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Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote - Business (2) - Nairaland

Nairaland Forum / Nairaland / General / Business / Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote (28618 Views)

Young Billionaire Who Was Richer Than Dangote 8 Month Ago Become Poor / I Am Richer Than Dangote – Ghanaian (Dwarf) Shortest Man Speaks / Why Dangote Closed His Tomato Factory And Lessons You Can Learn From It (2) (3) (4)

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by fratermathy(m): 12:41pm On Aug 30, 2017
WebSurfer:

You really think if not for monopoly only dangote has the guts to do this?

That's what I'm saying. Other businesses should try and do what Dangote did and compete favourably with him. Monopoly is not good for any nation.

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by PatriotTemidayo: 12:44pm On Aug 30, 2017
We are a surface people. We never looked deep or think about the future.

Such gigantic project failed, and no one raise a concern goes to show how unproductive we think.
In Other clines, govts will spend as much as necessary to sustain.

4 Likes

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Bukayot: 12:45pm On Aug 30, 2017
minus your salary
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 12:46pm On Aug 30, 2017
gbadexy:
The solution to the problem is restructuring and resource control.
I've been hearing the need to diversify to agriculture since my secondary school days over 2 decades ago but it's just a lip service and mantra successive governments tout but no one really seems to do anything drastic about it.
maybe each state would encourage and ensure the success of such investments in their domain so as to get revenue from it.
una go just dey yarn dust. When u say resource control its still d govnors. Militants and trad rulers dat wud own it all. How wud it benefit d xommon man

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Bertevan(m): 12:46pm On Aug 30, 2017
Low quality seed, scarce irrigation services, lack of storage facilities and the ever-greedy middle men are other problems that the FG need to tackle if agriculture is to take a central position in country’s economy.

These are the same problems of agriculture we read about and wrote to pass agricultural science exams in secondary school in the early nineties. If they are still the problems of agriculture today then we need to ask, "are we moving forward, or backwards,or marking time in one place?"

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by teemy(m): 12:47pm On Aug 30, 2017
Unless there is a major war or threat of war on the global scale that would shoot up oil prices Nigeria might face another recession within a period of one to two years. A whole lot of alternative revenue sources are yet to be tapped or revamped for better productivity. Seems we are still 'living on faith' and not yet serous.

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by gbadexy(m): 12:58pm On Aug 30, 2017
Sniper12:
una go just dey yarn dust. When u say resource control its still d govnors. Militants and trad rulers dat wud own it all. How wud it benefit d xommon man
You lack manners and must be very stupid. can't you pass your message without resulting to insult, or does the anonymity and bravado Internet provide means you should abuse it and throw away manners.

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 1:05pm On Aug 30, 2017
BooHarri

What do you expect from a WAEC non-holder?
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 1:08pm On Aug 30, 2017
haywhy1026:
If Dangote with the resources he has and the market Nigeria possess can still fail in a micro sector of Agriculture then why is it easy for the minister of Agriculture to always open his mouth and advise the youth to go back to farm without any augumenting policy to encourage the sustainability of the real system.

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 1:09pm On Aug 30, 2017
gbadexy:
The solution to the problem is restructuring and resource control.
I've been hearing the need to diversify to agriculture since my secondary school days over 2 decades ago but it's just a lip service and mantra successive governments tout but no one really seems to do anything drastic about it.
maybe each state would encourage and ensure the success of such investments in their domain so as to get revenue from it.

The Hausa-Fulani Hegemony says no grin
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by SalamRushdie: 1:14pm On Aug 30, 2017
haywhy1026:
If Dangote with the resources he has and the market Nigeria possess can still fail in a micro sector of Agriculture then why is it easy for the minister of Agriculture to always open his mouth and advise the youth to go back to farm without any augumenting policy to encourage the sustainability of the real system.

My comment of the day ..well said

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Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by chukzyfcbb: 1:15pm On Aug 30, 2017
navyseal2220:
Some people foolishly think this man is a shrewd business man, he isn't. Who knows Dangote before 1999? Nobody. Monopoly from Obasanjo's government is what propelled him. Someone should tell him to meet that Igbo man that has the largest paste factory in Nigeria to teach him business. He doesn't have access to dollar like Dangote, but knows what he is doing.
actually the IBO man whom you are quoting threatened to close his factory (sack 1500 workers) because he couldn't cope without govts intervention.
He asked for an outright ban on tomato importation and cited lack of Forex to run his business.

The true opponents are the importers of tomato paste. The ones produced in Nigeria are said not to be reddish in colour by consumers, Nigerians want tomato that's cheap and makes their food appear reddish in colour which has given preference to the Products imported from China.


So its not just dangote, but to all who owns tomato plants in Nigeria , including the Igbo man Ericso!

Producing tomato in Nigeria is more expensive than the ones imported from China. Naija no dey look quality o.

2 Likes

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by aolawale025: 1:15pm On Aug 30, 2017
Actually for food processing companies, they should integrate backwards to generate and sustain adequate supply of raw materials. Dangote should organise a cooperative of tomato farmers. Assist with improved seeds etc and have a purchasing agreement with them

Most tomatoes are lost to waste due to lack of storage capacity. Processing to paste would help reduce the waste
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Ijaya123: 1:16pm On Aug 30, 2017
navyseal2220:
Some people foolishly think this man is a shrewd business man, he isn't. Who knows Dangote before 1999? Nobody. Monopoly from Obasanjo's government is what propelled him. Someone should tell him to meet that Igbo man that has the largest paste factory in Nigeria to teach him business. He doesn't have access to dollar like Dangote, but knows what he is doing.

Not sure the man knew what he was doing because the business closed shop last year. So what is left to learn from him?

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by obailala(m): 1:18pm On Aug 30, 2017
navyseal2220:
Some people foolishly think this man is a shrewd business man, he isn't. Who knows Dangote before 1999? Nobody. Monopoly from Obasanjo's government is what propelled him. Someone should tell him to meet that Igbo man that has the largest paste factory in Nigeria to teach him business. He doesn't have access to dollar like Dangote, but knows what he is doing.
Erisco is also facing exactly the same problem Dangote tomato is facing. Not sure I understand the import of this your comment...
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 1:19pm On Aug 30, 2017
He should go n meet erico so that the man we tutor him on how to deal on tomatoes paste.
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by gbadexy(m): 1:20pm On Aug 30, 2017
onyenze123:


The Hausa-Fulani Hegemony says no grin
blame that on their lack of education. The way I see it, they would even be the most beneficiary since they have large arable land and farmers.
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by lekancaring(m): 1:23pm On Aug 30, 2017
That is the country we find ourselves
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by chukzyfcbb: 1:25pm On Aug 30, 2017
aolawale025:
Actually for food processing companies, they should integrate backwards to generate and sustain adequate supply of raw materials. Dangote should organise a cooperative of tomato farmers. Assist with improved seeds etc and have a purchasing agreement with them

Most tomatoes are lost to waste due to lack of storage capacity. Processing to paste would help reduce the waste
I believe this comment was written out of lack of information. sheer ignroance.

Do you even know where the plant is situated?
Dangote being much smarter than erisco, constructed his own plant right in the hub of the tomato source. at Kano! Also made some sort of aggrements with the farmers to be supplying his plant the needed products, I mean thats why we have a plant to preserve the waste due to lack of storage.


You think those working with Dangote haven't thought of those criterias you wrote? lool.
He has done all those. infact The other guy Erisco took a big L by erecting his own plant in Lagos.

How can he compete with Dangotes plant in kano?

One rule of bizness is
- Nearness to Raw material
this is what is taught in Economics Secondary school.


The real crux is that you and I are not ready to buy a tin tomato/ puree that will be more expensive and not also will not make my food red simple!!!!


Dangotes group has observed all those ur points sir and nothing worked!

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 1:26pm On Aug 30, 2017
gbadexy:

blame that on their lack of education. The way I see it, they would even be the most beneficiary since they have large arable land and farmers.

Does Israel has large arable land?

"Israel is a major exporter of fresh produce and a world-leader in agricultural technologies despite the fact that the geography of Israel is not naturally conducive to agriculture. More than half of the land area is desert, and the climate and lack of water resources do not favor farming. Only 20% of the land area is naturally arable"

Agriculture has gone beyond having arable land and farmers (BYW Do they have trained farmers, I mean modern farmers?). We talk about robotics, economics and policies.

Fun Fact: Israel produces 10times the amount of tomatoes per tone per annum that Nigeria produces.

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by bigpicture001: 1:51pm On Aug 30, 2017
gbadexy:
The solution to the problem is restructuring and resource control.
I've been hearing the need to diversify to agriculture since my secondary school days over 2 decades ago but it's just a lip service and mantra successive governments tout but no one really seems to do anything drastic about it.
maybe each state would encourage and ensure the success of such investments in their domain so as to get revenue from it.
stop talking like mny nigeria's old paint elders..in details explain how restructuring will rescue d economy
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by gbadexy(m): 2:00pm On Aug 30, 2017
onyenze123:


Does Israel has large arable land?

"Israel is a major exporter of fresh produce and a world-leader in agricultural technologies despite the fact that the geography of Israel is not naturally conducive to agriculture. More than half of the land area is desert, and the climate and lack of water resources do not favor farming. Only 20% of the land area is naturally arable"

Agriculture has gone beyond having arable land and farmers (BYW Do they have trained farmers, I mean modern farmers?). We talk about robotics, economics and policies.

Fun Fact: Israel produces 10times the amount of tomatoes per tone per annum that Nigeria produces.

I don't doubt or disagree with you. if Israel can achieve that despite the unfavorable land they have, imagine what the north that is reluctant for resource control would achieve and gain from their land if they partner with such country in terms of training and technical partnership

1 Like

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by lawani: 2:01pm On Aug 30, 2017
The Plant will work in due course of time. the problem, i blv, is competition with small holders who supply the markets in the South And North. If It were to be a pko refinery that buys pkn, no such problem as the coy takes in both pkn and crude pko from millers in a monopoly. Solution I believe is for dangote to viciously bite into the market by bulldozing the way in by introducing bulk buyers who can buy on the spot and from the small holders. a small holder with 50 thousand naira capital will be able to make 2000 naira a day by selling to bulk buyers on the spot without travelling anywhere. That Is how pkn vegetable oil refineries operate. When There is a short fall in supply they jack up the price and the produce will stream in. very interesting.
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by gbadexy(m): 2:03pm On Aug 30, 2017
bigpicture001:
stop talking like mny nigeria's old paint elders..in details explain how restructuring will rescue d economy
Each state would sit up and explore the resources it has when they know there won't be free oil money to share.
I don't need to explain much, it is self evident in the pre crude oil nigeria during stronger regional government.
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 2:10pm On Aug 30, 2017
NtoAkwaIbom:
I keep telling people Agriculture cannot do jack to resuscitate any economy rada.. Technological advancement is key
You spend a full year growing a big hectre of land, but on selling everything you cant even last for 2 months with the proceeds.

A company spends 1 yr manufacturing and selling phones, shoes, modern wears, cars, weapons, etc and smiles to the bank while paying salaries to employ others.

If we keep importing all the heavy duty vehicles we use in planting, and we hv no resources to fix them, we find out that the cost we expend on capital takes lots of yrs to cover.. But if we were to produve this heavy duty vehicles... Then the stres that the importation of same, puts on the naira will be reduced, and it will be far more affordable to farmers thereby y reducing their overhead cost and at the same time increasing their profits


You're wrong @bolded. Nothing stops an economy from agricultural and technological advancement at the same time. There's always room for both to thrive and develop an economy. It has never been strictly mutually exclusive.

3 Likes

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by chosengocap: 2:25pm On Aug 30, 2017
bobnazzygon:
Everything in Nigeria is not working as it suppose to be because of inadequate planning.




If APC Govt
Got $90B From
DIEZANI,Why Is NIG Still
Begging CHINA &
WORLD BANK For $5B &
$3B Loans,Which Were
Turned Down?

2 Likes

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Nobody: 2:25pm On Aug 30, 2017
And the same lazy people calling our oil producing(south south and southeast) regions poor soils. You see why Nigeria will never survive without Biafraland resources.

If Nigerians and Nigeria government wants diversify economy, why is it only Lagos state operating seaport? And why other states seaports in operations

How can we be one Nigeria in the face of marginalisation in south south and southeast regions

Just restore Biafra republic to five states and see other Dubai close to Nigeria.

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by Oduok(m): 2:28pm On Aug 30, 2017
I don't know why Bloomberg didn't see this while designing the plant for Dangote. I did a similar design in 2015 and this was my finding: taking a production capacity of 360,000 tons of tomato paste annually as a basis. Material balance revealed that 2,477,100 tons of raw tomato is required. (Raw tomato is 7 degree Brix while tomato paste is 30 degree Brix). Market survey revealed that a ton of raw tomato in the local market was 350 dollars while a ton of tomato paste was 1,300 dollars. Ignoring every other costs, annual cost of raw material for the plant was 866,974,500 dollars whereas annual income from sales of tomato paste was 702,000,000 dollars. I concluded and reported that the plant was technically sound but lacked economic viability. My recommendations were: 1. Government should intervene and subsidize the production cost of tomato for farmers who would sell the raw material to processors at subsidized rate. 2. The plant should consider producing other products like lycopene from the waste. 3. The plant should employ pinch technology to recover heat from the three effect evaporator for use in other units like sterilization and preheating.

6 Likes

Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by RealityShot: 2:35pm On Aug 30, 2017
fratermathy:
Nigerians should pray that this country doesn't split up. Because if it does and Dangote faces only the North, the economy of the splinter nations may be in shambles.

We should be more enterprising and have industries that rival Dangote's in order to avoid over dependence on him.
Dont mind IPOB members..

hunger will be used against them AGAIN!

instead of focusing on taking over governance in the east and industrialising the region till its self sufficient BEFORE moving for independence..

THEY ARE JUMPING TO Z before reading S (for sense)
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by aolawale025: 2:37pm On Aug 30, 2017
chukzyfcbb:

I believe this comment was written out of lack of information. sheer ignroance.

Do you even know where the plant is situated?
Dangote being much smarter than erisco, constructed his own plant right in the hub of the tomato source. at Kano! Also made some sort of aggrements with the farmers to be supplying his plant the needed products, I mean thats why we have a plant to preserve the waste due to lack of storage.


You think those working with Dangote haven't thought of those criterias you wrote? lool.
He has done all those. infact The other guy Erisco took a big L by erecting his own plant in Lagos.

How can he compete with Dangotes plant in kano?

One rule of bizness is
- Nearness to Raw material
this is what is taught in Economics Secondary school.


The real crux is that you and I are not ready to buy a tin tomato/ puree that will be more expensive and not also will not make my food red simple!!!!


Dangotes group has observed all those ur points sir and nothing worked!

The plant is located about 30km to kano. It's in an area that has the largest irrigation canals in west africa built by goyernor Audu Bako. If the plant was shut down due to lack of tomatoes. How does what I wrote amount to laziness? That simply implies if they are doing what I wrote they should do more. Spread their catchment area.
Re: Why Dangote’s Failed Paste Factory Should Give Buhari More Headache Than Dangote by chukzyfcbb: 2:44pm On Aug 30, 2017
aolawale025:


The plant is located about 30km to kano. It's in an area that has the largest irrigation canals in west africa built by goyernor Audu Bako. If the plant was shut down due to lack of tomatoes. How does what I wrote amount to laziness? That simply implies if they are doing what I wrote they should do more. Spread their catchment area.
sorry I didn't see what you have said that hasn't been implemented.
He signed MOU with farmers from several states to supply his plant tomatoes, what other sort of Spreading do u expect again?

Maybe you need to look at the pic I posted earlier

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