Processing Firms Battle Tomato Shortage

• Processing Firms Battle Tomato Shortage

Acute shortage of tomatoes across the country linked to the low production rate of the crop has become a serious concern to processing companies. It was one of the reasons attributed to the shut-down of tomato paste plants.

Speaking with reporters on the sideline of the Institute of Directors Nigeria (IoD) induction in Lagos, with the theme: “Leadership demands of a director in a digital age”, organised by the institute, Group Deputy Managing Director, Kewalram-Chanrai Group, Mr. Victor Eburajolo, said sourcing raw tomatoes locally was becoming a problem for processing firms.

Eburajolo said because of the shortage his organisation sources tomatoes from smallholders for its Ikara Food Processing Plant in Kaduna, adding that tomato cost goes up to about four times once the season ends.

Besides this, he said tomatoes produced in the country are wasted due to post harvest losses, poor handling system, poor distribution channels and lack of access to markets.

Eburajolo said in terms of technology to improve the food value chain, there is much that should be done.

According to him, one of the problems facing the food processing industry is not embracing technology in food processing. “As a result, it has not improved as expected,” he said.

He explained that despite the government’s intervention funds to support the sector, businesses have not improved as expected because the funds did not get to those doing businesses. He added: “The government gave out intervention funds to revive the textile industry, but today the industry is still struggling.”

He advised the government to provide the enabling environment for businesses to strive, and support efforts geared towards improving the economy, noting that if the environment is created, entrepreneurs will find a way to do business and not wait for intervention fund which he noted does not really get to those doing businesses.

Earlier, the council’s President/Chairman, Alhaji Ahmed Mohammed, said the institute prides itself as champion of good corporate governance, adding that the future of business has also become less predictable because of the impact of disruptive technology, artificial intelligence and digital currencies, among others new interventions that characterised the digital age.

Eburajolo added: “The environmental shift caused by digital may challenge the very existence of individual companies, even entire industries. Boards and executives will need to question all pre-existing assumptions about the firm’s mission and industrial positioning, as well as the sustainability of its business models and methods.”