The Nation Newspaper

Tag: Tomato paste

  • Tomato paste quality continues to decline

    Since the past four years, the quality of most goods in Nigeria has continued to decline as manufacturers and importers try to implore means of satisfying their customers while still making profits in the face of the trying economy and consumer’s low purchasing power.

    Many of them reduced the size of their packs and contents while still maintaining the same price. It cuts across almost every consumer sector. In the biscuit industry, for instance, most biscuits like the popular coaster biscuit which had six pieces in its pack and sells for N10, reduced to three pieces while still selling for N10. Manufacturers reason that it is better to reduce the quantity and maintain the old price instead of increasing the price as any increase in price may drive off customers whose purchasing powers have actually dipped.

    However, what is going on in the tomato paste industry is really worrisome. The National Agency for Food, Drug Administration and Control [NAFDAC] has always lamented about the poor quality of tomato paste imported into the country but now the quality of the imported paste and the locally manufactured brands has actually dropped further.

    Anyone that cooks with tomato paste in Nigeria will attest to the increased colouring and bulking agents in tomato paste now. It’s so bad that when one cooks with them it colours any white meat or fish in the pot pink. I will not like to mention the brand names now but most popular tomato paste brands are guilty of this.

    It is really worrisome because there is a limit to food colouring and modified corn starch that consumers are supposed to ingest. Tomato is one food product that virtually everyone in Nigeria consumes in large quantity. We cook most foods with tomato.

    According to reports, Nigeria which is the 13th largest producer of fresh tomatoes in the world is also the largest importer of tomato paste in the world. We import an average of 150,000MT of tomato concentrate per annum which is valued at $170m. All these go to show you the premium placed on both fresh and tomato paste in Nigeria. If the paste has more of artificial colouring and bulking agents, you can then imagine the quantity of those two consumed by individuals.

    According to a government official from food safety department of NAFDAC, importers and local tomato paste manufacturers are given guild lines of what is expected with their paste. In her office at Isolo Lagos, the government official whose name cannot be mentioned as she is not the official spokesperson of the agency explained that most tomato paste in the market, both locally made and imported ones, fall below NAFDAC standard.

    “The minimum requirements specified by the CODEX Alimentarius standards and Nigeria industrial standards is that double tomato concentrate should have at least 28 per cent tomato content while triple concentrate has a minimum of 33 per cent natural tomato content with extra concentrate having at least 39 per cent tomato content,” clarified the food safety professional.

    Continuing, she explained that certain amount of edible corn starch is expected to be part of the content with other ingredients but, unfortunately, “majority of our manufacturers and importers use more corn starch than the real tomato, exceed the colouring, sugar limit. That’s why you find some of the paste tasting sweet.”

    On what the government regulatory agency is doing to address the ugly incident, she disclosed that “We cannot do this work alone. We need consumers like you to come out and report such brands. For now, our agency is hampered by lack of funds, however we shall not rest on our oars. We keep raiding the markets and the suspected companies.

    “Consumer education is very essential in this matter. Some of the manufacturers claim to can 100 per cent tomato but I tell you, it is not true. The only way to be sure you are consuming tomato is only when you buy fresh tomato. One can also buy it fresh and cook and sieve for future use. Supposed canned tomato paste has just tiny bit of real tomato in it,” she concluded.

    A word, they say, is enough for the wise. Let us invest in fresh foods. That is the only way to be sure of what we are eating.

  • ‘Ban tomato paste’

    The Federal Government has been urged to ban some products, particularly tomato paste, because some imported pastes contain about 50 per cent starch before dilution in Nigeria where an additional 15 per cent starch is often added.

    A Professor of Horticulture and Landscape Management at the Federal University of Agriculture (FUNAAB), Abeokuta, Ogun State, Prof. Goke Bodunde, made the call at the 59th Inaugural Lecture of the institution.

    Bodunde, who delivered the inaugural lecture entitled: “Unveiling the beauty of an unforbidden fruit”, condemned substandard tomato paste import and the consumption of rotten tomato fruits called Esha  in the Southwest, which he attributed to poor tomato yield.

    According to him, although tomato is vital to nutrition, Nigeria has the poorest production in the world with about five tonnes per hectare (ha), compared to Egypt that records a yield of 39.7t/ha and South Africa’s 78.7t/ha.

    Bodunde attributed the low tomato  productivity to environmental and managerial factors.

    The don stated that because of the low production and the dietary compulsion of tomato in culinary use, some abuses had been observed.

    “This is the story of some of the tomato paste and puree imported into Nigeria, 91.1 per cent  of which, according to the National Agency for Food and Drug Administration and Control (NAFDAC) (2015), failed to meet the required standard,” he said.

    According to him,“it is noteworthy that most of the pastes are imported as concentrates in drums and big cans from Italy, India and China. They are usually diluted, packaged and finally canned by various canning industries in Nigeria”.

    Speaking on the way forward,  Bodunde advocated investment in tomato canning industry by the private sector and the government as well as the promotion of research-industry linkage.

    The  Vice-Chancellor, Prof Kolawole Salako described Professor Bodunde as a very effective academic and mentor who has supervised more than 150 undergraduates’ projects and over 60 postgraduate research theses at Masters and Ph.D levels either as a major or co-supervisor.

  • MAN cautions on tomato paste importation

    MAN cautions on tomato paste importation

    Manufacturers Association of Nigeria (MAN) has urged the Federal Government to protect the huge investments by local firms in tomato production by reducing the importation of concentrated tomato paste.

    Its President, Dr. Frank Jacobs, at a media forum, insisted that the government, through its tomato policy, must regulate the massive importation of concentrated tomato paste, which is killing local industries producing tomato paste.

    According to him, there is a need for the government to check the continued importation of concentrated tomato paste into the country and enhance its local production.

    Jacobs said despite the government’s backing for local tomato paste manufacturing firms, all is not yet well with the industry in terms of stability and conducive environment.

    He noted that importers of concentrated tomato paste still spent billions of naira yearly on the commodity through the seaports and land borders.

    “The issue of tomato has been on for a long time. Members in the sub-sector have invested heavily in the industry. They have made representations through the MAN on ways to protect their industries. I believe that most of the imports you are talking about are not the finished tomato paste, but rather, the concentrate ones,” Jacobs said, adding: “If they are the concentrate ones, then those people that import them are expected to pay some levies. Paying the levy is to balance against those people that have gone into backward integration and, therefore, producing their own tomato concentrates here. Unfortunately, the yield of tomato last year was not very good and that resulted in lack of enough tomato in the country. So, it’s a very difficult situation now.”

    He continued: “But I think what we have been doing in MAN is to continue working with those operators and government policy makers to see how we can balance the situation so that we cannot starve Nigerians of tomato consumption. They have to eat tomato and since we cannot produce enough in the country, people would be allowed to import concentrate, even though they will pay levies for importing them. But at the end of the day, we want to make sure that the operators are doing well and also the consumers that will eat it are seeing it in the market.”

    Speaking further, the MAN boss said despite the availability of land suitable for the cultivation of tomato in the country, it is appalling that foreign tomato paste still find its way into the country.

    Jacobs bemoaned the on-going challenges facing the local manufacturers of tomato paste, adding that apart from the environmental and industrial challenges, the issue of mass importation of the product into the country is the most critical thing affecting tomato development in Nigeria.

    The MAN boss explained that Dangote Group of Industries, Erisco Foods Limited and Savannah Tomato Limited, which are into manufacturing of tomato paste, are groaning over paste importation and non-availability of tomato.

    He also explained that governthe ment needs to further increase tariff on tomato paste importation, as the 60 per cent import duty and $1,500 per ton levy are not enough to deter the continued importation of tomato paste into Nigeria.

    Jacobs said Nigeria is the second largest producer of tomato in Africa and 13th in the world. “Sadly, about 750,000 of the tomatoes harvested in Nigeria go to waste as a result of poor Food Supply Chain (FSC) management, price instability and the supply preference of farmers and middlemen for urban markets than processors due to low farm gate prices,” Jacobs said.

    He added that “importers still spend N11.7 billion yearly on the importation of tomato paste into Nigeria, which is worrisome”, urging the Federal Government to grant indigenous manufacturers special window to backwardly integrate, saying that they should also be granted access to foreign exchange (forex) for tomato development.

  • N11.7b ‘spent yearly on tomato paste’

    The Manufacturers Association of Nigeria (MAN) has lamented that in spite of the availability of land suitable for the cultivation of tomato in the country, N11.7billion is spent yearly on the importation of tomato paste.

    Its President Dr. Frank Jacobs said Nigeria is the second largest producer of tomato in Africa and  13th in the world. It still spends N11.7billion yearly on the importation of tomato paste.

    “Sadly, about 750,000 of the tomatoes harvested in Nigeria go to waste as a result of poor Food Supply Chain (FSC) management, price instability, and the supply preference of farmers and middlemen for urban markets than processors due to low farm gate prices”, Jacobs said.

    Meanwhile, the Managing Director of Sonia Food Industries, Mr. Nnamdi Nnodebe, has urged the Federal Government to grant indigenous manufacturers 18 months window to backwardly integrate, adding that they should also be granted access to foreign exchange (forex).

  • Tomato paste importers seek review of forex policy

    Tomato paste importers seek review of forex policy

    Some importers have called on the Federal Government to review the Central Bank of Nigeria forex policy banning them from accessing foreign exchange from the official window just as indigenous producers are saying that the restriction is a welcome development in restoring agriculture as the main stay of the economy.

    Labour union officials in some of the local tomato processing companies have called on the presidency to prevail on CBN to review the forex policy listing of triple concentrate tomato paste among the 41 items banned from accessing foreign exchange from the official window by the Central Bank of Nigeria as the inability of the firms to import tomato concentrate which is the main raw materials used in their production process had drastically affected them.

    According to the President, National Union of Food, Beverage and Tobacco Employees, Lateef Oyelekan, the companies involved should be given the latitude to plan for backward integration as one of the downside of the policy is that it could lead to massive job losses, as an estimated 1000 jobs are likelyto be lost in the tomato process manufacturing sector.

    “The jobs of the workers are at stake unless the ban is reversed, and that the opportunity for backward integration would be lost by the affected companies.”

    According to him, the quantity of the produce being cultivated presently in the country is not enough for local consumption and the quality is not good enough to be processed into paste. However, Mr. Felix Aigoro, an Agricultural Expert with over 20 years experience in tomato farming, pointed out that Nigeria produces high quality tomato and is ranked the 2nd largest producer of tomato in Africa and 13th in the world with a total production estimated at 1million hectares of land producing 1.701 million tonnes per annum with average of 20-30 tons/hectare yet Nigeria remains the largest importer of tomato from China.

    In an interview with The Nation, the Agricultural expert on tomato adviced those clamoring for the review of the CBN forex policy to rather ask Government for greater aid and support towards granting low interest loans, infrastructures, steady energy and creating enough tomato processing plants.

    “It is estimated that between 35 per cent and 40 per cent of the total agricultural produce in the country is lost due to absence of non- provision of processing facilities. This has resulted in cycles of scarcity and plenty of fluctuations in prices”, regretted the tomato farmer.

    Decrying the unfortunate situation, the tomato farmer said that Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7 billion despite its massive local production adding that the trend may continue if adequate processing and storage mechanism is not developed and put in place.

    “Take for instance, a recent survey has revealed that most of the brands in the market are imported and the presence of local brands is scarcely noticeable’’, he said

    Speaking further, he said that although more than 200,000 Nigerian farmers grow tomato, not one of the more than 50 tomato paste brands for sale is made from their produce resulting in half rotting in the fields before reaching the market.

    “The market is assured for any entrepreneur who comes out with good quality brands because tomato products are in daily use, have high repeat sales tendency and a long cycle therefor establishing more tomato fruit processing plants in the country will go a long way towards utilizing the enormous quantities of fresh tomato that go waste for lack of processing and preservation especially during post harvest periods of plenty.

    Reacting to the statement that local production may not be enough to meet demand and the quality of the locally grown tomato may not be good enough to be processed into paste, Mr. Aigoro who has a 1st and 2nd degree in Agricultural science said that “Nigeria has the capacity to meet local demand and even for exportation and the quality of our tomato especially from the northern part of the country is top quality”.

    “We have seen a lot of improvement in the demand for our products especially our Life vegetable oil since the new CBN forex policy restricting importers of Vegetable oil from accessing foreign exchange through the official way” enthused Chris Chigbo, Executive Director of Chicason Group an indigenous company.

    Speaking, he noted that the restriction of imported finished products will greatly encourage local manufacturers who hitherto were finding it difficult competing in terms of price with most of the importers who were not even paying full duty on their products.

    “We are also happy with the increased tariff on imported lubricants. Before now, the market was filled with all brands of adulterated and substandard lubricants but with the increased tariff we now have some semblance of sanity in the lubricant market” said the Chicason, Director,manufacturers of A-Z oil.

    However he stated the need for a little review of the CBN forex policy on some raw materials which Nigerians are not yet producing enough to meet demand adding that restrictions on those materials will only make the manufacturers to source from parallel market which will  increase the price of the finished products.

    Also speaking on the policy, President of the Lagos Chamber of Commerce and Industry (LCCI), Remi Bello, while criticizing the policy, warned that most manufacturers might be forced to shut down and move their operations to neighbouring countries due to their inability to access foreign exchange for raw materials and other critical inputs.

    According to him, the government needs to first address the issue of post-harvest wastage emanating from inadequate storage and the absence of processing facilities and the development of agro-allied industry. “No matter how bounteous the nation’s harvest is, such productivity will count for little if the produce cannot be stored.” he said.

    However the CBN Governor, Godwin Emefiele noted that as a result of the policy, the bank has been able to conserve some foreign currencies with a lot of progress made on local production of the 41 listed items.

    According to reports, Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7billion.

    The CBN Governor clarified that “the Apex bank did not ban total importation of the said items but only restricted access of foreign exchange from official markets to the importers of those items that we think we can produce competitively locally so as to improve our local industries due to the challenges we have, due to the fall in crude oil revenue.”

    Appealing for more patience and understanding, from Nigerians and the people affected, he said that the Government and some other stakeholders are convinced that these items can be produced locally adding that forex can only be made available to those importing essential raw materials and goods that cannot be produced within the country.

  • Labour union calls for forex policy review on tomato paste

    Labour union officials in some of the local tomato processing companies have called on the presidency to prevail on CBN to review the forex policy listing of triple concentrate tomato paste among the 41 items banned from accessing foreign exchange from the official window by the Central Bank of Nigeria. The officials claim that the inability of the firms to import tomato concentrate, which is the main raw materials used in their production process, had drastically affected them.

    According to the president, National Union of Food, Beverage and Tobacco Employees,  Lateef Oyelekan, the companies involved should be given the latitude to plan for backward integration as one of the downside of the policy is that it could lead to massive job losses, as an estimated 1000 jobs are likely to be lost in the tomato process manufacturing sector.

    “The jobs of the workers are at stake unless the ban is reversed, and that the opportunity for backward integration would be lost by the affected companies.”

    According to him, the quantity of the produce being cultivated currently in the country is not enough for local consumption and the quality is not good enough to be processed into paste.

    He pointed out that it would take years for the planting, harvesting and processing of the produce into concentrate, adding that most of the companies had run out of stock.

    Oyelekan explained that the volatility factor inherent in tomato farming is often a product of seasonal variations, which is itself a function of the variables of weather, agronomy, water, seed, fertilizer, market, storage, transportation, and numerous other agro-allied business dynamics.

    “If triple concentrate tomato paste is now placed among the list of items that will not have access to the foreign exchange market overnight, that line of business has been killed because the government is working from the perspective that there are tomatoes in the environment for cultivation, processing into paste and packaging. Rather than prohibiting the items overnight, why not engage the manufacturers in discussion.”

    He expressed that the objective of the forex restriction was not a bad idea on its own, but lamented that the implementation of the policy has far-reaching implication in the short, medium and long term.

    Also speaking on the policy, president of the Lagos Chamber of Commerce and Industry (LCCI), Remi Bello, while decrying the policy, warned that most manufacturers might be forced to shut down and move their operations to neighbouring countries due to their inability to access foreign exchange for raw materials and other critical inputs.

    According to him, the government needs to first address the issue of post-harvest wastage emanating from inadequate storage and the absence of processing facilities and the development of agro-allied industry. “No matter how bounteous the nation’s harvest is, such productivity will count for little if the produce cannot be stored,” he said.

  • ‘Nigeria wastes N11bn annually on tomato paste importation’

    The Director-General, Raw Materials Research and Development Council (RMRDC), Prof. Peter Onwualu, said that Nigeria spent more than N11 billion on the importation of 65,809 tonnes of processed tomatoes annually.

    The News Agency of Nigeria reports that Onwualu said this in Gusau at the opening of a one-day capacity building workshop on tomato juice processing and marketing in Zamfara.

    He said the trend would continue until adequate domestic food processing and storage facilities were put in place.

    The director-general said that tomato could be processed into sauce, ketchup and paste, jam, among others, likewise onion and pepper, which could also be canned or dried, respectively.

    He said that utilising local resources through the use of locally developed technologies at lower cost would enhance production and value-addition to the primary and secondary raw materials to meet the needs of the nation’s industries.

    Onwualu said that the council had adopted a strategy to encourage value-addition to local resources, such as fruits and vegetables.

    In his speech, the state Commissioner for Commerce and Industries, Alhaji Hassan Zurmi, commended the council for organising the workshop.

    He said the workshop would sensitise farmers on how to preserve local products to avoid wastages and improve production.