By Juliet Aguiar DUGBARTEY, Takoradi
The Benso Oil Palm Plantation (BOPP) PLC financial performance, remained strong despite the global challenges in 2023.
The company, implemented efficient policies and robust risk management systems which have yielded positive results.
It achieved Year-on Year (YoY) revenue increase driven by 13% growth in sales volumes.
“This accomplishment is noteworthy, considering the decline in Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) prices” Dr. Alfred Mahamadu Braimah, Chairman of BOPP PLC said this at 2023 Annual Report and Financial Statements in Takoradi.
However, he noted that the overall profit after tax reached GH¢102,813m, representing 64.12% of the previous year figure of GH¢160.354m.
This decrease, he said reflects rising costs across various areas including labour, engineering and factory spares and manufacturing overheads. Also, industry-wide increase in the cost of Outside Purchased Fruit (OPF) material up of 44% from GH¢1,079 to GH¢1,560 per metric tonne.
“While Operating Profit decreased by 35.5% due to high labour, OPF material and production overhead cost, we are pleased to report improved operating efficiencies in agronomy and palm oil mill management.
He pointed out that total palm fruit volume processed, grew by 16% compared to 2022 reaching 144,866 metric tons.
This, Dr. Braimah attributed to improved agronomic practices and favourable rainfall patterns impacting both nucleus and outgrower plantations.
“We are committed to supporting our local economies of communities in our operational areas. We purchased 56,112 metric tons of fresh fruit bunches at a total cost of GH ¢88 m from smallholders and outgrower farmers in the catchment areas, particularly the Western and Central Regions” he added
According to him, BOPP’s CSR policy focuses on four key areas namely; education, health, social infrastructure and economic empowerment.
In 2022, he said GH ¢2.2 m was invested in CSR initiatives, exceeding previous year of GH¢16m.
These initiatives, the Board Chairman said included building sanitation facilities, nurses’ quarters and community centre as well as supporting schools and hospitals. “We also provided scholarships to deserving students from surrounding communities and our employees’ children”.
“Our commitment extends to smallholder and outgrower farmer. We spent GH¢88 m purchasing fruits from them in 2023 contributing to their livelihoods and the region’s socio-economic well-being” he added.
He stated that BOPP, is proud to retain prestigious certification, solidifying its position as a model for sustainable oil palm plantation practices in Ghana and Africa. “Additionally, our ranking of 9th in the Ghana Club 100 awards demonstrates our continued excellence”.
“Our success in implementing sustainable smallholder projects makes your company an attractive prospect for potential investors. The Outgrower Value Chain Fund (OVCF), a development partner, is considering similar projects for over 2,000 farmers in the next three years, with BOPP PLC as the technical partner” he added.
So, he said “we combined dividends to a total payout of GH¢2.3319 per share for the year 2023”.
Mr. Samuel Avaala Awonnea, General Manager of Benso Oil Palm Plantation, noted that in the Ghana’s palm oil industry, there has been some significant gap between local production and national consumption, and this requires to bridge this divide.
He explained that Ghana, consumes approximately 450,000 metric tons of palm oil annually, use predominantly in product such as vegetable cooking oil.
However, he said the country’s local production only meets about 300,000 metric tons of this demand, leaving a substantial gap of 150,000 metric tons that must be imported.
Mr. Avaala further explained that “to produce that 150,000 metric tons gap, you need about five plantations of our size.” Despite this shortfall, there is a guaranteed market for palm oil products in Ghana.
“This gives us the assurance that we have a business that goes to the very core of food safety and food nutrition for the Ghanaian people,” he stated.
Benso Oil Plantation, he said has been expanding its operations gradually, though not as quickly as desired due to various regulatory, policy, and economic factors.
