The Union of Tomato Paste Manufacturers in Nigeria has raised alarm over the danger of the foreign exchange policy on the industry.

They said that the once vibrant industry might cease to exist next year if the Central Bank of Nigeria (CBN) did not amend its policy on forex to exclude triple concentrate tomato paste from the scope of the 41 items under the restricted list.
The union raised the alarm through its spokesperson, Mr. Nnamdi Nnodebe.

Nnodebe, who is also the Managing Director, Sonia Foods Industries Limited, said: “While trying to heal the economy, the pillars that hold the economy together are being removed. Pillars such as the tomato industry are invaluable to growing a vibrant economy. The total investment in the packing manufacturing sector of tomato paste is about N19 billion. The economy cannot afford to lose such a huge industry that provides millions of direct and indirect jobs for Nigerians.

The fact is this industry that grew to be the 13th largest in the world and second largest in Africa might die before the second quarter of next year if the ban on forex is not lifted.”

“The unavailability of tomato paste triple concentrate for the industry will grind production to a halt; meaning millions of people who depend on the industry for their livelihood will lose their jobs or have reduced incomes. The impact of this on the economy will be massive and negative as consumer behaviour will also be influenced leading to low purchase of goods in all sectors, not just tomato. These workers also patronise electronics shops, banks, petrol stations, they pay taxes etc. but they will no longer be able to fulfill all these.”

The value of imported tomato paste in Nigeria used to be about 170 million USD (before the CBN ban on 41 items). The imported triple concentrate tomato paste used as raw material by the packers used to be around $50 million out of the $170 million (2014). The imported concentrated raw material is then further processed in order to make it available for the consumers into products such as consumer packs of tomato paste, ketchup, sauces etc.

“It makes better economics to import the raw materials that will enable production, grow the economy and keep jobs rather than importing the finished products or frustrating efforts to get the raw materials, thereby rendering millions jobless which might further kill the economy.

The local packing industry can also form the hub for exports to the hinterland countries as there are adequate local capacities to more than cater to the domestic requirement,” Nnodebe said..

http://www.kikiotolu.com/2017/01/tomato-paste-manufacturers-tackle-cbn.html

Lalasticlala Mynd44 seun Dominique

....

No importation of tomato paste... UNDERSTAND.
Tomato is grown in large quantities here...

Good

Na everything they get association for dis dumb black nation ranging from pepper, tomato, sugar, tyre, groundnut and so on making this commodities more costly. Imagine sugar selling for #20 per spoon and them stupid niggas will come out shouting buhari like its buhari that raised the price of egg to #50 per one giving the sellers profit of over 50% unlike the 20% of before. We all need to rise up against thesetupid cabals #smh


NB: quote me Negatively and let thunder fire your ass

It's OK

the problem isnt importing but are the ones made in Nigeria being made diligently in terms of quality and packaging??

..

watching in 3D.

Wonder why we cannot make triple tomato paste concentrate in this country.

Okay

Seen

hmmmmmm

referandum:
..

Bet Why?

These people should mind themselves.

Which one is imported tomato paste triple concentrate?

If they only have machines to package the concentrate, they should apply for forex to buy machines that can produce the concentrate.

We had a bountiful tomato harvest, we can't be importing concentrate to package.

The CBN just said they would be giving priority to manufacturers henceforth. Late, but better late than never.

-Lord

It is better economics to import raw materials and add value to the imports. CBN should ease the embargo they placed on accessing forex for some materials. Some people love to make unsubstantiated claims that we can be self sufficient in production of raw tomatoes, this is blatant falsehood. We may be among the largest tomato producers in the World but because of our population, we can barely meet local demand. Tomatoes is still being imported till today to keep up with local demand. Non-oil exports have been on a steady decline since 2015. So what sort of economy are we building?

Where they are imported from, are the tomatoes there grown in their skies?

LordAdam7:
These people should mind themselves.

Which one is imported tomato paste triple concentrate?

If they only have machines to package the concentrate, they should apply for forex to buy machines that can produce the concentrate.

We had a bountiful tomato harvest, we can't be importing concentrate to package.

The CBN just said they would be giving priority to manufacturers henceforth. Late, but better late than never.

-Lord

And apply for forex to buy electricity as well because as far as I am concerned, without electricity, 90% of machineries in Nigeria are useless when it comes to normal functions.

9jakohai:
Wonder why we cannot make triple tomato paste concentrate in this country.

The hitherto cheap dollar caused it. Nigerians must learn to do some things for themselves. Every year we graduate Food technologists and still see nothing wrong in importing stuff like the triple tomato paste concentrate !

ZUBY77:


And apply for forex to buy electricity as well because as far as I am concerned, without electricity, 90% of machineries in Nigeria are useless when it comes to normal functions.

Manufacturers in Nigeria make provisions for power plants when they set up operations in the country. It is a necessity.

These packagers already have heavy-duty generators or mini power plants already setup for the packaging they do. If they import more machines to produce concentrate, they'll only have to increase their power capacity. It'd take a sizable investment I know, but that is the direction the country is heading, and I'll be surprised if it wasn't part of their mid- to long-term plan.

-Lord

I think the man is talking about importation of raw material for tomato paste. This was what led Erissco foods to shut down

9jakohai:
Wonder why we cannot make triple tomato paste concentrate in this country.

No power, high wages, next to no skill on the part of workers.

Wait, is it not tomatoes they use in making the paste? Is there no tomatoes farm in Nigeria? Why are the manufacturers importing the paste? Is that not foolish. Abeg someone should explain to me. Cus from what I am seeing this so called manufacturer's import the tomatoes paste and package it in Nigeria.

lovat:
I think the man is talking about importation of raw material for tomato paste. This was what led Erissco foods to shut down

Plz what are these raw materials that cannot be gotten in Nigeria.

Nigerians want to produce everything, import nothing, yet lack the infrastructure to produce anything,

To ban importation of tomato paste should mean the following:

(1) provision of adequate land for tomato cultivation,
(2) provision of necessary extension services to tomato farmers,
(3) provision of dependable power supply for proper farm operation and management, l
(4) provision of adequate storage facilities and robust collection centres due to the highly perishable nature of the produce,
(5) upgrade and construction of transportation networks that run from the farm to the consumer's doorstep,
(6) privision of easily accessible credit facilities to farmers

for a start, because these are some of the conditions under which farmers in those climes where the tomatoes are being imported from are enjoying.

Without addressing this issue, the demand for local tomatoes will hit the roof in the face of the dwindling capacity of our local farmers to produce.

The end result will be more suffering for Nigerian masses because the price will multiply.

The job doesn't end in typing a memo declaring a ban. My late grandmother can do that easily. The job lies in working for the farmers so they can help feed us less expensively than what currently obtains.

Right policies at wrong time without appropriate implementation is killing us in this country courtesy.... APC led govt

Everyone needs the green back

We have to start somewhere. We are going cold turkey. No importation of tomato paste.
Let some of them retool there factories to produce the paste from fresh tomatoes, smae infrastructure different product.

checkolatunji:




Bet Why?

lolz booked

Yeye
Go and start your own tomato farm

Pavore9:


The hitherto cheap dollar caused it. Nigerians must learn to do some things for themselves. Every year we graduate Food technologists and still see nothing wrong in importing stuff like the triple tomato paste concentrate !

best post so far. we have food scientist here in nigeria, we importing tomatoes from a country that produce less than we do.. my opinion let's engage our food scientists and give enabling environment to work...