Investing in Tomato Paste Production Plant

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Godwin Uba

Now that the General Elections are gone, let us talk business. Before the election, the polity was well heated up that there were fears of pre and post-election violence in Nigeria. We should all thank God that at last we are waiting for swearing in ceremony of newly elected leaders.

There are so many challenges confronting the country at the moment. The most worrisome are power and insecurity. The most challenging in the industrial development is the power. The admiration of President Mohammadu Buhari should tackle this problem. The greatest empowerment that the Government can give to the country is to ensure improved supply of electricity.

In this write up we look at how one can make profitable investment into the Agriculture, with special reference to Tomato.
In this country today, there are so many tomatoes grown all over. Research has shown that of the total production of fresh tomato in Nigeria, about 30% of annual productions are wasted because of lack of preservation mechanism. In the Northern parts of the country, there are large scale farmers of tomato, yet there is no preservation system to take care of the mass production. The only option available to Nigerians in this case is to establish fresh tomato processing plants to avoid wastages and at the same time encourage the farmers. The present Government of Nigeria is out to encourage investors in this area.
More investors either individuals, group of investors or governments are advised to invest in this area.

The writer will guide prospective investors in setting up this project from feasibility studies, site planning, procurement and installation of machines, development of marketing strategies and recruitment of experienced manpower to manage the project for profit. Please call 08034494437, 08023664368 for detail discussion.

Though there are various brands of tomato pastes & purees imported into the country, Nigerians can comfortably produce quality tomato pastes/puree at reduced cost and eliminate the cost of importation.

Tomato paste and puree are consumed in all the Nigeria households. They are used in preparation of different delicacy particularly stew. They are also used extensively in restaurants both small and big.

The demand for these products is increasing every day. The demand cut across all parts of the country. Apart from the Nigeria market, prospective investors can sell to other parts of Africa.

Tomato can be processed into paste, canned and export to other West African Nations and sale within the country. The demand for this product is very high locally. It is one of the consumer goods needed in every home, hotels and restaurants on daily basis.

To set up an effective and efficient tomato paste-producing plant an investor needs expelling machine, blending machine-filling machine, pasteurizer washing machine, stainless top working table and canning machine. It is also pertinent to mention that all these machines can be sourced locally. The machines can also be imported depending on the choice of the promoter fresh.

The raw material tomato seeds are widely grown in the country.

Preventatives can be obtained in the country too.
The major machinery and equipment do required to set up this project are the Extractor, Mixer, Pasteurizer, filling and canning machines.
These machines can be obtained locally from some tested machine fabricators. The machines can also be imported from some European countries.

Details will be given to prospective investors.
The production process is simple! It is made up of washing, pulverizing, mixing with preservatives and pulpurizing. Finally they are filled and canned.
The canning materials can be obtained in this country too. The project can be set up with the sum of N12million as shown below. From investment analysis, the projected total sales in the first year will be N58 million. Deducting the projected costs of establishment, it then implies that the project can pay back the cost of establishment in the first year of operation.
The rate of returns on investment, based on our projection is 67%. The profit before tax of the proposed project is N15 million. This figure increased to N38 million in the 5th year of operation.

This project is considered feasible because the raw materials, required for setting up of this project are all available locally. The manpower is also available. The machines can be procured and installed by Nigerian machine fabricators, if the imported ones cannot be obtained. This project will forestall the importation of this product from oversea countries thereby conserve our foreign exchange.

It can generate employment of not less than 10 unemployed youths, thereby adding to the deduction of unemployment in this country.
For more information, particularly preparation of comprehensive and bankable feasibility reports, sourcing of the required funds, establishment and management of this project, contact the writer.

Financial Estimates
Preliminary Investment (including feasibility studies) N250, 000
Plants & machinery N3, 500,000
Working capital N3, 000,000
Utilities N2, 500,000
Accommodation (variable) N1, 500,000
Contingencies N1, 000,000
Total N11, 750,000

The project cost may either go up depending on some variables.

For further enquires contact
Uba is of the Global Trust Consulting and can be reached via 08034494437, ubagodwin@yahoo.com