Ghana's major cocoa buyer to step up investment

The management of Produce Buying Company (PBC), the country’s largest licensed cocoa buyer, is to step up its investment as part of efforts to diversify the company’s revenue base, Board Chairman Dr John Frank Abu said in Accra on Friday.

Speaking at the annual general meeting of shareholders, Dr Abu said management had already begun the construction of a GH¢1.9 million state-of-the-art parking lot at Tema for renting to management of Ghana Cocoa Board (COCOBOD) and other companies.

In addition, work on the company’s subsidiary, PBC Shea Limited at Buipe in the Northern Region to process and export shea butter is on course and all the necessary arrangements for take-off had been made, including the advance payment of about 3.7 million dollars towards the acquisition of processing machine from Brazil.

The management of PBC is investing 10 million dollars to build the plant, which is expected to start operation in September this year, with an initial production target of 25,000 tonnes and ramp up to full capacity production of 100,000 tonnes annually.

The move forms part of the company’s medium-term strategy aimed at diversifying its operations to generate more resources to support its operations.

Dr Abu said there was the need to strengthen other areas of the company’s operations, adding that the revamp of haulage operations had enhanced revenue, raking in a net revenue of GH¢3.751 million over the previous year’s figure of GH¢661,000.

The company hauled about 43.5 per cent of total cocoa purchases of 247,881 tonnes during the 2008/9 season.

PBC’s profit after tax rose to GH¢5.194 million for the 2008/2009 financial year, while its market share within the same period also rose to 35 per cent.

Dr Abu said the impressive results were achieved on the back of increased volume of cocoa purchases, effective cost control measures, viable investment and operational strategies.

Shareholders approved a dividend of GH¢0.0037 per share, representing a 146 per cent increase over the previous year and also gave the mandate to the Board to continue with its share buy back policy to enhance liquidity in the company’s shares.

Source: GNA