TCDA cracks down on shea companies over pricing and licensing breaches
The Tree Crops Development Authority (TCDA) has warned companies operating in Ghana’s shea industry of possible prosecution, licence revocation and other sanctions following an enforcement operation that uncovered alleged breaches of pricing, licensing and quality regulations.
The operation, conducted on Thursday, October 15, 2026, in Accra and Tamale, involved the Ghana Armed Forces, the Ghana Police Service and National Security.
It forms part of efforts to enforce the Tree Crops Development Authority Act, 2019 (Act 1010), and the Tree Crops Development Authority Regulations, 2023 (L.I. 2471).
Briefing the media after the exercise, TCDA Chief Executive Officer Dr Andy Osei Okrah said processors, traders, buyers, exporters and aggregators would be held accountable for violating the rules governing the industry.
Preliminary findings indicated that some companies were purchasing raw shea nuts below the approved minimum producer price of GH¢9.01 per kilogramme.
The price, which took effect on June 1, 2026, is equivalent to GH¢765.63 for an 85-kilogramme bag.
Other companies were reportedly buying and selling shea nuts with moisture content exceeding the permitted maximum of 10 per cent.
The Authority’s prescribed quality parameters include moisture content of 8 to 10 per cent, free fatty acid levels of 6 to 8 per cent, and impurities ranging from 2 to 4 per cent. These parameters form part of the pricing formula established by the TCDA.
Dr Okrah said the Authority would not tolerate disregard for the regulations.
“We will not allow companies to disregard the laws governing the shea industry. The approved minimum producer price and quality standards must be respected. Any company found violating these requirements will be held accountable in accordance with the law,” he said.
The joint task force inspected companies and buying centres to verify registration and licensing status, supplier records, purchase transactions and compliance with documentation requirements.
Officers examined invoices, receipts, purchase registers, payment evidence, purchase orders and contracts to establish whether transactions were properly documented and recorded prices reflected actual payments.
The exercise also uncovered alleged irregularities involving unlicensed operations, inadequate supplier information and the failure to produce valid conveyance certificates for consignments in transit.
Dr Okrah said accurate documentation and traceability were essential to regulating the industry and monitoring the movement of shea nuts.
“It is important for the Authority to know who is buying, who is supplying, where the produce comes from and where it is going. Without proper documentation and traceability, effective regulation becomes difficult,” he said.
He added that Regulation 55 of L.I. 2471 provides a framework for strengthening oversight of commodity movements and establishing the origin and destination of produce.
Companies identified as non-compliant during the preliminary checks were directed to submit comprehensive lists of their suppliers and aggregators to enable the Authority to verify their registration and licensing status.
The TCDA said earlier requests for the information had not produced satisfactory levels of compliance, prompting physical inspections to verify records and address outstanding breaches.
Dr Okrah urged the affected companies to regularise their operations, provide accurate records and cooperate with regulatory processes, warning that failure to comply could attract sanctions under the law.
The enforcement exercise forms part of the Authority’s efforts to strengthen regulation of Ghana’s shea industry, enforce approved producer prices, improve commodity traceability and promote fair business practices.
The TCDA has urged processors, traders, buyers, exporters and aggregators to comply with Act 1010 and L.I. 2471, maintain accurate records and meet their licensing and documentation obligations.
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