Value Chain Analysis and Income Distribution in the Shea Butter Sub-Sector in Kebbi State, North West Nigeria

Shea butter is one of Nigeria's most significant non-timber forest products, serving both domestic cooking and cosmetics markets and representing a growing export commodity. In Kebbi State, where shea trees are prevalent across the agricultural landscape, the structure of the shea butter value chain and the distribution of income among chain actors have not been systematically analysed. This study conducted a value chain analysis and examined income distribution in the shea butter sub-sector in Kebbi State using data collected from 40 collectors, 30 processors, 25 traders, and 20 exporters through structured interviews and value chain mapping exercises. Value chain governance analysis, marketing margin analysis, and income distribution indices were applied. Results revealed a six-actor chain in which processors, predominantly women, captured the lowest proportion of the final sale price at approximately 18 percent, despite performing the most labour-intensive and technically demanding chain function. Export traders and intermediary brokers captured the highest margins. Power asymmetries and information gaps between domestic processors and export markets were identified as the primary distributional constraints. The study recommends investing in processor organisation and collective marketing capacity, improving shea butter quality grading systems, and facilitating direct processor linkages to cosmetic ingredient exporters. Keywords: shea butter, value chain, income distribution, Kebbi State, processors.