Actually Tomato is a common vegetable
or fruit which is consumed in all parts of the world. Tomato is a staple food
in every household in Nigeria. The bright red fruit is known for its richness
in lycopene, fiber, and other vital vitamins and minerals, as well as for its
diseases fighting phyto-chemicals content.
Tomato as a fruit or vegetable can be
consumed in its raw state and it can also be ground along with pepper for
cooking. Tomato can also be processed into other forms like tin tomato paste,
sauce, puree.
On this article we are going to focus
on the processing aspect of its consumption. We are also going to look at how
to start tomato paste production business in Nigeria.
To actually start tomato paste
production business in Nigeria it requires a huge start-up capital for you to
be successful. The business is however a very profitable business, hence, be
rest assured to get huge returns.
HOW TO VENTURE INTO TOMATO PASTE
BUSINESS
The following are the important steps
you need to take when you are ready to start the business:
1.
Carryout a thorough research: This
involve gathering facts on figures and viability of the business. Obviously,
you are trying to avoid making notable mistakes or squandering of funds. If
properly carried out, the result from a good feasibility study would help you
understand all the costs you will probably need in setting up your tomato paste
production business, how best to cut costs and maximize your profits, your
expected return on investment and a whole lot more. Doing a thorough research
beforehand bring to your knowledge the pros and cons of the business which will
guide you in decision making.
2.
Go Legal: Start-up involves
registration and obtaining the necessary licenses and permits from necessary
bodies. This is majorly because it is a consumable product. It is best if you
make inquiries from already established tomato paste production businesses in
the country concerning the license and permits you will need for your business.
Remember that the business is highly regulated by NAFDAC.
3.
Look for a suitable location: A good
location will contribute to the success of your business. When choosing a land,
you need to consider some important factors such as closeness to source of raw
material (majorly fresh tomato farms), closeness to markets, availability of
work force, etc.
4.
Get the necessary equipments: The
next step is to get the needed equipments for your tomato paste production
business. Also ensure you get competent engineers to do the installation of the
machines. Below is a list of the necessary equipments you will need for the tomato
paste production business; Generator, Screw Pump, Fruit Washer, Fine Pulper, Steam
Jacketed Kettles, RSSP, Fruit Mill, RSSP Cooler, Storage Tank, Water Piping, SS
Tank, Water Chiller, Tomato Paste Form Fill and Seal Machine, Boiler, Steam
Piping, Steam Pressure Reducing Station, Product Piping and Valves, Cooling
Tower Pump and Piping, Delivery Truck, etc.
All these equipments will cost you about
twenty million naira (#20,000,000) to get them brand new.
5.
Source for Raw Materials: It is advisable to
situate your tomato paste production business close to one or two tomato farms.
This is to cut back on the cost of transportation.
Although you will need other raw
materials such as preservatives, the major raw material you will need for your
business are fresh tomatoes. You must make sure you get very fresh tomatoes so
as to ensure great product quality and taste.
6.
Employ Experienced & Qualified Staff: Tomato
paste production is a sensitive business as it pertains to food and health,
hence, you must ensure strict quality control throughout the whole process.
Putting this into consideration, you need to hire only experienced and capable
hands to handle the production and packaging section. You will need a combo of
skilled and unskilled workers ranging from engineers, accountants, computer
operators, sales and marketing executives to semi skilled and unskilled
workers. However, you will not have to worry much about paying them since the
business generates great profits when handled properly, and so you will not
have to break the bank just to your workers.
7.
Ensure Attractive Packaging: Packaging
is very important when it comes to selling your products in Nigeria. You may
have a great product, with great taste, but it is actually the packaging that
will make the first and lasting impression on customers. In fact, it is the
packaging that makes the difference between one tin tomato brand and the other.
You need to clarify your mode of packaging i.e. Do you want to use tins,
sachets, bottles or all.
8.
Identify your Market: You need to identify the
market including both your target market and your competitors. Fine! Almost
every Nigerian household makes use of tin tomato, but it is vital you are very
specific about your target market. Your target market should include the
following: Households and individuals, Food processors, Market Women, Hotels
and Restaurants, Supermarket and grocery stores, etc.
You need to be aware of the
competitions in the market and find a way to have a UNIQUE SELLING POINT (UPS)
which will help you stand out in the industry.
TAKE HOME
Tomato Paste Production business is a
lucrative one, provided you start on a solid ground with intensive capital.
Ensure proper supervision and monitoring of the production and packaging staff
to promote highest level of hygiene.
With the steps we've outlined in this
post, we believe you will find it easier to kickstart, provided you have the needed
capital.
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