Cocoa Processing Company has begun discussions with the Ministry of Trade and Industry to establish a cocoa manufacturing company to process raw cocoa beans for the local market.
This is an initiative by the company to revive its relevance as the primary cocoa processing company in the country.
Addressing Shareholders and Journalists at the fact behind the figures series, The Managing Director of the Company, Nana Agyenim Boateng said the current status of CPC as a Freezones entity does not give the opportunity to sell most of their products in the Ghanaian market, a situation he thinks will be averted with the creation of the new entity as a subsidiary.
“So it can be likened to that, yes you’re producing but because of the price, people are not buying. That’s why we’ve taken that step to look at a formation of a subsidiary on its own.
Immediately, we’ve written to COCOBOD because for now, COCOBOD is the 57%. We are yet to have that board so, with that level, they and SSNIT are what we’ve talked to so by the time even we form the board we would have that first go and then it goes from there so that they only ratify at the main board,” Nana Agyenim Boateng said.
The company has appealed to investors and shareholders for three years maximum to pay back returns after a huge investment drive.
Meanwhile, it will be using more than $9 million into a steam boiler coal plant to generate 5megawatts of power for the company. This is intended to reduce its high cost of power which has been a major challenge to the company.
Cocoa Processing Company’s revenue for 2016 reduced by 109%, this was attributed to inadequate supply of raw cocoa beans for processing due to insufficient working capital.
Revenue for 2017 however increased by 5.6%. CPC said the 1st quarter of 2018 has shown positive sign of growth in revenue.