Business

CAL launches BIP for tomato industry and its value chain

In an effort to bridging the gap of want that led to the import of tomato paste and reducing the pleasure mounting on the scarce forex in the country, the Conserveria Africana Limited (CAL), has announced its plans to implement its backward integration strategy to produce the right quality and quantity of fresh tomatoes required to meet Nigeria’s need.

Mr. Francis Ogboro, Chairman, CAL, stated that Nigeria currently spends huge amount of money importing tomato pastes and concentrate, adding that it has the comparative and competitive advantage to produce tomatoes in the country.

He pointed out that his company has spent a fortune in the backward integration initiative, stressing that backward integration is the way to move the country out from importation of the commodity, stressing that it would help boost production of tomatoes and enhance local production.

Ogboro who stated this during the facility tour of the company’s state-of-the-art factory, noted; “There is huge money being spent on importation of tomato and because of our plans to backward integrate, if there is any local manufacturer where we can source our local raw materials, we have no business going outside the country to source for raw material, but unfortunately today, not one factory in Nigeria can produce triple concentrate. We realize that we can actually feed the whole West African countries from Nigeria. This resulted in our quest to look at backward integration. We have spent a fortune in this project and we have gone a long way.”

Speaking at the occasion, Mr. Zaki Anwar, General Manager of the company, stated the company hired an agronomist to visit tomato growing states in Nigeria in order to get the right yield, adding that it jointly employed a group of scientists that have developed a particular seedling required to boost the expected type of yield for tomato paste production scheduled to arrive the shores of the country soon.

He said; “We also have a pilot programme in Katsinna and have zeroed in all the farmers into a cooperative to provide seedling. We are the first company to think of backward integration. We are planning to convert everything we import to locally sourced. Our backward integration policy is very active and we have spoken to our stakeholders, but one major factor hindering the initiative is the lack of clarity in the policies of the federal government.”

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