06 FOREIGN NEWS @ AGROBiz | September-October. 2025
06 FOREIGN NEWS @ AGROBiz | September-October. 2025
MARKET REFORM: Experts believe the temporary ban marks the beginning of a stronger shea economy.
Shea trade overhaul
NIGERIA has imposed a six-month ban on the export of raw shea nuts in an effort to increase local processing and reduce the country’ s reliance on unrefined exports. Officials said the measure will help position Nigeria as a major player in the global shea industry.
Although the country harvests almost 40 per cent of the world’ s shea nuts, its presence in the US $ 6.5
billion industry remains marginal. Nigeria’ s Vice-President Kashim Shettima said this imbalance could no longer be ignored.
“ It is about industrialisation, rural transformation, gender empowerment and expanding Nigeria’ s global trade footprint,” he remarked at the launch of the policy in Abuja.
Shea butter, produced after crushing, roasting, and boiling the nuts, is sought after in multiple industries- from chocolate and ice creams to pharmaceuticals and beauty creams.
Yet, Nigeria’ s exports largely leave the country unprocessed, limiting farmers’ income and reducing government revenue. Officials believe earnings could rise from $ 65 million to US $ 300 million annually if more of the value chain is retained locally.
The shea tree, which thrives naturally across Africa’ s“ shea belt”, is often managed by smallholder farmers, particularly women. Agriculture Minister Abubakar Kyari highlighted that about 350,000 tonnes are produced yearly, but nearly a quarter is lost in informal trade across borders.
Experts have long warned that the absence of regulation leaves farmers underpaid for a crop that is in high demand worldwide.
“ A lot of poor people who grow the crop and rely on it for sustenance are struggling to get by because of a lack of regulation, which means they get so little despite its high value internationally.
“ I went to a village and I saw shea nuts in heaps, and when I asked, they said someone from the city comes to buy and take them away,” explained Dr Ahmed Ismail of the Federal University of Minna.
Calling the ban a step in the right direction, Dr Ismail added:“ This will not only provide more jobs locally as refining will be done here, but will also enhance income for the government.”
Japan adjusts rice outlook
JAPAN’ S Ministry of Agriculture, Forestry and Fisheries( MAFF) has projected that rice demand through June 2026 will increase to 7.11 million tonnes, as production is projected to rise even higher, creating a surplus of 480,000 tonnes— marking a shift from earlier assumptions that consumption would steadily decline.
The ministry estimates this year’ s harvest will expand significantly to 7.45 million tons, a result of farmers increasing their planting areas to offset shortages seen last year.
The previous supply squeeze was triggered by reduced yields due to extreme heat, combined with an increasing number of households choosing rice over bread as the prices of wheat-based products rose.
Inventories are also set to build up. Private-sector rice stockpiles are expected to reach nearly 2.3 million tonnes by next June, approaching record levels last seen in 2015. Analysts say this unusually high level of reserves may help stabilise prices after a period of sharp volatility.
The ministry’ s outlook reflects a notable shift in policy. For years, officials had assumed that rice demand would steadily decline as the nation’ s population decreased and consumers diversified their diets with bread.
However, the latest forecast incorporates new factors, such as increased tourist purchases and higher household consumption, which are expected to support the market.
To address both demand and supply concerns, the government introduced new measures in August aimed at boosting harvests in the longer term. These include turning abandoned farmland back into production and assisting growers in developing broader sales channels.
According to officials, Japan’ s rice industry can enter a more stable phase after the volatility seen in the past year, with stronger production, sufficient reserves, and new demand streams.- @ AGROBiz
RISING RICE DEMAND: Rice, a staple in Japanese diets, is seeing renewed popularity at home.