Tomato Paste Production From Tomato in Nigeria; The Feasibility Report.

Tomato (Lycopersicon esculentum) is one of the most widely grown vegetables in the world. Tomato has been in cultivation in Nigeria for a very long time. It is an important component of the daily diet, consumed both fresh and in paste form.

Tomato is a rich source of vitamin A & C and is cultivated over vast area of land in the world. It has its origin from the city of Mexico where it was named as Tomatile.

Then its cultivation started in Central America and subsequently shifted to Europe. It is popular due to its color, taste & food value. Tomato has long been processed into Ketchup in Italy, Turkey, Greece, USA and European countries. It is used in large quantity at household and restaurants in the shape of tomato juice, tomato puree and paste. These products are also gaining popularity in Nigeria.

Tomato, like other vegetables/fruits is a perishable commodity and has a shorter shelf life in normal temperature.
Therefore, problems are faced in the supply chain due to non-existence of a cold chain system in the country which results in losses of product and drastic price variations. Tomato Paste provides a way out with extremely positive outcome both commercially and financially.

Indeed, tomato consumption by the food processing industry revolves around the availability of user friendly intermediate products like tomato paste, puree, ketchup and sauces.

In Nigeria, an annual total area of one million hectares is reportedly used for its cultivation producing about two million five hundred thousand (2,500,000) tons at twenty-five (25) tons per hectare 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.

Over the years there has been tremendous increase in the demand for tomato paste and allied products in Nigeria.

This is because

1. The eating habits of most Nigerians have changed considerably with better enlightenment; they now eat more of European foods, which require a lot of tomato puree.
2. The packaging of tomato puree makes it easier for usage in homes and hotels
3. The nature of most of our staple foods (mostly starch and vegetable based) with its relatively heavy reliance on tomato, vegetable soups and stews.

Nigeria imports processed tomato paste to the tune of 65,809 tons valued at N 11.7 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.

This report seeks to examine the financial viability or otherwise of establishing a tomato paste production plant in Nigeria using tomato as the basic raw material.

The proposed production volume is five (5) tons per day with input – output ratio assumed at 1:0.3 (or 30% yield). The plant would operate at seventy percent (70%) of the installed capacity for a single shift of eight (8) hours per day for three hundred (300) working days per annum and producing ninety thousand (90,000) cartons of fifty (50) pieces of seventy (70 g) gram sachet.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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