the story of northern uganda shea processors’ association

progreso network

c o n n e c t i n g p r o d u c e r o r g a n i z a t i o n s

Organisation

Country

Products

Best Practice

Northern Uganda Shea Processors’ Association (NUSPA)

Uganda

Shea nuts/oil

Processing the best shea oil in the world

The story of Northern Uganda Shea Processors’ Association:

A chal lenging real ity for a women’s association

This document has been produced with the suppor t of Progreso Network and Sol idar idad Nether lands

V is i t for more information the website www.progresonetwork.org

3 N o r t h e r n U g a n d a S h e a P r o c e s s o r s ’ A s s o c i a t i o n ( N U S PA ) - U g a n d a

Table of conTenT

� Summary

� Background

1 The real i t y of Nor thern Uganda Shea Processors’ Associat ion (NUSPA)

2 How i t a l l star ted

3 On the way

4 What was achieved

5 Useful lessons

4

4

8

11

18

24

28


� Country: Uganda

� Organisation: Northern Uganda Shea Processors’ Association (NUSPA)

� Best Practice: processing the best shea oil in the world

� Products: shea kernel/shea butter

� Organisation Model: farmer association

� Contact details for more information: www.nuspa-nilotica.org, www.thesheaproject.org

The reality of NUSPA

The Northern Uganda Shea Processors Association (NUSPA), established in 1997, is a Ugandan association comprising

mainly of women who collect and process shea kernel. Production slowed down considerably during the period

between 2002 and 2005, due to the insurgency of the Lord Resistance Army (LRA) into the Lango sub-region.

NUSPA managed to recover and experienced two successful years in 2006 and 2008, when they had an organic

certification. But since that year, the association is finding it very difficult to function as a self-sustaining entity.

How it all started

NUSPA was established in 1997 under The Shea Project for Local Conservation and Development with the assistance

of an American volunteer, Eliot Masters. Masters started this initiative in 1992 under the Cooperative Office for

Voluntary Organisations (COVOL), a US non-profit Non Governmental Organisation.

COVOL received funding from USAID from 1995 until 2000 with additional funding from the McKnight Foundation and

INCO program of the European Union. In partnership with the Shea Project, NUSPA quickly expanded its work into

the districts of Lira, Pader and Katakwi. In total, the association comprised of 2000 producers from over 50 producer

groups at its peak.

On the way!

The insurgency by the Lord Resistance Army (LRA) of Joseph Kony into the Lango sub-region at the end of 2001

destabilized the work of shea nuts collectors tremendously. The security conditions deteriorated to such a level

that all NUSPA members were forced to leave their homesteads and flee to bigger towns or the so-called internally

displaced camps (IDP camps) with semi protection by the Ugandan army in the countryside.

Until 2006 most NUSPA members lived under substandard conditions in these camps. Shea collection and processing

was still sporadically done, but at great risk for the members. Too many lost their lives while searching for shea nuts

in the fields; many were maimed by LRA rebels.

SUMMaRY


What was achieved

In 2006 and 2008, NUSPA managed to achieve organic certification under USDA-NOP and EEC 2092/91 regulations.

NUSPA, with ongoing guidance from COVOL/The Shea Project, was active as an association and has, regardless off

all the hardship endured, been able to develop and implement an internal control system. Processing had been

modernised and this resulted in an improved quality of the shea butter. This quality improvement as well as the

organic certification allowed NUSPA to buy the shea nuts at a quality premium and at an organic premium price in

both 2006 and 2008

Useful Lessons

Organic PremiumThe premium price paid by the Shea Project to NUSPA members was approximately 200 % compared to the

conventional price. This is perhaps too high. The organic premium price is almost twice the price of a cup of shea

nuts, which members would get when they sell it locally. In order to remain competitive in the outside market,

paying too much premium might not be the best thing to do.

Competition and commercialityEven though shea butter from West Africa is of a lesser quality, and should even be considered as a completely

different product, its price is much more attractive on the world market and the product is far better known. Also in

the local market there are now several processors who are dealing in shea on a commercial basis. Therefore it is very

important to make the product as competitive as possible.

Management structureIt seems that without active involvement from outside actors, NUSPA and Shea Project would without a doubt

struggle to be active and self-sustaining. Due to all the obstacles encountered during the development of NUSPA,

insufficient time and resources were put into strengthening the institutional structure. More emphasis should be

placed on the sustainability of the management structures with a far bigger engagement from NUSPA members.

Too much focus on international market The international market is seen by NUSPA members as the most lucrative market, although they emphasize that the

local market is also always an option. The premium obtained for using organic methods to harvest and process the

nuts is certainly very tempting. Nevertheless, East African shea butter is relatively new on the world market and is

still struggling to settle down in its own niche. Until it has done so and a price has been established, shea processors

should not completely abandon the local market.


NGO dependency thinkingNUSPA members are too much focused on being assisted by NGOs. The Shea Project has assisted them throughout the

years by organising the meetings, paying for transport/allowances/food for NUSPA members to attend meetings,

and etc. On the other hand, the question remains whether NUSPA could become a well-functioning self-reliant

organisation if given enough time and support from the Donors.

The years in the IDP camps spent by several members have not helped to get rid of the dependency attitude. The

main problem is that until now, NUSPA has failed to collect funds from its members in order to maintain a budget

independent of the Shea Project.

Also the status of the Shea Project might be a hindrance to success. Is it an NGO or a commercial entity? Or is it both?

Does this give the wrong message to all stakeholders involved?


The shea tree can grow to 300 years old and remain productive for most of its life span!


This report lays out the process of the Shea value chain, along with pitfalls and challenges that have occurred. We

realize that this systematization and the development of the producer organisation is strongly influenced by the civil

war that swept through the region. Lessons can be drawn from NUSPA’s experience.

The region, its people, economics and politicsThe Northern Uganda Shea Processors’ Association (NUSPA) has been active since 1996 in the area north of Lira

town, in the North Central region of Uganda known as the Lango sub-region. The people living here are called Lango.

The first president of Uganda, Dr. Milton Obote, hailed from this region. His Uganda People Congress party flag is

often seen whilst driving through the area. Clearly the area is still proud that a son of its soil was twice president of

the country (1962-1971, 1980-1985). Not everyone in the country has the same opinion, however. Some accuse him

of masterminding the death of thousands of innocent people especially in his second reign. In 1985, he was forced

into exile and died in Zambia in 2005.

The people in the Lango sub-region are mostly farmers. North of Lira town, around Otuke county (Lira district),

Pader and Katakwi district are where the NUSPA members live. It is the area where cultivation of shea trees, one of

their main cash crops, is most common. They also grow millet, sorghum, rice, pigeon peas, cotton, cow peas, beans,

cassava, banana and corn for personal and commercial use.

Because of the vicinity of Lake Kyoga in the south of the Lango sub-region, some people also find employment in

fisheries. Livestock has for years been a risky business because of invading Karamojong warriors, a people to the

east of Lango who consider themselves to be the world’s sole proprietors of cows. With a stronger army presence in

Karamoja cattle rustling has diminished also in the Lango sub-region.

The shea-butter tree, Vitellaria paradoxa ssp. Nilotica, is a slow-growing hardwood fruit tree that grows in northern

Uganda and Southern Sudan. From the outside the fruit looks like a mango, but it is usually smaller in size. Inside of

which sits a hard seed. The flesh around the seed is also very nutritious. From the seed, shea butter is extracted as

a source of food oil and for cosmetic and cultural uses.

Shea collection and processing is traditionally a woman’s job. The income they derive from it is used for children’s

school fees, clothing and other household needs. The locally produced shea butter has a very pronounced smell of

smoke and can contain a small percentage of ash. It is sold on the local market but also used for nutritional purposes

at home, especially in times of drought and famine when it serves as a source of energy and provides vitamins and

minerals.

In 1997, a group of shea butter producers came together to form a national marketing association called NUSPA - The

Northern Uganda Shea Producers Association. This process was carried out with the guidance and assistance of the

then existing Shea Project for Local Conservation and Development (The Shea Project).

The Shea Project, which started in 1992 as an initiative of the Cooperative Office for Voluntary Organisations (COVOL),

was a set of integrated programs in technology development, product and market development, rural credit,

environmental education and applied research on the shea resources.

The main aim of NUSPA was to modernize the village level processing technologies thereby improving their market

opportunities and eventually the income and standard of living of their members.

nUSPa’S RealiTY

1


The organisational structure of NUSPA consists of chapters at county level in the shea producing area. Three

representatives of each group are designated to the NUSPA executive board. Two of the three are always women.

Until 2008 (except between 2002 and 2006) chapters were active in Otuke County (Lira district), Agago County (Gulu

district) and Katakwi district. Women groups average about 35 members each. At the height of their performance

NUSPA had 2000 plus members.

The Shea Project had four site offices, plus the head office in Lira, according to administrator Apili. ‘The office in Lira

was also a shop where we sold shea butter in tins. But we had to close that office. Also all the offices upcountry were

closed. In our office in Corner Adwari and the one in Amuria we locked all our things up.’


Utilization of the Shea tree

PART OF TREE RECORDED USE

Fruit (kom yao) Eaten fresh or dried.

Seeds (nyigi yao) Dried seeds are used for oil production.

Oil (Moo yao) The oil is mainly used as edible oil for frying, as an addition to sauces.

Shea oil has also been used as a traditional moisturizer, as an ointment

for newborn babies, as a lubricant of machinery and as an important

component of medicines for sprains, scabies or open wound dressings. The

oil/fat can also be used to produce traditional soap and to protect wood or

metal from corrosion.

The oil is also used in many cultural ceremonies (wedding, birth, naming

of new babies, funeral, rain, crop/soil fertility, divining the future and

ordination of local chiefs or priests) and in preparation for battle.

Wood (dur Yao) The wood is used as charcoal or firewood and the planks are frequently

employed as the roof or ‘Y’ shaped poles in the construction of houses. The

timber is also used for local handicrafts and beehives. In addition, large

tree poles are used in building local canoes.

Whole tree (Yao) The whole tree is said to improve soil fertility, provide shade and protect

against wind or soil erosion.

Leaves (Pot yao) Although rarely done, the leaves from this tree species can be used in

funeral ceremonies.

Flowers (tur yao) The flowers can flavour tobacco as a medicine to reduce chest pains

and cure eye problems. They are also known to be important in honey

production.

Bark (pok yao) Frequently used as a medicine for stomach problems, specifically against

diarrhea.

Residue (cet yao) The bi-product or residue from oil production is commonly used as an

insecticide for houses or crops, burnt to repel mosquitoes. The ashes from

this product can be used to produce local salt.

Latex (odox yao) The latex is used as a medicine to dress open wounds, as a glue to seal pots

or calabashes and as an adhesive to trap animals or birds.

Roots (lwit yao) The roots are utilized in the production of unspecified medicines. This

should not be confused with mistletoe which is also known as Iwit yao.

Source: Lovett 2000


The development of the “Shea sector” started at the beginning of the 1990’s. Eliot Masters, an American specialist

in rural livelihoods, agricultural and natural products value chains development, came to Uganda and showed great

interest in helping the local farmers in the ‘Shea-belt’ to add value to their Shea nuts production.

Masters started the “Shea Project for Local Conservation and Development” under the “Cooperative Office for

Voluntary Organisations” (COVOL), an NGO that works through community-based organisations. He has been pivotal

in the development of Ugandan Shea butter as a commercial product.

In those days, Shea was only sold in and around Lira. Beyond that area there was no market. After Masters started his

Shea Project in 1992, more knowledge on Shea processing and marketing became available. Then NUSPA was set up

in 1996. This was done because farmers realized that there were much more opportunities beyond their traditional

markets. With an association they believed they could stand stronger.

Evomelina Obote, one of the first members of NUSPA, states: ‘I soon became a member because I realized that I

would get knowledge by doing so. Eliot taught me and other members how to process yao (Lango word for shea -

ed) in a modern way. I learned how to keep the Shea nuts, process them and boil the oil.’

How iT all STaRTed

2


Shea butter processing

The ripe shea fruit falls from the tree between April and June and are usually harvested by women early

in the morning or before sundown. Occasionally children help out. The nutritious pulp is brought home to

be removed and eaten, preserved or thrown away. The nuts are put on a woven mat to dry for four days

in the sun. After which, the nut is cracked and the shea kernel inside (sometimes more than one kernel) is

again dried for four days. The kernels are stored in food-grade jute bags (or traditionally stored in dere or

granaries). The dried kernels are then grinded twice in a motorized machine to get the finest powder. The

powder is then mixed with clean boiling water and then packed into white pressing bags. Then the bags

are put in a pressing machine, which yields the shea oil.


Main Objectives of NUSPA

The main objectives and goals of NUSPA were the following according to Petra Apili, administrator of the Shea Project

since 1999.

� Improve the standard of living of the members � Look for markets for the shea � Promote community-based resource conservation

� Improve village level processing technologies � Create employment opportunities for the local communities

Teresa Akello Oleng, member of NUSPA since 2002, has benefitted from the shea she collects each year. It improved her standard of living and that of others as well, she says. ‘When the harvest is good and I can sell the nuts as

organic, I am able to buy a cow with the money that I get for my shea nuts. This is a story many NUSPA members

can tell you.’ she stated.

Petra Apili joins in. ‘We also found a market outside. Even though the demand is low at the moment because of the

financial crisis in the western world, we are hoping that buyers will come again.’ On the website of the Shea Project

there is a link to Nilotica Botanicals, a company in Santa Cruz, California that is selling a range of cosmetic products

exclusively bought from NUSPA.

When it comes to resource conservation the Shea Project set up tree nurseries, which were looked after by NUSPA

member Patrick Abwango. According to Abwango, who was responsible for the upkeep of one of those nurseries, a

variety of tree seedlings has grown there. ‘We had pine, maesopis, moringa, neem and of course shea trees.’

Abwango is also in charge of the grinding and pressing machine that the Shea Project brought in to add value to the

shea product and improve processing technologies. ‘Here and in Pader we have these machines. This way, we are

able to produce much more shea oil than in the traditional way,’ says Abwango.

The LRA insurgency, a major challenge!

The most important challenge for the members of NUSPA and for the organisation as a whole, was the quite

unexpected entry of the Lord Resistance Army rebels (LRA) into the Lango sub-region at the end of 2001. Apili

preferred not to talk in detail about that painful period of time. ‘It was terrible for us in Lango. NUSPA became

virtually non-operational. Many of our members died in those four years of insurgency while trying to collect shea

nuts.’

Although the LRA insurgency had been raging for fourteen years in the neighbouring districts of Gulu and Kitgum

their full-scale entry in Lango took many by surprise. Until that moment, LRA leader Joseph Kony, born and raised in

Gulu district, seemed to have been bent on only causing havoc to his own people.

2.1

2.2


From originally being an internal Acholi conflict, the insurgency exploded to Lango. Kony wanted to send a clear

signal to the Ugandan government: that all of Uganda had to fear his wrath and that nowhere was safe. Some high

profile mass killings in Lira district by LRA rebels at Barlonyo (where 257 innocent villagers were massacred) and the

abduction of 139 girls from a prestigious boarding school in Aboke had exactly that effect. The whole world suddenly

knew about Kony.

As panic ensued, most people in the countryside quickly fled to safety. Countless ended up in and around Lira town.

Many others ran to or were gathered by the Ugandan government in Internally Displaced Camps (IDP camps). There

they lived under terrible conditions until the insurgents were chased away by a government led Langi militia called

Amuka boys, a group of ex-soldiers.

NUSPA during insurgency

The insurgency scarred the people of the Lango sub-region. Four years of camp life had a profound effect on social

and cultural practices. In addition, NUSPA was not able to function. Evomelina Obote points at some bullet holes in

the walls of her house. ‘After the LRA came I had to flee to Lira town.’

2.3


Dr John Bosco Okullo, working for the Forestry Faculty of Makerere University in Kampala, had worked as a student in

Otuke between 1999 and 2003. He remembers, ‘The insurgency disturbed the ecosystem here dramatically. In areas

around Corner Aloi, Corner Adwari and Patongo, where the largest IDP camp in the north was, we did some research.

We found out that almost half of the grown up shea trees were gone. All cut down for charcoal!’

Especially in the camps, (see picture above) where most people were inactive because they were heavily restricted

in their daily movements, the business of charcoal was a flourishing one. The camps were in need of large supplies

of charcoal. But even now that people are back in their villages, the demand for energy sources is high.

The indiscriminate nature of the cutting however has created lots of problems. Okullo says: ‘Before the insurgency

there were cultural laws governing land and the use of the shea tree. The elders would forbid the cutting. Those

days almost nobody would just dare to cut a tree for charcoal.’ Besides that, many people believed that if a shea tree

would be cut, drought would descend upon the land and a curse befell on the cutter.


Regeneration of the shea tree

In the past, charcoal burning was considered to be a lowly job. But as harvests have fallen, for some it has become

the only source of income, especially for young people. Because of limited social cohesion within the camps, certain

cultural traits were forgotten in the struggle for life, according to Okullu. ‘Although the area is already peaceful for

almost four years, young people still cut shea. It is one of the best trees for charcoal. Also these days people want

quick money. The cutting of shea provides that.’

However it is also an enormous waste to cut them. Okullu: ‘In one year one can earn many times more money by making shea butter out of the nuts of the shea tree than cutting it down. A grown, well fruited, shea tree brings probably less than four big bags of charcoal. Each bag sells for 12.000 Ush. With that same tree, in one year, one can process 20 litres of shea butter, worth between 250.000 and 300.000 Ush.’

Since the shea tree can live for up to 300 years, many

generations can benefit from its long life. These simple

facts are convincing more and more people not to cut

shea trees. The cutting of the shea tree was proscribed

in the 1959 Uganda Forestry Act. In 2009, an official

directive signed by President Yoweri Museveni ordered

for the sending of police to the regions where shea trees

were being cut down. This has put charcoal burners and

transporters on alert again.

Otim Benayokasi, the assistant inspector of police in

Adwari Corner (see picture below), has already arrested

several people smuggling shea charcoal. ‘The letter said

that we should take the cutting of the shea tree very

serious, with sanctions. But we can only arrest when we

catch them transporting it. Since that letterwas issued,

we have had several files against people transporting

shea charcoal. ’

Regardless of the Forest Act of 1959 and the official

directive of president Yoweri Museveni, shea charcoal

is readily for sale along the road. Charcoal burners and

transporters seem to suffer little impediment from

police or forest guards who are underfunded and easily

bought off.

2.4


According to Okullu, ‘The biggest challenge for NUSPA members and all the other shea ‘stakeholders is to fight the

indiscriminate cutting of shea trees.’ One positive turn to save the tree is that besides the Shea Project as a buyer,

there are now several other companies, and even a shea factory (Guru Nanak Oil Mills) active in the region. And

since children go to school again under normal circumstances, they are also taught through school programs about

the importance of planting and protecting the shea tree.

Achievements of NUSPA, Shea Project and COVOL

1. Development of women’s groups for the collection and processing of Shea nuts

2. Establishment of a co-operative entitled the Northern Uganda Shea Processors

Association

3. Introduction of equipment to process the Shea into a higher quality product via a cold

press process.

4 Training of women in quality grading of nuts and in high quality processing of Shea

butter.

5. Development of a range of products for local and international markets

6. Development of a partner organisation in USA

7. Product brand name “Nilotica”

8. Interactive websites for promotion and sales of Uganda Shea products

9. Linkage with major companies for sales of the product.


Four distinct periods can be defined in which the different episodes of NUSPA’s journey can be described.

3.1 Researching the shea potential (1990 to 1995)

3.2 NUSPA established – donor funds come in (1996 to 2001)

3.3 NUSPA semi- functional insurgency (2002 to 2006)

3.4 Recovery of NUSPA (2007 to present)

Researching the shea potential (1990 to 1995)

This is the period that COVOL, through the intervention of especially Eliot Masters, started establishing conditions to

modernize the shea butter ‘industry’ in Northern Uganda. Until Masters’ intervention, Ugandan shea butter was made

and consumed only in the shea belt area. COVOL developed and implemented effective and low cost innovations that

enhanced the food and economic security of rural households, and also promote shea to a wider market.

COVOL saw the enormous potential the shea resource had for local communities – especially for women, as they

are traditionally in charge of collecting and processing shea. When the Shea Project for Local Conservation and

Development was set up in 1992 by Eliot Masters, things started moving. The project was meant to develop means

to improve processing technologies and to set up a revolving credit fund for the farmers.

NUSPA established – donor funds come in (1995 to 2002)

It was in 1996 that under COVOL/Shea Project the foundations were laid for NUSPA. The Shea Project developed a

village level technology package aimed at producing a high value shea butter that could be used as food supplement

or for industrial cosmetic use.

From 1995 to 2002 the COVOL/Shea Project got funding from USAID and additional financial support from the McKnight

Foundation and the EU INCO program. Thanks to their efforts, the number of NUSPA members expanded enormously.

Workshops were also found to be quite successful and elicited positive responses from members. Within the period

between 1996 (establishment of NUSPA) and 2002, membership increased from 200 to 2000.

The Shea Project itself was active in seven counties in three districts. It focused on conservation and marketing/

processing. The aim was to develop technology to increase production and quality and to teach this technology to

farmers. The assumption was that these efforts would lead to possible new markets (outside the regional market)

and consequently better incomes for the members of NUSPA.

on THe waY!

3

3.1

3.2


It was also assumed that when the incomes of NUSPA members would increase their willingness to conserve the

shea tree would also grow. The savannah in which the shea trees grow was - even in those years - already exposed

to illegal logging of shea trees for charcoal making. But charcoal burning flourished during the insurgency (mostly

driven by outsiders), and still occurs up to the present day.

A number of activities started in this period

3.2.a Researching the shea potential

3.2.b NUSPA established – donor funds come in

3.2.c NUSPA semi- functional insurgency

3.2.a Conservation

The conservation aspect also included an analysis of the type of distribution of trees in the area, their age,

production and the rate of tree planting. According to Petra Apili, NUSPA members already knew about the

importance of preserving the shea tree. ‘Traditionally whenever people discovered a young shea tree shooting

up they would protect it by digging around it to make sure it is kept well and can grow well.’

Out of this several important initiatives were born. Apili says, ‘My colleague Patrick Abwango used to run a

nursery. It lasted three years. Then the insurgency came and it all stopped and now it is no more.’ The seedlings

were planted in the gardens of several NUSPA members.

Apili: ‘Besides that we had a program of environmental education. There was an environmental officer who went

from school to school, to tell students of the importance of planting trees and preserving the shea tree. We found

out that schools were the best places to stimulate the establishment of nurseries. If you tell young people how

important tree planting is they become very enthusiastic.’

3.2b DERO (The Northern Uganda Food Security Project)

According to Petra Apiili, one of the most successful programs that NUSPA was involved in together with COVOL/

Shea Project was the community based DERO program. Apili says ‘Dero is our word for a traditional granary. This

program was meant to help us with maintaining local food security, but it also provided a lot of other services.

At the height of its success there were more than ten thousand farmers who took part, including the members

of NUSPA.’

The DERO project was conceived at a moment in time where more than 200.000 refugees, who had fled the

war in Sudan, were living in camps in the north of Uganda. The idea was to stimulate local farmers to produce

agricultural surplus and sell it to World Food Program (WFP), who was feeding the refugees. Several districts

were involved.


Under DERO four rural resource centres were established. In these centres the surplus food was purchased and

stored. These centres also doubled as stores where farmers could buy affordable seeds and farm implements.

It also functioned as a place for trainings and extension workshops, nursery demonstrations. The training

workshops especially pleased many NUSPA members as it helped them to increase agricultural production and

henceforth more income.

A summary of the training activities conducted by DERO staff to date include:

1. Nursery management and construction

2. Animal traction training: ploughing techniques for farmers and bulls

3. Crop production

4. Traditional food plants

5. Food storage and post-harvest loss

6. Food processing: improved shea-processing methods and technology

7. Animal/herd health: prevention, diagnosis and treatment training

8. Fishpond construction

(Source: COVOL report 2008)

Though DERO only existed for two years, it still was considered to be a success. Apili: ‘Even though the project

was badly hampered in its activities by LRA rebel incursions, NUSPA members and others really saw the benefits

of that program. For that reason there are efforts underway to start it again.’

3.2.c Seed markets

Between 1998 and 2002 a system was introduced which centred around seed money. Dr. John Okullo states,

‘With that grant from USAID a system around seed money was set up. This was very beneficial for people in the

region. Money for seeds was given as a loan and then given back after harvest. Whereby the surplus yield was

profit for the farmer.’

Because the borrowed seeds were re-deposited, other farmers could also again benefit. Okullo: ‘Even though the

area was already plagued by LRA rebel activity, many people at that time were able to put iron sheets on their

roofs or pay school fees or start livestock business, buy ox ploughs etc. all because of the seed money’.


NUSPA – Semi-functional insurgency (2002 to 2006)

Although the Lango sub-region had grown used to incidental LRA incursions, at the end of 2001 the situation changed

dramatically. Joseph Kony decided to widen his action radius. Within a short time most villages in the Lango sub-

region were deserted. Many people had fled to larger towns, and if that was not a possibility, to IDP camps.

The activities of NUSPA came to as good as a standstill according to Patrick Abwango: ‘The Shea Project, which had

an office in Lira town, removed the shea grinding and pressing machines from Corner Adwari to Lira town. Under

the new circumstances processing had become too dangerous. Also our office in Pader district was closed because

of fear.’

Dr. John Okullo can attribute to that: ‘It was only the strong hearted people of NUSPA who dared to keep on going

back to the area to pick the shea nuts. But many did not come back alive or were maimed for life: the LRA soldiers

would cut their arms and ears and say “you go back and tell your people that we are in charge now.” ’

The insurgency also had a negative effect on how people looked at land. Okullo: ‘Before the insurgency there was a

traditional land system. You could own your own land, but it would still be considered to be part of the family land

and as such it gave others also right to go there and pick shea nuts.’

According to Okullo the insurgency complicated matters. ‘Big pieces of land were taken by the government and

turned into IDP camps. Those in the IDP camps started using that land indiscriminately. So the insurgency destroyed

a well-balanced equilibrium that existed amongst people when it came to land.’

‘Some people didn’t think twice about using resources that were not theirs,’ according to Okullo. ‘As a consequence,

after the LRA had been chased by the Amuka boys, occasionally fights broke out, sometimes even between family

members, over who could make use of which piece of land or not. These days, families send out children to guard

the land and warn the parents when there are trespassers. Sometimes this lead to fights and people are killed.’

Recovery (2007 to 2010)

3.4.a Back to the village

3.4.b Organic certification

3.4.c DERO

3.4.d Seed banks

3.4.a Back to the village

The people in the Lango sub-region are proud about the fact that it was their own Amuka boys who in 2006

finally chased the LRA rebels out of the region. Within a period of two years most displaced people trickled back

to their home villages. What they found there was sometimes quite dramatic.

3.3

3.4


Evomelina Obote still remembers vividly when she first came back. She says, ‘I first came to check how things

were. It was like a visit. I was still scared the rebels might come back. But when I entered my house I realized that

there was a family living there that I didn’t know. They had fled from further up north and decided to stay here.’

Obote didn’t seem to be bothered by it. ‘In our culture, if a stranger asks you for accommodation, you will offer

it. Whatever time he will stay at your home. When I came back permanently that family stayed for another year

before they finally left.’ She points at other houses. ‘During the insurgency it was very normal that people just

occupied a house they found on their way.’

What she also realized when she came back was the number of shea trees that had been cut. Evomelina Obote:

‘Before the insurgency I didn’t have to go far to collect shea nuts. Now I have to go much farther. If I would have

stayed longer in Lira I would not have found any shea trees left in my village.’

3.4.b Organic certification

As people were returning to their villages, NUSPA and COVOL/Shea Project also got a new lease of life. It all

started very positively because already in 2006 they succeeded in obtaining organic certification according to the

European and American organic standards. The certification and organic premium obtained in the export market

allowed the Shea Project to pay the members of NUSPA a premium of UShs 500/= per cup of high grade organic

shea nuts or the equivalent of UShs 1,500/= per kilo of shea nuts.

Doris Abuka, a NUSPA member living in Corner Adwari, still remembers what she did with the money she got

from that harvest: ‘I returned in 2006 to the village. That year was good for me. I got payed 500 shilling for a cup

of shea nuts. It was the best price around.’

Abuka bought bricks to build a home. Even though the house is not yet finished, a start has been made. In

Uganda it is very normal that one builds a house in stages. Sometimes it takes several years to finish. She is

hopeful: ‘We will finish the house if the price of shea gets better again. Meanwhile I am also selling chips and

bread and do some farming.’

However, her fellow NUSPA member Victor Olinga has become a bit disappointed: ‘The organic produce did bring

more interest to us farmers. It was a good price and we started concentrating on it. But the second year when

we brought shea nuts to be sold we were told to wait for payment.’ This was mainly because the sales of shea

butter from the previous years to the outside market were not going as hoped. NUSPA was still a very young

exporter with a lot to learn. Generous estimates had been made, but the sales of the shea butter to the outside

market turned out to be far less lucrative than expected.

In addition to that, no external financing had been secured. COVOL and NUSPA had only benefited from donor

support between 1995 and 2000. Ever since, they have relied on their own input and kind donations of people

such as Eliot who invested a part of his savings to make things happen. In 2007 and again in 2010, Eliot’s personal

funds were not enough for paying for certification or to be used as crop finance, leaving NUSPA to rely on itself.


Although many people do not dare to speak out, Olinga voices that he wishes the old system was back. ‘Now that

the nuts are not being bought by the Shea Project, and we are not having certification, of course we are losing

interest a bit. But we are still hoping things will change.’

Petra Apili herself is also not very happy with the current situation. ‘In 2008 we again had certification. But

because there is no money, the staff members of Shea Project cannot be paid.’ The problem according to her

lies abroad. ‘There is no market at the moment in the western world. The credit crisis must have something to

do with it.’ But it’s also important to note that when the Shea Project was donor driven, things went well. When

that stopped everybody involved was suddenly much less serious.

3.4.c DERO

If there is one project that is still very much alive in the minds of NUSPA members it is DERO. Since the return of

displaced farmers to their home villages the demand for a reinstallation of the DERO program has often been

discussed. COVOL/Shea Project wanted to reinstate the program. Thus far this has not happened.

3.4.d Seed banks

Two hundred and forty smallholder farmers were identified in 2008 by the COVOL/NUSPA community coordinators

in four districts. Four thousand kilo of groundnut seeds was procured and distributed to outgrowers along with

212 bags of certified stems of cassava. At the end of the project 30 MT of groundnut seed was collected and

bought for Ush 45 million ($25,000). Soon after these seeds of quality groundnut were distributed among the

membership of 49 community-based groups affiliated to COVOL through NUSPA.

Progress in commercialisation of Shea products in Uganda

Development of women’s groups for the collection and processing of Shea nuts

Establishment of a co-operative entitled the Northern Uganda Shea Processors Association

Introduction of equipment to process the Shea into a higher quality product via a cold

Training of women in quality grading of nuts and in high quality processing of Shea

Development of a range of products for local and international markets

Development of a partner organisation in USA, which plans to act as a conduit for sales of processed Shea butter, first stage

processed product

Product brand name “Nilotica”

An interactive website for promotion and sales of Uganda Shea products

Linkage with a major boutique BodyTime for sales of the product

Source: COVOL Report 2008


4.1 Dangerous circumstances

4.2 Achievements against all odds

4.3 Post conflict regeneration

Dangerous circumstances

In order to describe what has been achieved it is very important to emphasise how the LRA insurgency has been a

constant hindrance in the history of NUSPA. From its establishment in 1996, it constantly had to cope with threats

from rebel activity. From 1997 to the end of 2001 this threat was sporadic. But, the consequences were already

enormous.

For example the DERO program, which is still considered to be a success by NUSPA members, was implemented

much later than was envisaged and even then did not function as was planned. Because of increasing rebel

activity in the area, DERO staff who were out in the field spent about 40% of their time (according to DERO report

2008-2012) actually figuring out where the rebels were, so as to make sure they would not get caught by them.

Given that this reality existed for DERO staff it of course also existed for NUSPA farmers. They were affected by the

same dangers and limited in their agricultural activities. What was achieved by NUSPA as a women’s association

must be seen in that light. For the first four years of their existence (1997 to 2001), they were frequently disturbed

by increasing rebel activity.

Then at the end of 2001 until 2006, the rebels became so active that most people were forced to leave their

villages. For four long years many people, amongst them most NUSPA members, were forced to live dreadful lives

in IDP camps. The whole formal structure of NUSPA as a group dealing with Shea Project, became an informal one.

wHaT waS acHieved

44.1


Achievements against all odds

4.2.a Governing structure

4.2.b Workshop experience

4.2.a Governing structure

Each collector group has several members.

In total there were about 2000 active producers distributed over 400 collector groups.

It is fair to say that the first ten years of its existence NUSPA has been under enormous pressure because of LRA

rebel activity. Still this hasn’t stopped the association from developing itself.

From the onset the organisational structure of NUSPA consists of chapters at county level in the shea producing

area. Three representatives are designated to represent a group to the NUSPA executive board. Two of the

three are always women. Until 2008 (except between 2002 to 2006) chapters were active in Otuke County (Lira

district), Agago County (Gulu district) and Katakwi district.

Women groups average about 35 members each. At the height of its performance NUSPA had 2000 + members.

However, because of the LRA insurgency, the whole organisation stopped functioning as it should have been.

According to Petra Apili: ‘The last time the NUSPA members had a formal meeting was three years ago.’ Some

members in Corner Adwari do meet with an elder once in a while but that is not officially NUSPA.

In 2006, when the LRA was chased out of the Lango sub-region, most NUSPA members returned to their home

villages. Meanwhile the Shea Project had succeeded in getting the first organic certification for shea nuts. To get

the groups organized from within, NUSPA elected a person that was called The NUSPA Certification Coordinator.

That person would be responsible for calling meetings with the members.

4.2

Chairman

Secretary

Collector group = CG CG CG CG CG CGCG CG ....

Katakwi countyRepresentative s

Lira countyRepresentative s

Kitgum countyRepresentative s

Kotido countyRepresentative s

Vice Chairman


There was one chairperson and one assistant chairperson (both in Pader district). There were ten certification

coordinators, one per site. They were not paid a salary but recieved transport money and allowances.

The role of the certification officer

� Train group members on how to collect the organic shea nut

� Co-ordinate with the NUSPA Community Production Committees

� Constant checking of the members

� Ensure that nut collection is carried out only within designated areas

� Supervise drying of the shea kernel in a proper manner as recommended by the certifying body

Source: NUSPA manual

4.2.b Workshop experience

During the 1996 to 2001 period, members of NUSPA got a lot of hands-on experience because of a very specific

training they receive partly under the DERO program. After a SWOT analysis was performed in September 2010

at Corner Adwari it became clear that all participants are very used to workshops, that add know-how to their

work. After the SWOT workshop they demonstrated their technical skills on the grinding and pressing machine.

SWOT analysis with NUSPA members in Corner Adwari

STRENGTH WEAKNESS

- Cooperation between the members

- Human capacity available

- Cash crop available

- Cooperation between the leaders

- Size of the working area

- Limited contacts amongst members & leaders as no meetings are

being held any more

- Lack of respect for cultural rules and leaders

- Lack of communication

- Inactive members

- Lack of respect for the members by some leaders

OPPORTUNITIES THREATS

- Improved technology in processing

- Source of income

- Additional members in other districts

- Exposure in and outside the country

- No ready export market

- Limited knowledge on export market

- Dependence of machinery that is not owned by the association

- Charcoal trade

- Possible renewed insurgency of LRA rebels

- Bad roads

- Climate changes, rains come late, too much rain

The SWOT analyses brought to the foreground that all is not well at the moment


Post conflict regeneration?

Though NUSPA has been (indirectly through Shea Project/COVOL/DERO) given donor assistance from 1996 to 2002,

this was not the case after the LRA insurgency. Although most people have returned to their villages in 2006/7, since

that time NUSPA (or Shea Project) has not received any financial help.

Given the fact that NUSPA was accustomed to getting donor assistance before the insurgency, the new reality was

quite confronting. Notwithstanding, the members of NUSPA had enough confidence to start afresh. And of course they

could count on the limited, however ever present, support of Eliot Masters.

An important issue remaining is the failure of NUSPA to collect funds (by subscription or tolling) from its members in

order to maintain a budget independent of the Shea Project.

Masters was not only the person who paid for the certification costs in 2006 and 2008, he was also responsible for

the development of the Internal Control System. Together with the COVOL staff he trained the field staff and the nut

collectors and made sure that the system was implemented correctly.

The organic wild shea certification in 2006 was of great help. But because of low volumes of shea sold that same

year and the absence of external support, NUSPA and Shea Project were unable to pay for the certification inspection

($5000) in 2007. In 2008, mainly because of Masters, NUSPA managed again to obtain certification. If it had been

given a small financial injection for the years following 2008 NUSPA would probably have been functioning the way

it did before the insurgency.

4.3


5.1 Organic premium

5.2 Post conflict assessment

5.3 Competition and commerciality

5.4 Management structure

5.5 Focus on international market

5.6 NGO dependency thinking

Organic premium

When NUSPA members started gathering shea nuts for Shea Project’s processing purposes, they got an extra

premium because of the fact that the nuts were collected according to the rules of the organic certifying body.

Shea Project reasoned that they could pay an extra premium that exceeded 200 percentage points compared to

the price paid for non-organically certified shea nuts.

A cup of organic shea nuts brought 500 Ush compared to 200 to 300 Ush for a cup of non organic nuts. This

premium was paid based on the assumption that there was a market for East African organic shea butter. It was

assumed that the end consumer would appreciate the organic element and would be willing to cover this extra

cost. Whichever volume the harvest would be, whatever the demand, NUSPA members assumed that it was a

guaranteed price.

Looking back this was a very unrealistic assumption. Production volumes are low, and processing still relatively

inefficient. This as well as the high transport cost as Uganda is landlocked, made the selling price of the new

organic product rather unattractive. So it was only in 2006 and 2008 that the members got their high premium.

The economical reality became completely different with the underdeveloped organic market for East African

Shea and the lack of crop financing.

In the second year (2007) things were inopportune, according to Dr. Okullo: ‘That year members of NUSPA had to

wait more than half a year to get paid for their produce, because there was no money to pay them.’

Since 2008 NUSPA members are occasionally selling to Shea Project. They also sell their shea nuts to other processors,

of whom only one is organically certified, KFP in Kampala. It has made the members doubtful according to Dr. Okullo:

‘At first they were getting a better price. They got used to getting good money immediately in their hands.

One can wonder if that is a good development, but it is the reality of today.’ Also other processors came onto the

market ‘fighting for the hearts and minds’ of the shea nut collectors, and paying cash immediately.

‘Having different processors trying to get their share and given that Shea Project had waited long before paying the

NUSPA members, the collectors might have kept part of the shea nut harvest aside’, according to Dr Okullo. ‘They

might have told the Shea Project that they had a bad harvest, meanwhile selling the other nuts to other buyers who

pay immediately.’

USefUl leSSonS

5

5.1


Post conflict assessment

A very important lesson is that one cannot expect an association that is indirectly connected to a project - receiving

donor funding in more peaceful times - to kick start successfully without assistance after several years of civil war.

Certainly not after a four year long displacement catastrophe, which left people inactive and psychologically scarred

for life.

Besides that, according to Eliot Masters, external assistance has been limited: ‘Quite frankly we have never had

sufficient resources to provide for the institutional development of NUSPA, and have contented ourselves to see

it survive as a semi-formal association under conditions of great challenge and difficulty, with little or no external

funding.’

That NUSPA, in cooperation with Shea Project, didn’t succeed to follow up the 2006 certification is understandable.

Possibly, involved players should have realized that after four years of extreme insurgency and difficulties,

implementing NUSPA activities would be a challenge; all would not yet be as before. A more accurate assessment

should have been made as to how capable NUSPA/Shea Project was to execute an ambitious organic business

program.

The LRA insurgency infected the ongoing development of NUSPA almost from day one in 1996. Given these

circumstances it is almost a miracle that the members of NUSPA and Shea Project managed to pick up the broken

pieces as quick as they did after the LRA rebels were chased from their territory.

Competition, commerciality and quality

Until the insurgency began, the NUSPA/Shea Project combination had almost a monopoly on the shea collecting/

processing market in the Lango sub-region. The only other player in 2001 that was planning to enter the equation

was Guru Nanak Oil Mills (GNOM). The insurgency also stopped them from functioning well.

After 2006 however, GNOM started producing shea butter in what they themselves call the only shea factory in East

Africa. Another company dealing in shea is the aforementioned KFP, a private company run by German national Klaus

Fehling.

KFP is based in Kampala and sells mainly organically certified nuts to Earth Oils in Kenya. It also sells small quantities

of organically certified shea butter to Europe, Japan and the US. Other small players on the market are Kahangi

Estates who buys and processes the shea nuts for the local cosmetics market and Blessed Organics.

This means that there are now several more players on the market and Shea Project is not the only processor

anymore. Besides that, the question arises concerning what Shea Project exactly is: an NGO or a commercial

processor? Or both? With the aforementioned new competitors on the market, does it still make sense for an NGO to

buy and process shea nuts? Is it unfair competition when an NGO gets funded but not a company? Should maybe a

company get funding?

5.2

5.3


Given the fact that GNOM received funding from the Danish government indicates that some European governments

believe that development needs to focus more on straight forward commercial entities such as GNOM to further its

goals of progress in the developing world.

If an East African shea butter market is to be developed, a business perspective should be the starting point according

to Klaus Fehling. Although he also first operated within a working combination taken directly from NUSPA/Shea

Project/COVOL, he very soon realized that it brought him too much headache. Even though he was only the exporter,

very soon he was involved in tasks like monitoring the association and the processor.

It made him decide to be much more involved in the whole process. Instead of getting stuck in a myriad of linkages

that were not functioning properly, he now signs individual contracts with shea collectors. He also goes into the

field with his assistants to do the monitoring. This allows him to buy shea nuts according to the mechanisms of the

market, meanwhile making sure his shea is of good quality, through an organic certification.

A major other factor that hinders the growth of the shea industry in Uganda is the fact that shea butter from

West Africa is hard to compete with. Even though shea butter from West Africa is of a lesser quality and as such a

completely different product, the price is much more attractive on the world market.

Besides that, Uganda is a land locked country, processing is too labour intensive and needs far more improvement.

In order to establish a market, time, energy and money will need to be spent in identifying the specific niche market

for East African shea butter.

Management structure

Even though NUSPA has in principle a clear structure, it depends too much on Shea Project as a steering partner.

Without bad intentions, Shea Project seems to have made NUSPA too dependent on it to function by itself.

And as they have been so closely related one has to also look at the management structure of the Shea Project. At

this moment it is not very clear who the marketing officer or manager is of the Shea Project. It seems that NUSPA on

its own hardly exists as an independent entity.

Since 1998, Shea Project has not had certification and has bought less shea nuts from NUSPA members. So the

assumption that NUSPA is too reliant on outside sources and assistance seems to be justified. Dr. Okullo: ‘Eliot Masters

has played a major role in marketing shea. He and COVOL have made Lira the shea capital of Uganda.’

Okullo continues: ‘By helping the farmers set up NUSPA and bringing other initiatives like the seed loan scheme,

machinery etc. the members of the association at first did benefit.’ It is however clear that NUSPA has not taken

enough responsibility and depended too much on other entities.

All this doesn’t mean that an association like NUSPA is not important. Okullo states, ‘As an association they should

run their own processing equipment so that it can keep on adding value to its product. Also the association is good

because as a group it is easier to get loans.’

5.4


Focus on international market

According to Okullo, emphasis should not only be put on the international market. ‘The regional market still has

potential to grow. The unclear situation about selling to the international market, and other buyers on the market,

has made the members of NUSPA more self-reliant. They have become more clever. Because of the increasing

market for shea, people have more choice to whom to sell their produce to.’

Dr. Okullo is emphasizing that the regional market should be explored, but also more research and partnering with

more regional stakeholders that can build momentum for the shea product internationally. The NUSPA members still

believe in the international market. NUSPA member Victor Olinga says, ‘That is the most lucrative market.’

NGO dependency thinking

NUSPA members are too much focused on being assisted by COVOL/The Shea Project. The Shea Project has assisted

them maybe too much throughout the years by organizing the meetings, paying for transport/allowances/food for

NUSPA members to attend meetings, and etc.

On the other hand the question does remain, given if seen the difficult reality: Do the donor organisations have

enough time and resources to support NUSPA to become a well functioning, self-reliant entity?

5.5

5.6

the story of northern uganda shea processors’ association

Documents

s s o c

p r o c e s s o r s

t i o n n u s pa u g

summary5 n o r t h e

shea project

shea collection

best shea oil

real i t y