TECHNICAL EFFICIENCY OF SHEA BUTTER (BUTYROSPERMUM PARKII) PROCESSING IN KEBBI SOUTH SENATORIAL ZONE OF KEBBI STATE, NIGERIA

This study analyzed the profitability and technical efficiency of shea butter (Butyrospermum
parkii) processing in Kebbi South Senatorial Zone, Nigeria. A multistage sampling technique
was used to select 120 processors, and data were analyzed using descriptive statistics, Net Farm
Income (NFI) analysis, and the Stochastic Frontier Production Function (SFPF). The average
processor was 42 years old, with eight years of processing experience and a household size of
11. The mean monthly revenue was ₦158,505.56, while total cost averaged ₦80,698.90,
yielding a net income of ₦75,206.16 and a Benefit–Cost Ratio (BCR) of 1.90, indicating
profitability. Labour and raw shea nuts accounted for the largest shares of total costs,
underscoring the labour-intensive nature of the enterprise. The stochastic frontier results
revealed that labour, shea nuts, and firewood significantly influenced output, while the mean
technical efficiency was 0.68—indicating that processors operated 32% below the optimal
frontier. Educational attainment and access to credit significantly reduced inefficiency, while
age and limited experience increased it. Major constraints included non-standard measurements
(85.8%), inadequate capital (83.3%), and market price fluctuations (75.8%). The study
concludes that shea butter processing is profitable but constrained by inefficiency and financial
limitations. It recommends interventions such as improved access to credit, standardization of
processing practices, and the adoption of cleaner technologies to enhance productivity, income,
and sustainability among rural women processors.