Regarding the corporation's financial performance, Njie reported that NFSPMC's operating revenue rose by 48%, increasing from D1.17 billion in the previous financial year to D1.51 billion for the period under review.
However, he added that the corporation's profit after interest dropped by 69%, falling from D53.13 million in the previous financial year to D16.67 million. Njie attributed this decline to several factors, including high crop financing costs, increased sales expense, and aging infrastructure that hindered the production of high-quality outputs for premium markets.
MD Njie made this disclosure while presenting NFSPMC's activity report and financial statement for 2021-2022 before the National Assembly's Public Enterprise Committee (PEC).
He further stated that the corporation recorded a 436% increase in groundnut purchases during the 2021-2022 trading season.
“In the 2021-2022 trading year, the corporation purchased a total of 40,167 metric tons, describing it as an improved performance and an increase of 436% compared to 7,489 metric tons purchased in the previous year. The main contributing factor for this high groundnut intake was because the corporation was the only major buyer in the market during the period under review,” he told deputies.
Njie highlighted the global landscape of groundnut production, stating that China and India remain the largest producers, collectively accounting for over 53 million tons. However, most of their production is consumed domestically, leaving limited supply for international trade.
He noted that The Gambia produces an average of 100,000 metric tons, which represents less than 0.2% of global production. Consequently, the country has little influence over groundnut pricing, and exports continue to be negatively affected by aflatoxin contamination.
Nevertheless, he expressed optimism that African countries could regain their position in the European edible groundnut market through ongoing efforts by the Partnership for Aflatoxin Control in Africa (PACA) to address contamination issues.
Njie outlined NFSPMC's strategies to mitigate the high cost of international bank financing, particularly from institutions such as the International Trade Finance Corporation. To address this challenge and ensure better producer prices for farmers, the corporation, through the Ministry of Finance and Economic Affairs, secured financing from Agib Bank.
He disclosed that the crop financing portfolio approved for the 2021-2022 season stood at D2.2 billion, with an interest rate of 8%. This funding was allocated for purchasing, handling, processing, and exporting groundnuts and raw cashew nuts, as well as procuring agricultural inputs such as fertiliser.
