PBC Diversifies operations

Wednesday, September 28, 2011

By Edmund Mingle
After winning the top spot as the best performing company in Ghana, Produce Buying Company (PBC) the largest cocoa purchaser, has shifted its operations into a higher gear to build on that historic feat.
According to the management, the feat, which is a result of comprehensive reforms introduced in the operations of the company after experiencing huge losses in 2004 and 2006, serves as a huge boost for the firm to vigorously pursue its expansion drive.
Springing from the 34th position in 2009, to clinch the top spot in the Ghana Club 100 for 2010, the management of says it not surprised at the achievement, because a lot of work was done to improve the fortunes of the company.
“We saw it coming,” George Kwadjo Boateng, Deputy Managing Director (Operations) of PBC, told the Times in Accra, indicating that the investments and the efforts of the entire staff have paid off.
According to him, the improved fortunes of the company which gave it the best records to win the award, was a culmination of a multi-purpose strategy adopted by the management for achieve maximum profitability from the firm’s operations.
He explained that after the losses in between 2004 and 2006, management development measures to motivate staff and demand higher performance, promptly pay cocoa farmers and provide incentives them to win more customer loyalty, investment more in cocoa purchases, improve the primary and secondary channels of cocoa evacuation and acquire modern equipment from operations, as well as invest in other areas of the agriculture sector.
As a result, he noted that the company begun witnessing increases in its profit base from 2007 where it was able to pay off its debts, invested some GHc 21million into its haulage operations for efficient evacuation of the cocoa from the farming areas to the ports.
In addition, he said the company was able to increase its market share from about 30 per cent to the current 38 per cent, and aims at further increasing it to about 43 per cent in the 2012/2013 cocoa season.
“We know we can achieve this and even more,” he said, adding that the right measures are in place.
Touching on the company’s investment for expansion, he said PBC has ventured into the production of shea butter.
The establishment of a the company’s subsidiary, called PBC Shea Limited at Buipe in the Northern Region, is almost complete, to process shea nuts into shea butter for export.

It is investing about 10 million dollars to establish the plant, expected to begin operation before the end of this year, with an initial target of processing 40,000 tonnes of nuts into 15,000 tonnes of butter.
In addition, the company is investing in the establishment modern car parks in Tema.

The move forms part of the company's medium-term strategy aimed at diversifying its operations to generate more resources to support its operations.
PBC gained a Profit Before Tax (PBT) of GHc19. 256million in the 2009 2010 financial year, representing a 35 percent jump in earnings, compared to GHc7.176 million for the
previous financial year.
Similarly, the company’s turnover for cocoa operations jumped from GHc430 million in the previous year to the current GHc 622.66 million.
Ultimately, Mr. Boateng, noted that the measures would enable the company to further increase its fortunes, and retain the top spot on the Ghana Club 100 for 2011.
“We are expecting this recognition as Ghana’s most prestigious company to facilitate the process towards enhancing our investment fortunes.
“It is the aim of management and board to move beyond these attainments and establish even better standards for the company,” he said.