21 October 2016

Dangote Invest Heavily on Tomatoes To Cut Down Glut and Unemployment Rate

What U ate

Africa’s richest man, Aliko Dangote is hoping to change tomato production with a giant factory that will boost domestic output, create jobs directly. The giant factory the size of 10 football pitches, set alongside 17,000 hectares (acres) of irrigated fields, will help by tapping a potential agricultural goldmine.
For the past five years, the Dangote Group conglomerate he heads has been working to build a $20-million (18.4-million-euro) tomato processing plant outside the northern city of Kano.
The country’s agriculture ministry puts annual current demand for tomato puree at 900,000 tonnes.
When the Dangote factory opens from next month, it will provide 430,000 tonnes of paste that is used widely in Nigerian dishes from jollof rice to fiery soups.
“Nigeria is such a huge market for tomato paste that we will find quite challenging to satisfy,” the factory’s general manager, Abdulkarim Kaita, told AFP.
“Already local tomato paste packaging companies have placed orders with us which we will have to work hard to satisfy.
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“We are set to begin operations. We are only waiting for the tomatoes which are ripening in the fields.”
Nigeria grows some 1.5 million tonnes of tomatoes every year, making it the 14th biggest producer in the world.
But it’s forced to rely on imports of tomato puree, mostly from China, because of a lack of processing plants.
Dangote’s factory, built by Switzerland-based Syngenta, will directly employ 120 people and 50,000 farmers have been engaged to grow the tomatoes required for the process of making concentrate.
 “Once we start production the factory will be providing employment to farmers and (the) tomato paste packaging industry, traders, haulage operators and many others to support the tomato value chain,” said production manager Ashwin Patil.
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For farmers such as Yusuf Ado Kadawa, it’s a lifeline.
“We really incur heavy losses from our yield, which rots away due to lack of (a) ready market for our tomatoes, which is a perishable produce. But now we have a market close to us,” he said.
Some 30 per cent of Nigeria’s estimated 170 million people are employed in agriculture, mostly at a subsistence level, although moves have been made to commercialise production.
Erratic power supply, which Nigeria has been grappling with for more than two decades, and lack of import controls remain the factory’s main challenges.
But the vice-president of Nigeria’s manufacturers union, Ali Madugu, said the future still looked bright.
“Once the government can place restrictions on the import of Chinese tomato pastes... the sky’s the limit for the Dangote tomato paste because the market is there for them to exploit,” he added.
Culled from: Thisday

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