Work on $10m Shea Factory progressing

Shea nuts - a valuable natural resource in the north

Mr Kojo Atta Krah, Managing Director of the Produce Buying Company said on Tuesday that the corporate body was vigorously pursuing plans to add value to shea nut for export.

He said construction work on the $10 million processing plant was progressing steadily and at a satisfactory rate.

“We have started receiving the equipment for the factory and all other necessary actions linked to the successful establishment of the shea project are being pursued,” he told brokers and journalists on the “Facts behind the Figures” programme on the Ghana Stock Exchange.

“We are most optimistic of the good earnings that the company stands to generate from the investment and assure shareholders of great success with it,” he added.

The new company, PBC Shea Limited is sited at Buipe in the Northern Region.

PBC plans to purchase 40,000 tonnes of sheanut annually to feed the processing plant.

Mr Atta Krah said the company increased its market share from 35 per cent in 2007/2008 to 38 per cent in the 2009/2010 season.

He said the performance had led to an increased of more than 50 per cent in turnover while profits had tripled.

Turnover for cocoa operations increased from GH¢430.528 million to GH¢622.664 million due to increase in producer price and the buyers take over margin though there was reduction in cocoa purchased and delivered reduced slightly.

Cocoa purchases fell to 247,881 tonnes to 238,967 tonnes.

Mr Atta Krah said the company would adopt an aggressive marketing strategy to improve its market share to 43 per cent and also increased secondary evacuation activities with the hope of hauling 50 per cent of cocoa purchases within the period.

The expansion of the company’s ICT programme would also be pursued with all the vigour it deserved.

“We will improve and provide well maintained storage facilities, institute efficient and cost effective evacuation and improve the effectiveness and efficiency of our operations to minimise losses, among others,” he said.

He said, “Management shall monitor the various investment projects by the company to ensure that the desired results are achieved to expand the frontiers of ICT programme.”

Meanwhile, the company is proposing a dividend of GH¢0.0088 per share, which amounts to GH¢4.224 million and a 137 per cent increase over the dividend paid in 2009.

Source: GNA

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