Dangote Tomato Processing Company’s announcement of imminent resumption could reduce the import bill of the commodity.
Dangote’s tomato processing plant in Kano has the capacity to process 120 tonnes of fresh tomatoes per day.
This means Dangote Tomato has the capacity to process 43,800 tonnes each year. Africa’s biggest economy produces 1.5 million tons of tomato per annum, with 0.7 million metric tons post-harvest loss. Tomato demand in Nigeria is put at 2.2 million metric tons per annum, leaving a gap of 700,000 metric tonnes, official data say. Dangote’s plant will therefore ensure that 43,800 tonnes are reduced annually from total import bill, at least for now. An expansion of its capacity will further ensure that tomato importation into Nigeria crashes further.
Nigeria is the 13th largest producer of tomato in the world and the second after Egypt in Africa, yet the country is still unable to meet local demand because about 50 percent of tomato produce is wasted to lack storage facility.
“I believe that if Dangote begins full operation, we will reduce our reliance on foreign tomatoes. Despite recent measures taken to stop tomato import, tomatoes are still being imported in retail bags. Like we have seen in sugarcane, we will also likely see many jobs created among farmers if this plant starts,” said Ike Ibeabuchi, CEO of MD Services Limited, a Nigerian manufacturer.
Dangote Tomato had announced on Monday that it would resume production on March 19.
Abdulkarim Kaita, managing director, Dangote Tomato Processing Company, said the company, located in Kadawa, Kano State, would resume production as a result of the availability of fresh tomato and the recent crash of its prices in the market.
Kaita said the company was expecting a team of engineers from Italy this week as part of the preparation to resume production.
Analysts say Dangote resumption will close the demand-supply gap in the industry as well as N16 annual billion import bill.
According to a Tomato Policy Direction Paper made available to BusinessDay, large quantities of tomato paste consumed in Nigeria are smuggled from Benin Republic and Niger due to duty differentials and foreign exchange bans.
Tomato is among 41 items banned by the Central Bank of Nigeria. Dangote and Erisco Foods are two major players in the industry. He two players are agitating for a ban of tomatoes in retail packs.
A tomato farmer in Kaduna Bala Daguri confirmed availability of fresh tomatoes in the north-western states of Nigeria and stressed that Dangote Tomato could reduce importation of tomatoes while raising jobs in the region.
ODINAKA ANUDU & JOSEPHINE OKOJIE
