ADVERTISEMENT
ADVERTISEMENT

Nigeria is missing out of the $360 million tomato paste market as Dangote farms suffer setback again

Alhaji Aliko Dangote, Africa's richest man and owner of Dangote Farms Limited
  • Dangote Farms shuts down operations as it was unable to get the required feed stock from farmers, who switched to other crops.
  • The company expects the Nigerian government to enforce restriction policy on tomato paste importation into the country.
  • Tomato paste importation industry worth $360 million annually - PwC

Dangote Farms, a tomato processing plant, owned by Africa's richest man, Aliko Dangote, has shut down operations, due to lack of materials as farmers picked other crops during the rainy season.

According to a report by Bloomberg News, Abdulkareem Kaita, Managing Director of Dangote Farms, said the company lost at least N30 million monthly as workers have nothing to do on-site.

Located in Kadawa, outskirts of the northern city of Kano, Nigeria’s biggest tomato plant was launched in March 2016 and faced lack of materials and price dispute between the company and farmers late 2017 which saw its shutdown.

In March this year, the Tomato Processing plant was revived in a move to cut paste importation from China and make Africa's populous nation sufficient in local tomato production.

ADVERTISEMENT

But this dream was cut short due to lack of credit facilities for farmers to increase supply.

Kaita said the company expects the government to enforce restriction policy on tomato paste importation into the country to improve local processing.

With this, the output of the farmers would tremendously improve and the processing factory would record ample supply,” Bloomberg quoted him as saying.

He said the implementation of the restriction policy will guarantee more investment in the tomato value chain.

ADVERTISEMENT

PwC: Tomato paste importation costs Nigeria $360 million annually 

According to a 2018 PwC report, about 45% of fresh tomatoes produced was lost to poor supply chain management in 2017. 

Between that period, tomato paste importation into the country accounted for $360m annually.

Nigeria's tomato policy not yet effective

In 2017, the government announced a tomato policy to boost and increase domestic production and attract more investment. The policy, the government had said it will discourage importation by increasing tariffs on tomato concentrate from 5% to 50%.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

If you get these 5 messages on Valentine's Day, you are the side piece

If you get these 5 messages on Valentine's Day, you are the side piece

Valentine's Day: 10 perfect Nigerian songs for the Booless

Valentine's Day: 10 perfect Nigerian songs for the Booless

Valentine's Day: 10 timeless Nigerian love songs you should add to your playlist

Valentine's Day: 10 timeless Nigerian love songs you should add to your playlist

Here are foods to avoid during Lent

Here are foods to avoid during Lent

Top 5 coldest countries in the world

Top 5 coldest countries in the world

6 ways to survive the heat season in Nigeria

6 ways to survive the heat season in Nigeria

5 tips for fasting during the days of Lent

5 tips for fasting during the days of Lent

How to celebrate Valentine's Day when you are in a long-distance relationship

How to celebrate Valentine's Day when you are in a long-distance relationship

5 places to avoid if you're single on Valentine's Day

5 places to avoid if you're single on Valentine's Day

ADVERTISEMENT
ADVERTISEMENT