Tomato, nutritious vegetable Tomato (Lycopersicum esculentum) is a staple fruit vegetable. Nutritionists are of the opinion that fresh fruits and vegetables are very important sources of vitamins and minerals that are essential for healthy human diet. Tomato has become an important cash and industrial crop in many parts of the world. In Nigeria, an annual total area of one million hectares is reportedly used for its cultivation while it makes up about 18 per cent of the average daily consumption of vegetables in Nigeria homes. Tomato may be eaten fresh as salad or they may be pressed into pastes or purees, which are used for cooking in soups or stews and producing fruit drinks. It can also be processes into juice or ketchup. Tomato is grown in many parts of Nigeria both as wet and dry season crops. Although most tomato production is on a small scale in backyard gardens, it is grown in commercial quantities in many states in the North, particularly Kano, Borno, Sokoto, Gombe, Yobe, Kaduna, Benue and many others. In the North where dry season tomato is grown under furrow irrigation, foliar diseases are less. Consequently, tomato crops grown there have higher yields and better quality fruits. The tomato industry is one of the sub-sectors where Nigeria is highly advantaged. Nigeria is ranked second largest producer of tomato in Africa and thirteenth largest in the world producing 1.701 million tonnes of tomato annually at an average of 25-30 tonnes per hectare. Despite this advantage, Nigeria imports processed tomato paste to the tune of 65,809 tons valued at N11.7 billion ($77.167 million) annually. The reason for this is not far-fetched; not less than 50 per cent of the tomato produced in the country is lost due to lack of preservation. According to World Food Science, about 30-50 per cent of perishable produce are lost after harvest due to poor storage system and humid weather condition exacerbated by poor marketing distribution and access to markets. Rather than seek solution to the problem of post-harvest losses, Nigeria opened her borders to imports and is equally gave waiver to importers, which frustrated the farmers and destroyed the local market. Today, there are many brands of Tomato and ketchup in the market, mostly imported from the Middle East, China and Italy. They include St Rita by Baoding Sanyuan Food Packaging Co. Ltd, People’s Republic of China (PRC); De Rica from Italy; Gino by Embalado for TCTP, PRC; Ciao, Italy; and Sultana by COFCO Tunhe Langfang Tomato Products Co. Ltd, PRC. Ketchups include Alfa by Al Ain National Juice & Refreshment Co., UAE and Heinz from Egypt. TGI Nigeria Limited (from the House of Chi) makes Peppe Terra. Launched in 2010, the company says it is a blend of freshest tomato, spiciest red pepper and premium onions. Before the influx of the foreign brands, Nigerians were used to Tomapep and Vegfru tomatoes. These are no longer in the market. The story of Vegfru is rather pathetic. At the height of its production, Vegfru was a ubiquitous brand name in the vegetable industry. The Vegfru factory in Jauro Garga, Borno State was widely known for its tomato paste, ketchup and mango juice, but not anymore. The company has fallen on hard times. Saddled with unbearable debt burden and having to contend with the influx of imported tomato paste and mango juice, its products no longer command a presence on the shelf in many markets. The company has gone through vicissitudes of life, changing ownership three times. Though there plans by the new owners, Savannah Integrated Limited to install a 600,000 metric tonnes machine, up from 300 metric tonnes per day initial capacity, it is doubtful whether the company can come back to life to dominate the market with its brand of canned tomato that was the preferred choice of many housewives. Solving post-harvest losses Industry experts say that there is no clear cut policy presently that addresses the problem of post-harvest losses in Nigeria even though the problem has lingered in the country for as long as agriculture exists. More pathetic, they maintain, is the fact that most Nigerian farmers have not been able to upgrade their farming methods to adapt to improved technologies that would encourage higher yield and less effort in terms of use of energy to farm. National President of the Potato Farmers Association of Nigeria (POFAN), Dan Okafor said Nigerian farmers are yet to access modern technology in farming and storage because the government has failed to lead the way. “0ur policies in Nigeria are not favourable to farmers because they do not take consideration of the critical needs of farmers. Tomato is not the only crop that is affected by post-harvest loss, even potato gets bad because of lack of storage facilities,” Okafor lamented. Though the present administration is making efforts at revitalising the agricultural sector by prioritising some crops for accelerated production and preservation, tomato is not in the list of priority crops hence the wholesome importation of tomato puree has continued unabated. Sadiq Kassim, director, Group Operations, Chi Limited, said for Nigeria to reduce post-harvest loss especially in tomato, government must restrict the importation of tomato puree and concentrate from countries like China. Kassim stated that there are home grown industries that can process tomatoes but is faced with stiff competition from imported tomato concentrate which has also worsened the situation of farmers who now face more loses and lack of market to sell their produce. He explained that current policies that encourage import waivers and importation of tomato paste into the country is injurious to the local industry because they are killing the industry, stressing that no country can grow her local industry by importing what it has the capacity to produce. “Government policies should be able to encourage local farmers through high subsidy. Tomato concentrate and purees should not be allowed into the country from China and other countries so that the local industry can thrive,” he said. He charged the government to impose outright ban on such products or raise the import duty to discourage importers or take other measures that would reduce importation and competition for local industries so that they can thrive. Agricultural experts say that continual loss of perishable produce due to lack of storage facilities usually leads to persistent price increases in the prices of tomato and other major food items like pepper and other vegetables that is constantly on demand. This, according to them, means that when these products are in season, the prices are relatively stable but once they are beginning to go out of season, the prices shoot up and this is made worse by the inability of farmers and traders to preserve the surplus usually harvested but is allowed to rot away. The experts recommend the following policy actions to reduce post-harvest losses and increase the standard of living of the tomato producers. . Provision of good storage facilities to store the produce that are harvested before they are being taken to the market in order to reduce the losses that occur at the farm level; . Training initiatives on post-harvest handling of perishable products such as tomato should be encouraged and follow ups, feedback and adoption measurement should be conducted periodically for sustainability; . Improvement in roads linking farms to market to reduce transit losses; . Establishment of farmers market and cooperative marketing should be encouraged to reduce losses related to marketing functions. Efforts to harness potential Efforts are being made by both the private and public sectors to harness the tomato potential of the country. One of such efforts is by Vegefresh Company Ltd. The company has signed a memorandum of understanding with the National Institute of Horticultural Research (NIHORT) to boost tomato processes/production in Nigeria. It is also currently working with Gombe, Benue and Lagos states in various capacities to enhance tomato yield and various other agricultural produce which has been a major challenge to farmers. Similarly, the Odua Investment Company Limited is also reported to be set to establish a tomato processing plant in Ogun State. The company has acquired a vast piece of land in the Imeko/Afon Local Government Area of the state and signified intention to commence production of tomato paste very soon. Sunkanmi Omidiji, head, marketing and corporate affairs of the company, noted that tomato is produced in commercial quantity in the area but there was no means of preservation. He stated that the factory would create employment and increase the revenue accruing to the coffers of the government when it becomes operational. Apart from private sector initiatives, states and the federal government are getting involved. For instance, the Sokoto State government is seeking investors for a Greenfield tomato juice and purée production. According to the state investment outfit, the investor would finance, construct and operate the facility. The government said there are several initiatives aimed at attracting investment to the agriculture sector, including financial incentives (for companies processing food), subsidies (for farming equipment and fertiliser), and research initiatives into improved crop utilisation. Inadequate processing capacity, it noted, is one of the key structural deficiencies in the agricultural economy. Consequently, it said investment in this sub-sector attracts pioneer status: tax holidays, tariff concessions, financing and export support. The federal government and Kano State government are also partnering to boost tomato paste production in Nigeria. Minister of Agriculture and Rural Development, Akinwumi Adesina, who disclosed this recalled the period when the Kadawa River Valley in Kano State was producing about 640,000 metric tonnes of tomato as against the current production rate of 260,000 metric tonnes. He noted that with value addition, the current production rate could be enhanced significantly to produce enough tomato paste which could be processed, packaged and stored for local consumption and export. The minister explained that the federal government would complement the efforts of the Kano State government in leverage on the private sector to actively invest in the value chain so as to set up a world-class tomato paste production plant in Kano to stem massive importation of tomato paste. Investment opportunities Beyond preservation, investment experts have called for the establishment of cottage industries processing tomato into ketchup, juice and purees, create employment and save the country huge foreign exchange expended on importation the product. According to them, although there are various brands of tomato pastes and purees imported into the country, Nigerians can produce quality tomato pastes/puree at reduced cost and eliminate the cost of importation. Tomato can be processed into paste, canned, and exported to other West African nations or sold within the country because demand is very high locally being one of the consumer goods needed in every home, hotels and restaurants on daily basis. To set up an effective and efficient tomato paste-producing plant an investor needs the expelling machine, blending machine-filling machine, pasteurizer washing machine, stainless top working table, and canning machine, which can be sourced locally from FIIRO, Oshodi and other fabricators or imported depending on the promoter’s choice. The canning materials can be obtained locally too. The production process is simple. It is made up of washing, pulverising, mixing with preservatives and pulp rising; finally, they are filled and canned. Investment analysis sighted by ManufacturingToday, indicate that the project can be set up with approximately N12 million. According to the report, projected total sales in the first year will be N58 million. Deducting the projected costs of establishment, it then implies that the project can pay back the cost of establishment in the first year of operation. The rate of returns on investment based on projection is 67 per cent. The profit before tax of proposed project is N15 million, but this figure increases to N38 million in the fifth year of operation. According to the analysis, “the project is feasible because the raw materials, manpower and machinery required for setting up the project are all available locally.” The project cost may either go up or come down, depending on some variables. There are many investment experts to guide prospective investors in setting up the project from feasibility studies, site planning, procurement and installation of machines, development of marketing strategies, and recruitment of experienced manpower to manage the project for profit.
Posted on: Fri, 01 Nov 2013 21:16:01 +0000
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