The Corvus Magazine 5th Edition | Page 29

Opportunities that exist in tomato farming Processed tomatoes serve as an alternative method of tomato preservation. This ensures tomato products are available for consumption all year round. Asides providing the country with an additional source of revenue through the exportation of processed tomato and reducing importation costs, setting up tomato processing factories will stimulate employment in the country, while indirectly increasing the standard of living in the nation. Specifically, the opportunities that exist in the tomato farming/processing sub-sector are enormous. The federal government of Nigeria introduced the tomato policy in May 2017 focused on boosting tomato production, improving the entire tomato value chain, reducing the millions of dollars spent on the importation of over 150,000 metric tons of tomato annually through encouraging local agro-allied businesses growing to increase fresh tomato fruits required for consumption and processing. The policy also seeks to impose a ban on the importation of processed tomato paste to promote local production of tomato paste in the country. A 2015 Sciencedomain Research report revealed that only about 20% of tomato processed products consumed in the country were locally produced as the remaining 80% were imported into the country. With the government’s impending ban of the imports of tomato paste and an established market for the product, there’s expected to be a huge supply gap that discerning entrepreneurs can fill to meet the increasing demand for tomato paste in Nigeria on the one hand, and also expanding into the West African sub- region on the other hand. The government is also encouraged to prioritize the 100% implementation of its tomato policy to signal some level of seriousness to existing and prospective domestic players. Secondly, the porous state of the country’s borders has continued to raise concerns about the feasibility of the government’s tomato policy as smuggling and illegal entry of foreign nationals into the country have continue to thrive unabated. Fortunately, there are some key players who have observed the huge and lucrative gaps in Nigeria’s tomato market and are taking steps to remedy them.  Tomato Jos Mira Mehta and her co-founder, Shane Kiernan, founded Tomato Jos in 2014. Tomato Jos is an agricultural production company with the aim of making tomato paste production a sustainable, profitable business for Nigerian farmers. The company generates revenue by manufacturing, packaging, branding and selling tomato paste directly to major supermarkets as well as through regional distributors. About 55% of the tomatoes used for the paste production are gotten from farmlands directly operated by the company, the remaining 45% are purchased from small farmers (c.100,000 in North Central Nigeria). It is transforming highly perishable raw tomatoes into long- lasting, high value tomato paste. Dangote Farm Industries Ltd. Launched in Kano state in March 2016 and later shutdown towards the end of 2017 due to lack of raw materials and inability of the company to agree pricing with farmers, the US$20 million Dangote tomato processing facility was re-opened in March 2019 with a production capacity of 1,200 metric tonnes of tomato paste daily. With the major challenge of the company being insufficient tomatoes for daily production, the company has concluded plans to develop its own tomato farm with a special strain that could increase yield to 60 tonnes per hectare compared to 10 tonnes per hectare recorded by most farmers presently. The company also reached an agreement with local farmers to buy their products at local markets prices in a bid to meet up with enough supply for daily production. With this strategy, producing tomatoes can be made a multi-billion-dollar business that meets both domestic and international demand in Nigeria and Africa as a whole. Tomato Farming in Nigeria 28