How to Start Tin Tomato Paste Production in Nigeria.
Tomato paste production in Nigeria is booming. Why wouldn’t it? It has a target market of over 170 million people to sell to, without the disadvantages (perishable) associated traditional tomato. There is money to be made from tin tomato paste production in Nigeria, and I’m about to show you how. Let’s start from the beginning.
Tin Tomato Paste Production in Nigeria; An overview
Tomato is one of the most popular fruits in the world. It’s a staple fruit in Nigeria with a higher demand than supply. Its rich lycopene and diseases fighting content make it a healthy choice. The brilliant red fruit can e consumed in its raw state or cooked. Another option is to process it into tomato paste before consuming it.
The first thing you should know before starting a tin tomato paste production in Nigeria is the cost of the business. The start-up cost for this business is high. However, the potential profit makes it worthy of the cost.
There are a couple of things to note before you start a tin tomato paste production in Nigeria. Below is a couple of them.
Start with a Feasibility Study
One of the first steps to take before starting up a business is research. It gives you an idea of what you are getting yourself into and how profitable the business is. That way, you won’t end up squandering your money unnecessarily. So, before starting your tin tomato paste production business in Nigeria, carry out a feasibility study.
A properly done feasibility study will give you the following information;
- The cost of setting up the business
- How to reduce cost to maximize profit
- Expected return on your investment
If your study was properly done, you’d have a full picture of the advantages and disadvantages of starting a tin tomato paste production in Nigeria. The result will guide you through the decision-making process.
Attend to the Legal Requirement
There are a lot of legal hurdles to jump as far as tomato paste production is concerned in Nigeria. Registering the business and obtaining the necessary license and permit is not an easy matter. These stringent requirements are there because your business focuses on consumable goods. The consumers must be protected.
The best thing to do is include an inquiry into the legal aspect of the business during your feasibility study. Find out from already established tomato paste production companies in Nigeria what license and permit you’ll need. This is vital for your business to start up because it is highly regulated by NAFDAC.
Location, Location Location!!!
A good location is important for the smooth running of any business. Tin tomato paste production in Nigeria is no different. It is one of the factors that’ll determine the long-term success of your business. There are certain things to consider when picking a location for your business. These include;
- Proximity to the source of your tomato
- Proximity to the market
- Proximity to an available workforce
When you put the outline above into consideration, you may want to locate your tomato paste production business in metropolitan places like Lagos, Ibadan, Enugu, and other major cities in Nigeria.
Don’t Forget to Install the Equipment
Now that you have settled the issue with the location make a list of the equipment you’ll need for your tomato paste production business. Get experienced engineers to handle the installations. Some of the equipment you’ll need include;
- Cooling Tower Pump and Piping
- Delivery Truck
- Fine Pulper
- Fruit Mill
- Fruit Washer
- Product Piping and Valves
- RSSP Cooler
- Screw Pump
- SS Tank
- Standby Power Generator
- Steam Jacketed Kettles
- Steam Piping
- Steam Pressure Reducing Station
- Storage Tank
- Tomato Paste Form Fill and Seal Machine
- Water Chiller
- Water Piping
Get the Raw Materials
The most important raw material in a tomato paste production is obvious, fresh tomatoes. As said earlier, your business should be located to the source of this raw material. It helps reduce the cost of transporting them and retain their freshness while being processed. What you get in return is a high-quality tomato paste.
The Hiring Process is Important
Any business that has to do with food and health requires a strict quality control. This implies that you can’t hire just anyone. You need experienced and capable workers to handle the daily operations of your business.
You’ll need a blend of skilled, semi-skilled and unskilled labor in the accounting team, sales and marketing team, factory workers, transport, etc. If your workers do their jobs well, paying them should not be an issue. You would be making a good profit.
It’s All About the Packaging
Where packaging is concerned, get the best design that’ll leave a lasting impression on your customers. It doesn’t matter how great the taste is; if the packaging is not unique, it won’t get off the shelf. This is what differentiates other tomato pastes from yours.
Consider different packaging option such as tin, bottle or sachets. Use one of these three or all of them.
Know thy Market
For you to be successful at tin tomato production in Nigeria, you need to get a full understanding of the Nigerian market. Get a specific target market you intend to dominate and draw out strategies you intend to use. Work with distributors across the country. Finally, get a full understanding of your competitors.
Wrapping Things Up
Tomato paste production in Nigeria is profitable. However, like other businesses you have to be willing to pay the cost. The machines alone can cost as much as ₦20 million, depending on where you are buying and ability to strike a good bargain.
A well-done research can save you millions of Naira, that’s where to start. A good knowledge of your market will make you millions of Naira, that’s where to finish.