Tomato farmers groan as prices crash amidst harvest
As the dry season tomato harvest commences in Kano and other major tomato-producing states, prices have plummeted unexpectedly, raising concerns among farmers who have invested heavily in production.
A market survey revealed that a crate of fresh tomatoes now sells for N3,500, while a big basket is priced at N10,000. Farmers fear significant losses due to the sudden price drop, which is unusual at the start of the harvest season.
Isah Bello Abba, a tomato farmer, expressed anxiety over the situation, noting that farmers had made substantial financial commitments in anticipation of favorable returns. “We have made heavy investments this year, but from the look of things, we are not going to have a reasonable return on investment. This development is so scary, and we are just hoping that things will change in good time,” he said.
Alhaji Sani Danladi Yadakwari, chairman of the Tomato Out Growers Association of Nigeria (TOGAN), confirmed the worrisome nature of the situation, stating that while price drops are common at peak harvest periods, experiencing such a decline at the onset of the season is unusual. He assured farmers that TOGAN, in collaboration with the federal government, is already working on a strategy to address the issue.
He further urged entrepreneurs and agribusiness investors to consider establishing cottage tomato processing plants to mitigate tomato glut and post-harvest losses, emphasizing the need for value addition in the sector.
Source: DailyTrust
Expert Review and Recommendations
The current price crash in the tomato market underscores the persistent challenge of supply chain inefficiencies and market glut in Nigeria’s agribusiness sector. Below are key expert insights and recommendations for stakeholders:
- Investment in Processing Infrastructure: Stakeholders should prioritize the establishment of small- and medium-scale tomato processing plants to absorb excess supply and create value-added products like tomato paste, puree, and dried tomatoes.
- Cold Storage and Preservation Solutions: Farmers and agribusiness investors should explore investments in cold storage facilities and solar-powered drying technologies to extend the shelf life of tomatoes and reduce post-harvest losses.
- Market Diversification and Export Strategy: There is a need to develop an efficient distribution network that connects local farmers to national and regional markets. Government policies should support the export of fresh and processed tomatoes to neighboring countries.
- Contract Farming and Off-Taker Agreements: Strengthening contract farming arrangements with processors, supermarkets, and foodservice providers can help stabilize prices and guarantee income for farmers.
- Government Intervention and Policy Support: The federal and state governments should provide subsidies or incentives for agribusinesses investing in tomato processing and storage infrastructure. Additionally, strategic price stabilization policies should be explored to cushion farmers against drastic price fluctuations.
- Public-Private Partnerships (PPPs): Collaboration between agribusiness stakeholders, financial institutions, and research institutions can drive innovation in tomato farming, post-harvest management, and market access strategies.
By addressing these challenges proactively, Nigeria can transform its tomato value chain into a more sustainable and profitable sector.
