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Tomato Processing Industry in Nigeria Faces Crisis as Prices Soar Amidst Tomato Shortage

Tuta Absoluta Infestation and Erratic Supply Chain Strains Local Tomato Processors

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tomato paste - Investors King

In Africa’s largest economy, Nigeria, the tomato processing industry is grappling with a severe crisis due to an alarming ninefold surge in tomato prices.

Findings reveal that prices of tomatoes, a vital cooking ingredient in the country, have skyrocketed by a staggering 847 percent year to date. The primary reasons behind this unprecedented price hike are attributed to the invasion of Tuta Absoluta, a notorious tomato pest, in major tomato-producing states back in May, coupled with the challenges posed by the current rainy season.

The impact of the soaring prices has been acutely felt by tomato processors, who are now forced to suspend processing the fresh vegetable. The situation has led to a standstill in Nigeria’s tomato paste and concentrate production industry, with the country’s largest processor and two medium-sized factories shutting down operations.

Consequently, the nation has resorted to importing and smuggling triple concentrate from neighboring countries to meet the demand for tomato products.

Speaking on the issue, an undisclosed source from a prominent tomato processing factory said “When tomatoes are out of season like they are today, the prices skyrocket and factories cannot run profitably at these prices. We stop processing,” the source stated.

To mitigate the effects of seasonal fluctuations, some processors have adopted a strategy of producing large quantities of tomato paste during the main growing season and converting it into retail sachets in subsequent months when tomatoes are scarce and prices are exorbitant.

Tomato cultivation in Nigeria primarily occurs during the dry season, from December to April. The rainy season, from May to September, is not conducive to tomato cultivation as the excessive rainwater poses a significant threat to the tomato crop, according to agricultural experts.

The surge in tomato prices this year began in May following the invasion of Tuta Absoluta, which wreaked havoc on farms in major tomato-producing regions of the country. As the rainy season took hold, the price hike has worsened, prompting Nigeria to import fresh tomatoes from neighboring countries to bridge the supply gap.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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