The Impact of Shea Nut Export Bans on Small Businesses and Consumers in the U.S.

Shea Butter Supply Crisis: Impact on Small Businesses and Consumers

New York, NY — For many, shea butter is more than just a beauty product; it’s a lifeline. Imani-Ligon Chambers, a 21-year-old college student from Manhattan, relies on shea butter to manage her frizzy, curly hair, especially given her nut allergies. “Hair products containing shea butter are the only ray of hope for my frizzy curly hair,” she says, echoing the sentiments of countless others who depend on this versatile ingredient.

However, a looming crisis threatens the availability of shea butter products in the U.S. Exports of shea nuts have tightened significantly this year, with Nigeria recently announcing a six-month embargo on exports. This move follows similar bans from other West African nations, raising concerns about the future of shea butter in the global market.

The shea nut, harvested from the indigenous African shea tree, is primarily grown across the “Shea Belt,” which stretches from Senegal to Sudan. Countries like Nigeria, Ghana, and Mali are known for producing high-quality organic shea butter. Yet, as political and economic tensions rise, these nations are increasingly turning inward, restricting exports that have long supported small businesses and consumers worldwide.

Chambers, who has been using shea butter since her “big chop” in sixth grade, is worried about the implications of these bans. “Shea butter is also expensive. The last time I bought it was almost a year ago, and it came in a small tub that cost around $13 to $20,” she explains. “I know a lot of Black women use shea butter hair products to style their hair, and I’m upset that these political and economic tensions will affect not just me but the people I care about and love.”

Economic Ripple Effects

The embargoes are expected to have a disproportionate impact on communities of color in the U.S., where demand for shea butter remains inelastic. As Dr. Omar Robles, an economist at Marymount Manhattan College, notes, “While domestic purchasers in West African countries stand to benefit the most from this embargo, local producers will suffer a big loss as they could’ve sold it at a much higher price on the international market.”

The situation is compounded by fluctuating U.S. tariffs, which have already begun to strain small businesses. Brooklyn Herborium, a local apothecary founded by herbalists Molly Watman and Emma Graves, sources shea nuts from a women’s collective in northern Ghana. “We are not alone in this boat, but it’s challenging — especially for small businesses — to change trusted relationships built with people we’ve worked with for many years that are hard to replace,” Watman says.

Navigating Uncertainty

As trade negotiations continue, small businesses like Brooklyn Herborium are left to navigate an uncertain landscape. Watman and Graves are currently exploring alternative sources for shea nuts, but they remain committed to ethical sourcing. “There are other countries growing shea nuts where the climate is hospitable. But the real question is, are they pesticide- and chemical-free, and are they ethically farmed?” Watman asks.

With the U.S. imposing a 30% tariff on South African imports last month, the challenges are mounting. “I don’t want to raise our prices; I want our products to be affordable,” Watman states. “But I know my cost of production has gone up. All my suppliers are facing issues, and our orders from abroad have plunged.”

The Future of Shea Butter

As the shea butter supply crisis unfolds, consumers like Chambers are left to wonder how long they will be able to access the products they rely on. “We simply don’t have the climate or the environment to grow shea trees in the U.S.,” Dr. Robles adds. “Switching to alternatives will be the best option for small businesses in light of the tariffs.”

With the future of shea butter hanging in the balance, the ripple effects of these embargoes and tariffs will be felt far and wide, impacting not just small businesses but also the consumers who cherish these products. As the world watches, the hope remains that a solution can be found that supports both local producers and the communities that depend on their goods.