Cocoa Processing Company Limited (CPC) says most of the structural challenges facing it have been resolved, as the company prepares to break into the West African sub-regional market.
“Arrangements are almost complete to commence from the Nigerian Market…The expansion of the local market is currently being pursued by recruitment of suitable key distributors in the regional capitals for distribution of Confectionery products on a larger scale.
“Preparations are also underway to break into the West African sub-regional market,” said Mr. Jacob S. Authur, the Board Chairman of CPC at the 2013 Annual General Meeting of the company in Accra.
He said Ghana Cocoa Board is assisting the company to free itself of indebtedness to financial institutions to pave the way for increased supply of light crop beans and enable it to achieve a 70 percent rate throughout production.
Mr. Arthur revealed that the company is in serious talks with the Ministry of Local Government and Rural Development for introduction of the Cocoa drink into the School Feeding Programme.
He, therefore, expressed the Board’s gratitude to shareholders for their fortitude and unwavering trust in the company, and pledged their commitment to continue serving the company tirelessly for it to make profits.
Mr. Authur said the company faced a number of operational challenges in the year under review, and as a result could not achieve its production target. The company recorded more than 11 million dollars as loss after tax.
He said the cocoa factories processed a total of 20,979.406 metric tonnes (69.93 percent) as against the set target of 30,000 metric tonnes for the year 2012/2013, while Confectionery production for the period was 1,296.312 metric tonnes against the target of 1,830.00 metric (70.83 percent).
However, he said the company has embarked a Bore Hole project and Tolling arrangement to utilise plant capacity as strategies for resolving operational challenges.
“We are happy to announce to you that the tolling arrangement, which is a strategy for utilising excess plant capacity, is now being implemented.
“The company, in the course of the year, entered into an agreement with a foreign company to process cocoa on its behalf for a fee,” he said.
“The company has already supplied 10,000 metric tonnes of raw cocoa beans for the venture. It is hoped that the arrangement will bring in additional revenue to improve the company’s cash flow,” he stated.
BFnT