Industrial shea nut processing in Benin Note: This project has been cancelled, because the applicant has requested to prematurely terminate the project.The partners, Zijderlaan Handel Maatschappij (ZHM) B.V. and Comanet SA propose to set up a modern, certified plant to produce shea butter for export to the chocolate industry in Europe.At the moment 65% of the nuts which fall from the trees in the growing areas are not gathered by lack of demand. The market for good quality shea butter in Europe is large. The main problem to have demand meet offer is the low quality of the actual artisanal production methods in Benin.Local women will be trained to collect, store and transport the shea nuts in a way that the quality remains good. A factory is set up in Parakou where 37 employees will be trained and the necessary hardware will be installed to produce first class shea butter. Within a cold chain this butter will be transported to Europe.A total production of 480 tons of shea butter will be realised.Corporate Social Responsibility (CSR)This project provides a good possibility for rural women to get extra income. As the shea trees are in general not privately owned but communal property. The joint venture sees it as its responsibility to prevent this system to deteriorate by giving a higher value to this crop. Traditionally the gathering is done by women and the partners state that they only buy from women's groups, again to avoid negative effects by the more profitable nut market.Impact•	Employment and working conditionsA total of 37 employees will be hired by the joint venture.This project will offer its employees a wage package including fringe benefits such as medical aid for employees and dependents, participation in a preventive health care programme for HIV/AIDS, and support school fees for underage children.•	Innovation / Transfer of knowledgePresently, only raw unprocessed shea nuts are exported from Benin. Only a small quantity of local processers exists in Benin and then only at an artisanal technology level. Some shea butter of moderate quality is exported actually.This project will set up the first industrial local shea processing plant. Technology transfer will take place internally and externally.Internal technology transfer: staff and manual labour will be trained in operational and management of an innovative processing plant for shea nuts.External technology transfer; a Good Shea Gathering Practices programme will link the project with the village gatherers to eliminate impurities and lower quality from the logistical system and the production chain.•	Chain effectsThis project will increase: local gathering of nuts and thereby increase also the income of rural women on the input side. On the output side, butter of good quality will be available at reasonable prices in the value chain. The use of shea butter in the European food industry can become a more important ingredient leading to more demand.The general move to start processing African commodities in Africa itself instead of processing in the countries that use the commodity will serve as an example to other, comparable, industries.•	EnvironmentThe shea belt includes one of the most delicate eco systems along the South of the Sahara desert where deforestation is a recognised problem.Actually only a small percentage of the fruits are collected and by this the mere existence of the tree has no large priority. As the shea nut market becomes more interesting, the urgency of preserving those trees in the arable fields becomes more important.When shea nuts are pressed the butter is largely separated from the residual cake. This shea cake still contains a considerable amount of shea butter. Shea nut cake can be used as industrial or household fuel in Benin if processing is done locally. Shea nut cake will create a local alternative fuel replacing wood and reducing deforestation.•	Position of womenShea nut trees are not planted as crops but are found indigenously in the shea belt. As a field is cleared from vegetation to grow arable crops like millet, the shea trees (and some other species) are left in the field. Although the field and the trees are owned by men, shea nut collection is a community activity dominated by women. By shortening the production chain and logistical costs this project can be competitive in the international shea nut market while still paying more to the original gatherers. Culturally it is known that shea money is considered woman's cash.The improvement of the market for shea nuts will directly feed into this domestic privilege.Four women will be hired for high-level positions in the joint venture. To produce high quality shea butter in Northern Benin for export to Europe. In year three a production of 480 tons of shea butter will be realised.