374 Rebuilding West Africa’s food potentialWAML relies entirely on electricity from Electricity Company of Ghana for its operations. The company
monitors energy consumption by taking meter readings before and after production. To keep abreast
with technology, and also to be energy efficient, the company is acquiring a 10 MT/hour plant which
comes with its own turbine and has the capacity to generate energy for the factory. Environmentally,
the company’s major problem is sludge. However, WAML is close to obtaining an EPA certification that
solves this problem.E. Results of field survey of smallholder producersIn Tables 13 and 14, about 64 percent of the respondents indicated they are small scale (<5 acres)
producers, while 34 percent described themselves as medium scale (5-10 acres). Females constitute
32 percent and 22 percent of the small and medium-scale producers, respectively. Overall, female
smallholder farmers constitute 28 percent of total producers.Table 12. Summary of Profitability Analysis of WAML Industries Limited
COST ITEM Oil
Extraction
Rate (OER)COST/
MT(GHC)Total Costs
(GHC)Extracted
Products
(MT)Local Sales
Price (GHC/MT)REVENUE
(GHC)World
Market Price
(NOV 2011)
USD
Cost of one MT of palm kernel GHC 90 81,000
Cost of processing one MT of palm kernel
GHC
Labor (per tonne of 900 MT) 4.96 4,464
Staff cost (per tonne of 900 MT) 8.3 7500
Utility 3.9 3500
Fuel operations (per tonne of 900 MT) 1.33 1200
Other cost (per tonne of 900 MT) 0.67 600
Total cost of processing 900 MT per month 98,264.00
Cost/MT 109.2**
PKO 38% 85.5 1,640($1,050) 140,220 $1,170/MT
CRR- Cake 50% 101.25 60 6,075
Nut recovery rate (NRR)—Nuts 25%
Shell recovery rate (SRR)—Shells 50% 450 15 6,750
Total revenue
(revenue from processing 900 MT per month) 153,045
Revenue/MT 170.1
Gross Margin / Month 54,781.00
Gross Margin / MT 60.87Source: Courtesy of Factories Manager, WAML Industries Ltd.(1USD = 1.55) Estimated Revenue-Cost Ratio (RCR) = 1.56 ** USD 70.5.