Blue Skies Holding Ltd: Pioneer and pacesetter in value-added agriculture

Hadjia Halima Dangoma, Accra, Ghana
December 30, 2023

B ritish entrepreneur Anthony Pile, founded Blue Skies Holdings Ltd (BSH&) in 1997. From humble beginnings, BHS has become a diversified fruit processing company. The company makes fresh, cut and packaged fruits for domestic and export markets. Products from Ghana reach their market destinations in Europe within 48 hours.

The company has a multinational agro-industrial business with tentacles on three continents. It has processing facilities in Ghana, Egypt, South Africa, Brazil, Benin, and the UK. BSH supplies over 200 customers in 14 countries. The company also has pack-houses in Senegal and Ivory Coast.

BHS has become the first agro-industrial multinational ‟made-in-Ghana” and has spun an agricultural-industrial ecosystem in the country, serving as a catalyst that inspired local entrepreneurs. The company employs more than 4,000 people.

Performance

The BHS business model pioneered and innovated the production distribution and consumption of fresh produce. Anthony Pile recounts in 2009 that ‟my strategy was simple; harvest the fruits at their optimum ripeness, cut, and pack them in the country of origin”. The goal was to maintain ‟freshness and flavor and then fly the finished product to Europe to arrive in shops, within 48 hours”. It turned out, that BHS was, in fact the first company in the world to pack fresh fruit in the country of origin and fly it to the consumer on anther continent, the same day. The company takes advantage of the temperate and tropical climates of South Africa to offer seasonal fruits like mangoes during the dry season and all year round.

Today, BHS sources pineapple, mango, passion fruit, papaya, and coconut from Ghana. Melon, pomegranate, and citrus come from Egypt, while South Africa and Brazil supply melon and mango. BHS offers assorted tropical fruits anytime during the year. In addition, the company has developed its own brands of dairy-free ice cream and soft drinks. It offers organic squeezed mango, banana, passion fruit, and pineapple.

From US$37.7 million (GBP 30 million) in 2007, the company turned over US$124.65 million (GBP 100 million) in 2019, generating a profit of US$4.98 (GBP 4 million). In 2020, and despite COVID-19, the company produced gross sales of US$128.1 million (GBP 103 million). Blue Skies reported US$161 millionin revenues for the year ending December 2022, according to UK Private Equity firm “8-Miles”. Key markets include the UK, France, Netherlands, Denmark, and Switzerland.

BHS has attracted funding from external investors. For example, in 2017, UK Private Equity firm ‟8-Miles” , which is chaired by Sir Bob Geldof, bought a minority stake in Blue Skies. Today, ‟8-Miles” has a 20 percent stake in BHS¹. The fund focuses on investments in Africa and shares BHS’s vision about sustainability, fair trade, and corporate social responsibility. ‟8 Miles” exited its stake in Q2 2023.

Corporate Social Responsibility (CSR)

The production and distribution of fresh fruits has a detrimental impact on the environment in terms of carbon emission. Throughout the supply chain, fresh fruits exacts negative effects on the environment. Air transport contributes to air pollution. The intensive use of insecticides and pesticides and chemical fertilizer in fruits farming destroys bio-diversity.

To tackle the negative consequences of its operations, the company uses sustainable packaging. It has developed techniques to reduce consumption of water and energy and also minimize waste. The company’s founder believes in meeting ‟the needs of the present without compromising the ability of future generations to meet their own needs”.

BHS has signed up to global standards to reduce the harmful environmental practices through certification of its farms and through the design and operation of its factories. The goal is to reduce water and electricity consumption and limit the use of plastic packaging.

The company adheres to international standards, including GlobalGAP, a farm assurance program, which seeks to translate consumer requirements into good agricultural practices. BHS is also a member of British Retail Consortium (BRC), which provides technical accreditation and also of Supply Ethical Data Exchange (Sedex) social audits initiatives. In addition, BHS works with the Living Environment and Farming (LEAF) and Fairtrade.

The company seeks to protect biodiversity, reduce waste and energy use. Finally, through the Blue Skies Foundation, the company develops programs for the welfare of its employees and of local communities around farms and processing plants. In 2020, BHS received its fourth Queen’s Award for Enterprise in Sustainable Development for its work in promoting human rights and good environmental stewardship.

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