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TOMATO PASTE PRODUCTION BUSINESS PLAN

50,000.00

Tomato paste production in Nigeria and Africa has the potential for high profitability. The strong demand and import dependency create a lucrative market. Tomato paste has a deep, rich red color, ranging from a bright to a slightly duller shade. It has a smooth, thick consistency that clings to itself rather than running freely.  Tomato paste factories use large scale machinery to efficiently convert fresh tomatoes into a thick and concentrated paste.

Nigeria is a land of opportunity for tomatoes. It boasts the title of largest tomato producer in sub-Saharan Africa, cultivating roughly 2.5 million metric tons annually on one million hectares of land. Despite this impressive production, a significant challenge exists: post-harvest loss. The perishable nature of tomatoes means over 50% spoil before reaching consumers, creating a substantial gap between production and available processed products. This is where tomato paste production comes in.

The tomato paste market in Nigeria is substantial, with a yearly import deficit of around 65,809 tons. This presents a golden opportunity for domestic manufacturers. Recent years have seen a rise in investment, with companies like Tomato Jos establishing large-scale processing facilities. Tomato Jos is a prime example of success, achieving yields up to 15 times higher than the national average through improved farming practices.

The demand for tomato paste in Nigeria is high and outpaces domestic production. Here’s a quick breakdown:

  • Nigeria’s tomato consumption sits around 2.2 million metric tons annually.
  • Despite being a major tomato producer, the country has a significant import deficit, relying on external sources to fill the gap of roughly 700,000 tons.
  • This shortfall translates to Nigeria being the 13th largest importer of tomato paste globally.

Africa contributes roughly 11.8% of global tomato production. 22.9 million metric tons of tomatoes were produced in Africa in 2022, reflecting a steady increase over the past decades.
Top African producers:

  • Egypt (Leader) – 7.3 million tons
  • Nigeria – 4.1 million tons
  • Morocco – 1.3 million tons
  • Tunisia – 1.3 million tons
  • Cameroon – 1.3 million tons

These figures paint a clear picture: Nigerians and Africans love their tomato-based dishes, and the demand for shelf-stable tomato paste is booming. This strong demand presents a significant opportunity for local processors to bridge the gap and capitalize on the growing market.

The proposed production volume: 16 tons per day raw material with input – output ratio assumed at 1:0.3 (or 30% yield). In year 1, the plant would operate at 70 percent of the installed capacity for a single shift of 8 hours per day for 250 working days per annum and producing 392,000 cartons of 50 pieces of 50 gram sachet.

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