Officials from The National Food Security Processing and Marketing Corporation
By Ramatoulie Jawo
The National Food Security Processing and Marketing Corporation (NFSPMC) reported a significant increase in groundnut purchases in 2021 despite facing a challenging year. Managing Director Muhammad Njie presented the corporation’s activity report and financial statement to the National Assembly’s Public Enterprise Committee (PEC) on Thursday, January 25, 2024.
NFSPMC purchased 7,489 metric tons of groundnuts in 2021, a remarkable 235% increase compared to the previous year’s 2,225 tons. However, Njie acknowledged that achieving this figure wasn’t easy. Low groundnut production across the Senegambia region, partly caused by a late rainy season and brief drought, affected overall intake.
“The 2021 financial year was very challenging as the corporation purchased 7,489 metric tonnes. This was an increase of about 235% compared to the 2,225 tonnes purchased in the previous session. Several factors contributed to this low groundnut intake, low groundnut production affected the entire Senegambia region. This resulted in lowering the final area planted with groundnuts and hence reduced production,” he said.
Despite these challenges, NFSPMC saw positive financial results. Operating revenue surged by 66% from D612 million in 2020 to D1.018 billion in 2021, primarily driven by the increased groundnut processing. Additionally, the corporation’s net profit jumped by 127%, turning a D139.77 million loss in 2020 into a D38.78 million profit in 2021. This turnaround was attributed to cost-containment measures that minimized sales costs and stock losses.
“The Corporation’s net profit increased by 127% from a loss of D139.77 million in the previous financial year to a profit of D38.78 million in the current financial year. The increase in profit was mainly due to cost containment measures management implemented, which led to a relatively lower cost of sales and minimal costs associated with stock losses,” he said.
Alhagie Barry, the corporation’s Finance Director, informed the Committee that bank deposits and short-term investments also went up by 11%, reaching D200.8 million in September 2021 compared to D181.8 million the year before. This, he stated, was a result of controlled cash disbursements and interest earned on term deposits.
“The increase was mainly due to controlled cash disbursements cost containment measures and interest earned on term deposits,” he said.