Business News of 2014-05-12

BOPP records Ghc5.81 million profit in 2013

The Benso Oil Palm Plantation (BOPP) Limited recorded a profit after tax of Ghc5.81 million in 2013, Mr. Ishmael Yamson, Chairman of the company, said on Friday.

He was speaking at the 2013 Annual General Meeting of BOPP at Takoradi.

Mr. Yamson said in 2012, the company recorded profit after tax of Ghc13. 41 million and the 2013 profit was a decline of approximately 57 per cent as compared to that of 2012.

He said the fall in performance was largely due to the declining world market price of palm oil and lower production volumes resulting from accelerated replanting programme and high inputs cost.

Mr. Yamson said during the year under review, world market price of crude palm oil decreased from an average of 1,012 United States dollars in 2012 to 853 United States dollars in 2013, representing 15.7 per cent drop in dollar terms.

He said the total palm fruits processed during the year under review was 89,329 metric tonnes, representing a 3 per cent decline compared with 2012.

Mr. Yamson said replanting and erratic rainfall patterns over the last couple of years contributed to the low crop volumes.

He said during the year under review, the company purchased 47,749 metric tonnes of fresh fruit bunches at a total cost of Ghc9.9 million from smallholders and out grower farmers in its catchment areas in particular and the Western and Central Regions in general.

Mr. Yamson said the combined effect of reduced crude palm oil and palm kernel prices, as well as crop production volumes, resulted in a 13.2 per cent drop in turnover over the previous year.