Dire tomato paste shortage in Nigeria


According to FOODNEWS’ estimates, the estimated shortage may be accurate, if not even higher.

Local reports estimated a shortage of up to 150,000 tonnes of paste that Nigerian companies need for their production schedules. Triple concentrate paste historically accounts for the majority of imports.
Tomato products manufacturers in Nigeria have renewed their calls to the government to scale back the ban on imports of the commodity.
The low availability was triggered by recent action by the Central Bank of Nigeria (CBN), which banned 41 items, including tomato paste, from entering the country. The decision, which forbids Nigerian companies to import the blacklisted products, was intended to reduce dependence on foreign producers and stimulate domestic production of raw materials.
Customs data
According to global customs figures, Nigeria took in some 166,570 tonnes of tomato paste in 2013 (that is the latest full-year available data).
The leading paste seller to the country, China shipped 127,102 tonnes that year. In 2014 full year, China sold 112,135 tonnes to Nigeria. Deliveries dipped 45% in January-November 2015, from 106,700 tonnes in 2014 to 58,508 tonnes last year to date.
That is a decrease of about 48,200 tonnes from one supplier alone.
The US and Italy are two other exporters to the west African country, shipping 26,678 tonnes and 9,931 tonnes in 2014, respectively.
For the 11 months of 2015, US exports fell 60% to 10,326 tonnes, as did deliveries from Italy, at 3,667 tonnes (-51%). For comparison, Italian exports to Nigeria amounted to over 18,000 tonnes in the same period of 2013.
Other origins sell to Nigeria, including Portugal and South Africa, but account for minor volumes.
As we pointed out last week, Chinese deliveries to the country were sharply reduced in 2015 despite sellers decreasing their export price by 14%.
Last month, Nigerian associations called for an 18-month extension of the deadline for the sourcing of tomato paste abroad, to allow local companies to prepare and secure alternative supply channels.
At present, no producer of triple concentrate tomato paste is active in the country, FOODNEWS understands.
On top of that, the move could lead to job losses in the tomato manufacturing sector, the National Union of Food, Beverage and Tobacco Employees said, estimating that up to 1,000 positions in the industry could be at stake.

Analysis
What was planned as a straightforward initiative to stifle excessive foreign spending by local companies in tomato paste imports while boosting internal production is now showing for what it really is: an ill-thought, half-baked plan, put together hastily without a thought for the likely consequences on the industry in the country.
Data is there for all to see. Nigerian tomato paste production is zilch, and imports top 100,000 tonnes per year. Tomato is a staple in the country’s cuisine, hence the high imports, which customs calculated at USD200 million in 2013 – although local sources told FOODNEWS the market may be worth up to USD500 mln. Imports of tomato products as a whole amount to USD1.5 billion, according to the country’s authorities.
Regardless of the actual figure, the Central Bank should have asked itself the following question before implementing the ban on raw material imports: if we suddenly stop tomato paste deliveries from coming in from abroad, and we do not produce it ourselves, where are our companies supposed to source it from?
The move has so far triggered severe shortage, while no plan appears to be there to foster an internal supply chain. Of course, producing tomato paste cannot be done overnight. It takes investment in new facilities and farms, it needs planning and time. The CBN does not seem to be aware of any of that, or has carried on with its plan regardless.
FOODNEWS sees two main ways to go about sorting this situation. The first is to reopen the borders to tomato paste imports (at least temporarily), and establish a reasonable time frame before imports are restricted once again, so that companies can prepare and plan ahead. The second step would be to start a nationwide, multiple-year plan to produce paste domestically, potentially funded by the state as well as private enterprises, so as to give a viable alternative to manufacturers that will not be able to source abroad.
https://www.agra-net.com/agra/foodnews/tomato-products/paste/dire-tomato-paste-shortage-in-nigeria-503123.htm

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