How to start tomato paste production business in Nigeria
What can arguably be said to be the most used ingredient in the meals that Nigerians prepare? If you told tomatoes, then you are most correct.
From stews to jollof rice to being eaten in raw form, tomatoes have assumed greater significance in the culinary diets of the average Nigerian.
Many reasons can be advanced for this development. The first is that tomatoes are available almost all year round; hence they can be afforded by most, except when there is a drought/ a disease outbreak in any planting season.
A second reason you would find interesting is that Tomatoes are vibrant in several nutrients.
Tomatoes are rich in fiber, contain several vitamins and trace elements as well as phytochemicals that increase your body’s capacity to fight diseases.
The processed Tomatoes industry in Nigeria accounts for 12 billion naira, mostly spent on importing foreign-made tomato paste.
Local cultivation of tomatoes is put at 2 million tons per annum, making Nigeria the 2nd and 12th largest producer of raw tomatoes in Africa and the world.
Hence you can decide to key into this opportunity in the agricultural value chain by setting up a tomato paste production facility.
How to start tomato paste production business in Nigeria
You can be guided with the following action steps:
1. Conduct a Feasibility Study
As a forward-looking entrepreneur, you will need to capture the main elements of setting up a tomato paste production plant; the information to be provided include how you intend to access your market, your supply route, the most cost-effective method of production, labor matters, expected Return on Investment, the competition amongst other pertinent parameters.
A feasibility study will help you even determine the best time for you to commence your tomato paste production facility operation.
You can also use your feasibility report to obtain a financial facility from a bank in cases where you cannot raise the capital requirements on your own.
2. Incorporate a Business and Obtain Relevant Certification and Licensing
Starting a tomato paste production facility cannot be done anonymously since all governments are strict with businesses that produce consumables.
You will have to register a business with the Corporate Affairs Commission, clearly stating your operations’ nature and scope.
Other health agencies such as NAFDAC and SON will have to allocate licenses to your facility before you can start operations.
3.Your Location Matters
If you set up a tomato paste production company, you will have to situate your plant close to tomato-growing farms.
At the same time, it would be ideal for your facility to be close to the intended market; instead of this, you should ensure that there are means of conveying your product cost-effectively and promptly.
It would help if you also considered the availability of labor to help with the smooth running of your plant.
4. Decide on the Machinery and Method of Production
This might be the most crucial piece of the puzzle.
Competent technical hands must install the equipment to be used.
The typical tomato processing plant manufactures tomato paste, puree, ketchup, juice, and sauce.
You can select the packing lines for tomato processing depending on the desired product, such as having the tomato paste in glass bottles, Cans, Drums, etc.
Today’s tomato paste manufacturing involves the use of modern technology of vacuum evaporation using forced circulation evaporators.
Evaporation plants are versatile and are being used extensively because they can concentrate other juices and give you other crop options to invest in.
5.Engage Competent Hands
From the more technical aspects of the production process to the packing stage, your tomato paste production business will rise or fall, depending on the quality of the human resources available to you.
Your recruitment process must involve committed and competent hands to ensure no downtimes in the production process. You cut down on losses arising from disruptions in production.
6. Choose Engaging Packaging
You must understand that while the quality of your tomato paste is paramount, perception is also a very decisive factor that will determine how successful the marketing of your paste will be.
You will do well to choose a packaging scheme that will deepen your brand name, instill customer loyalty and increase your market share in the tomato paste production industry.
Choose packing that is compelling and unique, even if it means engaging the services of professional graphic designers.
7.Have an Eye on the Future
You can set up your tomato paste production facility to accommodate an increase in production volume, especially when your business begins to gather steam.
In the same vein, you must project to serve the domestic market and to begin exporting your products, primarily since you have appropriately differentiated your tomato paste with your unique packing and brand.
If you need a bankable business plan for your Tomato Production business at an affordable price, please don’t hesitate to contact us on WhatsApp via https://wa.me/+2349012957163.
