GGC Operating Revenue Increased to over D1 Billion – MD Njie

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By: Kebba AF Touray

The Managing Director of the National Food Security and Processing Marketing Corporation (NFSPMC) formerly Gambia Groundnut Corporation (GCC) Muhammed Njie has told the National Assembly Committee on Public Enterprise (PEC) that the corporation’s operating revenue has increased to D1.018 billion in 2021.

MD Njie reported this at the National Assembly during their appearance before the said committee for the presentation of their 2021 activity report and financial statements.

“The corporation’s operating revenue for the year 30th September, 2021 increased by 66 percent from D612 million in the previous fiscal year to D1.018 Million for the period under review,” MD Njie told the committee.

He said the increase was due to more intake of groundnuts processed compared to the previous year by 235 percent.

MrNjie further reported that the corporation’s net profit increased by 127 percent from loss (D139.77 million) in the previous financial year, to a profit of D38.78 million in the current financial year.

He said, “The increase in profit was mainly due to cost containment measures management implemented which led to a relatively lower cost of salaries and minimal costs associated with stock losses.”

Njie added that the corporation purchased a total of 7,489 metric tonnes in the fiscal year 2021, despite the fact that the year was a challenging one, compared to 2,225 metric tonnes purchased in the previous season.

On international production of groundnut, he explained: “World production of groundnuts is over 37 million tonnes with China and India being the biggest producers, but they also consume most of what they produce leaving little for international trade.”

He said the Gambia’s production average of 100,000 tonnes represents about 0.20 percent of world production with the country having no influence on the prices of groundnuts and groundnut products.

“Trade in groundnuts and groundnuts products are being negatively affected by aflatoxin contamination. It is expected that African countries will soon regain their position in the edible groundnut trade with Europe with the aggressive efforts being made by the Partnership for Aflatoxin Control in Africa (PACA) in finding solutions to aflatoxin contamination,” he said.

“The corporation has strategically located 10 depots along the River Gambia which serve as collection points for purchased groundnut from the primary buying agents. 10 barges with carrying capacity of approximately 2,000 tonnes for the evacuation of groundnuts from the depots to the processing plants,” MD Njie said on Handling and Processing Infrastructure.

However, he said that barge carrying is inadequate as the requirement is above 3,500 tonnes per barge trip, and that a shelling plant to decorticate groundnuts into edibles and for crushing into oil and cake facility has been in place.

According to him, the corporation also has in place a crushing plant to crush groundnut kernels into oil, though the facilities are old and ineffective.

The Managing Director reported to the committee that the total revenue generated by the corporation was D1,086,685,570 from (D836,863,206) in 2020, when compared with the corresponding period in 2020, which represents revenue increment by 30 percent.

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He said the revenue reported during the period under review, D1,017.832,923 relates to operating revenue (D612,089,476) in 2020 whilst D68,852,647 (D224,773,730) in 2020 relates to non-operating revenue.