17/05/2012 (African Business Review) - In a report in African Business Review, the success of Norpalm plantation, which spans 4,500 hectares and is one of the oldest palm estates in Ghana, is examined. Operations commenced in the 1960s and the plantation was owned by the state until 2000, when it was divested and sold to Norpalm Ghana Ltd (NGL).

When Norpalm took control of the plantation, palmoil prices were at an all time low – $250 to $300 per tonne – and the palm trees on the estate were old and in a poor condition. Norpalm Ghana’s success is thanks to a programme of continuous improvement and focus onefficiency – a vision shared by the board, management and the company’s dedicated staff. The company started by felling and replanting old palm trees, replanting the estate’s fallow areas and it has also spent considerable amounts of capital on new equipment and machinery.

“From the beginning, things were tough, both financially and operations wise – we had limited financing and very old equipment to contend with” agrees Eric Anang, the company’s General Manager. “But, being in a commodity market, we developed a system where our main focus was on making sure we were ready in terms of maximising our production to meet the market demand when the palm oil prices went up.” This proved to be a successful strategy and since 2008 NGL has been profitable.

NGL has also significantly improved the plantation’s maintenance practices and there are several processes it follows to ensure the trees grow to their full potential. This includes regular weeding and continuous pruning of trees to expose the leaves to maximum sunlight. NGL currently sells all of the palm oil it produces to PZ Cussons Ghana Limited, a major soap manufacturer responsible forbrands such as Imperial Leather and Duck bar soap.

 “We have also invested in a local management team,” adds Per Schoenberg, Norpalm’s Board Chairman since 2001. “Currently we are one of the very few foreign owned companies with only Ghanaians on the payroll. Over the years, I have had the pleasure of working with managers from various countries – locals as well as expatriates. Our current management has delivered to both the Board and Shareholders satisfaction.”