NEARLY everything man eats comes from the farm. So, it is not surprising that farming or selling farm produce can be a thriving business. For instance, the sale of tomatoes or any other farm produce can be self sustaining.A trade that guarantees "fair income daily," the tomato business, according to traders, is a venture worth investing in, at small, medium and large scale levels.Traders note that the widespread acceptance of tomatoes as a major ingredient makes it a marketable and profitable commoditypatronised by persons across all financial strata in the society."The tomato dealership has enormous market; so, competition is often not considered a challenge in this line of business," says Odunayo Titilayo, a trader at the popular Mile 12 Market in Lagos."Tomato is virtually used by every tribe in Nigeria, and this has made the demand for its by-product to continually outweigh its supply."Gains from the sale of tomatoes vary, according to dealers. And this is largely dependent on the size of the business, the location and the quality of the product.They explain that the highly nutritive content of tomato and its diverse usage as a food supplement also make the business a money spinner.Titilayo notes however that the business is seasonal, adding that the variations in the countrys climate affect market activities in the trading of tomatoes in Nigeria.She explains that the prices of the commodity differ during rainy and dry seasons, adding that its scarcity often shoots up the price.According to her, this explains why during scarcity, traders make additional income, compared to what they earn in times of plenty.She says, "I have been in this business for up to nine years, and I know the dynamics of this trade. Those of us who sell in wholesalein large quantitiesto final consumers make more money than retailers, who sell in small portions to consumers. Of course, this is normal."But one good thing about this business is that you can be sure of making sustainable income on a daily basis, whether your tomato business is a large, medium or small scale one. And in fact, whenever there is scarcity, be sure to always laugh to the bank after a days work."Currently, the regular basket of tomatoes sells for between N4,500 and N5,000, while the cheaper version, popularly called Esha, consisting of damaged tomatoes as a result of poor storage facilities or transportation hiccups, sells for between N2,000 and N2,500.Traders say on the average, N1,000 can be earned as profit on a basket of tomatoes sold, adding that when there is enough supply of the product, dealers may sell up to 10 baskets within a week.They note that the sale of tomatoes is most profitable at market places, where food items are sold. The reason, according to them, is that as a result of the nature of the commodity as a perishable product, consignments must be completely sold out daily, except the dealer has a good storage facility.Dealers say a start-up capital of about N150,000 would be enough to embark on the trade. Notably, one of the most important things any beginner needs to know is how to purchase tomatoes. The poor transportation system in the country, including bad roads, and a lack of adequate storage pose major challenges to the business.According to traders, about 50 per cent of tomatoes produced yearly is lost, owing to these challenges. Dealers say, these often contribute to the inadequate supply of the product during certain periods of the year, which makes it expensive, during such periods."We are entering into the tomato season. By January, a basket of tomato will be selling for about N3,000, while the Esha will go down as low as N300 and N500," Titilayo says."But during periods of scarcity, which often comes when the rainy season approaches, the price of a basket of tomato usually moves up, selling for between N7,000 and N15,000 or more, depending on the area. Customers, at such times, complain but some of them fail to understand that we are not to blame," she explains.Another dealer, Mr. Usman Kazeem, says higher income can be generated by processing tomatoes into finished products.He advises that Nigeria has to focus more on its area of strength, adding that the country surely has a comparative advantage in the agricultural sector, "especially in tomatoes production and processing."Kazeem, who supplies tomatoes in large quantities to firms and large scale eateries, stresses that more money can be made through the processing of tomatoes, with employment opportunities created in the same process."In advanced nations, tomatoes are either presented fresh in supermarkets or packed in tins for consumers. The ones that are packaged are exported, and Nigeria is one of the countries involved in its importation, indicating that we consume more than we can produce," he says.According to the trader, since tinned tomatoes do not come in large packs, it may often not meet the needs of the large number of consumers in Nigeria."So looking at this, it is quite obvious that we have a market; and something needs to be done fast," he stresses.
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