The absence of functional tomato paste processing facilities in Nigeria has resulted in an estimated loss of N10 billion since the start of the 2018 dry season farming, the commodity growers association has said.
“This season alone our members have lost N10 billion due to poor market and lack of guaranteed off takers. The open market cannot mop-up all the harvest,” Sani Danladi Yadakwari, national general secretary, Tomato Growers Association of Nigeria (TOGAN) said in a statement made available to BusinessDay.
The off-takers, which are processing plants operations have stalled as billions of naira worth of investments made in them have failed on account of ineffectual implementation of the tomato policy.
“Our farmers have continued to remain in perpetual poverty and the poverty level will continue to rise if the necessary steps are not taken,” Yadakwari said.
The Dangote Tomato Processing Factory, which is the biggest paste and concentrate manufacturer in Nigeria, started in February 2016 suspended operation in May 2017 owing to lack of fresh tomatoes due the outbreak of Tuta Absoluta, a devastating pest of the commodity.
Since then, the $20 million factory that needs about 40 trailer loads of fresh tomatoes daily, equivalent to 1,200 tons for production has not been able to off-take from thousands of farmers it has entered an agreement with.
“Dangote Farms and Savannah Foods who have off-take arrangements with farmers have remained handicapped, unable to produce and their factories shut down as these packers of triple concentrate in country rely heavily on importation at the detriment of Nigeria farmers and industries,” Yadakwari said.
“These Indigenous factories whom off-take tomatoes from farmers are shutting down because of lack of buyers, because theses packers would rather import from China and other countries,” he further said.
Nigeria currently produces 1.5 million tons of tomatoes per annum, with 0.7 million metric tons post-harvest losses. Tomato demand in Nigeria is put at 2.2 million metric tons per annum, leaving a gap of 700,000 metric tons, according to official data from the country’s Agricultural Ministry.
Nigeria is the 13th largest producer of tomatoes in the world and second after Egypt in Africa, yet the country is the largest importer of tomato paste globally as the country is still unable to meet local demand.
According to industry data, Nigeria is said to import an average of 150,000 metric tons of tomato concentrate per annum at a staggering value put at $170 million.
The TOGAN secretary appealed to President Buhari to come to the rescue of tomato farmers in the country, adding that the association is not asking for subsidy from the government but for the full implementation of the tomato policy to allow local processors commence operation.
Since the implementation of the tomato policy in May 2017, the Federal Government is yet to implement the policy of zero import duty on greenhouses, ban on the importation of tomato concentrate through land borders and increase in the tariff on tomato paste or concentrates through the seaports from five percent import duty to 50 percent as well as a levy of $1,500 per metric ton payment.
Key players say that the impact of the policy is yet to take effect due to the ineffective implementation of the policy, noting it as the major problem affecting the country’s tomato industry.
Josephine Okojie
