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Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket - Agriculture - Nairaland

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Why Tomatoes Are Always Expensive From May Till July And The Glut In August / Tomato Price Crashes From N25,000 To N800 Per Basket / Tomato Glut Hits Katsina Markets As Price Drop To N300 From N5, 000 Per Basket (2) (3) (4)

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Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by justhys: 1:18pm On Feb 17, 2016
Farmers and merchants of tomato in Katsina State are seriously affected by glut of the produce in recent weeks, forcing its price to crash with few buyers in sight.
Although its perishable nature and lack of processing industries usually make tomato farmers experience glut at least once in a year, this year seems to be the worst, according to the farmers.
Hamza Tsalha, a tomato farmer in Mairuwa, Faskari local government area, said the situation is very disturbing as they are recording loses daily in the past three weeks.
“We are really in a sorry state going by what is happening in tomato markets in recent weeks. Many of us have converted the proceeds of our rainy season farming to irrigation and now we lost everything. Our tomato is fresh and healthy this year as we recorded no pest attack but the problem is the glut which makes its price to drop to N300 from N5, 000 per big basket,” said Hamza.
He further attributed the unfortunate situation to the influx of many farmers into tomato farming in the state this year.
“Last year, tomato farmers in this state made a lot of profit, a development that enticed many farmers into irrigation farming this year and God so kind, we are yet to record any pest attack hence our markets are saturated with the produce,” he said.
Similarly, a farmer in Danja LGA, Mal Hamidu Sama’ila, said unless government and the private sector timely intervene with the provision of local tomato processing factories, irrigation farmers will continue to wallow in glut, resulting to dwindling market price of the produce.
“Tomato farming has gradually grown beyond domestic consumption. Government, especially now that it is giving agriculture its deserved priority, should partner with the private sector in the provision of tomato processing factories to contain the volumes of tomato being cultivated yearly,” Mal Hamidu said.
He also expressed strong feelings on how small scale farmers are helplessly losing the resources they put into tomato farming this year; adding that the only favour that government can do for a farmer is to find him an avenue where he can sell his farm produce at reasonable price, especially perishable crops like tomato.
Yakubu Mohammed is a tomato merchant who transports the produce to Onitsha, Anambra State, and he said the situation is also not encouraging in the eastern markets as tomato from every angle of the country is flooding the markets, making its price to fall drastically.
“The glut has also spread to eastern markets, forcing the market demand of the produce to fall flat. Most of the suppliers are either from Katsina, Kano or Kaduna states and they recorded a bumper harvest of the produce this year that superseded its market demand. The best price of a basket of tomato in Onitsha as at last week was N3, 000 if you subtract the cost of transportation, offloading, tax and other dues you will see that the profit is lean if there will be any,” Yakubu Mohammed said.
Daily Trust observed that tomato farmers have since resorted to preserving the produce traditionally by drying it in the sun for future sales.
Large fields in Kokami tomato market are reserved for drying tomato where hundreds of bags are packaged daily.

dailytrust

Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by justhys: 1:19pm On Feb 17, 2016
Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by DesChyko: 1:22pm On Feb 17, 2016
Upon this development, you'll still be sold 7 pieces for #200 in the market angry

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Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by chizby(m): 2:01pm On Feb 17, 2016
Why can't gov. And private org. Help to distribute to nation wide by providing transport and storage facilities. Na wow
Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by chizby(m): 2:01pm On Feb 17, 2016
Why can't gov. And private org. Help to distribute to nation wide by providing transport and storage facilities. Na wa o!

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Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by Nobody: 2:01pm On Feb 17, 2016
Thinking of a way to make money and also save humans some stress..

Since this is not the first time of having such experience in the north, how come tomato paste factory isn't crossing peoples mind..
We buy all and make nice paste and keep for the later part of the year...
Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by KingTom(m): 2:07pm On Feb 17, 2016
favoured234:
Thinking of a way to make money and also save humans some stress..

Since this is not the first time of having such experience in the north, how come tomato paste factory isn't crossing peoples mind..
We buy all and make nice paste and keep for the later part of the year...
because we are all idiots who don't want to grow and we have bigger pot bellied idiots who don't want us to grow and we have pale and pink skinned idiots who will never allow us grow, we keep sabotaging ourselves.
Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by Curiouscity(m): 11:01pm On Jun 19, 2018
Thinking of a way to make money and also save humans some stress..

Since this is not the first time of having such experience in the north, how come tomato paste factory isn't crossing peoples mind..
We buy all and make nice paste and keep for the later part of the year...

Not that the idea of paste factory haven't crossed people's minds. There are lots of factors inhibiting the realization of such ideas. In 2016, I wrote a proposal for a medium sized paste and vegetable canning factory. I sent it out to money bags that were shouting that they want investment opportunities. No positive response till date.
I think these factors go against this idea:

- Vested interest. Only certain group of people are allowed or believed to be good to go into certain business. If you try going in, you get crushed.

- No protection for small and medium scaled industries from being crushed by the Giants, who sometimes are foreign owned.

- Our apathy for "made in Nigeria " goods. We rather patronize inferior goods from Asia than buy goods made in Nigeria.

- Cost of production: Due to the fact that you will provide your power, water, costly transport cost, etc, the final overhead cost of running a medium sized business is beyond reach for many. The cost of production per unit item is not competitive with imported items produced with cheap labour in Asia.

Nigeria is a good place to do business because of the market size. But the listed factors make it sometimes improbable.

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Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by Nobody: 2:15am On Jun 20, 2018
Not long ago it was reported that there is no tomatoes in Lagos. Why can't people move these produce to where they're scarce and are needed?

Also, some months ago, it was reported that a new tomatoes processing facility owned by Dangote had closed due to non-availability of the produce.

What are we doing in this country?

Why can't entrepreneurs and the unemployed take advantage of the opportunities in fresh produce such as this?

Why is it so hard for us to do things and be competent in this country?

It's baffling to the discerning mind when food products are allowed to wastes in the midst of high levels of hunger.

Terrible!
Re: Tomato Glut Hits Katsina Markets As Price Crashes To N300 From N5000 A Basket by Nobody: 7:49am On Jun 20, 2018
Curiouscity:


Not that the idea of paste factory haven't crossed people's minds. There are lots of factors inhibiting the realization of such ideas. In 2016, I wrote a proposal for a medium sized paste and vegetable canning factory. I sent it out to money bags that were shouting that they want investment opportunities. No positive response till date.
I think these factors go against this idea:

- Vested interest. Only certain group of people are allowed or believed to be good to go into certain business. If you try going in, you get crushed.

- No protection for small and medium scaled industries from being crushed by the Giants, who sometimes are foreign owned.

- Our apathy for "made in Nigeria " goods. We rather patronize inferior goods from Asia than buy goods made in Nigeria.

- Cost of production: Due to the fact that you will provide your power, water, costly transport cost, etc, the final overhead cost of running a medium sized business is beyond reach for many. The cost of production per unit item is not competitive with imported items produced with cheap labour in Asia.

Nigeria is a good place to do business because of the market size. But the listed factors make it sometimes improbable.

I agree with some of your points and I disagree with many. It is a football playing ground. It is more like Championd league than world cup. In champions league money dictates how good your team is.

There is no aparthy in Nigeria. Nigerians just want cheaper options because of the economy. That is all. It is not aparthy. And you explained it yourself when you discussed cost of production.

Also, you are just looking at the Economic value. There are other factors which you need to analyse before you decide to go into a business or not. The right business tool to use is called PEST.
P - Politics
E - Economics
S - Social
T - Technology.

Obviously, if you PEST this business well, you will know if it a good business or not. And if it is the right time to do it. You are looking at when it is scarce, and not considering when it is surplus. You are consideting just two months of scarcity, and you neglect 10 months of surplus. You need to look at it from the angle of the farmer producing it too. What is the essense of having a tomato factory when you cannot get enough tomatoes for it?

I agree that small businesses get crushed easily. And it is the same all over the world. Might be a country with positive budget can roll out bail out programs for small businesses, but Nigeria cannot do it now. So, why put your mind there in the first place?

When you get everytjing right and you understand the A to Z of the business, you will understand wbat is really going on sir.

Like you said, there are still opportunities in the tomato business, and people who know and how to take advantage of it do it. It is not about aparthy, government bail out schemes, or whatever.

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