In this post we will see How Profitable is Tomatoes Farming in Nigeria. This article is using if you are planning to start tomatoes business in Nigeria.
Nigeria is one of the African countries that lead in tomatoes production. In fact, Nigeria can possibly do even more better than trying to meet its own tomatoes requirements.
Nigeria owns the land, and have human resources, including market to make sure that tomatoes production is a multi-billion naira business, such that will serves both the domestic and the international demand.
However, what a joy that, what will guaranteed Nigeria to attain to this dream is already begin to happened. Of course you know that, tomatoes that is eaten in Nigeria everyday cannot be coming from other nations of the world, and so Nigeria has realized how profitable commercial tomatoes production is, and it is working to ensure that it earns foreign exchange from tomatoes production.
How Profitable is Tomatoes Farming in Nigeria
This question is begging for answer! One of the crops, grown in Nigeria, that has high demand, is tomatoes crops. Nigeria is one of the most successful tomatoes grown nations in Africa. Most of the regions that produced tomatoes in Nigeria is in the northern part of Nigeria, for example Kano state.
Possible Tons Of Tomatoes Produced In A Season
Approximate of fourteen thousand, four hundred tons of tomatoes can be produced in Nigeria in each season, provided a considerable number of workers are employed, and in every year over million of naira is spent on labour alone.
Commercial Tomatoes Business Is Farms On 400 To 500 Hectares Of Land
Commercial tomatoes business can be farmed on between 400 hectares and 500 hectares. For the most part, tomatoes produced in Nigeria are mainly targeted at the country’s domestic demand and market, however, substantial number of these crops are also exported.
Having said that, commercial tomatoes production is good and commendable, but tomatoes processing is much more better, because that is where the money is. Before I continue, let me digress.
Be that as it may, if you have observed, you will come to see that most parts of this country are already in tomatoes production. But there is problem of waste, Why?
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It is because when tomatoes are harvest, there is no provision made for storage, or to preserved them or to even processed them. That is why Nigeria is losing majority of the tomatoes it produced.
More so, within the country, there are a number of smallholder farmers, and they are actually in tomatoes production.
But should you think of going into tomatoes production, you must make sure that, you have competitive edge. For example, good access to the markets, as well as consumers, and good storage system, and way of preserving the tomatoes to avoid products damage. This will help allow you in targeting the market, particularly, during off-peak season.
Nevertheless, the truth remained that tomatoes processing is indeed a virgin business opportunity in Nigeria. The truth also is that tomatoes processing is capital-intensive.
Although tomatoes farming is lucrative and profitable, but tomatoes processors are those, who have more access to the huge amount of money that is in tomatoes production. Let us take a look at Aliko Dangote, who ventured into tomatoes business.
It is usually said, should you care to know exactly where business opportunities really are, what you need do is to watch carefully and sinceret follow where the rich are making their investment.
The Nigeria’s richest man, Aliko Dangote has officially established a $20 million tomatoes processing factory in Kano state, Nigeria.
He believed that he can compete for a share in lucrative tomatoes paste market in Nigeria, a market, presently dependent on imports from China.
Read Also: Rate of Tomatoes Consumption in Nigeria
This new plant of his, the tomatoes processing plant, is built by a Swiss-based Syngenta. The plant capacity is expected to produce over 400,000 tons of tomato paste yearly just for Nigerian market.
Going by Dangote’s successes in other areas, for example, in cement, and flour,,and sugar, as well as, salt, there is clear indications that, Aliko Dangote will make it real big in tomatoes market.
Perhaps this is the first tomatoes processing business in the country. But if the tomatoes business become very successful, then, it is also glaring that Aliko Dangote will turn out a top notch in commercial tomatoes production business in not only Nigeria but in African continent.
Check out this! Aliko Dangote is working currently with a network of about 50,000 smallholder tomatoes production business and farmers, particularly in the Northern part of Nigeria.
Dangote is planing to ensure that, these tomatoes farmers are paid a guaranteed price of about $700 each ton of tomatoes. Imagine! This cannot be compared to $350 average they earned by selling their tomatoes in the open market.
However, should Aliko Dangote’s Midas touch works with tomatoes, just like other of his essential commodities which he has been dealing with and has succeeded with, then Nigeria will stand a better chance of turning into tomato independent soonest.
Nevertheless, with the rate of tomatoes consumption in Nigeria, the demand of tomatoes will be so much that, Aliko Dangote’s business alone may not really be enough.
Having said that, for those of you, who intend to go into smallholder tomatoes production business, so that you can sell your proceeds to Aliko Dangote tomatoes processing factory, I want to say that tomatoes business demands close attention and consistent care of these crops.
You are expected to first of all learn the ropes before you actually bet your time and energy and life on the business.
You also have to understand that tomatoes are crops that are sensitive to heat, sensitive water and sensitive to soil conditions. Therefore, for you to succeed in producing tomatoes, you really have to know what you are up to.
Read Also: How to Start Vegetable Farming in Nigeria
Hence, this country is in dare need of many business entrepreneurs, who will be willing to join in the commercial tomatoes production in Nigeria, if only Nigeria must turn out to be a net exporter of tomatoes to the entire world.Buy and Sell Bitcoin in Nigeria - Register for free on Luno
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