How To Start A Lucrative Tomato Paste Production Business in Nigeria

Tomato paste is a concentrated form of tomato puree, commonly used as a flavoring agent in various food products. It is made by cooking ripe tomatoes for several hours to evaporate the water content, and then straining and packaging the remaining thick, red paste.

Tomato paste is a thick and concentrated form of tomato puree used in a wide range of food products. It is a vital ingredient in many African and Nigerian dishes, including soups, stews, and jollof rice. Nigeria is the largest producer of tomatoes in sub-Saharan Africa, with a yearly production of about 2.3 million tons, and a consumption of about 2 million tons. Despite this, the country still imports over 300,000 tons of tomato paste annually, which presents a significant business opportunity for local production.

The demand for tomato paste is expected to grow due to its wide application in the food industry, especially in the production of sauces, soups, and stews. The increasing popularity of ethnic cuisine and ready-to-eat food products is also expected to boost demand for tomato paste globally. With Nigeria’s large tomato production capacity, the country can take advantage of this growth and become a major player in the global tomato paste market.

Research has shown that Nigeria has a significant advantage in tomato production due to its favorable climate and large arable land. The peak harvest season for tomato in Nigeria is between March and May, with a second season between September and November. On average, a hectare of land in Nigeria can yield about 40-50 tonnes of fresh tomatoes, which can produce approximately 6-8 tonnes of tomato paste.

The maturity period for tomatoes is between 70-90 days after planting, and the crop can be harvested for up to 5 months. This presents a significant opportunity for tomato paste production in Nigeria, as there is a steady supply of fresh tomatoes throughout the year.

Due to the high perishability of tomatoes, many farmers struggle to sell all their produce before it spoils, resulting in a surplus of tomatoes during peak harvest season. This surplus leads to lower prices for fresh tomatoes, making it an ideal time for tomato paste production businesses to stock up on raw materials.

The highest yield of tomato in the history of Nigeria was recorded in 2010. The overall value of this highest yield was $687, 610, 000. Still, it couldn`t satisfy Nigerians. The national demand for fresh tomatoes in Nigeria is about 2-3 million tons every year. Due to the poor production chain, Nigerians waste from 750 000 to 1, 350, 000 tons of tomatoes.

The life span of processed tomato (paste) is ten times more than that of the natural tomato and is usually preferred for cooking quick meals.

For tomato paste, an international network for export will ensure a continuous demand for the product with higher profit, but this will require an adequate standard.

Supermarkets, restaurants and other vendors are other possible clients to be considered.

A proper advert means such as social media and print media should be utilized to provide a larger coverage for the demand of the product.

How To Process and Package Tomato Paste In Nigeria or Africa

Sorting and washing: Tomatoes are sorted and washed to remove dirt and debris.

Blanching: The tomatoes are blanched in hot water to remove the skin.

Crushing: The tomatoes are crushed to a fine pulp using a mill or grinder.

Preheating: The pulp is preheated to reduce the moisture content and improve the quality of the paste.

Concentration: The preheated pulp is concentrated by evaporation to increase the solids content and thickness.

Filling: The thick paste is then filled into cans or pouches.

Sealing: The filled cans or pouches are then sealed to prevent contamination.

Pasteurization: The sealed cans or pouches are pasteurized to kill any bacteria and extend the shelf life of the product.

Cooling: The pasteurized cans or pouches are cooled to room temperature.

Labeling and packaging: The cooled cans or pouches are labeled and packaged for distribution and sale.

The packaging of tomato paste is an important factor in its quality and shelf life. The most common types of packaging used for tomato paste are cans and pouches. The packaging materials should be sturdy, airtight, and easy to open. The labeling of the product should include information such as the date of production, expiry date, nutritional information, and storage instructions.

 The Nigerian Export Promotion Council (NEPC) has identified tomato paste as one of the priority products for export promotion, with a target to generate $100 billion in non-oil export revenue annually. This presents a significant opportunity for tomato paste producers in Nigeria to tap into the international market and contribute to the country’s economic growth.

Benefits of The Tomato Paste Production Business In Nigeria and Africa

Job creation: Tomato Paste Production Business creates employment opportunities for individuals who work in the processing plants and those who engage in tomato farming.

Increased agricultural productivity: Tomato Paste Production Business promotes tomato farming, which leads to increased agricultural productivity and improved livelihoods for farmers.

Improved food security: Tomato Paste Production Business contributes to food security by providing a stable supply of tomato paste, which is a staple ingredient in many African dishes.

Increased foreign exchange earnings: The export of tomato paste can earn foreign exchange for Nigeria and other African countries, improving their balance of trade.

Encourages entrepreneurship: Tomato Paste Production Business provides opportunities for entrepreneurs to establish and grow their own businesses.

There are different types of Tomato Paste Production Businesses in Nigeria and Africa, including:

Small-scale Tomato Paste Production Business: This involves producing tomato paste on a small scale for local consumption or sale.

Medium-scale Tomato Paste Production Business: This type of business involves producing tomato paste on a larger scale than the small-scale business. The production output can be sold locally or exported to other countries.

Large-scale Tomato Paste Production Business: This involves producing tomato paste in large quantities for export to other countries. The production process is automated and requires substantial capital.

Contract Farming: This involves partnering with farmers to grow tomatoes for processing into tomato paste. The processed products can be sold to local or international markets.

Value Addition Business: This involves processing tomatoes into other tomato-based products such as ketchup, sauce, and juice.

Tomato Farming Business: This type of business focuses on the cultivation of tomatoes for sale to processors or the fresh market.

Tomato Processing Machinery Sales and Maintenance Business: This type of business involves the sale and maintenance of tomato processing machinery.

Packaging Business: This involves the packaging of tomato paste into different sizes and shapes for retail or wholesale distribution.

Tomato Paste Trading Business: This type of business involves buying and selling tomato paste locally or internationally.

Agro-Logistics Business: This type of business involves the transportation and storage of tomato paste from the processing plant to the market.

Research and Development Business: This involves researching and developing new tomato-based products and improving the production process.

Consulting Business: This involves providing consulting services to tomato paste production businesses on production, marketing, and other areas.

Training and Capacity Building Business: This involves providing training and capacity building services to tomato paste production businesses and their staff.

Organic Tomato Paste Production Business: This involves producing tomato paste from organically grown tomatoes.

Each type of business presents its unique opportunities and challenges, and entrepreneurs need to choose the most suitable option based on their expertise, available resources, and target market.

Here are some of the types of tomato paste used in the industry:

Concentrated Tomato Paste: This is the most common type of tomato paste used in the production of tomato paste in Nigeria and Africa. It is made by removing the seeds and skin from ripe tomatoes and cooking them down to a thick paste.

Cold Break Tomato Paste: This type of tomato paste is made by heating the tomatoes to a lower temperature than the hot break process, which results in a brighter and fresher flavor.

Hot Break Tomato Paste: This type of tomato paste is made by heating the tomatoes to a high temperature, which breaks down the fibers and makes it easier to extract the juice.

Organic Tomato Paste: This type of tomato paste is made from organic tomatoes that are grown without the use of synthetic pesticides or fertilizers.

Non-Organic Tomato Paste: This type of tomato paste is made from conventionally grown tomatoes that may have been treated with synthetic pesticides or fertilizers.

Double Concentrated Tomato Paste: This type of tomato paste is made by cooking down the tomatoes even further than concentrated tomato paste, resulting in a more intense flavor.

Triple Concentrated Tomato Paste: This type of tomato paste is made by cooking down the tomatoes even further than double concentrated tomato paste, resulting in an even more intense flavor.

Aseptic Tomato Paste: This type of tomato paste is sterilized and packaged in aseptic containers, which allows it to have a longer shelf life without the need for preservatives.

Canned Tomato Paste: This type of tomato paste is packed in cans and can be stored for a long time without refrigeration.

Bagged Tomato Paste: This type of tomato paste is packed in bags and is used for industrial purposes.

Each type of tomato paste has its unique properties that make it suitable for different purposes. Manufacturers in the tomato paste production business in Nigeria and Africa choose the type of tomato paste based on their target market and the intended use of the final product.

PROFITABILITY: The first year profit before tax is arrived at about N16.5 Million Naira.  Payback period is typically within 3 years of operation where it is managed efficiently.   This venture qualifies for funding under the various federal funding windows including CBN Agriculture Loan and The Bank of Industry. 

The tomato paste production business in Nigeria is a lucrative venture with a vast market, both locally and globally. With the right investment, production processes, and marketing strategies, entrepreneurs can take advantage of the high demand and contribute to the economic growth of the country.

 Entrepreneurs who are interested in the Tomato Paste Production Business should consider the market demand, target customers, and competition. They should also explore various marketing strategies and distribution channels to increase their reach and visibility. With dedication, hard work, and the right resources, a successful Tomato Paste Production Business can be established in Nigeria

With appropriate planning and robust execution, tomato processing promises to be a sustainable and rewarding business opportunity. By delivering quality products, Nigerian processors can play an influential role in developing the nation’s agro-processing sector. 

Get our ebook and video on how to set up a lucrative Tomatoes paste production Business. You will receive the valuable resource information with the cost and benefits for setting up a premium quality Tomato paste factory in Nigeria. It will cover all the aspects of the project, from analyzing the market, confirming availability of various necessities such as plant & machinery, raw materials, manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the income statement, balance sheet and cash flow. 

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