Tomatoes Paste processing
- Nigeria
- For-profit, including B-Corp or similar models
Nigeria is a major player in the production of tomatoes in the world with 3.69 million tons produced in the year 2020, occupying 13 th and 2 nd positions in the world and Africa, respectively (Udoh, 2020).
However, about 50 percent (900,000MT) of tomatoes produced in Nigeria are lost every year due to several factors some of which are poor harvesting practices, poor postharvest handling, lack of storage facilities, lack of access roads, and poor mode of transportation, low capacity of local cottage processing industries among others.
Challenges of Tomatoes farmers , Processors and Businesses in Nigeria
94% of the tomatoes paste consumed in Nigeria today is imported from China. Thereby crippling tomatoes paste processing and tomatoes farmers in Nigeria.
There's a preference for tomatoes farmers and middle men to sell their harvest to urban buyers rather than sell to tomatoes processors nearest to them.
HLK Foods has established agreements with tomatoes farmers in northern Nigeria.
Before the seed hits the soil, they have a guaranteed buyer, which in this case is HLK Foods.
The farmers would usually notify HLK two weeks prior to the estimated day of harvest. Once, the tomatoes is harvested, it's transported and delivered to the HLK factory.
HLK would receive all the raw materials from the farm, carry out quality control and immediately begin processing of raw tomatoes into tomatoes paste.
The tomatoes farmers are our number one beneficiaries . They no longer experience 50% loss of raw materials and a guaranteed purchase of Tomatoes even before the seed hits the soil.
The lives of people in every bit of our supply chain is positively affected. From the man who makes our cartons, to the company that prints our labels, and to our 80% women production staff who help implement quality control on all raw materials delivered to the factory.
With HLK's current production capacity, there's only as much we can process.
Hence, 92% of tomatoes paste consumed in Nigeria would is still being imported.
HLK started in my mother's kitchen in Abuja, Nigeria. I ran the company for two years from this location amd decided to move to plateau state, which is a tomatoes farming Hub.
This was a Brilliant move as it brought a tomatoes paste processing company in close proximity to farmers, which reduced the cost of raw materials transportation and cut down post harvest waste by 95%.
The tomatoes paste is now transported and sold to the consumers in the west amd south of Nigeria.
- Generate new economic opportunities and buffer against economic shocks for workers, including good job creation, workforce development, and inclusive and attainable asset ownership.
- 1. No Poverty
- 2. Zero Hunger
- 3. Good Health and Well-Being
- 8. Decent Work and Economic Growth
- 9. Industry, Innovation, and Infrastructure
- 10. Reduced Inequalities
- 17. Partnerships for the Goals
- Growth
HLK Foods is a tomatoes paste brand i started from scratch in my mother's kitchen in September, 2016.
In 2018 ,after the pilot stage , HLK moved from my mother's kitchen in Abuja, Nigeria to a Modest production facility in Plateau State, Nigeria.
HLK was now processing tomatoes paste on an industrial scale, which met consumer demand within Nigeria and export to neighbouring Countries.
We had to halt production at thefactory in Plateau state due to security challenges, and i am back to my mother's kitchen in Abuja, NIGERIA
While production was ongoing at the HLK factory, we engaged over 3,000 tomatoes farmers.
Granting them access to cheaper fertilizer, Loans and ultimately a guaranteed purchase of Tomatoes even before the seed hits the soil.
1. HLK would need to set up a new tomatoes paste processing factory in Abuja, Nigeria. Away from the security challenges in Jos.
2. The tomatoes farmers lack access to the tools and skills needed to grow a sustainable all year round supply of tomatoes.
3. 60%-70% of all tomatoes harvested suffers post harvest loss.
4. There's a ready market for export, but HLK lacks the support to penetrate the international market.
- Business Model (e.g. product-market fit, strategy & development)
- Financial (e.g. accounting practices, pitching to investors)
- Human Capital (e.g. sourcing talent, board development)
- Legal or Regulatory Matters
- Monitoring & Evaluation (e.g. collecting/using data, measuring impact)
- Product / Service Distribution (e.g. delivery, logistics, expanding client base)
- Public Relations (e.g. branding/marketing strategy, social and global media)
- Technology (e.g. software or hardware, web development/design)
95% of the tomatoes paste consumed in Nigeria is imported from China.
With the right support from solve.
HLK would be able to resume commercial tomatoes paste production.
While engaging over 6,000 tomatoes farmers in Nigeria, and cutting down post harvest loss by 76%.
post Harvest loss is the major killer of the agricultural business in Nigeria.
HLK not only comes with a solution to process the harvested tomatoes.
But equally, would help farmers in Nigeria Mitigate the supply chain issues for other farm crops.
HLK helps cut down post harvest loss and increase profit margin for farmers.
HLK processes tomatoes with industrial Equipments.
HLK equally connects farmers with buyers of other farm crops.
- A new business model or process that relies on technology to be successful
- Manufacturing Technology
- Nigeria
Full Time: 12 people.
8 years.
Since 98% of the farmers are men.
I ensure that all the production staff at the factory are WOMEN.
In Nigeria, an annual total area of one million hectares is reportedly used for its cultivation producing about two million five hundred thousand (2,500,000) tons at twenty-five (25) tons per hectare while it makes up about 18 per cent of the average daily consumption of vegetables in Nigeria homes.
Over the years there has been tremendous increase in the demand for tomato paste and allied products in Nigeria.
This is because
1. The eating habits of most Nigerians have changed considerably with better enlightenment; they now eat more of European foods, which require a lot of tomato puree. 2. The packaging of tomato puree makes it easier for usage in homes and hotels 3. The nature of most of our staple foods (mostly starch and vegetable based) with its relatively heavy reliance on tomato, vegetable soups and stews.
Nigeria imports processed tomato paste to the tune of 65,809 tons valued at N 11.7 billion ($77.167 million) annually. The reason for this is not far-fetched; not less than 70 per cent of the tomato produced in the country is lost due to lack of preservation.
Through the intervention from SOLVE. HLK would be able to fullly mitigate the tomatoes paste crises in Nigeria.
- Individual consumers or stakeholders (B2C)
HLK lost all it's production capital due to the security challenges in Plateau, state.
And now seeks to set up a new factory in Abuja, Nigeria.