Profitability and Sustainability Assessment of Shea Butter Processing Enterprises in Kebbi State

Shea butter is a high-value tree crop product with growing demand in international food, pharmaceutical, and cosmetic markets. In Kebbi State, in Nigeria's North West geopolitical zone, women-led shea butter processing enterprises represent a significant informal agribusiness sector, but their profitability and sustainability from a professional management standpoint have not been systematically evaluated. This study assesses the profitability and long-term sustainability of shea butter processing enterprises in Kebbi State using primary data collected from 55 processing enterprises through structured questionnaire interviews and enterprise record reviews. Profitability was assessed using gross margin analysis and return on variable cost, while sustainability was evaluated across economic, environmental, and social dimensions using a composite scoring framework. Results indicate that the average quarterly gross margin per enterprise was N68,000, representing a return on variable cost of 1.71 and indicating commercially viable operations. Profitability was constrained by seasonal raw material price spikes, high firewood energy costs, and absence of export market linkages that would capture premium prices. Environmental sustainability scores were low due to heavy dependence on unsustainable firewood harvesting and the absence of waste oil recycling practices. Social sustainability scores were stronger, reflecting the enterprises' roles as sources of female income and community food security. The study recommends transitioning shea butter processors to improved energy-efficient kilns, facilitating export market linkage through the Nigerian Export Promotion Council, and providing enterprise development support to formalise operations in Kebbi State. Keywords: shea butter, profitability, sustainability, Kebbi State, women enterprise