With economic recessions come several business opportunities. It is becoming more obvious that agriculture is one of the keys to survival for Nigeria, given the continuous slump in global oil prices and the consequent hike in the local price of petrol. Not only has petrol become almost priceless especially for the poor, kerosene too is taking a hike. Buying kerosene for 140 per liter is without mincing words, a clear sign of ‘economic depression’. In this dark economic clouds however is a silver lining – Tomato
Engaging in agriculture is profitable in this day, but the tomato business appears even more so. The current sky-high cost of tomatoes in market across Nigeria right now is simply alarming. A bucket of tomatoes that used to sell for 200 Naira and is now going for 3000 Naira, and in some cases even more. It is not only terrifying to know that you now need about 1500 Naira to prepare a decent pot of soup, but also sad that many Nigerians will no longer be able to spice their meals with tomatoes. Because of the rise in the price of fresh tomatoes, many Nigerians have turned to preserved tomato paste as the pain bites harder. The present situation however presents a business opportunity especially for tomato growers and processors.
The newly established Dangote Tomato Processing Factory in Kadawa, Kano State has recently suspended operation, as a result the insufficient supply of raw tomatoes. This should encourage young farmers to intensify efforts in tomato farming and increase their value by processing them into pastes. There can be no better time than now to seek to make wealth from agriculture, especially to take advantage of the situation and play in the tomato production value chain.
The scarcity, and subsequent exorbitant prices of tomatoes in the country has been traced partly to the recent outbreak of a devastating tomato pest called Tuta Absoluta. The larvae of Tuta Absoluta mine the leaves producing large galleries and burrow into the fruit, causing a substantial loss of tomato production. Damage can reach up to 100 per cent and occur throughout the entire growing cycle of tomatoes. Some of the tomato traders complain that the cost of transporting fresh tomatoes to markets across the country is too high and making it almost impossible for them to make any profits.
Indeed, these reports are quite depressing. Nigeria, known to be the 14th biggest producer of tomatoes in the world with an impressive growth of 1.5 million tonnes of tomatoes every year now struggles with a serious supply challenge and incredibly high prices. As alarming as this appears, some smart traders and middlemen would appear to be taking advantage of the situation to make quick gains.
Agriculture has always been a vibrant and important part of the Nigerian economy. Though largely overlooked, especially over the past few years, currently realities now make it seem set to stage a come-back as the potential ‘saviour’ of the national economy..
The current high price of tomatoes is symptomatic of deep problems with the Nigeria agricultural sector. Today it is tomatoes, tomorrow it could be some other important crop. Let’s all wake up to the deplorable state of Nigerian agriculture. Getting our hands dirty to rebuild our agriculture has never been more imperative. Given our huge population and food demands of the Nigerian people, there is clearly a fortune to be made from agriculture, if handled right.
Let us return to the farm and plough up small fortunes for ourselves by being producers rather than just consumers.
