Tuesday, 28 June 2016

Outgrower scheme critical in reviving defunct Northern Star Tomato Factory



     By Isaac Asare




Upper East Regional Minister, Albert Abongo says the intervention of an out-grower scheme with appropriate technologies constitute a critical requirement in the revamping of the defunct Northern Star Tomato Factory , NSTF, at Pwalugu. 

The NSTF factory formerly Pwalugu Tomato factory used to produce about 100 tons of tin tomatoes on daily basis. For years, the facility  has remained dysfunctional due to some operational challenges that had to do with perennial shortage of raw materials to feed the company. 

Mr. Abongo made the proposal in an interaction with members of the Upper East Youth Association, UEYA, in Bolgatanga. 

The delegation led by the Organizing Secretary of the group, Francis Adingo was to deliberate on issues bordering on the economic prospects of the region and also discuss how best they can share and contribute to driving its development agenda forward.

The Minister's comment on the Northern Star Tomato Factory was in response to questions raised by the group with regard to the neglect of defunct factories in the region, some of which include the Bolgatanga Meat factory and the abandoned Rice Mill project in Zuarungu.

 Mr. Abongo described as unfortunate, the current state of the NSTF. He expressed regret that despite efforts made by successive governments till date, the company has still not seen the light of day. 

He said the cost in the running of the company coupled with its operational deficiencies have been an albatross in breathing life into the company. 

Mr. Abongo maintained that looking at the present competitive business environment, no investor will risk investing in defunct facilities without reaping any meaningful dividend.

 This, he explained, was because viability plays a key role in building investor confidence and anything short of that might deter potential investors from injecting resources to resuscitate the facility. 

The region, he hinted, had so far received two delegations to access the state of the NSTF and issues regarding its operation were duly discussed openly for consideration with the expectation to receiving a favorable response. 

According to the minister, the major challenge of the company is about production. 

He observed that in order to ensure absolute viability of the company, there was the need to employ an out-grower scheme with new technologies so that farmers will be encouraged to venture into the production of raw materials to feed the factory. 

When this is done, the factory will be able to produce in high capacity and operate all year round. He moreover outlined plans by his office and the Trade Ministry to woo local and other foreign investors to take up the rest of the defunct factories to help create jobs for the teeming unemployed youth.

 On roads, Mr. Abongo disclosed that in the not long distant future, the Bolgatanga town roads will be attended to. He said estate roads, the Extee Hotel extension and the library roads among others have been earmarked for asphalting. 

He added that the necessary consultation had been done with the regional office of the urban roads to that effect.

GBC                                                                 



No comments:

Post a Comment