Ikara tomato processing plant back to business after 20-yrs

Springfield Agro, a subsidiary of Kewalram Chanrai Group, a successful Nigerian conglomerate with interests in many businesses in the country and beyond has resuscitated the Ikara tomato processing plant in Kaduna which has been moribund for over two decades through a public-private partnership with the state government.

The joint partnership between Springfield Agro and Kaduna state government is expected to reduce the country’s food imports and create about 100 direct jobs for the rural community with a spinoff that will create other indirect numerous jobs to the residents with and around the community.

“With the banned on tomato paste importation, everybody is looking inwards. The Ikara tomato processing plant has been there for over twenty years but only operated for two years before it was abandoned. We got a ten year lease to run the factory. The factory is situated at the tomato belt area of the state. With this, Springfield Agro would be able to address the issue of wastage in the tomato value chain,” said Victor Eburajolo, group deputy managing director, Kewalram Chanrai Group.

Nigeria is the 13th largest producer of tomato in the world and the second after Egypt in Africa. Nigeria has a domestic demand for tomatoes put at 2.3 million tons, while it produces only 1.8 million tons annually, according to the Federal Ministry of Agriculture and Rural Development (FMARD).

About 45 percent of tomato produce is wasted due to lack storage facility, poor handling practice, and poor transportation network across the country. The situation has resulted in an import bill of N16 billion annually in the importation of tomato paste to make up for the shortfall in local production.

“We see a business opportunity here by helping the farmers to grow more tomato and also help to reduce the country’s importation of tomato concentrate,” Tarun Das, managing director, Springfield Agro Limited.

According to Das, “We would bring farmers under our out-growers scheme where we give them good seedling to improve their farm yields. There is also going to be a demonstration farm where we demonstrate to farmers how to apply best practices.”

As a take-off investment, a total of N200 million was spent by Springfield Agro in the refurbishment and installation of modern processing equipments and machineries at the Ikara tomato processing plant in Kaduna, The company acquired 6oo hectares of land for its out-growers scheme. The company is expected to have six tomato processing plants in other states of the federation. 

Springfield Agro also signed a Memorandum of Association (MoU) with the Growth Employment in States Wholesale and Retail Sector (GEMS4), a project funded by DFID/UKAid. The MoU is to develop the tomato value chain and improve the quality of produced by small holder farmers.

Mike ochonma & Josephine Okojie

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