Strategic and Operational Plan Overview

Produced for Global Shea Alliance General Assembly

March 5, 2013

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Export Shea Butter Value Chain

Collectors Traders Mechanical Processors Fractionators Edible

Brands

Mechanical Processors

Fractionators Village-based Processors

90%

10%

10%

45%

45%

Representative Organizations: Village-based Processors – Songtaaba,

SEKAF, Naasakle WA Processors – Fludor, Nioto, Ghana Nuts Int’l Processors – AAK

African Fractionators – Ghana Nuts, Wilmar Int’l Refiners – AAK, Loders, SRC, Cargill Int’l Fractionators – AAK, Loders, 3Fs Brands – Nestle, Body Shop, L’Oreal

15%

70%

Refiners 5%

African International Kernel Butter Final Product

Legend

85% 30%

Cosmetic Brands

15%

Traditional Uses Ɨ Distribution/

Formulation 2.5%

* Note, %’s represent volume of SETs in the shea industry as of 2011; figures do not reflect unrefined shea butter * At present, ~5% of industrially processed total (fractionated/refined) gets used by the cosmetic industry Ɨ 65-75% of harvested shea does not enter the export market and is retained for traditional uses

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Existing Market Challenges in the Shea Industry

Primarily used as a substitute for cocoa butter, the shea industry’s poor diversification into other markets (including local markets) prevents stability and causes fluctuations in both price and demand based on the movement of cocoa.

Demand Instability

Within shea there are wide differentials in quality and pricing. This variability is a result of many factors including: lack of public trading information, poor aggregation, little to no quality control, government price-regulation, and other external factors.

Inconsistent Quality at Sufficient Quantity

The shea industry lacks a unified message representing the collective interests of the various stakeholder groups; historically, advocacy has been pursued by individual stakeholder groups without regard for the impact on the industry as a whole.

Fragmented Advocacy

Collected by some of the poorest women in the world residing in extremely isolated areas, the shea industry is marked with numerous economic, social, and environmental sustainability challenges

Rural Poverty

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The Global Shea Alliance

Vision

GSA will be the premiere platform to satisfy the strategic interests and practical needs of its members, shea stakeholders large and small worldwide.

Mission

The mission of GSA is to design, develop, and deliver strategies that drive a competitive and sustainable shea industry worldwide, and improve the livelihoods of rural African women and their communities.

Members 175 Members representing 32 countries and include women’s associations,

suppliers, brands, development partners, non-profits, and research institutions. 7 Member Executive Committee elected every two years that provides strategic

direction and oversight of operations. Board of Advisors provides financial resources and technical support.

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Strategic Focus of the GSA

Expansion drives business

opportunities that create employment for women collectors and increased income for shea producing communities.

Market Expansion

Creating a more efficient product to

compete in the global marketplace protects the interests of all stakeholders.

Value Chain Competitiveness

Promote policies that establish new

markets internationally and support African shea businesses, communities, and environment.

Policy Advocacy

Initiatives that will address rural poverty

challenges including women’s empowerment and environmental sustainability.

Sustainability Impact

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GSA Operational Plan Summary

Goal Implement four key initiatives to achieve maximum impact related to GSA strategic objectives of market expansion, competitiveness, policy advocacy, and sustainability impact.

Development Criteria Meets private sector needs/interest Integrates with member operations

Impacts multiple strategic objectives Specific activities and timeframes

Scalability Measurable results

Initiatives

Sustainability promotion – Define GSA as a membership organization that drives sustainability and creates market expansion.

Standards and pricing – GSA members define quality standards, publish price information, and enforce standards through membership.

Industry promotion – Develop marketing and communication strategy to impact all GSA strategic objectives.

National association support – Develop and support national associations to impact competitiveness and policy advocacy in shea producing countries.

R

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Sustainability Promotion

Industry Impact: By 2014, the shea industry will improve revenues for women’s groups registered under GSA sustainable practices by 10%, protect 60,000 hectares of Savannah, and protect 9,000 employees.

Strategic Objectives Met: Market Expansion, Sustainability Impact

Define Sustainability Platform

Activity: Create working document outlining sustainability needs of the industry Goals: Achieve consensus with members, international brands, and other

stakeholders on sustainability objectives

Seal Development

Activity: Develop various marketing seals and application criteria/procedures Goals: Seals meet the marketing needs of GSA members

Secure and Define the GSA Brand

Activity: Establish bi-laws, organizational licensing and registration, trademarks, etc.

Goals: Address legal challenges in preparation for seal rollout

Seal Marketing

Activity: Participate in international trade shows and other events to market GSA membership and marketing seals

Goals: Expand GSA membership and utilization of seals

ACTI

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IMPA

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Define GSA Membership Criteria

Activity: Establish GSA membership levels and criteria, a base code, implementation principles, and objectives to measure progress vs. principles

Goals: Clearly define the GSA brand and value addition for members

2012

2013

2014

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Quality Standards and Pricing

Industry Impact: By 2014, the industry will improve income for registered women’s groups by 10% and increase production of the highest quality shea nuts by 10%

Strategic Objectives Met: Value Chain Competitiveness, Sustainability Impact

Industry Standards

Activity: Develop shea nut quality standards based on 2006 Pro Karite project Goals: Standards are simplified and able to be utilized by GSA membership during

daily business transactions

Standards Procedures

Activity: Develop procedures to enforce standards and incorporate into GSA membership criteria

Goals: GSA membership enforces standards

Education and Marketing

Activity: Engage national associations and NGO community to disseminate information on quality standards

Goals: Promote GSA membership and utilization of quality standards

Publish Price Data

Activity: GSA develops system of collecting price information related to quality standards and publishes data on website for members

Goals: Provide tool for GSA members to utilize quality standards in the marketplace

IMPA

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2012

2013 and 2014

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Industry Promotion

Industry Impact: By 2014, the shea industry will increase exports and regional sales by 5%. Strategic Objectives Met: Market Expansion, Value Chain Competitiveness, Sustainability Impact,

and Policy Advocacy

Industry Marketing Strategy

Activity: Develop marketing strategy and materials to promote shea in food and cosmetic products

Goals: Increase usage of shea in food and confectionary products

Implement Marketing Strategy

Activity: Examples include trade show representation, social media campaigns, print ad campaigns, and promotional videos

Goals: Attract additional membership and promote shea usage

Website Redesign

Activity: Redesign GSA website to include shea business bio directory, a business and academic resources library, up-to-date market info on shea, and a microsite to market shea in food and cosmetics.

Goals: Increased traffic and activity (e.g., downloads, business connections made, etc.) on site

ACTI

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IMPA

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2012

2013 And 2014 Annual

Conference

Activity: Site selection, prepare content and recruit speakers, promotion, fundraising, and logistics planning

Goals: Engage stakeholders on state of shea industry, promote all GSA strategic objectives, create business linking opportunities

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National Association Support

Industry Impact: National representative bodies that contribute to the strategic objectives of the GSA.

Strategic Objectives Met: Value Chain Competitiveness, Policy Advocacy, Sustainability Impact

National Association Development

Activity: Assist stakeholders to form national associations in Cote D’Ivoire and Benin

Goals: Form democratic institutions that represent the interests of shea stakeholders

National Association Support

Activity: Provide technical and financial support to new associations of Cote D’Ivoire and Benin and existing associations in Ghana, Mali, Burkina Faso, Nigeria to ensure effective governance and activities to accomplish strategic objectives

Goals: National associations have established democratic procedures, strategic plans, policy advocacy plans, fund raising activities, and project management ability

IMPA

CT

ACTI

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GSA Project Collaboration

Activity: Provide ongoing technical support to promote quality shea nuts and policy advocacy

Goals: National associations effectively manage quality campaigns and achieve policy advocacy goals in their respective countries

2013

2014