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How We Made It Into Tomato Processing Business - Agriculture - Nairaland

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How We Made It Into Tomato Processing Business by Nobody: 8:28am On Jan 04, 2022
I have been giving some guys a clue on this forum that we are into Tomato Processing Business, some felt like it was a scam, like am planning to part people with their money. Of course, we are for real.

I am sharing How we made it into Tomato Processing Business to let the youth know that SMEs are the powerhouse of a Nation economy, especially in the Food industry. We can help drive down the price through stiff competition and control of the local market. We are into Tomato Business, but if we have other young people in other food processing either packaging or processing across the country, competition will make it hard for the big brands to inflate price at will.

Presently, besides what our Founder is doing, I am personally planning research in the production of Malt drinks.

Without wasting your time, below is our story as covered by #howwemadeitinafrica. Also, you can search Google for AbdulLateef entrepreneur to know what else we have done.

CC: SeaTrade, lexy2014 , xxxxtentacion

Lalasticalala, let's motivate the our fellow young people this January
Re: How We Made It Into Tomato Processing Business by Nobody: 8:30am On Jan 04, 2022


NaFarm Foods, operating in Kaduna State in Nigeria, processes tomatoes into paste, puree and stew sauces. Its most popular product is NaFarm Royal Stew, and it also offers its products on a white-label basis for sale under different brand names. The company was co-founded in 2015 by AbdulLateef Olaosebikan when he realised he would have to create his own employment post-university. Jeanette Clark spoke to him about the opportunity he saw and the growth plans for the future.

Solving a problem
At university in Abuja, AbdulLateef Olaosebikan studied geography. In his final year, he contemplated possible employment opportunities and realised they were scarce.

“Having learnt one or two things about entrepreneurship at university, I thought I’d start something on my own but it wasn’t easy,” he remembers.

A podcast by Guy Kawasaki, an American marketing specialist and author, provided the impetus and motivation Olaosebikan needed. It was Kawasaki’s well-known talk on the importance of making ‘meaning’, rather than making money. “It became clear that if you can make your product or service problem-centric, it will be a success,” he says.

In Kaduna State, where Olaosebikan grew up and lived, the severe fluctuation in tomato prices caught his eye. During harvesting season, fresh tomatoes sold for a bargain price. As soon as the season was over, the price of tomato products would skyrocket.

“I saw it from the consumer perspective. There was an opportunity to process the tomatoes into a product with a longer shelf-life, which would address the price volatility. This would also address post-harvest losses, meaning we would solve a two-pronged problem,” he explains.


Source:https://www.howwemadeitinafrica.com/starting-a-tomato-products-business-in-nigeria-entrepreneurs-journey-so-far/136473/

2 Likes

Re: How We Made It Into Tomato Processing Business by Nobody: 8:33am On Jan 04, 2022
Reality is very different from theory
In the entrepreneurship courses offered as part of his university tuition, the road to success always appeared straightforward. “After registering the business in 2015, it became clear this was not necessarily the case in real life,” he muses.

Farmers were already sun-drying their tomatoes post-harvest on the fields to preserve them and NaFarm Foods wanted to use equipment to speed up this process. The company identified dryers in China but could not source the money to buy them.

“With my basic knowledge about technology, I decided to fabricate something using the little bit of money – about 80,000 Nigerian naira ($195) – we could scrape together from family and friends.”

Getting production to a commercial level required a lot more funding and the banks remained hesitant. Eventually, Olaosebikan walked into the offices of the director of agricultural services at the Ministry of Agriculture and Rural Development and asked for help.

“We were given a free booth at the international trade fair to pilot our product and talk to the customers. This is where we met the governor of Kaduna State and, with his endorsement, we received a loan from the Bank of Agriculture,” says Olaosebikan. “While we were hoping for around 5 million naira ($12,170), we received N500,000 ($1,220).”

NaFarm Foods used this to buy fresh tomatoes for processing. The company had to rely on sun-drying along with the limited capacity from its existing drying equipment. In 2016, a grant of $5,000 from the Tony Elumelu Foundation and a Kenyan award of $4,000 gave it the required capital to boost output to one tonne per day.

The future seemed bright.

Distribution of finished tomato products.

1 Like

Re: How We Made It Into Tomato Processing Business by Nobody: 8:34am On Jan 04, 2022
Almost losing it all
“In 2017, we almost lost all of it,” declares Olaosebikan.

He chalks it up to inexperience and pushing the wrong product. “We went into the market offering dried tomatoes and tomato powder. Unfortunately, the price those products could fetch was a lot lower than expected. We were consistently selling at a loss.”

In order to survive, the team at NaFarm realised it had to change course. After some research, in 2018, it began producing a paste and a puree – using the available equipment – adding various manual labour processes where required. A government grant of 3 million naira ($7,300) helped pull the company through this difficult transition. It used the money to refine its packaging and get the processing spot-on. Then it relaunched into the market.
Re: How We Made It Into Tomato Processing Business by Nobody: 8:35am On Jan 04, 2022
Rethinking distribution
Initially, in 2016 and 2017, the company sold its dried and powdered tomatoes through existing vendors at markets. The team was also going door to door, marketing to caterers, restaurants and smaller retailers.

NaFarm tried to get its products onto the shelves of larger retailers; however, as an unknown brand, it was unable to get a foot in the door.

“We were told we would need to build a retail presence among smaller stores before the larger retailers would give us an opportunity. Over time, however, we decided we did not need the large retailers to reach our target market. We have found another way,” says Olaosebikan. Individuals were found from within its network of co-operatives and women groups, who offered to act as agents for NaFarm Foods’ products and sell to smaller retailers or directly to customers.

“The most direct route to our main customer base is through this distributor network. We provide the products on credit and allow up to 30% markup as an incentive. We produce the products and our agents sell them door to door.”

NaFarm has made significant progress with this strategy. In 2018. it achieved sales of 8.5 million naira ($20,680). By 2020, this jumped to 16.3 million naira ($40,000).

Olaosebikan acknowledges Covid-19 likely boosted business. As an operator in the agriculture sector, the company’s movement was not restricted during the lockdowns. When traditional logistics channels took a knock, its agent network picked up additional sales on the ground.
Re: How We Made It Into Tomato Processing Business by Nobody: 8:37am On Jan 04, 2022

NaFarm employees washing and crushing tomatoes for processing.


Occupying, rather than building, a processing facility
NaFarm Foods has made do with limited processing capacity throughout the years, with scaling remaining a challenge.

In 2018 and 2019, it partnered with TechnoServe, an NGO that provides training and support to smallholder farmers through its Yieldwise programme. NaFarm offered capacity training to different tomato farming co-operatives across five states.

“TechnoServe pointed out there were many unused processing facilities across the country that could provide the infrastructure NaFarm needed for our operations and helped us find an ideal one in Kaduna State.” With a few technical tweaks, the company lifted the capacity of the factory to seven tonnes a day. “This has helped us to meet the market demand and deliver on our goals,” reveals Olaosebikan.

Currently, NaFarm buys its tomatoes from aggregators on the TechnoServe database or directly from smallholder farmers.
Re: How We Made It Into Tomato Processing Business by Nobody: 8:38am On Jan 04, 2022
Growth strategy
Wanting to build on the current momentum, the company has identified eight additional processing facilities it would like to recommission for the processing of tomatoes over the coming years.

“We will then set up a central packaging facility to receive all the concentrate from the different regions and get it ready for market,” Olaosebikan says. “There is a lot of untapped growth potential.”
Re: How We Made It Into Tomato Processing Business by Nobody: 9:04am On Jan 04, 2022
Personal note:

To be honest, it was NOT an easy journey, every week, we have to keep track of the locations where Tomatoes is available and drive to other States to source raw-material, sometimes we get there late and will have to quickly link up with another village, getting back to the factory stressed and burn out. Also, some equipment breakdowns can increase our fatigue. These are machines not made in Nigeria and are not common, no technician to fix it, we have to fix it by ourselves to make sure production did not stop.

Before his undergraduate, AbdulLateef used to be a Computer Technician and a Network Administrator, with experience in Cisco router, NetGear, Microtik, D-Link, VSat installation, etc. In his early 20s, He once attempts to create green energy through Inverter and bio-gas powered rotor, but that did not work out. I believed these technical experiences really help us in troubleshooting and fixing broken equipment.

I also want to point out that the facility we are using for production did not provide what we need initially, we have to improvise with a lot of modifications to the existing machinery to get them working. This was a general challenge faced by others we have seen and since their inception was unable to start production. When we tell them we are already producing and packaging, it was a surprise to them. These are establishments bigger than use like 1,000 percent. I really don't want to mention any name
Re: How We Made It Into Tomato Processing Business by SocialJustice: 9:07am On Jan 04, 2022
Wow. I'm totally blown away by this. Your business saavy is cool and you're very intelligent. With people like you in the TEF programme, I see why it is so hard to get the grant. I'm trying for my third time this year, lol, I believe I'll get it, with my idea. cheesy

That aside, you should start a fund, that's how you'll scale massively. You already have a track record of managing money successfully, you should do that or partner with PiggyVest to sell units. You get to keep equity and raise large sums.

I wish you the very best.

Ouchbabe you should see this.

Lalasticlala

1 Like

Re: How We Made It Into Tomato Processing Business by Nobody: 10:56am On Jan 04, 2022
SocialJustice:
Wow. I'm totally blown away by this. Your business saavy is cool and you're very intelligent. With people like you in the TEF programme, I see why it is so hard to get the grant. I'm trying for my third time this year, lol, I believe I'll get it, with my idea. cheesy

That aside, you should start a fund, that's how you'll scale massively. You already have a track record of managing money successfully, you should do that or partner with PiggyVest to sell units. You get to keep equity and raise large sums.

I wish you the very best.
Ouchbabe you should see this.

Lalasticlala

Thanks for the Compliment.
We've had looked into fundraising, but based on the false reports that it is impossible for small startups to scale in Tomatoes Business, prevent people from investing, without them considering our success rate. If we are to go into PiggyVest, we will have to spend so much on royalties and commission. so what we are looking at is a direct investment without the middle platform.

About your Application for TEF, you can contact Nafarm founder, you might get some idea from him

3 Likes

Re: How We Made It Into Tomato Processing Business by Ouchbabe(f): 11:52am On Jan 04, 2022
SocialJustice:
Wow. I'm totally blown away by this. Your business saavy is cool and you're very intelligent. With people like you in the TEF programme, I see why it is so hard to get the grant. I'm trying for my third time this year, lol, I believe I'll get it, with my idea. cheesy

That aside, you should start a fund, that's how you'll scale massively. You already have a track record of managing money successfully, you should do that or partner with PiggyVest to sell units. You get to keep equity and raise large sums.

I wish you the very best.

Ouchbabe you should see this.

Lalasticlala
Wao! This is cool. Thanks for the mention dear

1 Like

Re: How We Made It Into Tomato Processing Business by abir: 9:35pm On Jan 04, 2022
FreelanceRebel:


Thanks for the Compliment.
We've had looked into fundraising, but based on the false reports that it is impossible for small startups to scale in Tomatoes Business, prevent people from investing, without them considering our success rate. If we are to go into PiggyVest, we will have to spend so much on royalties and commission. so what we are looking at is a direct investment without the middle platform.

About your Application for TEF, you can contact Nafarm founder, you might get some idea from him

Kudos,
I think I have a lot to learn from you as am also passionate about agriculture, I reside also in Kaduna, can we meet up, my phone no is 08036144068.

Thank you.
Re: How We Made It Into Tomato Processing Business by Attit: 12:32am On Jan 05, 2022
FreelanceRebel:
I have been giving some guys a clue on this forum that we are into Tomato Processing Business, some felt like it was a scam, like am planning to part people with their money. Of course, we are for real.

I am sharing How we made it into Tomato Processing Business to let the youth know that SMEs are the powerhouse of a Nation economy, especially in the Food industry. We can help drive down the price through stiff competition and control of the local market. We are into Tomato Business, but if we have other young people in other food processing either packaging or processing across the country, competition will make it hard for the big brands to inflate price at will.

Presently, besides what our Founder is doing, I am personally planning research in the production of Malt drinks.

Without wasting your time, below is our story as covered by #howwemadeitinafrica. Also, you can search Google for AbdulLateef entrepreneur to know what else we have done.

CC: SeaTrade, lexy2014 , xxxxtentacion

Lalasticalala, let's motivate the our fellow young people this January

FreelanceRebel:


NaFarm Foods, operating in Kaduna State in Nigeria, processes tomatoes into paste, puree and stew sauces. Its most popular product is NaFarm Royal Stew, and it also offers its products on a white-label basis for sale under different brand names. The company was co-founded in 2015 by AbdulLateef Olaosebikan when he realised he would have to create his own employment post-university. Jeanette Clark spoke to him about the opportunity he saw and the growth plans for the future.

Solving a problem
At university in Abuja, AbdulLateef Olaosebikan studied geography. In his final year, he contemplated possible employment opportunities and realised they were scarce.

“Having learnt one or two things about entrepreneurship at university, I thought I’d start something on my own but it wasn’t easy,” he remembers.

A podcast by Guy Kawasaki, an American marketing specialist and author, provided the impetus and motivation Olaosebikan needed. It was Kawasaki’s well-known talk on the importance of making ‘meaning’, rather than making money. “It became clear that if you can make your product or service problem-centric, it will be a success,” he says.

In Kaduna State, where Olaosebikan grew up and lived, the severe fluctuation in tomato prices caught his eye. During harvesting season, fresh tomatoes sold for a bargain price. As soon as the season was over, the price of tomato products would skyrocket.

“I saw it from the consumer perspective. There was an opportunity to process the tomatoes into a product with a longer shelf-life, which would address the price volatility. This would also address post-harvest losses, meaning we would solve a two-pronged problem,” he explains.


Source:https://www.howwemadeitinafrica.com/starting-a-tomato-products-business-in-nigeria-entrepreneurs-journey-so-far/136473/

FreelanceRebel:
Reality is very different from theory
In the entrepreneurship courses offered as part of his university tuition, the road to success always appeared straightforward. “After registering the business in 2015, it became clear this was not necessarily the case in real life,” he muses.

Farmers were already sun-drying their tomatoes post-harvest on the fields to preserve them and NaFarm Foods wanted to use equipment to speed up this process. The company identified dryers in China but could not source the money to buy them.

“With my basic knowledge about technology, I decided to fabricate something using the little bit of money – about 80,000 Nigerian naira ($195) – we could scrape together from family and friends.”

Getting production to a commercial level required a lot more funding and the banks remained hesitant. Eventually, Olaosebikan walked into the offices of the director of agricultural services at the Ministry of Agriculture and Rural Development and asked for help.

“We were given a free booth at the international trade fair to pilot our product and talk to the customers. This is where we met the governor of Kaduna State and, with his endorsement, we received a loan from the Bank of Agriculture,” says Olaosebikan. “While we were hoping for around 5 million naira ($12,170), we received N500,000 ($1,220).”

NaFarm Foods used this to buy fresh tomatoes for processing. The company had to rely on sun-drying along with the limited capacity from its existing drying equipment. In 2016, a grant of $5,000 from the Tony Elumelu Foundation and a Kenyan award of $4,000 gave it the required capital to boost output to one tonne per day.

The future seemed bright.

Distribution of finished tomato products.

FreelanceRebel:
Almost losing it all
“In 2017, we almost lost all of it,” declares Olaosebikan.

He chalks it up to inexperience and pushing the wrong product. “We went into the market offering dried tomatoes and tomato powder. Unfortunately, the price those products could fetch was a lot lower than expected. We were consistently selling at a loss.”

In order to survive, the team at NaFarm realised it had to change course. After some research, in 2018, it began producing a paste and a puree – using the available equipment – adding various manual labour processes where required. A government grant of 3 million naira ($7,300) helped pull the company through this difficult transition. It used the money to refine its packaging and get the processing spot-on. Then it relaunched into the market.

FreelanceRebel:
Rethinking distribution
Initially, in 2016 and 2017, the company sold its dried and powdered tomatoes through existing vendors at markets. The team was also going door to door, marketing to caterers, restaurants and smaller retailers.

NaFarm tried to get its products onto the shelves of larger retailers; however, as an unknown brand, it was unable to get a foot in the door.

“We were told we would need to build a retail presence among smaller stores before the larger retailers would give us an opportunity. Over time, however, we decided we did not need the large retailers to reach our target market. We have found another way,” says Olaosebikan. Individuals were found from within its network of co-operatives and women groups, who offered to act as agents for NaFarm Foods’ products and sell to smaller retailers or directly to customers.

“The most direct route to our main customer base is through this distributor network. We provide the products on credit and allow up to 30% markup as an incentive. We produce the products and our agents sell them door to door.”

NaFarm has made significant progress with this strategy. In 2018. it achieved sales of 8.5 million naira ($20,680). By 2020, this jumped to 16.3 million naira ($40,000).

Olaosebikan acknowledges Covid-19 likely boosted business. As an operator in the agriculture sector, the company’s movement was not restricted during the lockdowns. When traditional logistics channels took a knock, its agent network picked up additional sales on the ground.

FreelanceRebel:

NaFarm employees washing and crushing tomatoes for processing.


Occupying, rather than building, a processing facility
NaFarm Foods has made do with limited processing capacity throughout the years, with scaling remaining a challenge.

In 2018 and 2019, it partnered with TechnoServe, an NGO that provides training and support to smallholder farmers through its Yieldwise programme. NaFarm offered capacity training to different tomato farming co-operatives across five states.

“TechnoServe pointed out there were many unused processing facilities across the country that could provide the infrastructure NaFarm needed for our operations and helped us find an ideal one in Kaduna State.” With a few technical tweaks, the company lifted the capacity of the factory to seven tonnes a day. “This has helped us to meet the market demand and deliver on our goals,” reveals Olaosebikan.

Currently, NaFarm buys its tomatoes from aggregators on the TechnoServe database or directly from smallholder farmers.

FreelanceRebel:
Growth strategy
Wanting to build on the current momentum, the company has identified eight additional processing facilities it would like to recommission for the processing of tomatoes over the coming years.

“We will then set up a central packaging facility to receive all the concentrate from the different regions and get it ready for market,” Olaosebikan says. “There is a lot of untapped growth potential.”


FreelanceRebel:
Personal note:

To be honest, it was NOT an easy journey, every week, we have to keep track of the locations where Tomatoes is available and drive to other States to source raw-material, sometimes we get there late and will have to quickly link up with another village, getting back to the factory stressed and burn out. Also, some equipment breakdowns can increase our fatigue. These are machines not made in Nigeria and are not common, no technician to fix it, we have to fix it by ourselves to make sure production did not stop.

Before his undergraduate, AbdulLateef used to be a Computer Technician and a Network Administrator, with experience in Cisco router, NetGear, Microtik, D-Link, VSat installation, etc. In his early 20s, He once attempts to create green energy through Inverter and bio-gas powered rotor, but that did not work out. I believed these technical experiences really help us in troubleshooting and fixing broken equipment.

I also want to point out that the facility we are using for production did not provide what we need initially, we have to improvise with a lot of modifications to the existing machinery to get them working. This was a general challenge faced by others we have seen and since their inception was unable to start production. When we tell them we are already producing and packaging, it was a surprise to them. These are establishments bigger than use like 1,000 percent. I really don't want to mention any name

Re: How We Made It Into Tomato Processing Business by Attit: 6:22am On Jan 05, 2022
FreelanceRebel:


Thanks for the Compliment.
We've had looked into fundraising, but based on the false reports that it is impossible for small startups to scale in Tomatoes Business, prevent people from investing, without them considering our success rate. If we are to go into PiggyVest, we will have to spend so much on royalties and commission. so what we are looking at is a direct investment without the middle platform.

About your Application for TEF, you can contact Nafarm founder, you might get some idea from him

I am super busy these days, but I wanted to make comment yesterday. Unfortunately, I was so tired that I had to abandon it and just left the quotes the way it is up there. And since I want to make comment, I had to do it early this morning before moving out. I know I will be super busy again. So here is my comment below:

Failing Forward-
Founder - $195,
BOA - $1,220 ,
Tony Elumelu Foundation - $5,000
Kenyan Award - $4,000

And you wrote, you almost lost it all.

And then..
Govt grant $7,300.


Total - $17,715 (N10,097,550)
I am sure more have been spent.

Your initial production is 1 ton per day. I know how hard it is, there are many days you may not produce since you lack raw tomatoes. It is even hard to track your progress since you did not post cost of production and other expenses. You only gave sales. So, it will be hard to convince someone like me to invest. Maybe you reserve that for private discussion which I would do if I was your founder too, but at least, more figures should be here cos what you have cannot make any serious investor contact you.

Growth
At 1 ton, you have challenges with raw tomato supply, and the founder went ahead to tweak production in a single factory, and them increased production to 7 tons. But where are the tomatoes? Today, you get huge supplies, tomorrow less. Hmmm! Maybe, it still is profitable like this. I doubt you would do such if not. But how consistency can you perform optimally?

And then, you mentioned additional 8 factories which you might likely tweak again to increase productivity. And yet, where are the tomatoes to use?

This is the main area I am so scared. You are doing it cos you arent the one who set the factories up, so the huge initial burden is not on you. Also, maybe the factory released the equipment cos they want to understudy you. If I were you, setting up my own would be my target. Not saying you should not expand and lease more factories, but it seems you and your founder are getting too much comfortable with leasing and not setting up yours. People are not that good in this country. It is one of your boys they will use. it's normal, they offer him more pay, he will leave you. And they'll take over their machine after the lease expires. Anyway everything depends on the contract you have. Just be smart about it. It is a good concept and very thoughtful.

Consultants wreck owners
From the lesson here, you had toncoreect many things. Even, replaceable parts arent available, and no technician. Lol. When the owner knkw morning about it, what donyou expect? In that north, there was a case like this where luckily the owner almost committed suicide. It is not just buying anything, but knowing what works, what one can easily handle, and preparation on how to get replaceable parts ahead must be made. There are many issues in this thing. People just think it is easy. Lol. And the owners themselves are their own killers.

But wait...I give this business just 10 years, you will see the number of plants that will come up in Nigeria. This is how Nigeria is. As soon as one person does it right, others follow. Rank Xerox. Lol. And it's why as the leader, think of ways to always be ahead. And the fight for raw tomatoes will be serious.

See eh....many of these people here are already thinking of starting such and buy tomatoes from farmers. But it is a wrong approach. This is where I see you and your founder not getting it right.

Focus more on farming and investors will take you more serious
Personally, I do not know how your founder can be comfortable opening more factories without planning to start producing tomatoes on his farm. Nothing about such was mentioned in your article. But this is the main challenge. The plant challenge is 10 - 20% of the overall business model. Good that you have also solved distribution and sales. And this success is what likely blinded your founder into thinking he can source for more tomatoes and rent more plants, when he is supposed to quickly start tackling farming challenges on his farm.

Since you are not the founder, I shouldn't take all you put here has his mind.

What you all did is commendable, and your founder should be applauded. But is it sustainable in the long term? Can he assure himself he will continue getting farmers to produce for him? Personally, before I invest in such, I want to see the company showing me the minimum raw tomatoes needed to make the business profitable. And then show me the plan to produce that quantity. If there is no plan, forget it...I can not invest. Never. If he can convince me that 10% of the total tomato needed is what he needs to make it profitable and gives me my little share annually, I am ok. I will not ask him by force to give me large share and go into sourcing of tomatoes. But if he can produce that 10%, he is free to get the 90% outside. And anytime he cannot get that 90%, I dont have any trouble. On the other hand, if figures shows me its 90% he needs to produce himself, I will make sure the plan to produce that 90% is already perfected.

This is about mathematics. I want to see the ratio. Then, we will sit down if he is able to do it or not. When people start crying their investment vehicles crash and start lamenting and calling out the companies, I ask myself if they dont ask questions before releasing their money. The red flags are there already. Didn't they see them? Or they just took the words of the companies to be true without checking?

The $40,000 sales you put above is sweet to read, but what is the profit? And what is left over after paying dividend in the year. Only govt loans and grants can have mercy. Tell your founder to think twice before collecting money from individual investors. They will not forgive him like how he was pardoned by those who gave him grants.

Farming should be your immediate goal
If you produce your own tomatoes, you and your founder will never think of borrowing at this early stage. To me, you want to operate in the value chain close to processing. This is not advisable in Nigeria. The Nigeria of the olden days is where you can operate like this, and not in the modern days. You are already thinking of malt production also. Hmmmm! Do you think you will have the opportunity if Malta Guiness can produce its raw materials? Yet, the same mistake they made, you want to again. You will only make a small success before you realise the truth.

Yes, you may be getting it now and things may start getting better, but the reality will come upon you at the right time. And that time will be when your competitors followed your steps. And since you have refused to produce yours, that's when you crash. And then huge debt is there.

You may come around to say you have plans to produce and bla bla bla. Nope. Put on paper the minimum you need for your production and work towards it. Not just saying you are a farmer yourself and you teach farms. Nope, it wont work. You can teach all the farmers, and they can decide to sell to another person. Price dictates who they sell to.

While I applaud you for the progress so far, it is still dangerous to endorse you and your founder. This is the honest truth here. And he should think well before scaling up leasing more factories. Fine, it seems he knows his way around getting grants...let him focus on that if there is any one coming up again. But investment? Be careful. It may break you.

Way Out
Your founder is a farmer according to the the name of his company, tell him to work out producing the minimum tomatoes needed to survive and make reasonable profit himself, and then he can buy the rest from those farmers.

He should start a pilot. He knows he is going to fail forward. So, he needs to take it easy and learn it slowly. Going to rent 8 more factories should be a decision to reconsider. It might be a trap, and it might be eventually succesful. But how long will it be sustainable to pay off all the huge acquired debt.

This is not America or the UK you can apply for bankruptcy ooo. Your investors will chase you to the last end especially if they are individuals. They will come here to spoil your names.

There is no short cut
Ask succesful ones, there is no short cut. If you want to make it in Nigeria in Agro business, you must get involved in the lowest part of the value chain which is farming and get out the minimum production for your minimum profit. You do not have a business yet if you cannot do this. This is the secret Dangote Sugar is still in existence and it is the reason he is returning to the tomato paste gradually. Soon, he is going to be a champion and he will expand again. You cannot import raw tomatoes, and if possible, govt can ban importation anytime. So why take such huge risk?

I appreciate you
I want to start reading more models and solutions like this. This is quite impressive. Perhaps, you were first criticized initially because you didnt explain very well. In fact, there are still areas there you could have explained better.. but it's ok.. At least, it is commendable you succeeded where giants failed. This is great. But the giants are not sleeping sir. They are ready to chase you out if you slack.

Yes, enough of cutlasses and hoes templates. I am sick of people coming here to post their backyard gardens and then afterward ask for investments. And then, some other ones would start supporting them. For what? Cant they think like this founder? Yes, if this founder keeps it up, and takes to the area I have addressed above he will make it. And it will be nice to show case him to the world also like the TomatoJos lady. If he goes into real farming, ElRufai will support him even more than how he supported TomatoJos. Just imagine the grants he got here and there. To even get Tony Emelume grant is tough. It means the guy is not bad. I know many who have asked me to assit get that grant, but when I listened to their ideas, I just smiled inwardly.

Recommendation
If it seems OK to lease those 8 plants and quickly make a turn over without loss, it may be OK. But I am going to suggest you start at least 3 to 5 ha. You want to do something tractor and farm machines can do, and not what cutlasses and hoe can do. You will need to make choices now like to use mulch or not. If you use mulch, can you cover more, more and more hectares later even up to 100 and going to 1,000? So, you need to continue fine tuning it. It is not just about producing for dry or raning season....it is all round. To stake or not to stake. And many more. If you do not start now, you wont start after installing more factories. And you will hit the rock later. So, make this a priority NOW. Start today if possible. It is a long journey ahead. You arent producing now to take to your paste factory, but to learn. And if you get it right just one time, then congrats. But you still need both rainy and dry season techniques. If you and your founder ignore this advice, hmmmm...be ready to put the whole blame on yourselves when you are kicked out of the business in the nearest future.

Scale up farming raw tomatoes in the right proportion as you scale up your paste production which is directly proportional to the number and output of leased factories you operate.

2 Likes

Re: How We Made It Into Tomato Processing Business by Earthstorms(m): 10:48am On Jan 05, 2022
FreelanceRebel:
I have been giving some guys a clue on this forum that we are into Tomato Processing Business, some felt like it was a scam, like am planning to part people with their money. Of course, we are for real.

I am sharing How we made it into Tomato Processing Business to let the youth know that SMEs are the powerhouse of a Nation economy, especially in the Food industry. We can help drive down the price through stiff competition and control of the local market. We are into Tomato Business, but if we have other young people in other food processing either packaging or processing across the country, competition will make it hard for the big brands to inflate price at will.

Presently, besides what our Founder is doing, I am personally planning research in the production of Malt drinks.

Without wasting your time, below is our story as covered by #howwemadeitinafrica. Also, you can search Google for AbdulLateef entrepreneur to know what else we have done.

CC: SeaTrade, lexy2014 , xxxxtentacion

Lalasticalala, let's motivate the our fellow young people this January

Nice that you wrote about your struggles and successes in processing tomatoes. Thanks for sharing. I learnt some things from what you shared.

Attit:


I am super busy these days, but I wanted to make comment yesterday. Unfortunately, I was so tired that I had to abandon it and just left the quotes the way it is up there. And since I want to make comment, I had to do it early this morning before moving out. I know I will be super busy again. So here is my comment below:

Failing Forward-
Founder - $195 m,
BOA - $1,220 ,
Tony Elumelu Foundation - $5,000
Kenyan Award - $4,000

And you wrote, you almost lost it all.

And then..
Govt grant $7,300.


Total - $17,715 (N10,097,550)
I am sure more have been spent.

Your initial production is 1 ton per day. I know how hard it is, there are many days you may not produce since you lack raw tomatoes. It is even hard to track your progress since you did not post cost of production and other expenses. You only gave sales. So, it will be hard to convince someone like me to invest. Maybe you reserve that for private discussion which I would do if I was your founder too, but at least, more figures should be here cos what you have cannot make any serious investor contact you.

Growth
At 1 ton, you have challenges with raw tomato supply, and the founder went ahead to tweak production in a single factory, and them increased production to 7 tons. But where are the tomatoes? Today, you get huge supplies, tomorrow less. Hmmm! Maybe, it still is profitable like this. I doubt you would do such if not. But how consistency can you perform optimally?

And then, you mentioned additional 8 factories which you might likely tweak again to increase productivity. And yet, where are the tomatoes to use?

This is the main area I am so scared. You are doing it cos you arent the one who set the factories up, so the huge initial burden is not on you. Also, maybe the factory released the equipment cos they want to understudy you. If I were you, setting up my own would be my target. Not saying you should not expand and lease more factories, but it seems you and your founder are getting too much comfortable with leasing and not setting up yours. People are not that good in this country. It is one of your boys they will use. it's normal, they offer him more pay, he will leave you. And they'll take over their machine after the lease expires. Anyway everything depends on the contract you have. Just be smart about it. It is a good concept and very thoughtful.

Consultants wreck owners
From the lesson here, you had toncoreect many things. Even, replaceable parts arent available, and no technician. Lol. When the owner knkw morning about it, what donyou expect? In that north, there was a case like this where luckily the owner almost committed suicide. It is not just buying anything, but knowing what works, what one can easily handle, and preparation on how to get replaceable parts ahead must be made. There are many issues in this thing. People just think it is easy. Lol. And the owners themselves are their own killers.

But wait...I give this business just 10 years, you will see the number of plants that will come up in Nigeria. This is how Nigeria is. As soon as one person does it right, others follow. Rank Xerox. Lol. And it's why as the leader, think of ways to always be ahead. And the fight for raw tomatoes will be serious.

See eh....many of these people here are already thinking of starting such and buy tomatoes from farmers. But it is a wrong approach. This is where I see you and your founder not getting it right.

Focus more on farming and investors will take you more serious
Personally, I do not know how your founder can be comfortable opening more factories without planning to start producing tomatoes on his farm. Nothing about such was mentioned in your article. But this is the main challenge. The plant challenge is 10 - 20% of the overall business model. Good that you have also solved distribution and sales. And this success is what likely blinded your founder into thinking he can source for more tomatoes and rent more plants, when he is supposed to quickly start tackling farming challenges on his farm.

Since you are not the founder, I shouldn't take all you put here has his mind.

What you all did is commendable, and your founder should be applauded. But is it sustainable in the long term? Can he assure himself he will continue getting farmers to produce for him? Personally, before I invest in such, I want to see the company showing me the minimum raw tomatoes needed to make the business profitable. And then show me the plan to produce that quantity. If there is no plan, forget it...I can not invest. Never. If he can convince me that 10% of the total tomato needed is what he needs to make it profitable and gives me my little share annually, I am ok. I will not ask him by force to give me large share and go into sourcing of tomatoes. But if he can produce that 10%, he is free to get the 90% outside. And anytime he cannot get that 90%, I dont have any trouble. On the other hand, if figures shows me its 90% he needs to produce himself, I will make sure the plan to produce that 90% is already perfected.

This is about mathematics. I want to see the ratio. Then, we will sit down if he is able to do it or not. When people start crying their investment vehicles crash and start lamenting and calling out the companies, I ask myself if they dont ask questions before releasing their money. The red flags are there already. Didn't they see them? Or they just took the words of the companies to be true without checking?

The $40,000 sales you put above is sweet to read, but what is the profit? And what is left over after paying dividend in the year. Only govt loans and grants can have mercy. Tell your founder to think twice before collecting money from individual investors. They will not forgive him like how he was pardoned by those who gave him grants.

Farming should be your immediate goal
If you produce your own tomatoes, you and your founder will never think of borrowing at this early stage. To me, you want to operate in the value chain close to processing. This is not advisable in Nigeria. The Nigeria of the olden days is where you can operate like this, and not in the modern days. You are already thinking of malt production also. Hmmmm! Do you think you will have the opportunity if Malta Guiness can produce its raw materials? Yet, the same mistake they made, you want to again. You will only make a small success before you realise the truth.

Yes, you may be getting it now and things may start getting better, but the reality will come upon you at the right time. And that time will be when your competitors followed your steps. And since you have refused to produce yours, that's when you crash. And then huge debt is there.

You may come around to say you have plans to produce and bla bla bla. Nope. Put on paper the minimum you need for your production and work towards it. Not just saying you are a farmer yourself and you teach farms. Nope, it wont work. You can teach all the farmers, and they can decide to sell to another person. Price dictates who they sell to.

While I applaud you for the progress so far, it is still dangerous to endorse you and your founder. This is the honest truth here. And he should think well before scaling up leasing more factories. Fine, it seems he knows his way around getting grants...let him focus on that if there is any one coming up again. But investment? Be careful. It may break you.

Way Out
Your founder is a farmer according to the the name of his company, tell him to work out producing the minimum tomatoes needed to survive and make reasonable profit himself, and then he can buy the rest from those farmers.

He should start a pilot. He knows he is going to fail forward. So, he needs to take it easy and learn it slowly. Going to rent 8 more factories should be a decision to reconsider. It might be a trap, and it might be eventually succesful. But how long will it be sustainable to pay off all the huge acquired debt.

This is not America or the UK you can apply for bankruptcy ooo. Your investors will chase you to the last end especially if they are individuals. They will come here to spoil your names.

There is no short cut
Ask succesful ones, there is no short cut. If you want to make it in Nigeria in Agro business, you must get involved in the lowest part of the value chain which is farming and get out the minimum production for your minimum profit. You do not have a business yet if you cannot do this. This is the secret Dangote Sugar is still in existence and it is the reason he is returning to the tomato paste gradually. Soon, he is going to be a champion and he will expand again. You cannot import raw tomatoes, and if possible, govt can ban importation anytime. So why take such huge risk?

I appreciate you
I want to start reading more models and solutions like this. This is quite impressive. Perhaps, you were first criticized initially because you didnt explain very well. In fact, there are still areas there you could have explained better.. but it's ok.. At least, it is commendable you succeeded where giants failed. This is great. But the giants are not sleeping sir. They are ready to chase you out if you slack.

Yes, enough of cutlasses and hoes templates. I am sick of people coming here to post their backyard gardens and then afterward ask for investments. And then, some other ones would start supporting them. For what? Cant they think like this founder? Yes, if this founder keeps it up, and takes to the area I have addressed above he will make it. And it will be nice to show case him to the world also like the TomatoJos lady. If he goes into real farming, ElRufai will support him even more than how he supported TomatoJos. Just imagine the grants he got here and there. To even get Tony Emelume grant is tough. It means the guy is not bad. I know many who have asked me to assit get that grant, but when I listened to their ideas, I just smiled inwardly.

Recommendation
If it seems OK to lease those 8 plants and quickly make a turn over without loss, it may be OK. But I am going to suggest you start at least 3 to 5 ha. You want to do something tractor and farm machines can do, and not what cutlasses and hoe can do. You will need to make choices now like to use mulch or not. If you use mulch, can you cover more, more and more hectares later even up to 100 and going to 1,000? So, you need to continue fine tuning it. It is not just about producing for dry or raning season....it is all round. To stake or not to stake. And many more. If you do not start now, you wont start after installing more factories. And you will hit the rock later. So, make this a priority NOW. Start today if possible. It is a long journey ahead. You arent producing now to take to your paste factory, but to learn. And if you get it right just one time, then congrats. But you still need both rainy and dry season techniques. If you and your founder ignore this advice, hmmmm...be ready to put the whole blame on yourselves when you are kicked out of the business in the nearest future.

Scale up farming raw tomatoes in the right proportion as you scale up your paste production which is directly proportional to the number and output of leased factories you operate.

Thanks for taking time to comment on the guys story and plans. I agree with some points that you have raised. What they have gone through captures the challenges many SMEs pass through. The founder had some technical knowledge and he decided to create a product using his technical knowledge, but then there are legal and commercial knowledge also required in setting up and running a successful business, these are areas you are highlighting as possible future pitfalls.

But a small entrepreneur has to start with the knowledge tht he has, he can not pay for expert lawyers to draft solid lease agreements neither can he pay economists to help him plan a reliable supply chain for his raw materials.

Where I disagree with you is in asking him to go into tomato farming. He does not need to farm tomatoes. He has identified a niche in the tomato value chain that he can operate in and make a profit, and it is possible to be successful buying raw tomatoes and processing it for profit.

Going into tomato farming introduces additional failure risks. He can concentrate on processing tomatoes, we already have millions of small holder tomato farmers whose cost of production are very low, why compete with them when he can buy from them?

1 Like

Re: How We Made It Into Tomato Processing Business by Earthstorms(m): 11:52am On Jan 05, 2022
FreelanceRebel:


Thanks for the Compliment.
We've had looked into fundraising, but based on the false reports that it is impossible for small startups to scale in Tomatoes Business, prevent people from investing, without them considering our success rate. If we are to go into PiggyVest, we will have to spend so much on royalties and commission. so what we are looking at is a direct investment without the middle platform.

About your Application for TEF, you can contact Nafarm founder, you might get some idea from him

If you are already making a profit, why do you need more investors?

Why not put back some of the profits to grow the business?

Since you have a functional factory, you should be able to get loans from the bank of industry. Check with them for loans for expansion.

I will not advice you to take money from individuals unless you are selling shares in the company. That way the investors take part of the risks of the business and you don't get bugged down with debts that you need to service.
Re: How We Made It Into Tomato Processing Business by Attit: 12:34pm On Jan 05, 2022
Earthstorms:

Thanks for taking time to comment on the guys story and plans. I agree with some points that you have raised. What they have gone through captures the challenges many SMEs pass through. The founder had some technical knowledge and he decided to create a product using his technical knowledge, but then there are legal and commercial knowledge also required in setting up and running a successful business, these are areas you are highlighting as possible future pitfalls.

But a small entrepreneur has to start with the knowledge tht he has, he can not pay for expert lawyers to draft solid lease agreements neither can he pay economists to help him plan a reliable supply chain for his raw materials.

Where I disagree with you is in asking him to go into tomato farming. He does not need to farm tomatoes. He has identified a niche in the tomato value chain that he can operate in and make a profit, and it is possible to be successful buying raw tomatoes and processing it for profit.

Going into tomato farming introduces additional failure risks. He can concentrate on processing tomatoes, we already have millions of small holder tomato farmers whose cost of production are very low, why compete with them when he can buy from them?
The response to your comment:

https://guardian.ng/features/agro-care/kaita-debunks-closure-of-dangote-tomato-factory/
In 2019

https://www.bloomberg.com/news/articles/2021-07-09/tycoon-dangote-can-t-get-enough-tomatoes-to-run-plant-profitably
In 2021.

There had been many downtimes before these ones, the longest was well over a year. The ones in 2019 and 2021 are even after he has started farming tomatoes on hectares of land. That's Dangote ooo. If he is not super rich, hmmm.

No one who understands the value chain of tomato paste will ever erect a plant without a farm. So, do you think it is electricity or whatever challenge that made the new 8 factories he is talking about to close down. Mallams can replace the whole factory if replaceable parts are scarce as long as the business is succesful. And what makes it not to be successful? Also, read the story of TomatoJos.

People who know nothing just talk anyhow that tomatoes waste in Nigeria cos we have no paste factory or preservative facility. Which kind of waste? I don't know about it.

I am busy now, I could have put here facts, figures, and data as proofs. Anyway, make a thorough investigation, and if you have more question, I will reply you later.
Re: How We Made It Into Tomato Processing Business by Earthstorms(m): 1:20am On Jan 06, 2022
Attit:

The response to your comment:

https://guardian.ng/features/agro-care/kaita-debunks-closure-of-dangote-tomato-factory/
In 2019

https://www.bloomberg.com/news/articles/2021-07-09/tycoon-dangote-can-t-get-enough-tomatoes-to-run-plant-profitably
In 2021.

There had been many downtimes before these ones, the longest was well over a year. The ones in 2019 and 2021 are even after he has started farming tomatoes on hectares of land. That's Dangote ooo. If he is not super rich, hmmm.

No one who understands the value chain of tomato paste will ever erect a plant without a farm. So, do you think it is electricity or whatever challenge that made the new 8 factories he is talking about to close down. Mallams can replace the whole factory if replaceable parts are scarce as long as the business is succesful. And what makes it not to be successful? Also, read the story of TomatoJos.

People who know nothing just talk anyhow that tomatoes waste in Nigeria cos we have no paste factory or preservative facility. Which kind of waste? I don't know about it.

I am busy now, I could have put here facts, figures, and data as proofs. Anyway, make a thorough investigation, and if you have more question, I will reply you later.

Successful businesses solve problems.
Before starting the tomato paste business, he identified the problem he wanted to solve. He observed that there is a glut of fresh tomatoes during the harvest period. He should concentrate on processing tomatoes seasonally during the glut in the harvest period.

If you say he should process tomatoes all year round then he will have to offer competitive price during the period of tomato scarcity to be able to secure raw material supply, that will not be economical because his paste is competing with cheap imported tomato paste.

Moreover, if he is unable to get supply of raw tomatoes, that means there is no glut of tomatoes, which means that the problem he is trying to solve does not exist.

I will not advice him to go into tomato cultivation because from his writeup, he did not come out as someone who is knowledgeable on tomato farming. Tomato is a difficult crop to cultivate with lots of disease pressures, if he is to take on the risk of growing his own tomato, then he need to develop the competence to grow tomato profitably. Moreover if the local farmers are getting better price offers for their tomato than he is willing to pay for, then even if he grows his own tomato, it will still be better for him to sell it raw just like the local farmers are doing and getting better prices

1 Like

Re: How We Made It Into Tomato Processing Business by Attit: 3:03am On Jan 06, 2022
Earthstorms:


Successful businesses solve problems.
Before starting the tomato paste business, he identified the problem he wanted to solve. He observed that there is a glut of fresh tomatoes during the harvest period. He should concentrate on processing tomatoes seasonally during the glut in the harvest period.

If you say he should process tomatoes all year round then he will have to offer competitive price during the period of tomato scarcity to be able to secure raw material supply, that will not be economical because his paste is competing with cheap imported tomato paste.

Moreover, if he is unable to get supply of raw tomatoes, that means there is no glut of tomatoes, which means that the problem he is trying to solve does not exist.

I will not advice him to go into tomato cultivation because from his writeup, he did not come out as someone who is knowledgeable on tomato farming. Tomato is a difficult crop to cultivate with lots of disease pressures, if he is to take on the risk of growing his own tomato, then he need to develop the competence to grow tomato profitably. Moreover if the local farmers are getting better price offers for their tomato than he is willing to pay for, then even if he grows his own tomato, it will still be better for him to sell it raw just like the local farmers are doing and getting better prices

I will not go further in discussing or debating with you cos you are throwing assumptions. First, I read about you telling him to avoid glut or so. Second, you have assumed a section of value chain of the business can be done.

See, I am not going to explain further cos if I do that, I will make people run away from him. Rather, I know the right thing to do. To advise such person privately. If you push me do that, then I might kill his aspirations.

You know nothing about this area, and potential investors who have studied this kind of business know what I am talking about. Many people studied the Dangote business. To me, you are a JJC who I should not worry about. And I will not be tempted to bring out links, facts, and figures. Nope. I wont do it. I will kill that man if I do it.

Please, just do not talk when you are not in a line of business. Your general opinion is not welcome. Also, use figures to talk. In all four posts, I cannot see you really address some of his figures. And no links to even support your claims. You are just throwing assumptions generally applicable, but you arent looking at this particular business. I do not blame you cos it's normal for JJC to think like you. But I can convince you with figures and facts. But I won't cos of the reason stated above.

The only point I want to say is that no sensible investor will ever invest in a new production business as a share holder. This is the point you made that gave me a clue you arent sound in investment. Yes, it looks good, but the chance it will happen in reality is almost zero. I laughed when I read that. It was the reason I wrote earlier you should ask questions and I will answer. But since you have decided to go the route of argument and debate, i know it is time to keep silent. Nope, I am not going to go low and start debating with you, and then hurt the emotion of those guys trying to achieve there. For what? To win a debate with you? Nope, I wont.

But to educate you, angel investors and VCs mainly look for Tech businesses these days. As an investor, it is more sensible to buy shares in a business which has gone public (well established). Most production businesses at the early stage do not qualify to go public. And it is like a camel passing through the eye of a needle to raise fund like that. So, I know again that you arent experienced in fund sourcing. No need to debate further with you.

They don't even do this in the US. So, the person you are talking to understands it too. He is able to get grants cos he is smart. If his business is magnificent and worth buying shares, Tony Emelume can buy shares there and invest there. But instead he awarded grants just to help most people. Dont you know Tony is an angel investor? So, you think he gives only Grant's out? Lol. He is a real business man. And not everything is his. Your proposal that he should sell shares looks good, but in reality, it will not happen. So bury that idea. If he is into Tech, them there are many VCs and angels investors he can pitch his idea to. You should go study investment well before you post on public forums. My advice.

Let me stop there. I will not write more cos of the respect I have for hard working people. If the OP is one lazy person, trust me, a don download figures and facts. He has tried and should be encouraged. So, nope, I will not allow you push me to do what I may not like later. But I am just going to warn you. Dont ever put mouth as a pro in businesses or areas you do not know well. Obviously from all you wrote again, you know absolutely nothing about it. I mean nothing. Those who are investors know what I have written here.

I can write more than 100,000 words with figures and facts, and by the time I am through, I will injure those guys . So, a beg, this is 2022 and I will not allow someone like you push me to that level.

Just so you know, and I am repeating it. It is not that he should, but he MUST go into farming to survive. I repeat loud clearly with boldness that COMPULSORILY, he MUST engage in farming. The facts, figures, and lessons are there. But I am not ready to do this here. You can debate with no figures and no facts, and sound like an intellectual here, but business minded people who know they need to investigate every opportunity do not use general and vague opinions like you are doing as an inexperienced person. And most likely always come from someone who has nothing to invest. Cos if you have invested and lost money, you will be forced to learn why that general opinion like you are given here doesnt work in the case. Why, cos money was lost. But the man with no money to invest, will just keep shouting around still pushing forward general opinions, meanwhile the investor who lost money knows what went wrong. This is what I see you doing here. It is obvious, you arent an investor. So, let's close the talk here.

Again, I will rather talk about details privately so I dont kill the morale of these people.

So, happy New Year!
Re: How We Made It Into Tomato Processing Business by Nobody: 7:03pm On Jan 06, 2022
Earthstorms:


If you are already making a profit, why do you need more investors?

Why not put back some of the profits to grow the business?

Since you have a functional factory, you should be able to get loans from the bank of industry. Check with them for loans for expansion.

I will not advice you to take money from individuals unless you are selling shares in the company. That way the investors take part of the risks of the business and you don't get bugged down with debts that you need to service.

A time will come when that profit will no longer sustain the business operation.
The desire to grow show that we are yet to satisfy our customers needs.
There is no week we push products to market that we don't sell out. Despite the fact that we are still avoiding major markets.

In 2020, we received a white-label productions contract with an investor from Ogun state, by June they have made their money back and by year ending it double up. So we are confident of what we are doing and what we will do with investors money. This is not about small bill, its like 8fs. Taking money from is not a problem for us.

Although, we have a good profile with BOI, themselves advice us not to take loan. Not because we will not be able to pay back, but because of some certain beareucracy
Re: How We Made It Into Tomato Processing Business by Nobody: 7:55pm On Jan 06, 2022
Attit
Wow, thank you for the time and the honest feedback. I really appreciate the time and effort you put into making this writing.

It is true we had previously hit the rock, that was due to inexperience, when we first start, the first product was the Powdered Tomato, a good product that turned out to have a premium price that people want to pay regular price for.

Even though we are not infallible in this field, we have done our homework, learning from our past. When we first start, we are only focusing on our vision, the problem we want to solve. Eliminating post-harvest lost, but by the end of 2017, we discovered a lot of issues in what we're doing. That was when we moved from the powdered product into paste/puree products, which was one of the best decisions we undertook.

Regarding sourcing for Tomatoes or getting our own farm, getting a company-owned farm is a good idea but too early at this stage. Tomatoes yields are unpredictable, the year 2016 was a surprising one for tomato farmers. I want to point out a fact that there was a reason why Dangote did not own a tomato farm when they were about to start, rather they gave money to farmers to plant and sell to their company.

Also, buying to process is a good deal for us but I won't state why for some reason, because it took us a great deal to figure that out.

Focus more on farming and investors will take you more serious
As a processing company, I believed focusing on that while growing should be our focus. When we get to the point where we own a farm and run it efficiently with the ability to cope with farm loss in the event of any, we should
We have the numbers, what we have done, I believed no investor should worry about losing their money. The new

The 8 facilities projection is to solve logistics problems and costs associated with running on a single facility working

Consultants wreck owners
This is true. When we went into a few Facilities in the country, on getting there, they are yet to start production, why? a multimillion naira machine did not work. In one of them, the manager was surprised when we explained to him what problem they will face with their machine, even though we have never used it before, but we have made research and obtained information on the same type of machine previously and figured out the design flaw, and we might end up spending several weeks or months fabricating parts. For them, it's just to buy a machine based on advertisement, for us that is not the case.

The facility we are using presently, as seeing in the picture above, was setup more than ten years ago for general Food processing, since then it was abandoned. So when we get their, taking full advantage of technicality, we shake everything, fabricate part, bring in pluggable device, and we start working. [Strenght Point]

Once, again i appreciate your Feedback, we will update the W and T of our SWOT

Lastly....
Research Malt production [personal passion] could be the joke of the century or just a recipe for family drink grin
Re: How We Made It Into Tomato Processing Business by Attit: 3:27am On Jan 07, 2022
FreelanceRebel:
Attit
Wow, thank you for the time and the honest feedback. I really appreciate the time and effort you put into making this writing.

It is true we had previously hit the rock, that was due to inexperience, when we first start, the first product was the Powdered Tomato, a good product that turned out to have a premium price that people want to pay regular price for.
I was even shocked you considered powdered. And I repeat, the term post harvest wreck or loss is over exaggerated. I have been to many farms abroad esp in Europe, there are losses too. Preservation is not the solution, but I can confidently tell you that the problem is worldwide. But Nigeria likes making big issue where there is non. I will explain.

If the problem is not in rich countries too, no one will consider looking for the gene to make tomato last 21 days after harvest. No one will look for gene to make tomato not break while transporting. We keep thinking it is preservative issue here, but every other nation face the issue too. So, producers have introduced seeds with very thick wall, that lasts for 21 days under room temp, with less water inside, and can last long while transporting. Then, gradually farmers are seeing the advantages of using crates instead of baskets. Transportation loss during to stress and heat is what kills tomato and not preservatives. The amount lost during transportation used to be so high, but it is low presently.

Therefore, going into powdered was not wise. For everything I say, I have reasons. This is my field. I just didn't listen and accept the reasons by those consultants in those days. I knew they always say rubbish. If the issue was peculiar to only Africa, we wont have these kinds of varieties we have now. So, it was a world challenge. Even like times 50 of what we lost in Nigeria was lost in US alone. Even far more (of cos they produced more, so the % lost to production in Nigeria was too high, but that of US was low). It could have been even higher, but for the fact that they quickly started using crates a long time ago. You need to go to markets where crates and baskets are used. You will understand me more.


Even though we are not infallible in this field, we have done our homework, learning from our past. When we first start, we are only focusing on our vision, the problem we want to solve. Eliminating post-harvest lost, but by the end of 2017, we discovered a lot of issues in what we're doing. That was when we moved from the powdered product into paste/puree products, which was one of the best decisions we undertook.
Maybe you still do not know the reason you failed. Anyway, that's what I wrote above. If you had met me then, you would have ignored me. You just went ahead to solve what is not a problem. That was it. I am a researcher. I solve problems. And one rule is not to accept general believes. You allow data, facts, and figures show you the right way. Then with your intuition, you can move ahead. You and I can have the same data on our tables, but interpret it differently. That's just it.

Most people follow the crowd. It is why my posts are strange to many. Sir, I look ahead. You cannot go wrong if you can look ahead too. Follow the steps of innovators. These are people who do strange things. Though, you will spend more than average people cos of your pilots, but you will be glad you did.


Regarding sourcing for Tomatoes or getting our own farm, getting a company-owned farm is a good idea but too early at this stage. Tomatoes yields are unpredictable, the year 2016 was a surprising one for tomato farmers. I want to point out a fact that there was a reason why Dangote did not own a tomato farm when they were about to start, rather they gave money to farmers to plant and sell to their company.
No, you do not know about it is why you think tomato is unpredictable. As a potential investor, I will send you away with this statement. My question will be: why the heck are you using a raw material which is unpredictable? Why? So, you want to gamble with my money? And then you tell me it is not your fault there is no raw material when there is none. Come on! This is wrong. This is why we fail in Africa. If you want to stand out, you beat others hands down.

Dangote did not go into tomato not because he thought it was conplex. He went in cos they told him post harvest was too much, and gave him wrong data that he has more than enough. You also listen to yourself. You are wrong. But he went in and saw they did rubbish analysis. He closed down the plant and went into farming. If he had thought it was too complex, he wouldn't have done it. Others who closed down felt it was too complex. The truth is that they have no knowledge about it. Simple. So, why is it that Dangote and TomatoJos beat the complexity? Why are farmers doing it more efficiently now. At least they are trying? Why?


Also, buying to process is a good deal for us but I won't state why for some reason, because it took us a great deal to figure that out.
Quite interesting. If you insist buying is ok for you...no problem.. why will I want to say it is not good for you. At least, you made your findings. Only you will suffer the loss if you are wrong. And if right, it will be a blessing.


Focus more on farming and investors will take you more serious
As a processing company, I believed focusing on that while growing should be our focus. When we get to the point where we own a farm and run it efficiently with the ability to cope with farm loss in the event of any, we should
We have the numbers, what we have done, I believed no investor should worry about losing their money. The new

The 8 facilities projection is to solve logistics problems and costs associated with running on a single facility working
You think anyone wont be interested in the details of the Capacity of each of the 8.facilities? You are running on just 1 which used to give 1 ton, but now 7 tons. Are you saying you are able to get 7 tons consistently daily? Come on!

You just want to run processing. Your mind, bad equipment purchase is why those plants failed. Ok oooo. Mallams who can buy 50 of those machines. Ok ooo. So, you think they cannot afford to abandon the plants and import new ones if there were no other issues?

If you say tomato is unpredictable, it means your farmers get like less than 1 ton from an acre. So, think deep. Are you sure of what you are saying? And then, you want to do 8 more facilities? Maybe just one ot of the 8 can produce 50 tons daily, who knows. But I see you trying to source for 100 tons daily or far more soon. So, you want to convince me you can get 50 to 100 tons daily without starting your farm? Come on! I read above where you wrote just that one plant is not profitable enough. Yes, no one needs to tell me that. I know what it entails to run a factory. And having many mini around isn't even wise, but it's ok since the initial cost is not ob you.

If you say it is not profitable, now think of the original owner. Lol. And that one too would had boasted during his days before reality hit him. Lol..


Consultants wreck owners
This is true. When we went into a few Facilities in the country, on getting there, they are yet to start production, why? a multimillion naira machine did not work. In one of them, the manager was surprised when we explained to him what problem they will face with their machine, even though we have never used it before, but we have made research and obtained information on the same type of machine previously and figured out the design flaw, and we might end up spending several weeks or months fabricating parts. For them, it's just to buy a machine based on advertisement, for us that is not the case.

The facility we are using presently, as seeing in the picture above, was setup more than ten years ago for general Food processing, since then it was abandoned. So when we get their, taking full advantage of technicality, we shake everything, fabricate part, bring in pluggable device, and we start working. [Strenght Point]

Once, again i appreciate your Feedback, we will update the W and T of our SWOT
It is ok. But you will find it hard to convince people with money. Just take it or leave it. I am sure you will return to say I am right, or you may not want to in the future. But there is nothing accepting one's mistake later. This route you want to take, I know the end. But goodluck anyway.


Lastly....
Research Malt production [personal passion] could be the joke of the century or just a recipe for family drink grin
Corn, peas, carrots etc packed in tins are good businesses. Starch manufacturing is a good business. Tomato paste is wonderful. Generally, food production is wonderful in Nigeria. Even junks too. Why? The population of Nigeria is more than 50% of the US. And land area is not even up to their biggest state. Same way food is profitable here is why it is profitable in china and India. Explosive population. So, you do not need to tell me. I have told you that I am a researcher and I will give you reasons. It is not La Cram, La Pour. It is from deligent study.

Take your time and read through my posts and threads.

Tell your oga tomato farming is doable with lesser risks now. Get into it if you want to last long. I give you 5 years, you will lose out. If you know the numbers of people willing to start tomato paste, and are presently farming, you will know you are not preparing for the future at all. You will lose out. Trust me. Not that tomato paste will be enough for us oooos cos more factories will be opened. Nope. But everyone in it also buy from farmers which will reduce the quantity you will be getting daily. And you will run at higher costs soon cos you are using micro plants here and there. Old parts, etc. But they will bring in new sophisticated ones and then start buying from farmers who sell to you. At the same time have their farms too. You will be prunning generator on different locations. Lol. See eh. You will soon understand sir. When your competitors have their plant on their farms and you pay heavily for transport and fuel. Do not worry... Don't start farming. Remain there. The future will tell.

Start pilots
No one is saying you should start a large farm now. Told you that you should do 2 ha and use tractors. Do pilots now. Even just mastering farming, you will see the huge profit in selling raw tomatoes. Lol. People think it doesnt have value. If you need to raise cash, just farm. You will never beg anyone again. With your level of experience, you are already made.

If I were you, I would just scale up a little so I could have more profit like you said. But that farm will be my priority.

If you sit down and do your homework, tomato farming is not complex

Set aside 5 million naira and start your pilot.

Goodluck!

1 Like

Re: How We Made It Into Tomato Processing Business by ElectroLyte: 11:06pm On Jan 09, 2022
@Attit I am interested in your research work, maybe I can learn something from it. Can you share what do in tomato farming?

@OP Dangote is not currently buying tomatoes from the farmers, the deal was cut immediately after the farmers collect money.
Re: How We Made It Into Tomato Processing Business by gnhpowerhouse: 11:11pm On Jan 09, 2022
Cool Business !


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Re: How We Made It Into Tomato Processing Business by Attit: 7:09am On Jan 10, 2022
ElectroLyte:
@Attit I am interested in your research work, maybe I can learn something from it. Can you share what do in tomato farming?

@OP Dangote is not currently buying tomatoes from the farmers, the deal was cut immediately after the farmers collect money.

You know what? I started with my personal business, but soon realised that most of the consultants out there are zero upstairs. Meanwhile, the good ones are in academics running things with universities in advance countries and also with international companies. They are silent since their schools are not serious. They are just in universities to keep the title there as a formal researcher. Their customers are these abroad people.

To me, East West is the only company which is a bit serious in Nigeria. Hazera is superb, but their market target is only big projects. Others cannot do much but to just roll with the economy. Lol. East West is like this cos it's a branch of the company that is hete, and not an importer here. East West is the only company which set up here. Others presence are through local companies acting as their importers.

So, I started my farm and hit rock. That was how I went to the drawing board and I started research. I have so many areas I have worked and I have released so much here for people. I have tried forming cooperative, joint farming, etc but all failed cos most people are not motivated. They are driven by initial profits. So, I focused on my personal stuff running my thing. And so far, I give God the glory.

I have worked on airborne and soil diseases. Strategies to tackle them. Also, I have worked on how to make seeds. I went as far as doing it the exact way it's done. I have a thread on seeds varieties, and about about seeds production milestone. All these were to make my business sustainable. But later, I started meeting professors and they are all shocked that my specialty is not Agric. So, right now, I am thinking of publishing my papers officially and doing so in Nigeria is absolutely impossible since my background is not core Agric. You know how the system is here. I am looking outside the country for partnerships and I have been getting offers. I actually stopped field work but since there is something great I need to do, I opened a new farm fast to do the pilot. But I am not going to just do just the pilot alone, so I opened a tomato farm also to make cool cash while doing my work. Otherwise, I wont be on farm at this moment. I have a free consultation offer for tomato farmers in one of my thread. You may want to check it up. Anyone who wants to set up tomato farm can hook up with me and have absolutely free consultation. I will also give free contacts. Nearest place to buy farm inputs, give out nutritional formulars, diseases management programs. If I know someone better than me the person can consult in the area, I will release the info too.

The focus is to move forward. My thing is now hydroponics cos it is the future. I am presently working on an affordable hydroponics system. Stage one is to do it manually which looks great to me now. Then, the next stage will be to automate it. If that sails through, the last stage will be to find a way to control the system from a far distance via internet and employ unskilled workers there. My job will be to operate the technical aspect remotely. Of course i will first put it in a greenhouse...and later see how to do open field too. You know that I can be in the US and my farm is in Nigeria and I can know exactly what is going on. Data on my screen will show what is happens to each of my plants. Let there be 300,000 plants there, I can have a view of all. If there is a change in temperature outside the specific range, I know fast, and I can correct it without calling the unskilled labor. The unskilled will be for just harvesting , pruning, etc...and if I need to tell them anything to do. I know the weight change of all my plants so you cant steal and think I wont know. As soon as you even enter the place, I get signal wherever I am, and the CCTV is activated so i see who is there. Again, i am looking at contacting a company who recently finished work on piloting a drone remotely. The future is bright. I hope I can fly my drone remotely too.

Having urban farming centers in Lagos, Abuja amd PH is my goal. It will sell well as long as people are afraid of going to farms cos of security. Also, it will reduce transportation wastage. Again will help busy people set up in urban areas near their homes.

Increasing yield exponential is my target without using seeds which genes are modified. I wrote about a tomato variety with 10kg - 19kg yield in the past, now, the plan is to even get much more.

Then, most of these tomato plants equipment are getting obsolete soon. I mean, everything will change soon and they will start moving these dead equipment to Nigeria. Lol. I want to change the narrative. We also can start implenting the latest here. The concept of new technologies are what I am also working on. And I hope to publish my first material in a university in Delaware, US very soon. Then, who knows, I may be able to get offers from Japan and South Korea cos those are power houses for technologies and innovation.

I have not left large farms too. I have some phd guys working on making large farms profitable in Nigeria. There should be a system which should work well here. A system most people can tap into.

Finally, I am careful releasing my works to anyone. Many sabotages are around, so I may not give details more than I have here.

This what I do in summary.
Re: How We Made It Into Tomato Processing Business by Nobody: 5:14pm On Jan 10, 2022
Attit:

Then, most of these tomato plants equipment are getting obsolete soon. I mean, everything will change soon and they will start moving these dead equipment to Nigeria. Lol. I want to change the narrative. We also can start implenting the latest here. The concept of new technologies are what I am also working on. And I hope to publish my first material in a university in Delaware, US very soon. Then, who knows, I may be able to get offers from Japan and South Korea cos those are powerhouses for technologies and innovation.

I have not left large farms too. I have some phd guys working on making large farms profitable in Nigeria. There should be a system which should work well here. A system most people can tap into.

Finally, I am careful releasing my works to anyone. Many sabotages are around, so I may not give details more than I have here.

This what I do in summary.

I have a second piece of information about South, Korea. in 2019, our founder was in S.Korea for 2-3 weeks days training, the report he brought back was astonishing, those guys have gone far in crop and seed improvement. I had wished he translate his experience into a book.
I cannot imagine seeing and Improved potatoes that have egg taste, vegetables with a long shelf-life, etc
Re: How We Made It Into Tomato Processing Business by Bounce9533: 11:26am On Mar 07, 2022
Contact Bosun Agricbusiness and consultancy on 08125482557 if you're interested in venturing into either of crop production or animal husbandry business.

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