Shareholders of the Produce Buying Company Limited (PBC) have passed a special resolution in Accra to set up a new subsidiary to produce shea-nuts to feed the export market. Known as PBC-Shea Limited, the new company, which will be the first company in the country to process shea-nuts on a commercial scale, is expected to coordinate the activities of indigenous shea-nut farmers and also expand the export market base for the produce. The resolution to set up the new subsidiary of the company was passed at an extraordinary shareholder meeting in Accra amidst confusion. While some of the shareholders expressed misgivings about the need to set up the new company since the activities to be undertaken by the new company could be equally managed by the PBC and not necessarily a new subsidiary with new management and Board of directors, others felt that processing of shea-nut was a new business for PBC and called for a new management and directors who have expertise in shea-nut processing. The PBC was established about 28 years ago to purchase cocoa beans from farmers and to store them in purpose-built sheds at village/society level. The Company is also involved in carting these to collection points for inspection, grading and sealing by the Ghana Cocoa Board's Quality Control Department. The outgoing Board Chairman of PBC, Nana Timothy Aye-Kusi, explained that the new subsidiary will focus solely on shea-nut processing, which will ensure maximum returns on shareholder value. He said the Company started its shea-nut operations last year and has eyed the Brazilian market, which imports much of the shea-nuts produced in the country. "We have already signed a memorandum of understating with a Brazilian firm, Messrs Sysgate, for the purchase of shea-nuts," he said. He added that a new US$10 million processing plant with a capacity to earn the Company about US$80 million in shea-nut revenue is to be procured for the PBC-Shea Limited to augment its operations. Nana Aye-Kusi said because shea-nuts often take about 20 years to mature, PBC is collaborating with the Centre for Scientific and Industrial Research to come up with a new shea-nut variety which has a lesser gestation period. The West Africa Trade Hub estimates that Ghana has the potential to produce more than 200,000 metric tonnes of shea-nut per annual, and demand for the country's shea-nut has surged on the world market as the produce is estimated to have high content for shea-butter. The Northern Region of Ghana is the farm belt for shea-nut production, and since last year PBC has bought about 2,895 tonnes of shea-nut from local farmers providing a ready market for the farmers who are mostly women. However, the United States Agency for International Development (USAID) has reported that about half of the shea-nuts produced are not collected. Source: B&FT