Actuwath Shea Butter Refining in West Africa-2
Actuwath Shea Butter Refining in West Africa-2
Actuwath Shea Butter Refining in West Africa-2
VALUE CHAIN
REFINING IN WEST AFRICA
WATH Technical Report No. 3
OCTOBER 2004
This publication was produced for review by the United States Agency for
International Development. It was prepared by John Addaquay, Agribusiness
Consultant for WATH.
THE SHEA BUTTER
VALUE CHAIN
REFINING IN WEST AFRICA
WATH Technical Report No. 3
DISCLAIMER
The author’s views expressed in this publication do not necessarily reflect the
views of the United States Agency for International Development or the
United States Government.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ........................................................................................................... V
1. INTRODUCTION ................................................................................................................... 1
LIST OF TABLES
IV
EXECUTIVE SUMMARY
According to the Institute of International Tropical Agriculture, Africa produces about 1,760,000 metric
tonnes (t) of raw shea nuts annually (IITA, March 2002) from its wild trees mainly in the Savannah and
Sahel regions. Producers, however, harvest only a fraction, about 35% (about 600,000 t ), which is then
transformed into butter or exported as nuts.
The shea tree grows naturally in the wild of the dry Savannah belt of West Africa. Its range stretches from
Senegal in the west to Sudan in the east, and into the foothills of the Ethiopian highlands. Shea trees
thrive in 19 countries across the African continent.
Seven West African countries (Ghana, Burkina Faso, Benin, Cote d’Ivoire, Nigeria, Mali and Togo)
produce a total of about 500,000 t of shea nuts. These countries export an estimated 270,000 t as raw nuts
and convert the remaining 230,000 t into roughly 60,000 t of crude shea butter, half of which is later
exported.
In West Africa shea production, the process of extraction falls into 3 main categories: manual traditional,
semi-mechanized (using hydraulic/screw presses) and fully mechanized industrial systems. The traditional
method predominates. Rural-based women using manual traditional methods extract about 60% of all the
crude butter produced in West Africa at an extraction rate of about 20%.
The semi-mechanized system of extraction utilizes appropriate technology to mechanize some of the unit
operations of the manual traditional system. A nut crusher, a kneader or a hydraulic/screw press
oftentimes complements the manual process and reduces drudgery of the traditional system. This semi-
industrial method achieves extraction rates of 35-40%.
Mechanized processing in West Africa yields 30-40% of shea butter from raw nuts. Together, processing
plants located in Mali, Burkina Faso, Togo, Benin, Ghana and Cote d’Ivoire have the capacity to convert
162,000 t of nuts into about 50,000 t of shea butter, at an extraction rate of 31%. More efficient, fully
mechanized systems achieve extraction rates of between 42% and 50%. However, most of the exports of
shea from West Africa consist of crude butter with virtually no significant refining (less than 1,000 t /per
annum).
Four major players control the refining of shea in the world market: Aarhus United in Denmark, Fuji Oils
in Japan, Karlsham in Sweden and Loders Croklaan in Holland, in order of the size of operation in oils and
fats.
V
The processing of shea, in general, involves many activities that start soon after wild-harvesting, through
refining to manufacturing. The major processes involve: curing, extraction, refining, fractionation and
manufacturing.
The processing of shea starts with curing, which occurs soon after the picking of ripened wild fruits from
the fields. Predominantly rural women do the wild harvesting and dry of the raw nuts in the ambient in- or
outdoor air.
Extraction describes the process of removing oil/butter from seed and may rely on a totally manual
system, or it may be partly mechanized with diesel or electricity powered attrition mills, crushers and
kneaders. The industrial process uses state-of-the-art mechanical and chemical technology to obtain the
highest yields and quality of butter, in terms of stability for extended shelf-life and suitability for industrial
and food processing applications.
After the extraction of the crude shea butter, also known as ”natural shea butter” or “ bulk shea butter”,
there are various options for modifying or cleaning loosely described as refining. Every stage of refining
takes natural ingredients, usually deemed unfit for human consumption, out of the butter. The process
then introduces harmful refining chemicals as catalysts, which have to be removed at the end of the
process by “re-refining”.
Traditional and organic forms of processing hold an important market niche for the ever-increasing
demand for pristine natural products. The four major processes for modifying or cleaning crude shea
butter are: De-gumming, Neutralization, Bleaching, and Deodorization.
The different stages of shea processing introduce many different permutations of technology, scale, cost
and efficiency. The lower end of nut curing tends to be highly labor-intensive and cheaper to set up. As
the process moves toward the consumer, the technology and costs go up along with processing efficiency.
Set-up cost ranges from $200 for a 1.2 t per annum capacity, extracted manually, to about $19 million for
a 50,000 t /year at the top end in a fully mechanized extraction/refinery system. A more detail feasibility
study would generate more accurate figures.
• Industrial processing tends to alter the very true nature of shea, rendering it sterile and lifeless.
However, that is what the markets buy, strengthening prospects of establishing a high-tech
refinery to produce and supply to the existing market.
• In the long run, indications are that the market will opt for more natural and organic products.
This may be the selling edge over other refined shea butter.
• West Africa’s extraction plants are mechanized but not modern and efficient. Upgrading of
existing plants may require heavy capital investments for equipment replacements. On the other
hand, the cumulative production of about 40,000 t per annum from these plants is sufficient to
feed a 50,000 t /yr capacity refinery.
VI
• It will be advantageous to court existing West African extraction plants to be part of the scheme,
as suppliers but also as equity partners. This sort of arrangement will ensure the commitment of
raw materials to the refinery and open a sustainable market for the struggling extraction plants in
West Africa.
• The numerous women’s shea butter processing cooperatives should also be encouraged to
become client suppliers, as well as shareholders in the proposed refinery plant. This arrangement
will empower and strengthen the women’s groups and enhance their commitment to the project,
as well as enrich the rural poor.
Recommendations
A refinery plant, set up in West Africa, would serve both as a hub market for the
region’s crude shea butter and as an industrial strategy to control production and
marketing of shea and its derivatives on the world market. Pending a more in-
depth economic analysis, this author suggests that the plant be set up in Tema,
Ghana for the following reasons:
The ideal scale for a West Africa refinery plant should be 50,000 t of butter per
annum and should represent an integrated process with an extraction plant capable
of converting 50,000 t of shea nuts into about 25,000 t of shea butter. This
internal capacity would be augmented by supplies from the existing extraction
plants and from artisanal women processors.
VII
1. INTRODUCTION
This author identifies two major components and a third sub-component in the proposed supply chain
analysis for the export promotion of both refined shea products and bulk shea butter to the US marketplace:
• Identifying the major supply side bottlenecks downstream from village-level collection and/or
processing
• Understanding the US market elements of distribution chains, quality requirements, pricing and
current and projected demand for shea butter within the natural beauty care industry and as a
confectionary ingredient
• Defining the economic potential and opportunities for a commercial, state-of-the art refining of
shea butter within West Africa, representing an adjunct to the first component. Currently, Europe
transforms virtually all shea nut or unrefined bulk shea butter imports into an ingredient in natural
beauty care products and chocolates.
This study forms the third sub-component, which this author expects to be combined with the two other
components and integrated into a single comprehensive analysis, which would serve as a reference to the
West African shea industry and to technical assistance providers.
2. STATUS OF THE
INDUSTRY
2.1 The Raw Material
Africa produces about 1,760,000 t of raw shea nuts annually from its wild trees, mainly in the Savannah and
Sahel regions, but producers harvest and process only a fraction, about 35% (about 600,000 t ), for
exportation as butter or nuts.(IITA, March 2002) The West African variety of shea, Vitellaria paradoxa, has
been traditionally processed and locally used, as cooking oil or as butter for the skin and hair. A subspecies
nilotica, found in northern Uganda and southern Sudan produces superior quality oil for the cosmetics
industry, but is not found in food preparation or as a food ingredient.
2.2 Processing Potential
The shea tree grows naturally in the wild Savannah belt of West Africa, from Senegal in the west to Sudan in
the east, and into the foothills of the Ethiopian highlands, as well as in 20 countries across the African
continent: Benin, Ghana, Chad, Burkina Faso, Cameroon, Central African Republic, Ethiopia, Guinea
Bissau, Cote D’Ivoire, Mali, Niger, Nigeria, Senegal, Sierra Leone, Sudan, Togo Uganda, Zaire, Guinea and
The Gambia. Seven West African countries (Ghana, Burkina Faso, Benin, Cote d’Ivoire, Nigeria, Mali and
Togo) produce about 500,000 t of shea nuts, of which an estimated 270,000 t are exported as raw nuts.
Processors converted the remaining 230,000 t into roughly 60,000 t of crude shea butter, half of which is
then exported. Rural-based women, using manual traditional methods, process about 60% of all the crude
butter produced in West Africa at a relatively low extraction rate of about 20%,. The table below shows the
installed and estimated capacity utilization of processing plants in the sub-region. Mechanized processing,
increasing seen in the region, yields 30-40% shea butter from raw nuts. Together the processing plants listed
below show the capacity to convert 162,000 t of nuts into about 50,000 t of shea butter, assuming an on
average estimated extraction rate of 31%. However, most of the West African plants produce at less than
25% of their installed capacity, perhaps because any plants operate for only 6 months of the year to offset
the high cost of storing raw nuts throughout the year.
1
Given in metric tons on dry kernel
2
Details not available on the Savelugu Mill (product name Sheaba)
2
Although the Food and Agriculture Organization of the United Nations (FAO) reports that Nigeria
produces about 355,000 t of West Africa’s crop, official export statistics from Nigeria are not available. In
addition, producers export a large but unreported quantity of Nigerian shea nuts through neighboring Benin.
Ghana produces about 55,000 t of shea nuts and exports about 40,000 t of nuts annually, making it the
leading exporter in the sub-region. Most shea exports consist of crude butter, as virtually no significant
refining (i.e., greater than 1,000 t /pa) occurs in West Africa.
Four major players control the global refining of shea: Aarhus United in Denmark, Fuji Oils in Japan,
Karlsham in Sweden and Loders Croklaan in Holland, listed in the order of magnitude of size of operations
in oils and fats. (See ANNEX 2 for profiles of these companies.) The table below shows the average sales
values and employment levels of the major processors; however the figures for Fuji Oil, with sales over
$1,440 million, represent only their fats & oils operation, which form just 33% of the larger consolidated
Fuji Oil Group.
Table 2. Leading Global Refiners of Oils and Fats (including shea) 2002/03
3. PROCESSING
ACTIVITIES
Most often West Africans use three different methods for the processing of shea butter: traditional manual
processing, semi-mechanized (using hydraulic/mechanical presses) and fully mechanized industrial methods.
The processing of shea, in general, involves many activities that start soon after wild-harvesting advancing
the process through refining to manufacturing. Workers mainly use curing, extraction, refining, fractionation
and manufacturing in the shea refining process. (See Figure 1). The traditional and semi-industrial methods
usually stop after extraction, while the industrial process covers the whole gamut of activities from
extraction to fractionation. Medium- to large-scale food and cosmetic industries complete the final stage of
product manufacturing, using the derivatives of processing. This report, while looking at the entire chain,
focuses on the fully mechanized, industrial processes, which begin after curing.
3
3.1 Traditional and Semi-mechanized Processing
3.1.1 Curing
The processing of shea starts with curing, begun soon after the harvesting of ripened, wild fruits, a task
performed predominantly by rural women. This manual process involves the following: de-pulping the fruit,
boiling it, sun-drying the nuts, cracking the shells to remove the kernel, sun-drying the kernels again and
finally storing the kernels until they are sold or further processed. The process stabilizes the nuts for more
than a year, if they are stored in a dry, aerated room.
3.1.2 Extraction
Extraction, the process of removing oil/butter from the shea seed, may involve a totally manual system or
be partly mechanized, through the use of diesel- or electrically-powered attrition mills, crushers and
kneaders. The continued production of butter from dried shea nuts using manual traditional techniques
proves tedious, labour-intensive and inefficient. This demands large quantities of water and wood fuel and
creates a significant drain on scarce resources in the semi-arid areas where shea grows. The processing input
of 18.5 kg of raw shea nuts requires 48 kg of wood and 67 litres of water. Currently, semi-industrialized
processes develop alongside traditional methods in the shea producing areas of Mali and Burkina Faso,
where 80% of the butter is made traditionally. This situation reflects trends in other countries throughout
the sub-region.
The manual process used by rural women continues as it has for generations. In the labor- intensive method
women pound the kernel with pestle and mortar to break the seed into grits, roast the kernel to facilitate
easy extraction of the butter or fat and grind the grits into a paste. The women continue the process by
kneading the paste in water to capture the fat into an emulsion, boiling the mixture to separate the fat and
skimming off the fat. The final cooling process leads to shea butter.
4
Figure 1. Flow Diagram: Traditional Shea Butter Processing
Even though semi-industrial methods achieve higher extraction rates than strictly traditional methods of
extraction, traditional processors have been slow to adopt the various introductions of appropriate small-
scale technologies. Each of the above-noted process activities, once mechanized improves efficiency to 35-
40%. Recently, small-scale machines, such as roasters, milling machines, kneaders and boilers, have been
introduced in an attempt to minimize or eliminate the drudgery of traditional manual methods.
The extraction process incorporates fully mechanical, as well as sometimes automated and computerized
systems. For large-scale plants, producers add a refinery to the extraction plant. The following chart shows
the flow in the industrial extraction plant combined with a refinery.
5
Figure 2. Flow Diagram: Industrial Shea Butter Extraction Plant + Refinery
3.2.2 Refining
After the extraction of the crude shea butter, also known as “natural shea butter” or “bulk shea butter”,
various options exist for modifying or cleaning, which is loosely described as “refining”. In fact, every stage
of the refining process takes any natural ingredients deemed unfit for human consumption out of the butter.
In the process, harmful refining chemicals are introduced as catalysts and must be removed at the end of the
process by “re-refining”. Many popular natural products go through such dissections, as does traditional
African shea butter, which has been modified into a myriad of marketable products. The variants may be
classified as natural, refined, processed, industrialized, extra refined, ultra refined, etc.
Producers use four major processes for modifying or cleaning crude shea butter: De-gumming,
neutralization, bleaching and deodorization.
Gums in edible vegetable oil must be removed to avoid color and taste reversion during subsequent
refining steps. The process involves a single-stage phosphoric acid treatment and a single-stage hot
water treatment, followed by continuous removal of the hydrated gums in a de-gumming centrifuge.
6
3.2.2.2 Neutralization3
All crude vegetable oils destined for human consumption (e.g., as ingredients in chocolate and
margarine) are neutralized to remove free fatty acids and latex-like matter and then washed to reduce
the soap content of neutral oil. This produces a more stable product. Effective neutralization results
in enhanced effectiveness of subsequent steps, such as bleaching, deodorizing and furthermore,
results in high yields of a quality product. Neutralization also aides in the removal of phosphatides,
removal of free fatty acids, mineral and color bodies.
Neutralization (refining) occurs by the mixing crude butter/oil with a water solution of sodium
hydroxide at about 66-77 degrees Celsius. Some plants use sodium carbonate or potassium
hydroxide. The alkali reacts with the free fatty acids to form soap, which is an important byproduct
of vegetable oil.
After refining, processors remove the undesirable traces of soap and moisture through water
washing and vacuum drying. In the refining and washing steps, centrifuges separate neutral oil from
soap-stock and wash water.
The neutral, washed and dried vegetable oil still contains some color bodies and small traces of soap
(<50 ppm) that have to be removed. Bleaching, the process for removing these pigments from fats
and oils, occurs when 1% bleaching clay is added to oil under vacuum at approximately 107-110
degrees Celsius, which is later agitated and filtered to remove the clay. High temperature drives
moisture from the clay (Fuller’s Earth), so that it will absorb the pigments. Some systems also use
activated carbon.
A high-tech bleaching plant may be equipped with hermetic leaf filters and operates under vacuum
to prevent oil oxidation. The oil is cold-mixed with metered quantities of bleaching earth and/or
other bleaching agents and thereafter heated to the correct temperature and pumped to a bleaching
chamber operating under vacuum where an adequate retention time is provided to ensure effective
bleaching. The oil/earth slurry is further pumped through hermetic leaf filters operating in sequence
to enable continuous bleached oil (filtrate) discharge.
Deodorization represents the last major processing step in refining of edible oils and removes the
compounds that cause undesirable odor, flavor and color. Deodorization separates out the
impurities and creates three groups of compounds:
1. Saponifiable compounds: free fatty acids, partial glycerides, esters, gummy constituents,
2. Unsaponifiable compounds: parafinic hydrocarbons, olefinic and polyolefinic materials, sterols,
triterpenic alcohols,
3. Oxidative reaction products: aldehydes, ketones, peroxides.
This highly specialized process uses a type of steam distillation under high vacuum to remove
objectionable volatile components, such as ketone, aldehydes and alcohols. The bleached oil pumps
through a de-aerator where the pretreated oil is de-gassed. This de-aerated oil passes through a heat
exchanger where the oil is heated by exchanging the heat of the deodorized oil. Deodorization
3
Shea producers in the U.S. call the neutralization process “refining,” which leads to misunderstanding among the users
who use “refining” to describe the entire process.
7
further heats the oil to the stripping temperature in a pre-heater. The oil then flows to a flash
chamber and thereafter to an oil distributor inside falling film deodorizer. The oil descends counter-
current to the stripping steam in the form of a very thin film and becomes completely deodorized.
The process condenses, cools and stores the distilled fatty acids.
The oil from the bottom flows to an intermediate vessel containing an arrangement for dosing citric
acid. This deodorized oil pumps through a heat exchanger to the polishing filter and thereafter
passes through a cooler. It is then discharged for collection. The resulting product lacks flavor, odor,
minerals and vitamins.
3.2.2.4 Fractionation
Shea butter has two main components – the stearin (the creamy fat) and the olein (the runny oil).
The production of cosmetics mainly uses olein, while the stearin goes into margarines and
chocolates. The process which separates the two components is “fractionation”.
Two methods of fractionation exist – the chemical/mechanical method and physical method. The
former requires the creation of a vacuum (airless condition) and applies a chemical reagent to
separate the olein from the stearin at different temperatures. After separation, the oily part can then
be poured out through decantation or siphoning. The physical process involves a process of
sedimentation or a centrifugal method to cause the stearin to separate from the olein. This process,
however, proves more difficult when working with the West African shea butter because of the
higher ratio of stearin to olein.
8
4. THE SHEA VALUE-CHAIN
MATRIX
The different stages of shea processing introduce many different permutations of technology, scale, cost and
efficiency. The lower end of nut curing tends to be highly labor-intensive and less expensive to set up. As
the process moves toward the consumer, the process becomes more complex and costs go up exponentially,
as so does yield efficiency.
At the high end of the spectrum, the set-up cost reaches an estimated $7 million for a 20,000 t/year
extraction cum refining facility. A larger plant in this category, producing 50,000 t/annum, will cost about
$19 million to set up (See ANNEX 3). These plants resemble those used by the major processing plants in
Europe and the Far East.
More detailed plant specifications from equipment vendors and processing consultants allow for more
realistic pricing. Many vegetable oil equipment manufacturers, suppliers and processing consultants provide
needed services worldwide for such ventures and should be consulted for detailed advice and firmer quotes
once producers determine the scale of intervention. See ANNEXES 3 and 4 for profiles and addresses of
such service and equipment providers.
Figure 3 provides a matrix of the interplay and inter-relations in the shea value chain. It also shows the
different scales of operation in the value chain and the indicative set-up cost.
ANNEX 5 explains an equipment pro-forma for the various levels of production. Set-up cost ranges from
$200 for a 1.2 t per annum capacity, traditional manual extraction method to about $19 million for a 50,000
t/year, top end fully mechanized extraction/refinery system. A more detail feasibility study needs to be
conducted to arrive at more accurate figures.
9
Figure 3. Shea Value Chain Matrix
Type of Rural Farmers Rural Farmers Medium/ Large Large scale Chocolate:
Producers Mainly women Med/Large Scale firms refineries – usually Medium/large
Scale Firms combined with Cosmetics:
extraction and Small/Med/ Large
refinery processors
Technology Traditional Traditional Crude butter sold as
Small Scale manual manual food oil and also as
skin cream locally.
(1-100 t nuts Est. Set up <$200-800 per Some processors are
per year) Cost: t processing, blending
<$100-800 per and packaging as
: t Mechanized skin creams and
Traditional soaps in urban
shops. <$1-2,000-
$150-700 per t per t ?
Technology Mechanized: COMBINED Medium scale food
Medium Using mills, EXTRACTION and cosmetics
Scale presses and & REFINERY companies using
filters. both refined and
(100-10,000 t Start-up Cost Star-up Cost: crude oils. Supplying
per year) $150,000- $1,000,000 – specialty shops e.g.
$2,000,000 $1,500,000 Body Shop.Start-up
Cost: $200,000 -
$2,000,000
Technology Mainstream Brand-
Large Scale COMBINED name manufacturers
EXTRACTION & e.g. Cadbury’s, Avon
(Over 10,000 t REFINERY Start-up Cost:
per year) High-tech machinery, >$5,000,000
automated, computerized.
E.g. Aarhus, Fuji Oil
Source:
10
5.0 CONCLUSIONS AND
RECOMMENDATIONS
Industrial processing tends to alter the very true nature of shea, rendering it sterile and lifeless. However,
demand exists, and therefore prospects, for establishing a high-tech refinery to produce and supply to the
existing market. In the long run, the market will likely opt for more natural and organic products. This
author therefore advises that any longer term intervention into processing should consider the use of
organic methods of refining, and more importantly, purification processes, which would leave the ‘refined’
shea butter as a true natural product. This may represent the selling edge over other refined shea butter.
However, the feasibility of this strategy requires further market investigations.
West Africa’s extraction plants, while mechanized, are not modern and efficient. Extraction rates (31%)
barely reach above those from semi-mechanized plants. Modern plants can extract 42-50% of oil from shea
nuts. Upgrading existing plants may require heavy capital investments for equipment replacements. On the
other hand, the cumulative production of about 40,000 t per annum from these plants is sufficient to feed a
50,000t/yr capacity refinery. Such a refinery can produce at levels high enough to compete effectively in
Europe and the US, because of locational advantage, cheaper labor and access to the raw material. It will
prove advantageous to involve existing West African extraction plants in this scheme, both as suppliers and
as equity partners. This sort of arrangement will ensure the commitment of raw materials to the refinery and
open a sustainable market for the struggling extraction plants in West Africa.
The numerous women’s shea butter processing cooperatives should also be encouraged to become client
suppliers as well as shareholders in the proposed refinery plant. This arrangement will empower and
strengthen the women’s groups, enhance their commitment to the project, as well as enrich the rural poor.
This author recommends that a refinery plant be set up in West Africa to serve as a hub market for the
region’s crude shea butter, and additionally as an industrial strategy to control production and marketing of
shea and its derivatives on the world market. Pending a more in-depth economic, the port of Tema, Ghana
represents an excellent location option for the following reasons:
• Ghana exports more shea than any other country in West Africa.
• Tema is centrally located in the sub-region with sea and road linkages to the shea producing
countries.
• As an industrial city, Tema has all the infrastructure need for industrial production – reliable
electricity, water, technical labor and a port facility for export.
Ideally, a West Africa refinery plant would produce 50,000 t of butter per annum. The plant would use an
integrated process with an extraction plant capable of converting 50,000 t of shea nuts into about 25,000 t of
11
shea butter. This internal capacity would be augmented by supplies from the existing extraction plants and
from artisanal women processors.
A complete country comparative study would evaluate the above conclusions. Actual capacity, production
and commitment of the existing plants need to be ascertained first hand through visits and a production
audit before any conclusions can be made definitively. The scope and budget for this study did not cover
such scrutiny, as there was virtually no budget for travel, even within Ghana.
Many vegetable oil equipment manufacturers, suppliers and processing consultants provide detailed advice
and firmer quotes for such ventures and should be contacted when the scale of intervention is determined.
This author recommends two consultants, Mr. Wolf Hamm, UK and Mr. Alex Owusu, MD Juaben Oil Mill,
as reputable experts for use in further studies.
12
ANNEX 1 MAJOR SHEA
BUTTER
REFINERIES
Founded in 1950, the Fuji Oil Group serves the world as a specialist in intermediate food ingredients. The
Group's research and development has led to numerous innovative, high value-added specialty products.
Sales for our oils and fats business yield about 50,475 million yen ($454 million). Total consolidated sales of
Fuji Oil are 160,000 million Yen ($1,440 million).
www.fujioil.co.jp.
2. LODERS CROKLAAN
The company was part of the Anglo-Dutch consumer goods conglomerate Unilever but has been sold at
€217m to IOI Corp Berhad of Malaysia. The Loders Croklaan Group unit employs 600 people, with posted
FY 2001 sales of €267m (US$262.53m).
IOI GROUP
IOI is one of Malaysia’s homegrown business conglomerates. Within a relatively short span of 30
years, the IOI Group has firmly established itself as a leader in its core business areas of Plantations,
Property Development and Investment and Manufacturing. From an oil palm plantation entity, the
IOI Group has transformed itself to become a leading integrated palm oil player in the country.
13
Moreover through the acquisition of Loders Croklaan, IOI is now a strong global player with a
strategic focus on growth in the area of palm based oil products. It is one of the largest plantation
groups in Malaysia with a sizeable plantation holding of over 160,000 hectares. Annual production of
CPO is in excess of 800,000 tonnes. To gain further leverage as a key palm oil producer, IOI has
also ventured into downstream value-added palm oil based manufacturing activities such as palm oil
refining, palm kernel extraction, oleo chemicals and specialty fats and oils.
www.ioigroup.com : www.croklaan.com
Aarhus was established in Denmark in 1871. It has 1,700 employees worldwide. In 2003, turnover totaled
approximately $687 million, with profits reaching some $13 million.
Aarhus United comprises 14 subsidiaries with four manufacturing companies in Denmark (head office),
Mexico, the United Kingdom (UK), and the US. An affiliated company - United Plantations - is based in
Malaysia.
Aarhus United Denmark extracts and refines vegetable oils for use primarily in the confectionery industry.
Shea nut represents one of the most important raw materials to Aarhus United Denmark, which provides a
network of suppliers in the sub-region.
14
4. KARLSHAMS (SWEDEN)
Karlshamns, one of the world’s four leading manufacturers of high value-added specialty vegetable fats leads
the market in Nordic countries and Eastern Europe.
The food industry embodies Karlshamns’ largest customer segment and Sweden its largest single market.
The Group consists of three business areas – Edible Oils, Technical Products and Feed Materials. The
company purchases raw materials like seed, nuts, and crude vegetable oils globally, directly from plantations
or on the major commodity markets.
With a turnover of roughly SEK 3,200 million (US$ 421 million?) and nearly 800 employees, of whom about
600 are in Sweden, the Group maintains three plants for refining oils and fats within the Edible Oils
business area. These are located in Karlshamn, Sweden, in Hull, the UK, and in Zaandijk, the Netherlands.
Contact: Mr. Jan-Olof Lidefelt, Strategic Marketing Manager, Oils and Fats Division
15
ANNEX 2 EQUIPMENT
MANUFACTURERS &
CONSULTANTS
1. WESTFALIA (GERMANY)
Westfalia Separator builds state-of-the-art machines to the highest quality standards working to DIN ISO
9001 standard since 1989. Further, all domestic and foreign subsidiaries have been certified to the highest
ISO standard since the beginning of the year 2000. In 2001 the new ISO 9001:2000 standard will be
implemented.
Over 2000 applications in the field of separation technology have been successfully tested in practice. The
core competence of the new Westfalia Separator combines separators and decanters with process
engineering. This strategy has generated a turnover of 400 million EURO making Westfalia Separator a key
player in the field of centrifugal separation technology.
Equipment offered include separators with a daily capacity of 50 t for small mill operators up to the
separator with a capacity over 1000 t per day for large refineries- for the following:
16
2. TECHNOCHEM, INC. (USA)
TECHNOCHEM, an expert in designing and processing of vegetable oils, was founded in India in 1972 by
Krishna Agarwal. The company was transformed into a limited liability company by the name of
Technochem Engineers (India) Private Limited and was incorporated in the USA in 2000 as Technochem
International Inc.
The company specializes in supplying plant and equipment for hydrogen generation, hydrogenation, and
vegetable-oil refining companies. The company serves more than 150 factories in India and neighboring
countries.
SERVICES
Oil Refining Plants
Crude Oils
Plants for processing of canola oil, castor oil, coconut oil, cottonseed oil, palm oil, peanut oil, rapeseed oil,
rice bran oil, soybean oil, sunflower oil, and others.
Capacity
Offers commercial refining plants of any capacity ranging from 5 tons/per day to 500 tons/day.
Construction
Plans to build on site, assemble equipment and test for clients and offers consultancy services as well.
International, Inc.
3320 Goldenrod Circle
Ames, IA 50014 USA
3. TROIKA (INDIA)
TROIKA, an ISO 9001 company in operation since 1971, specializes in the field of Oils and Fats
technology. TROIKA equipment operates at more than 250 projects spread over 22 countries .
TROIKA offers services in all aspects of the industry; including commercial and operational safety aspects,
international quality standards, and the latest design trends in the industry.
Installations
TROIKA has installed the following numbers of different types of units:
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TROIKA has supplied equipment in Bangladesh, Ceylon, Ethiopia, Germany, Greece, India, Iran,
Kazakhstan, Kenya, Kuwait, Macedonia, Malaysia, Myanmar, Nepal, Nigeria, Philippines, Russia, South
Africa, Tanzania, Turkey, U.A.E. and Yemen.
Contact:
6th Floor, Embassy Centre
Nariman Point
Mumbai-400 021
India.
4. GLAMPTECH (INDIA)
This engineering company was founded in 1990 to provide service in the field of Continuous Solvent
Extraction / Vegetable Oil Refining and allied industries. The firm provides efficient engineering, technical
and project management services for the process and related industries. These services include process
development, technical evaluation studies, the design of plants, improvement and expansion of existing
facilities, pollution prevention studies, energy conservation and staff training.
SERVICES
Provide turn-key projects services in the following fields:
• preparatory section
• solvent extraction plant
• neutralizing section
• bleaching section
• dewaxing section
• continuous deodorizing & physical refining (cpo)
• dry fractionation plant(for olein & stearin separation)
GA EXPERTISE, INC. provides engineering and construction consultancy in plant design and upgrading.
The company was established over 30 years ago and has been involved in the design, construction, and
operation of oil mills worldwide, but especially in the Far East, Latin America, and Africa. The plants
operate to ISO/9000 standards.
This company deals in new and used vegetable oil technologies and production units. They provide various
processing equipment, such as oil seed extraction, oil seed refining, oil seed degumming, and oil seed
bottling.
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almonds, melon seed, poppy seed, nutmeg, evening primrose, neern seed, niger seed, palm kernel, red
pepper, brazil nut, passion fruit, pecan nut, rape seed, castor beans, mustard seed, sesame seed, soybean,
sunflower seed, tropho plant, grape seed, walnut, citrus fruit kernels
USED EQUIPMENT
Buyers can purchase the following equipment on their website:
7. DE SMET (BELGIUM)
The De Smet Group (est. 1946), a world leader in extraction technology for fats and oil products, specializes
in the supply of equipment and services to the Oil and Fat Industries. Based in Belgium, the group employs
more than 500 people and operates in 27 languages, and boasts a turnover of more than 200 million US
dollars (excess of 120 million Euros). The De Smet Name is well-respected all over the world, where it
stands for experience, innovation, first class project management, customer service, and environmental
protection.
De Smet has supplied over 780 extractors, and De Smet equipment processes 40 raw materials, of which
Soya beans, sunflower seed, rapeseed, groundnuts, cottonseed, and palm oil are probably the most popular.
The company has also supplied small and large plants to some 1,500 oil millers.
http://www.desmetextraction.com
8. SA FRACTIONNEMENT TIRTIAUX
This company specializes in the following processes:
Fractionation
Physical refining/Deodorizing
Degumming
Degumming & dewaxing
Interesterification
Batch Deodorizing
Bleaching
19
rue de Fleurjoux, 8
6220 FLEURUS
BELGIUM
Phone: +32-71-813787
Fax: +32-71-817024
Email: [email protected]
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12. PENNWALT INDIA, LTD.
Pennwalt India, LTD. was established in 1959 under the name Sharples Process Engineers(P) Ltd. It has
worked in collaboration with Feld & Hahn,Gmbh,Germany, Wallace & Tiernan Division, Pennwalt
Corporation, USA M/S Bredel, Netherlands and M/S Alois Gruber, Austria.
Products include:
• Super-D-Canter
• Vibrating Screens
• Super Centrifuge
Gebafa provides turn-key projects with procurement, installation, testing and management services. They
also offer financial assistance up to 50% of the essential mobile equipment. Gebafa also guarantees the
successful start up of the production line they supply.
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13. AUM CONSULTANCY
Aum Consultancy Pvt. Ltd. caters to various edible oil industries, chemical process industries and projects
relating to specialty fats, essential oils and oleo resins, phytochemicals and herbal extractions, industrial
enzymes, bulk drug units, etc. Aum works in agro oil extraction and refining, especially in the separation
field for heat sensitive products and distillation for liquids and pastes . In the vegetable oil extraction line,
Aum has designed the unique Distillation System to distill oil from hexane, which improves the yield and
saves in the subsequent refining process.
Aum was recognized as an internationally certified ISO 9001 company for its quality system in execution of
design and turn-key projects.
Contact:
89 A,Santhome High Road
Chennai - 600 028
Telephone : + 91 (044) 24943826, 24957220, 24950664.
Fax : + 91 (044) 4951217.
E-Mail: [email protected]
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No contact details were available on the Internet for vegetable oil processing engineer Wolf Hamm
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Current Position at CWA
Wolf Hamm works as an external consultant with the CWA Food Technology Department.
Work Experience
Mr. Hamm has worked extensively in various aspects of oil production (crushing, solvent extraction) and the
processing of edible oil in South Africa, UK, Holland and Malaysia, margarine and spreads processing in the
UK and South Africa, and processing of dairy products, including ice cream and yoghurt. His more recent
experience has included processing of butterfat and palm/palm kernel oil, market studies in the oleo-
chemicals field and work on the possible use of edible oil in non-edible applications.
Mr. Hamm’s consultancies in the UK, mainland Europe, USA, SE Asia, New Zealand and India, have
covered a number of engineering fields, including edible oil production and processing (refining and
fractionation), pharmaceuticals processing, food, oleo-chemicals and novel uses of vegetable oils. Additional
clients include the United Nations, Bangkok. Leatherhead Food RA , Aarhus, Denmark, Unilever Research
in the UK and Holland.
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ANNEX 3 INTERNET
RESOURCES
NAME DESCRIPTION ADDRESS TELEPHONE EMAIL
Fuji Oil Group. Processors of 1-5, Nishi Tel: +81-724-
fats & oil Shinsaibashi 2- 631364 www.fujioileurope.com
chome, Chuo-ku Fax +81-724-
Imports shea nut Osaka 542 JAPAN 631601 www.fujioil.co.jp
:. and butter
[email protected]
Kuhlmannlaan 36 Tel : + 32 (0) 9
9042 Gent 343 0202
Belgium Fax : + 32 (0) 9
344 2610
(US subsidiary)
120 Brampton Tel: +1(912)
Road 966-5900 x 315
Savannah, GA Fax (912) 966-
31408 USA 6913
Glamptech India
GA Epertise, Florida
JDC International: 28, A. Ricarte St., Tel / Fax:+ 63 [email protected];
Las Piñas, Metro 2 800 3128 [email protected]
Manila / Web: http://www.jdc-
PHILIPPINES international.com
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OILTEK SDN BHD Equipment Lot 6 Jalan Tel: +35 542 [email protected]
Manufacturers Pasaran 23/5, 8288 Website:
Kawasan MIEL, Fax:+35 541 http://www.oiltek.com.my
Phase 10, 40000 8288
Shah Alam,
Selangor Darul
Ehsan. Malaysia
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AFAJATO, Inc. Shea Butter 6455 E. Briar Tel: +770 482- [email protected]
Importer & Drive 4451
Distributor Lithonia, GA Fax +770 413
30058 USA 6389
EXA Cosmetics Buys shea butter 112 rue de Lagny Tel: +33 1 428
for cosmetics 93100 Montreil 79698
manufacture FRANCE Fax +33 1
48708870
Aarhus Olie Côte Processing shea Résidence de la Tel: +225 [email protected]
d'Ivoire butter Tour B.I.A.O 327052/53
(subsidiary of Aarhus 8-10 rue Joseph Fax +225
Oliefabrik A/S, Anoma 327055
Denmark) (entrée avenue
Lamblin)
Abidjan 01 BP
1730
COTE D'IVOIRE
Euro broker Broker in 30, rue d'Astorg Tel: +33 1 449 [email protected]
tropical nuts 75008 Paris 48787
FRANCE Fax +33 1 400
60313
Agritropic s.a.r.l. Aahus agent Rue des Moulins Tel: +33 4 717 [email protected]
43100 Vieille- 49790
Brioude FRANCE Fax +33 4 717
49282
Brittania Food Raw materials Goole DN14 6ES Tel. +44 1405
Ingredients Ltd. supplier for UK 767 776 [email protected]
Cadbury’s UK Fax +44 1405
765111
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ANNEX 4 PRO FORMA EQUIPMENT COST BENEFIT ANALYSIS (US$)
Mechanized
Manual 30 Roaster 100
Shed 1,200
Mill 600
Cooking Pots 100
Total 2,000 3,261 2,772 8,033 9 900 8,100 1st Year
Mechanized 10,000 Pre Cleaner 5,000
Cooking Kettle 20,000
Screw Press 85,000
Vibrating Screen 30,000
Leaf Filter 40,000
Tanks 25,000
Building 50,000
Total 255,000 1,086,957 923,913 2,265,870 3,000 900 2,700,000 1st Year
EXTRACTION +
REFINERY
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