This profile envisages the establishment of a plant for the production of tomato paste and juice with a capacity of 4,000 tonnes per annum.  The present demand for the proposed product is estimated at 2,369 tonnes for tomato paste and 11.14 tonnes for tomato juice per annum. The demand is expected to reach at 3675 tonnes for tomato paste and 17.3 tonnes for tomato juice by the year 2016.  The plant will create employment opportunities for 20 persons.

The total investment requirement is estimated at about N22.984 million, out of which N4.0 million is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 94.5 % and a net present value (NPV) of N470.358 million discounted at 20%.

The project is financially viable with the following profitability indices:



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Tomato paste is a thick paste made by cooking tomato for several hours to reduce the water content, straining out the seeds and skins, and cooking the liquid again to reduce the base to a thick, rich concentrate. By contrast, tomato  puree is a liquid with a consistency between crushed tomatoes and tomato paste that is made from tomatoes that have been briefly boiled and strained.

Tomato paste and juice are processed products of fresh tomato usually consumed in households, restaurants and institutions. Concentrated tomato juice, without seeds and skins and containing not less than 25 percent of solids is known as tomatoes paste. If the juice (pulp) is further concentrated so as to contain 33% or more of tomato solids, it is called concentrated tomato paste. Tomato paste is concentrated tomatoes. It's really just tomatoes that have been cooked down, then had the seeds and skins strained out, and then cooked down some more until it becomes super dense and, well, paste-like. Tomatoes have a lot of bright acidity and umami flavor in their raw state, and when all of that pesky water has been cooked out the result is packed with the stuff. As is the case for most concentrated ingredients, a little can go a long way, which is why the cans are considerably smaller than can of sauce or crushed tomatoes. Some tomato paste is labeled as “double-concentrated,” which obviously means that the tomato is even more intense.


II.               MARKET STUDY


Processed and conned tomato paste and tomato juice are consumed by urban households, hotels, restaurants, hospitals and the like. These products are supplied both from domestic production and imports. The sole domestic producer of tomato paste and juice Kaduna-based Food Company, Ikara food Processing Company, has begun the production of tomato paste at 20 MT daily. Also, Dangote Food Company in Kano is said to join the trail of Ikara Food Company in tomato processing. For the purpose of determining the current demand for the products data on domestic production of tomato paste and import of tomato juice is presented in Table 3.1.




Tomato products are cultivated in most states in Nigeria. There are even leaders in tomato production industry! It includes states like: - Kano; - Taraba; - Gombe; - Bauchi; - Kaduna; - Sokoto; - Zamfara; - Katsina; - Jigawa. All these states produce about 80% of all tomatoes in the country. Kano is the most successful region in this area. Nigeria also provides about 2% of total world tomatoes production. Still, the country does not get about 45 percent of the tomatoes due to the poor food supply chain. Every year Nigeria loses about 750 thousand tons of tomatoes due to the bad food supply chain. It costs millions of Naira. Nigeria ranks as the 16th largest tomato producing nation in the world and has the comparative advantage and potential to lead the world in tomato production and exports. The production of tomatoes in Nigeria in 2010 was about 1.8 million metric tonnes, which accounts for about 68.4% of West Africa, 10.8% of Africa’s total output and 1.28% of world output. Unfortunately, the country still experiences deficiency in critical inputs, lack of improved technology, low yield and productivity, high post-harvest losses and lack of processing and marketing infrastructure. The demand for tomato and its by-products far outweighs the supply. With a population of over 170 million people, an estimated national population growth rate of 5.7% per annum, and an average economic growth rate of 3.5% per annum in the past five years, Nigeria has a large market for processed tomato products. Apart from the Nigerian market, the advantage of the trade liberalization in the West African market could be used to enhance the sale of processed tomato products in this region. Nigeria’s domestic demand for tomato is 2.3 million tonnes annually while only 1.8 million tonnes is produced . This has led to importation of an average of 150,000 metric tons of tomato concentrate per annum at staggering value put at $170 million.



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