, are expected to achieve favorable growth ... Refined petroleum products ... will experience limited gains, primarily due to ... a trend away from harsh chemicals.” Freedonia Group, Inc., 2006 Cosmetic & Toiletry Chemicals

Page 5: Shea Butter - A Case Study

Local Economic ImpactJust as personal concern motivates end-user consumers to increasingly demand verification of the natural and

organic sourcing of the ingredients in their food and body care products, broader social concern is growing as a motivating factor for consumer purchases across all sectors of the economy. Individuals and families want to know the degree to which their lifestyle impacts the planet and their neighbors. From a fringe movement among radicals and “tree-huggers” a generation ago, the motivation for socially responsible action in one’s purchasing habits has spread across the spectrum. From Hollywood celebrities to the middle class evan-gelical faithful and beyond, there is growing awareness among consumers of the ways their purchases affect producer communities around the world.

Purchasing shea butter from women’s cooperatives in Africa is one of the highest-impact steps a food or cos-metics manufacturer can take in addressing the social responsibility concerns of the growing base of concerned consumers. Field research indicates that 90 percent of households in shea-producing areas are involved in shea

gathering or processing, and that shea-related activities contribute up to 60 percent of women’s income.3 Chang-ing the dynamics of the market to support a move from simple gathering of nuts to more value-added local pro-duction can generate dramatic differences in income po-tential for millions of women in the poorest region of the world. While European chemical and agro-business con-glomerates extend their reach into the countryside across West Africa and aggressively consolidate monopolies of various product sectors, a small but growing number of

manufacturers are creating new opportunities for local economic development by insisting on a supply chain that values local development opportunities and quality natural ingredients.

Regional Expertise and Product DiversityJOBOMAX has links to over 1400 villages in the Sahel region of Africa, the heart of shea butter production,

and to producer communities across the continent. Our management team has over 50 years of experience in trade and development business experience focused on Africa, and our commitment to sustainability, environ-mental protection and fair trading relationships is unparalleled. We help manufacturers make a meaningful con-nection with supplier communities, providing the relationship infrastructure as well as logistics and financing support that helps develop and communicate the story about the link between a brand and its ingredients. This linkage extends beyond the shea butter market across a range of natural agricultural exports.

JOBOMAX Global LTD

Copyright © 2005-2010 www.jobomax.com

3 National Research Council of the National Academies, Lost Crops of Africa, Vol. II (Washington: The National Academies Press, 2006)

“More than 66% of Americans say they consider a com-pany’s business practices when deciding what to buy ... re-search indicates an evolution in consumer thinking ... an overwhelming majority of Americans (85%) say they would switch to another company’s products or services if a problem with business practices were uncovered.”Cone LLC, 2007 Cause Evolution Survey

“The two main foreign buyers (of shea nuts in Burkina Faso) are Loders Croklaan of the Netherlands and the Swedish AarhusKarslshamn, which account for 90 percent of exports ... Ms. Mamounata ... says the Swedish company has started to penetrate the market independently and is driving her out of business ... she warns that the foreign companies will have a duopoly of the market ...”James Fontanella, “Kernel of an Idea Makes Millions,” Burkina Faso Report, The Financial Times, 9/18/07

Page 6: Shea Butter - A Case Study

JOBOMAX Global LTDSustainable, Fairly Traded, Natural and Organic Ingredients from

Africa: Shea Butter, Essential Oils, Aloe, Crushed Seed and other Exfoliants, and a Variety of Body Butters and Seed Oils Including

Coconut, Mango, Argan Oil, and More.

Supplier Cooperative in Burkina Faso

1223 Chestnut Street #153Philadelphia, PA 19107

Phone: 215-253-3691www.jobomax.com

JOBOMAX Global LTD

Copyright © 2005-2010 www.jobomax.com